Follow Smart Money into Clean Energy

Where is smart money heading as the market turns? A large amount of capital is racing to the clean energy sector as investors see a new wave of innovation and the possibility of explosive growth. The path to a sustainable energy strategy is likely transformational to the world economy. The transition from a carbon-based energy economy to one of alternatives seems inevitable and only a matter of time. The difficultly lies in entering the field at the right time so as not to be too early or too late to the upcoming wave. Yet, the tide seems to be incoming. Where should recent graduates look for employment? Green technology!

Institutions see major growth in the clean energy sector over the coming years. The Obama administration appears to be committed to implementing a clean energy investment plan. To achieve his administration's goal of generating 25% of energy from renewable sources by 2025, they will be making unprecedented investments in renewable energies. While expectations have been reduced with the current economic downturn, 75% of institutional investors see increased investment over the next 3 years.

The world has seen rapid growth in clean energy investment over the past 5 years. 2008 was the first year of less than 50% growth registering a mild 5% growth in investment as a result of the global economic downturn. A total of 10% of global energy infrastructure spending is allocated to clean energy. The maintaining of a positive growth rate in investment through this recession is relatively impressive confirming the high probability of greater investment down the road.

Investors can benefit from this wave by establishing a position in the PowerShares Global Clean Energy Portfolio (PBD). The PBD tracks the WilderHill New Energy Global Index (NEX), which is comprised of 85 clean energy companies listed on 24 exchanges in 21 countries around the world. The fund focuses on companies "whose innovative technologies and services focus on the generation and use of cleaner energy, conservation, efficiency and the advancement of renewable energy in general". The Index has 30% weightings in both wind and solar with smaller weightings in energy efficiency, biofuels & biomass, other renewables, power storage and energy conversion. The NEX is determined by a group of 45 industry analysts working for the industry-leading New Energy Finance.

Major stock market downturns typically cause the greatest pain to the most speculative stocks. These large declines in price are great buying opportunities prior to a revival in economic growth and a stock market turnaround. The PBD is already up 19% year-to-date outpacing the S&P 500 by over 17%. Investors see large growth in this sector and are snatching up shares in anticipation. An investment in a broad, diversified sector fund may see market-beating capital appreciation over the long-term.

Disclosure: No relevant positions.

Comments

[enstreet_info]

Clean energy is a very important topic that will have an impact on us all in the coming years. See enstreet.com for some more information about news and companies in the clean energy industry

2009 Jun 30 11:24 AM

[jerrydd]

Billp37, your posts here and on your website are completely wrong technically. You putting up Fast Neutron show how little you, he knows. Rattie is just as bad.

While by utility standards solar, wind are not concentrated, by any other they are plentiful.

For instance solar is over 100watts/sq' with a 1000sq' roof, that's enough, 100kw/hr for 4-6hrs/day in most areas average, for many homes if used correctly. Using 25% eff solar thermal gives 100kwhrs/day of electricity and 250kwhrs of heat for hot water, heating. FN says only 5-6sqmeter!!

Wind only takes up enough space for a small base and 4 guy wires. Certainly many times more than FN's 1.2watts/sq meter as one can put up a 10kw unit only using a couple sq meters.

If wind is so bad why then last yr it was the US's largest new electric source? More than coal, NG, hydro or nuke. Big wind is now competitive with coal.

I explained this to you a couple days ago yet you still put up such misinformation.

You are a fraud. Are you just trying to drive people to your site?

2009 Jun 30 04:20 PM

[fireofenergy]

Well how much does solar produce? 1,000 watts max per sq meter at 100% efficiency. At PV industry standard, 150, at concentrated in labs, about 350 to 400, and at commercially viable concentrated thermal using mirrors and molten salts, about 200, much more if used just for the heat. Where in the h--- does Billp37 get his info!

He may be against solar for ulterior reasons, I'm just against the bulldozing of thousands of sq miles. No problem, the desert can easily withstand post erected mirrors, or what have you without the need to pave over the desert

~Without unlimited clean energy~
~Freedom is lost~

2009 Jun 30 11:41 PM