Investments in Alternative Energy

It is possible to have a portfolio which profitably (that's the key word, is it not?) invests in alternative energy funds. “Green” energy production is expected to be a multi-billion (in today's dollars) industry by 2013.

The most recently developed wind-turbine technologies have brought us wind-produced energy which is more cost efficient as well as more widespread. More state-of-the-art wind energy technologies are typically more market competitive with conventional energy technologies. The newer wind-power technologies don't even kill birds like in days of old! Wind energy production is a growing technology, and companies engaged in it would make up an excellent part of a growth or aggressive growth portfolio.

Next to consider are solar cell, or photovoltaic cell, technologies. These are to be found implemented in pocket calculators, private property lights, US Coast Guard buoys, and other areas. More and more they find their way onto the roofs of housing and commercial buildings and building complexes. Cost is falling. Their energy efficiency (the ratio of the amount of work needed to cause their energy production versus the actual energy production) is steadily on the rise. As an example, the conversion efficiency of silicon cells has increased from a mere four percent in 1982 to over 20% for the latest technologies. Photovoltaic cells create absolute zero pollution as they are generating electrical power. However, photovoltaic cellls are not presently as cost effective as “utility produced” electricity. “PV” cells are not [capable at present for producing industrial-production amounts of electricity due to their present constraints on space. However, areas where photovoltaic cell arrays could be implemented are increasingly available. In sum, costs are going down while efficiency is rising for this alternative fuel technology.

Many alternative energy investment portfolio advisors are confident that alternative energies derived from currents, tidal movement, and temperature differentials are poised to become a new and predominant form of clean energy. The French are actually fairly advanced at hydro power generation, and numerous studies are being made in Scotland and the US along these sames lines. Some concerns center around the problems with the deterioration of metals in salt water, marine growth such as barnacles, and violent storms which have all been disruptions to energy production in the past. However, these problems for the most part seem to be cured through the use of different, better materials. Ocean-produced energy has a huge advantage because the timing of ocean currents and waves are well understood and reliable.

Investments in hydro-electric technology have grown in the last two decades. Hydro-electric power is clean; however, it's also limited by geography. While already prominent as power generation, the large, older dams have had problems with disturbing marine life. Improvements have been made on those dams in order to protect marine life, but these improvements have been expensive. Consequently, more attention is now being paid to low-impact "run-of-the-river" hydro-power plants, which do not have these ecological problems.

The reality is, the energy future is green, and investors would do well to put their money out wisely, with that advice in their minds.

Wind Power as a Viable Solution to Meeting Alternative Energy Needs

Although it is much less expensive to initially get hooked into the local electric company's grid than it is to set up and hook into wind turbines, in the long run one saves money by utilizing the wind for one's energy needs—while also becoming more independent. Not receiving an electric bill while enjoying the advantages of the modern electrically-driven lifestyle is a wondrous feeling.

Electric bills and fuel bills are rising steadily—but the cost of wind turbine energy is zero, and the cost of installing and hooking up a turbine is steadily coming down as demand rises and more commercial success is realized by various companies producing the turbines and researching technologies to make them ever more efficient. In addition, people are moving away from the traditional electric grids and the fossil fuels for personal reasons including desire for greater independence, the desire to live remotely or rurally without having to “go primitive”, political concerns such as fears of terrorist strikes on oil fields or power grids, or concerns about the environment. Again, this motivation to get away from the traditional energy sources is the same one that causes people to seek the power of the wind for their energy, giving more business opportunities to profit from wind turbine production and maintenance, which drives their costs down for the consumers. In nearly thirty states at the time of this wri ting, homeowners who remain on the grid but who still choose to use wind energy (or other alternative forms) are eligible for rebates or tax breaks from the state governments that end up paying for as much as 50% of their total “green” energy systems' costs. In addition, there are 35 states at the time of this writing where these homeowners are allowed to sell their excess energy back to the power company under what are called “net metering laws”. The rates that they are being paid by the local power companies for this energy are standard retail rates—in other words, the homeowners are actually profiting from their own energy production.

Some federal lawmakers are pushing to get the federal government to mandate these tax breaks and other wind power incentives in all 50 states. Japan and Germany already have national incentive programs in place. However, “A lot of this is handled regionally by state law. There wouldn't really be a role for the federal government,” the Energy Department's Craig Stevens says. And as might be imagined, there are power companies who feel that it's unfair that they should have to pay retail rates to private individuals. “We should [only have to] pay you the wholesale rate for ... your electricity,” according to Bruce Bowen, Pacific Gas & Electric's director of regulatory policy. However, the companies seem to be more worried about losing short term profits than about the benefits, especially in the long run, of the increased use of wind turbines or wind farms. Head of the Center for Energy Efficiency and Renewable Technologies of California V. John White points out, “It's quality power that strengthens the grid.”