Friday, February 01, 2013

Investing in Renewable Energy Sources

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Energy consumption is a global social issue because at current rates we are exploiting resources faster than they can replenish themselves. It is important to find a renewable energy source before we cause irreversible damage to the Earth. Solar power and wind power are the two leading alternative energy sources. Harris Roen writes for Seeking Alpha that 2013 will be an exciting year for alternative energy investors. Investments made in solar and wind power plants are crucial to the success of the alternative energy companies.
For the past two years (2011, 2013) solar power has not generated enough profit to make itself appealing to investors, however Roen claims that 2012 will be considered a turn around year and that investing in solar power in 2013 would be a wise decision. Many individual companies (for example the upstream photovoltaic (PV) manufacturers) are facing economic hardships and will be driven into bankruptcy or forced to merge. This may not sound good but it will leave room for companies that survive to grow stronger. As the solar power industry gains strength following a rocky start, the wind power industry continues to gain momentum as one of the fastest growing options for clean energy.
The projected growth of installed wind power in the EU, North America and China (the three largest markets for wind energy) is expected to triple in just ten years and grow by eight times from current production levels in the next twenty years. The U.S. Department of Energy stated that in areas with less than 100 feet of water the offshore winds could generate enough energy to reach the capacity of the U.S. electric system.
Global power needs are expected to increase by fifty percent in the next 25 years, which will in turn increase the market for energy efficiency companies. Stock in energy efficiency companies have done well in the past three months and show a promising future. By taking advantage of these clean energy sources we can rely less on non-renewable sources while creating a thriving new market.
Caroline Schenck
February 1, 2013. 10:40 a.m.
Source:
Harris Roen, Seeking Alpha.com (web) January 27, 2013
Accessed February 1, 2013

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