Bloomberg writes on the consequences of California’s push to electrify vehicles, such sizeable grid upgrades. Power companies including Southern California Edison have to install new transformers and meters to handle greater demand and prevent blackouts when autos are being charged at outlets. Transformers are designed to cool down during the night, so recharging auto batteries will require more transformers and important investments in the electric business. Who makes transformers for Southern California Edison? Who will profit from the change in electricity demand? Which companies are in the electricity management business? (Pic Transformer in Beer Sheba)
5 comments:
A wild ass guess on my part, but I think transformers are made in Mexico (GE), India (India Transformers and Electricals-ITE) and the southeastern United States.
I know of a one small transformer maker in the Midwest, but they aren't large enough to be a significant outlet for your investable cash.
GE doesn't actually make their own transformers in Mexico, that is done by the Mexican conglomerate Xignux under GE supervision.
I think the best bet however could be ABB, since they make a lot of high quality AC equipment and have a promising line of high-voltage DC distribution equipment and are now marketing a medium voltage version of the same.
In fact, while I am on the subject of GE, I think they have stopped making high voltage switchgear and instead import switchgear from Japan, that is either made by Toshiba or Hitachi - I don't remember which. At this point in its development GE really only makes locomotives, railroad control equipment, turbines of various kinds (water, jet), markets foriegn equipment (including nuclear reactors) and engages in banking.
Even if you are right the electricity for those cars has to come from somewhere, and the most likely candidates would be:
1. From the excess powerplants that were needlessly approved for construction in Arizona during the last California power crisis and may have actually been built.
2. From newly built powerplants, most of which will probably be located outside of California. If these powerplants are built they will need boilers if they use conventional fuel, or primary to secondary heat exchangers both of which are designed and built by Babcock and Wilcox. If the plants are built outside of California ABB will most likely have to make the equipment to transmit it into California. In fact, ABB built the Pacific Intertie to transmit electricity from the dams in the Pacific Northwest into California.
Aren't there vast fields of potential in Israel? I would assume that Israel has vast untapped potential needing just a wee bit of investment from a discerning capitalist.
Further, I think you are projecting you political thinking onto your investing, which could cost you money.
That utility pylon in the foreground of your photo reminds me of a really large power pylon I saw in south Phoenix that had barbed wire around its legs about ten feet up from the ground to prevent the local ghetto urchins from climbing the pylons.
You certainly know a lot about the power industry, Ronduck.
I took this picture in Beer Sheba near a school. The pylon was surrounded by barbed wire, to make it more difficult to climb.
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