General Electric (GE) caught some investors by surprise with its announcement that the “GE of the future” will include renewable energy, in addition to power and aviation. The decision was a reversal from November 2017, when reports arose that a post-restructuring GE would focus on power, aviation and health — its three biggest industrial segments in terms of revenue and profit.

Morningstar equity analyst Joshua Aguilar considers the decision last month to keep renewable energy instead of health to be “a bit of a pivot,” but one that actually makes sense, according to investors.com.

He noted renewables are poised to compete with fossil fuels subsidy-free from a levelized cost of electricity standpoint, and have a lower environmental impact to boot.

“When wind is cheaper (unsubsidized) and better for the environment, it’s a bit of no-brainer,” he said. “Renewables are becoming really attractive.”

Aviation, power and renewables also share the underlying turbine technology, creating business synergies.

But the company’s renewables bet is “not a slam dunk,” Aguilar added.

Wind energy suffers from the same intense price competition to gain market share that has whacked the power unit. Top rival wind-turbine producers include Denmark’s Vestas and Siemens (SIEGY) Gamesa.

According to GE, its renewable energy segment is seeing “strong revenue and orders growth from repowering projects, new product introductions and digital capability.”

In 2017, the unit generated $10.3 billion in revenue and turned a $0.7 billion profit. Orders grew 1% to $10 billion.