Smart Grid Stock List: They're All Good

I've been writing about the smart grid and its potential since before I joined AltEnergyStocks, in 2007, although at the time, I wasn't using the term: I mostly called it "Smart Metering." Now, Smart Grid is a central part of federal stimulus plans, and the term is firmly ensconced in the popular lexicon. GE even created a Super Bowl ad around the Smart Grid (video).

It was far past time to create a Smart Grid category in our Alternative Energy Stock List, but now we've done it. The companies in the Smart Grid Stock List were previously categorized as both Energy Efficiency Stocks and Electric Grid Stocks. Now, they are in the Smart Grid and Electric Grid categories, but only in the Energy Efficiency category if they also have a more conventional energy efficiency business. The broader Electric Grid category contains both Transmission and Distribution companies, like the ones in my Transmission Shopping List, as well as companies more narrowly focused on the smart grid. A few of the IT companies which have been moving into smart grid (such as IBM, Cisco, and Google) are in the Smart Grid category, but not in Electric Grid.

For readers who want something more than just a list of companies, I'm planning to pick my top five for a future Shopping list, but it will be a difficult choice to pick my five favorites... I like them all. Smart grid is one of my favorite categories because of the enormous potential to help decarbonize the economy. Successful adoption of smart grid technology will:

• Reduce total electricity usage
• Reduce peak demand
• Lower the cost of renewable energy integration
• Lower electricity bills
• Allow electric vehicles to charge without overwhelming the grid.
• Stimulate job growth

Sound too good to be true? It isn't. It's what happens when you start using your brain on a problem that you'd previously only attacked with brawn. Hence the "Smart" part of Smart Grid.

Here's the link to our Smart Grid Stocks.

DISCLOSURE: Tom Konrad and/or his clients own GE. He has a short position in GOOG.

Comments

[Blue Duck:]

Take a look at Beacon Power (BCON) and would welcome your comments.

TIA

Jul 16 08:28 AM

[CGP:]

Certainly big potential but my sense is it's early in the game to be investing on this thesis. Also it seems smart grid was talked up more in the stimulus than it had actual funding.

Jul 16 10:23 AM

[Alan Young:]

Not so hard to prioritize, because your list is a mix of three types of stocks that are not even comparable:

IBM, GE, GOOG, CSCO, blue-chips to whom the smart grid business is a small sideline. You don't want to tie an index to their other business, that's absurd.

ITRI, ENOC, profitable companies for whom smart grid is a core business.

And a bunch of start-ups which are trying to get a piece of the market but are not making a profit yet. You don't want to base your investments around that, either, even if they have great ideas.

Jul 16 11:38 AM

[Tom Konrad:]

I like BCON - See 10 Green Energy Gambles for 2009: www.altenergystocks.co..., but I consider it to be an energy Storage stock, not a smart grid stock. That's why it's not in the list.


On Jul 16 08:28 AM Blue Duck wrote:

> Take a look at Beacon Power (seekingalpha.com/symbo...)
> and would welcome your comments.
>
> TIA

Jul 16 05:19 PM

[Tom Konrad:]

CGP - agreed it's early in the game... I lean towards the profitable pure plays pointed out by Alan Young.

As for the stimulus, there is significant funding in the form of federal matching grants for utility expenditures. See: www.altenergystocks.co...


On Jul 16 10:23 AM CGP wrote:

> Certainly big potential but my sense is it's early in the game to
> be investing on this thesis. Also it seems smart grid was talked
> up more in the stimulus than it had actual funding.

Jul 16 05:23 PM