Renewable Energy Rollercoaster

Last year it would have been hard to imagine that the green energy movement would face so many obstacles so quickly. Oil prices were skyrocketing, almost $150 a barrel, and renewable energy start-ups were having money thrown at them.

Fast forward six months and we’re seeing numerous green power concerns, from solar, ethanol and wind, postponed or cut back. The interesting thing is, depending upon the day; you’ll get contradictory images on what the outlook for green energy is right now. Some days it’s up, and others it’s down.

It’s a roller coaster of information – some good, some bad.

But you would be mistaken to think that green power is flickering out. In fact, California added 500 megawatts of green power last year alone. That’s a 60% increase. What’s more, the biggest issues aren’t the power generators, but rather the power transmission. That’s an issue that will have to be handled by the Federal Government, and it looks as though that’s starting to happen.

Green energy has received a huge boost from the stimulus package and greater government assistance in fast-tracking projects. No doubt that renewable energy sources will continue to get more interest as they become more efficient and their cost per watt achieves parity with “dirty” power sources.

And that bodes well for First Solar (Nasdaq: FSLR), Energy Conversion Devices (Nasdaq: ENER) and FPL Group (NYSE: FPL), a utility with big plans for solar and renewable energy.

Regardless of the news coming out tomorrow or the day afterwards, renewables will continue to garner lots of interest, and lots more investment. Picking out the right ones from this sector is the difficult part, and why investors need to keep a close eye on them.

Companies mentioned in this article: FSLR, ENER and FPL.

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