Pattern Energy Expands to Wind With IPO Cash

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

Oct. 22 (Bloomberg) -- Mike Garland, president/CEO at Pattern Energy, discusses how his company is using cash from their recent IPO to invest in wind energy and the future of subsidies for the industry. He speaks on Bloomberg Television’s “Bloomberg Surveillance.”

By 2015. we are reserving cash, doing acquisition, acquiring the 8 original projects -- the third area is working capital.

When we hear wind energy, we think federal tax subsidies and credits.

People make a big deal out of it, every energy resource has subsidies.

This industry is turning off of good subsidies, it will be good parody of natural gas over the next few years.

We would like to see an extension.

Our company believes that we can survive without it.

Price waterhouse cooper had a scanner.

-- a scatter dot chart saying that wind was not sustainable.

Can it work?

Can you scale what pattern energy does?

There are a lot of new studies that counteract that position.

If you look over 20 years, it is at parity with everything else in terms of cost.

Over the last 4 years, the production we get out of the same resource from new technology is 50% to 100% more energy than the technology from four years ago.

Like fracking, there is a new technology, the stereotype of wind energy is just a stereotype.

It took many years for fracking -- did we do enough physics there?

I want to bring it back to washington for a moment.

Lately, republicans have been making noise about this subsidy.

If it -- it is due to be renewed at the beginning of 2014 as the result of the fiscal cliff deal.

Are you worried that it will not be?

A one-year renewal will cost $6 billion.

Those are a little inflated, the estimates.

I am not worried.

I think it is the right thing for the industry and the country.

We have about 500 manufacturing facilities supporting wind, will be awful to shut us down.

The other industries get renewables, we think it is fair that we get extended.

We have been an advocate to take away all subsidies, we would be happy with that.

Wind energy gets about 42% of electricity subsidies.

In 2012, it only generated about 4% of u.s. energy generation come how much do you need?

We think it is only 3, 5, 6 years and we will be at grid parity.

Part of the issue is that for the last six years, it has been the number one or number two new capacity additions in the north america or canada, the largest amount of energy being produced.

With growth -- you are on twitter, you want to bring energy from your twitter page -- how do you bring wind energy to chicago or new york?

Usually we do it through utilities.

Most of our contracts are 20 year to 25 year contracts with utilities.

That is one of the benefits of wind, long-term, fixed-rate contracts.

There are some avenues for true utilities and independents to buy directly.

Michael wolff with us, do we need wind thingys?

Wind turbines?

An essential part -- in central park.

Do we have to have them?

Do we need the propeller?

For the most part, yes.

You are not telling the energy you generate to coned?

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change