Coal utility TransAlta attempts takeover of Candian Hydro

[phantom power]

Big Renewables is assembling itself.

Economy, policies energizing Canada's wind sector

A C$654 million ($611 million) takeover bid by TransAlta Corp for Canadian Hydro Developers, the country's biggest wind energy producer, has also boosted investor sentiment and signaled wind power is both viable and here to stay, analysts say.

"If you think the coal-fired business is a declining business, the TransAltas of the world are not going to just sit there and watch themselves shrink and die," said Rob Mark, an energy analyst at MacDougall, MacDougall and MacTier.

"They're going to adjust and adapt, and the quickest way to do that is buy the guys who are coming to eat your lunch."

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"TransAlta's attempt to acquire Canadian Hydro has energized interest in the sector," said Paul Taylor, chief executive of NaiKun Wind Energy Group Inc, which is developing Canada's first offshore wind farm.

As the green energy sector flourishes, companies will likely be absorbed by the large, stable utilities dominating power production, MacDougall's Mark added.

http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE58J12P20090920