Archive | November 2006

Follow the Money – Alternative Energy is Booming

Investors have been funding alternative energy quietly, but the noise is starting to get louder.

After searching “Alternative Energy Financing” on “The Google” I found the following excerpt here:

A Perfect Storm

Regarding the recent spike in venture, private and public capital markets and the associated run up in valuations, New Energy Finance’s Liebreich said, “There have been some very strong exits in the past 18 months. Valuations have come off their peaks since earlier this year, and I think the fundamentals of the industry are now strong. They were looking overly ambitious in the solar PV, U.S. biofuels and pre-revenue fuel cell areas.”

“The most important industries in the near term are: on-shore wind, biomass, energy efficiency and traditional biofuels; in the medium-term (3-10 years): cellulosic ethanol, offshore wind, thermal solar and hybrid vehicles; in the long-term (>10 years): plug-in hybrids, more wind, building-integrated solar PV, fuel-cell-based distributed CHP and carbon capture and sequestration. In the very long term, fourth generation solar PV, artificial photosynthesis, algal and bacterial biosynthesis, micro-distributed power devices.”

“Before starting New Energy Finance I identified a confluence of 7 factors which told me that we are the brink of a secular change: climate change; energy security; oil depletion; aging infrastructure in developed countries; energy bottlenecks in developing countries; new energy technologies; new information technologies. There has never been such a perfect storm for clean energy before – in fact there has probably never been such a perfect storm in any peace-time industry ever,” he added.

You can see that the money is flowing to where the investors believe their money will grow. I’m sure some will win and some will lose, but the winners will win HUGE. I just hope they finance decentralized energy production that benefits the people from where the resources are being used.