Will We Have Too Much Generation for Renewables?

Too Many Brownies Before Dinner "When you feed your kid six brownies before dinner, you can't expect him to eat the salad, no matter how good it is."  So says Leslie Glustrom, a long term renewable energy advocate.  This is her metaphor for why Xcel Energy (NYSE: XEL) has been reluctant to pursue Demand Side Management (DSM) and renewable energy projects in Colorado as they have been in Minnesota.  Because Xcel is currently constructing 500 MW of new coal-fired generation, and they are also interested in a 300-350 MW IGCC plant by 2013, they may have little demand for...

Book Review: Investment Opportunities for a Low Carbon World (Wind + Solar)

Charles Morand Tom and I recently received complimentary copies of a new book called "Investment Opportunities for a Low Carbon World", edited FTSE Group's Director of Responsible Investment Will Oulton*.  The book is a compendium of articles by 31 different authors broken down into three main categories: (1) environmental and low-carbon technologies; (2) investment approaches, products and markets; and (3) regulation, incentives, investor and company case studies. While Tom will provide a comprehensive review of the book once he's finished reading it in its entirety, I will instead review a few selected chapters over...

If Energy Were Free and Unlimited…

David Gold As soon as gas prices rise, our nation becomes focused on energy.  When they drop again, it falls off most consumers’ radar.  Yet the importance of energy goes way beyond the cost of filling up your gas tank or paying your electric bill.  In often-extraordinary ways, energy is interwoven into absolutely everything that we need to live or that we love to do.  One of the most useful tricks I learned in engineering school is that to put any problem in perspective, it helps to ask what if things were...

Bearing The Interest Burden

by Debra Fiakas CFA Smaller companies frequently avoid debt as a capital source, relying instead mostly on equity.  After all common stock  holders are often content to wait for years for a dividend as the small, young company secures its market position and builds profits.  Pesky creditors are always knocking on the door for interest payments and principal return. Yet, a number of smaller companies included in our Beach Boys Index of alternative fuel producers have chosen to use debt. We reviewed a group of them to determine the impact of increase in interest rates that could...

Alternative Energy: The Paradigm is the Problem

Tom Konrad CFA Can We Afford Alternative Energy? Most serious critiques of alternative energy boils down to, "it costs too much." True, detractors of wind power sometimes point to the number of birds and bats killed, and some people worry that electric vehicles (EVs) are so quiet that they pose a danger to blind pedestrians.  While such critiques are legitimate in that they are real problems, they can also be alleviated.  Avian fatalities can be greatly reduced by more sensitive siting of wind turbines, and even painting turbines purple.  Nissan has installed an...

Delusions: The Secret to Lost Opportunities

By Jeff Siegel This past Thursday, as we sat down to yet another Thanksgiving feast, the obligatory What are you thankful for? question surfaced. To be honest, I've never been a fan of playing this game. After all, if you're thankful for something, why do you have to wait until November 24th to talk about it? Nonetheless, I played along that afternoon and decided I was thankful for all the great thinkers over the years that enabled progress and allowed us to enjoy the many comforts and conveniences we take for granted...

2013 Alternative Energy Stock Predictions

Will Natural Gas Crush Alternative Energy in 2013? By Jeff Siegel Swami photo via Bigstock In 2004 a hotshot Wall Street type cornered me after I spoke at a private luncheon in New York. He told me I had a lot of balls wasting his time talking about alternative energy  declaring he was an “important man” who didn't find it amusing that some tree hugger in a suit (yes, that's what he called me) would lecture him about a coming boom in solar... I never forgot that...

A Sign Of The Times

Alt energy investors figured out early on in this crisis that a widespread shut-down of credit markets coupled with a substantial re-pricing of risk would not bode well for the industry. That's why alt energy stocks have outdone the overall market to the downside over the past year, with the iShares S&P Global Clean Energy Index (ICLN) down more than 60% Vs. the S&P 500 loosing a little under 40% over the same period. Much of this carnage occurred before any real impacts on alt energy had been felt (current prices in equity markets are generally forward- rather...

Geothermal, Battery, and Solar LED articles in TQ

There were three excellent alternative energy articles in last week's Technology Quarterly from the Economist. Readers know I'm an avid battery investor, and the Economist's in depth History of the Battery is well worth reading for anyone who wants to gain insight into the promises and challenges awaiting developers and investors. My favorite battery investment, Electro Energy, last profiled here has seen considerable selling, having lost half its price since its peak in early January.  I still like the and own the stock. There is also a short article about the prospects for Enhanced Geothermal, one of my favorite...

How Likely Is A Big Rally For Alt Energy Stocks?

Last week, Jefferies & Co. held its Global Clean Technology Conference. Unsurprisingly, the tone wasn't as optimistic as in previous years, with cash and funding worries top of mind. Nearly two months ago, I discussed some tangible signs pointing to looming problems in the industry. However, despite all the gloom, it seems as though several firms (and investors!) are expecting the American Reinvestment and Recovery Act (ARRA) to provide the industry with a lifeline. But will this really be the case? For one thing, the major environmental spending programs in the ARRA are relatively...

Power Plant Costs & The Case For Energy Efficiency

A few weeks ago, I stumbled upon a presentation that was given by FERC officials on the phenomenon of rapidly rising costs in US power generation (presentation link at the end of this post). The FERC, or Federal Energy Regulatory Commission, is America's energy watchdog. The presentation begins by noting that across America's major electricity hubs, power prices are up significantly on last year (between 62% in the Midwest and 123% in NYC) and that, unfortunately, this probably isn't an anomaly. In fact, the presentation argues, there may be something secular at play. Two main trends are noted....

What Does Clean Energy Cost?

Renewable Electricity cost estimates from a California transmission study and the investment implications. Tom Konrad, Ph.D., CFA The seemingly simple question, "How much does wind/solar/geothermal/etc. cost per kWh?" can be surprisingly difficult to answer.  Advocates often cite particularly low figures, but they are often based on particularly favorable conditions, or analyses that don't include all the costs (for instance, costs of permitting.)  Opponents do the opposite, often assuming particularly unfavorable conditions, or adding in costs which they would never consider adding in for their favored technology.  Adding to the confusion, levelized cost of generation calculations are very sensitive to...

Will Rare Earths Cripple the Green Economy? Part 1

Eamon Keane Rare Earth Elements Eamon Keane This is Part One of a three part series based on a rare earth elements (REE) review which is available for download at slideshare, where references can be viewed. Part 1 is an introduction to REEs. Part 2 analyzes REE consumption and refining and Part 3 looks at how REEs might affect the green economy.  Rare earths captured the popular imagination a year or two ago. Since then a bonfire of reports, presentations and analyses have been published, with many generating more consulting fees...

Electricity and Water– Can We Have Both? 

by John V. AndersonThe Water-Electricity Connection: Basic Principles There’s been a lot of discussion – and a fair amount of controversy – lately about water use in power plants. Unfortunately a lot of this discussion is based on an incomplete understanding of the fundamental issues involved. First of all, virtually all of the non-hydro power we consume is generated by heat engines of one sort or another. All heat engines absorb energy from a hot source (e.g. a flame, nuclear core, or solar), and they all reject energy to a cold sink – that is they...

Five More Winners of the Clean Energy Race

The Pew Charitable Trusts just released the 2011 edition of their report, "Who's Winning the Clean Energy Race?"

Top 5 Things Cleantech Entrepreneurs Fail to Understand About Raising Capital

David Gold After decades of venture capital investment, growth and exit, the traditional focus areas of venture capital (such as IT, web and software) have developed strong entrepreneurial ecosystems. A high percentage of start-ups in these traditional areas come to market with one or more experienced entrepreneurs or with a strong and active network of investors/advisors who have “been there, done that.”   They know what it takes to raise capital and to build a great fast-growing business.  Cleantech companies, however, are much more likely to be led by first-time entrepreneurs who often struggle to create an ecosystem of...
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