Wind energy attracting big investments again

A federal program offering cash grants to help fund alternative-energy investments has helped spur renewed investment in wind energy, according to The Wall Street Journal. Russell Gold reports "after a six-month lull, Wall Street is getting back into the business of financing new wind farms."

Gold writes that Morgan Stanley and Citigroup Inc. have separately invested $100 million to finance wind farms. He reports that under the new program the government will give companies a 30 percent cash rebate for the cost of building a renewable-energy facility. The Department of Energy and Department of Treasury expect to spend $3 billion on the program. (Journal chart)

Not everyone is convinced the program will work. Gold quotes a spokesperson for Rep. Darrell Issa, R-Calif., "We are concerned that this may evolve into a Cash for Clunkers version 2.0." Unlike that program, Gold reports, the government has placed no spending cap on renewable energy grants and is committed to spending as much as is needed. (Read more; may require subscription)

Gold's story comes on the heels of Business First of Louisville's report Friday that Kentucky's two largest utilities, Louisville Gas and Electric Co. and Kentucky Utilities Co., filed a "notice of intent" to add wind energy to their profiles of energy service. Kentucky has relatively little wind-energy potential; the subsidiaries of E.ON U.S. plan to get theirs from Illinois. (Read more)