Confidence in Green Energy Growing Faster Than the Dow
The Dow Jones Industrial Average surged above the 10,000 mark yesterday as market confidence that an economic recovery is underway reached a new high.
Of course, green energy companies have been feeling bullish for a while now, spurred on by $3 billion in investment from the government stimulus plan.
But does the optimism in the sector reflect reality?
In a word: yes.
Every day we’re seeing new deals and investments across a wide spectrum of green energy technologies.
An American Wind Energy Association spokeswoman told Bloomberg at its New York conference yesterday that the group saw a surge in Q3 installations, thanks to $950 million in cash grants from Uncle Sam.
The pace won’t match the 8,300 MW seen in 2008 but “it’s looking better than 2007.”
Also, Portugal’s EDP is putting $1.3 billion a year into solar power in the U.S.
All this energy is going to need to get to market, so the announcement by Tres Amigas LLC that its plans to connect the three American power grids are going forward, was welcome news. The group has signed on transmission line company American Superconductor as an investor and supplier.
The key to continued activity, according to Grist’s Todd Woody, is support from the U.S. Department of Energy and federal regulators.
…disruptive startups will depend on government policies and largesse, given credit-crunched investors’ aversion to bankrolling new technologies to the tune of billions of dollars.
So it’s good that the political climate continues to look favorable for green energy. The Kerry-Boxer climate change bill is surging forward on nascent, though fragile, support from Republican Sen. Lindsey Graham, and Alaska’s Lisa Murkowski is making encouraging statements.
The price of oil, which continues to climb past $75 to a one-year high, will only make legislative action, and investment in green energy, a greater imperative.
It’s no longer blind optimism, things are looking up.
Photo: Courtesy Flickr
