Wind firm seeks strategy shakeup (cost overruns and production problems)

[phantom power]

If I were an ungenerous man, I might lambaste the wind industry for their inexcusable cost overruns and backpedaling on energy production.

But I strive to be generous. Instead I will point out that this is probably a combination of receding horizons, and the inevitable difficulties that come with actually producing energy in large quantities.

One of Canada's up-and-coming wind power developers, EarthFirst Canada Inc., has called in consultants to look for "strategic alternatives" after its key project in British Columbia was hit with cost overruns and a lowered estimate of potential energy production.

EarthFirst's predicament underlines the precarious economics of the wind business - especially for small developers - even at a time of booming growth for the industry.

http://www.reportonbusiness.com/servlet/story/RTGAM.20080822.wrwind22/BNStory/SpecialEvents2/home

[ElectricGrid]

1. Looks like bad planning and management to me.

[The Croquist]

2. It doesn't really make sense to me:

Construction cost are up 10%. That's bad
Expected power output down 2.3%. That's also bad.

What isn't mentioned is the expected revenue. I can't believe that, with the cost of energy exploding, revenue won't make up for these problems.