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Warren Buffet’s utility company, MidAmerican Energy Holdings Co, announced yesterday that it had placed a massive order for 448 wind turbines, worth $1 billion. The turbines, which will be installed in Iowa, represent the largest order to date for a land-based wind energy project.

warren buffett, wind turbines, wind power, wind power purchase, land-based wind power, Iowa power, utility companies, MidAmerican Energy, wind power prices, clean energy investmentsPhoto © Shutterstock

$1 billion may sound like a lot, but when you look at the numbers behind the deal, it starts to make sense. Not only is wind the cheapest source of power in Iowa right now, turbine prices have also fallen by 26% worldwide since 2009. Siemans, the manufacturer of turbines in question, is pointing to the purchase as a sign that wind power is becoming competitive even without government subsidies.

This move is part of a long-term strategy on Buffet’s part — his company is already planning to slowly close down some of its coal-powered plants in 2015 as the new turbines start to go online. He’s pointed out before that utilities can easily make investments in clean energy if they simply retain some of their earnings each year, and now it seems he’s decided to lead by example.

Via Treehugger