Solar energy accounts for only .01 % of U.S. generating capacity.  Don’t hold your breath waiting for a solar provider to take the place of your gas station anytime soon.  Why is that?

Green power needs investments for start-up and development.  Where are the government subsidies?   Right now, wind power costs 50% more than power generated by coal and yet the hidden costs of fossil fuels come back to haunt us in the name of climate change.

Global Trends in Sustainable Energy Investment 2009, reports that investment in clean energy companies declined significantly in 2007 and further declined in 2008.

Renewable Energy Certificates are one way to support the development of wind farms by encouraging consumers to buy a certificate for each megawatt hour of electricity the generator produces.  Others are considering Power Purchase Arrangements – long term energy contracts that fund construction of independently owned power generators.

From the report:

Canada’s clean energy stimulus package is almost entirely targeted on carbon capture and storage. The country’s generation portfolio is already highly decarbonised, virtue of its massive hydro and nuclear portfolios. However, its exceptionally carbon-intensive oil sands operations are a serious carbon risk, a risk compounded by Alberta’s atypically coal-heavy generation portfolio. The national government effectively views carbon capture and storage as the only way to salvage the Alberta economy in the long run, and is devoting funding accordingly.

Related posts:

1. Solar Power International 2009
2. Burying CO2 below Alberta provincial park
3. Are we in a “Clean Tech Bubble”?

The Slow Money Movement is just getting started and it’s already gaining momentum.  The idea behind slow money is similar to the idea behind the slow food movement – stick to what is important and you’ll reap the benefits in the long term.  In the case of slow money, you would be helping independent organic farmers get the loans they need to create a viable operation.  It’s very difficult for small farmers to qualify for credit from banks, why not help them out?

Related posts:

1. WTO and Canadian Wheat Board
2. Pre-rinse spray valves save money and water
3. Leafy green law or scorched earth policy?

I was listening to a recent Knowledge@Wharton podcast and came across this noteworthy bit of information about alternative energy stocks:

Michael DeRosa, a venture capitalist specializing in clean-tech companies, said that investors are flocking to his field. “We saw about $3.9 billion invested in the sector in 2007 in North America alone, more than triple the investment in 2002. It’s the third largest venture sector now, behind IT and life science.” He just happens to believe that the economic and environmental realities justify investors’ enthusiasm and that the demand for cleaner technologies will result in many durable companies hungry for funds. “We’re seeing an accelerating rate of business formation and greater deal flow and exit opportunities,” he noted. “And the pool of seasoned entrepreneurs and experienced executives entering the space is increasing.”

Besides, he said, talk of a clean-tech bubble needs to be put in proper perspective: “If you take every cent of venture capital that’s been invested in the history of the category, it nearly equals one week of Exxon’s revenue.” Exxon earned $117 billion in the first quarter, or the equivalent of $9 billion a week. DeRosa estimated that the amount of clean-tech venture investments over the last decade was about $10 billion.

Regulations Are Key

If there’s a major uncertainty about clean tech, it’s not whether the markets will materialize, DeRosa said. It’s government regulation. New kinds of fuel and new forms of electricity generation often depend on government support during development and will continue to do so during their early stages of commercialization. But the need for subsidies would disappear if lawmakers in the United States and other countries imposed some sort of carbon tax or capped emissions and created tradable emissions permits (a so-called cap-and-trade system), DeRosa pointed out, adding that either step would make clean technologies cost-competitive with conventional fuels such as oil and coal.

(excerpt from Knowledge@Wharton, August 6, 2008)

Related posts:

1. Clean bird boxes mean healthy chicks
2. The need for cheap green power
3. Start your own pocket market