When it comes to energy, GE is all about big: big coal plants, big nuclear plants, big wind towers. So why would the $183-billion a year industrial conglomerate bother to invest a small amount of money—just a few million dollars – in a small company that makes wind turbines so small they can be erected in your backyard?
Perhaps because, under the right circumstances, homeowners can make their own wind-generated, low-carbon, electricity for less than it costs to buy power from their local utility. This could turn small wind into a big deal.
Southwest Windpower, the company backed by GE, has made quite a few of those small turbines–more than 140,000 since the company was started back in 1987. The company manufacturers the wind turbines in Flagstaff, Arizona, and in a 50-50 venture with a Chinese partner in Ningbo, China. Revenues were about $24 million last year.
I met Frank Greco, Southwest Windpower’s CEO, last month at the GE research center in Niskayuna, N.Y., where GE Capital was showcasing some of its venture investments. GE invested in Southwest Windpower early this year, along with Altira, Rockport Capital Partners, NGP Energy Technology Partners, and Chevron Technology Ventures, Chevron’s venture capital arm. Collectively, they invested $10 million. (more…)
