Warren Buffett Spends Big on Clean Energy
Buffett’s investment company Berkshire Hathaway Inc. is spending billions of dollars on the construction of wind and solar power plants. Speaking at the Edison Electric Institute’s annual convention in Las Vegas on Monday, Buffett said that Berkshire Hathaway has committed $15 billion to renewable energy already. More importantly, Buffett said that he is ready to invest another $15 billion in the sector.
The key question is why is Buffett is so keen on clean energy now. While one reason of course is increasing energy demand, his willingness to invest more money in the sector could stem from a recent Environmental Protection Agency (EPA) plan that is seeking a 30 percent reduction of carbon emissions from 2005 levels at coal-fired power plants by the year 2030.
The EPA recently announced a rather controversial plan that aims to reduce the U.S.’s carbon emissions by 2030. Especial they want utilities to cut carbon emissions at coal-fired power plants by 30 percent from 2005 levels by 2030.
The EPA’s plan is likely to force utilities to shift from coal to natural gas. Indeed, natural gas will be the biggest beneficiary of the move. However, the plan is also expected to boost interest in renewable energy. This is possibly one of the reasons why Buffett is looking to bet big on the industry.