The recent oil spill off the coast of Louisiana has brought the topic of green energy rushing back into current debate. The need to develop forms of lasting, renewable energy is paramount and it is an exciting and rapidly-growing sector. The scope of investment opportunities is wide and there are a plethora of companies keen to create cleaner, more environmentally-friendly technologies.
So could this be a good time to jump on the green bandwagon and invest?
It was reported last year that clean technologies outperformed fossil fuels in attracting investment for the manufacture of power. This trend seems to continue. Internet giant Google has just invested nearly forty million dollars into two North Dakota wind farms. British families are apparently eager to install solar panels as Npower has recently reported an eighty percent rise in inquiries since the introduction of the solar feed in tariff. So it would seem that we are all waking up to the climate crisis and looking to forge a way through it.
So where to invest? The wonderful thing about renewable energy is the sheer number of ways you can invest in it – from the serious to the silly to the selfless. I’ve outlined a few of these below. The most important thing is research, research, research, talk to a professional financial advisor and always act with caution. Here are just a few of the markets:
- Solar energy – solar panels etc, take the energy from sunlight and convert it into heat and electricity. It is an abundant, inexhaustible (until about 5 billion years from now) and pollution-free form of energy. Interesting fact: the world receives enough energy from the Sun in an hour to fuel it for a year. It is one of the most attractive forms of investment within the renewable energy field due to its high rate of growth and diverse range of ventures, for example the recent maiden flight of the world’s first solar powered plane .
- Wind Power – mostly used to generate electricity. During the period 2000-2006 the use of wind power across the world quadrupled and experts seem to be predicting a continued growth in the sector. However, the capital can be expensive and it has sometimes been seen as an unreliable source of energy.
- Biofuels – These are derived from any form of biomass. Bioethanol is made by the fermentation of the sugar components of plants. Biodiesel is manufactured from vegetable oils, animal fats and recycled greases. The important thing to remember with Biofuels and, indeed, most alternative energy, is that the price of oil will have a massive effect on profitability. There can also be costs associated with raising the livestock necessary for their production which some have seen as a problem.
- Geothermal Energy – Uses the Earth’s heat to create energy. It has been used in one form or another for thousands of years. More recently, it’s been used to generate electricity. It is a clean and cost-effective technology but, right now, it only accommodates a tiny portion of the Earth’s energy needs. A lot of its future depends on major technological advances. If it could be properly harnessed, geothermal energy could more than adequately meet the World’s energy needs.
- Tidal power – Utilizing the force that the moon constantly exerts on the earth. It has been suggested that tidal power could supply a significant portion of Britain’s energy needs. Barrages or dams are built in an area with requisite tidal range and turbines are used to capture the energy in the ebb and flow. It seems the best way to invest is to research the market and look at the companies involved in the development of tidal tech.
Centre for Alternative Technology: http://www.cat.org.uk/index.tmpl?refer=index&init=1