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Country-as-Catalyst for Cleantech

Green Chip's Weekend Edition

By Nick Hodge
Saturday, March 20th, 2010

Welcome to the Green Chip Review Weekend Edition — our insights from the week in everything alternative and cleantech, as well as links to our most-read Green Chip Review and sister publication articles.  


The impact and actions of individual countries has begun to take center stage in the cleantech investment world.

And knowing who the winners will be in each region is proving critical for investment success.

Germany, the world's largest solar market, continues to dominate the headlines. We've talked at length about how that country's plan to reduce solar subsidies later this year has led to a conversion of market forces:

  • Developers are rushing to complete projects before the subsidies expire;

  • The boom could help local installers as more than 5,000 megawatts will be installed this year, beating the previous record of 3,000 megawatts;

  • High-priced German products (from Q-Cells, SolarWorld, and others) have been foregone for cheaper Chinese modules (from Canadian Solar (NADAQ: CSIQ), Trina Solar (NYSE: TSL), and Yingli (NYSE: YGE);

  • The reduction of subsidies is signaling the maturation of the market, as prices continue to fall, costs continue to be cut, and economies of scale are reached.

Each year, Germany installs half the world's solar capacity, so investors are watching this action particularly closely. With Trina establishing a new floor because of an offering this week, I'd be looking to establish a position in the discounted Chinese solar sector.

And Germany isn't the only country experiencing a solar boom...

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After introducing a feed-in tariff in 2008 and subsequently installing 400 MW of solar in 2009, the Czech solar market is now one of the fastest-growing in Europe. The growth happened so fast that grid stability is now a major risk, leading lawmakers this week to allow regulators to scale back the subsidies sooner than expected.

As in Germany, this is leading to a further rush on installations, and the Czech market is now expected to grow four-fold this year to upwards of 2,000 MW.

And the country-as-catalyst theme continues...

Brazil announced it will invest $57 billion in its electricity sector between 2010 and 2013. We've already profited from the Brazilian biofuel boom, and we'll be happy to pick some low-hanging fruit from this coming spending when the time is right.

And thanks to a British government grant of 20.7 million pounds, along with generous financing from the European Investment Bank, Nissan announced it will invest $643 in a new production facility in Sunderland that will build 50,000 all-electric Leafs annually. Nissan had already announced plans to build the Leaf's batteries at that location.

But no country has gone as far as Canada, which this week started handing out funds from a $30 billion plan to systematically eradicate fossil fuel-based electricity production and replace it with renewable resources.

The plan created a new government agency authorized to use whatever means necessary to ensure this happens. It's called the Green Energy ATF — think of it as a combination of our EPA, DoE, and CIA — and they'll soon be awarding lucrative contracts to companies providing clean energy in British Columbia.

The first $3 billion was released late last week, with the share price of some of the companies involved doubling in a matter of hours.

We first released our report on this topic a week before the $3 billion announcement, so our premium members have already profited from our early intel.

But there's still $27 billion waiting to be released, and plenty more gains to be made. Our original extended coverage of this government plan — and the resultant profit opportunity — can be found in this special report.

The rest of this week's free Green Chip analysis can be found below.

Call it like you see it,

Nick Hodge

Nick

 

Advanced Algae Biofuels: The Best Little Fuel House in Texas
Editor Sam Hopkins shares his experience meeting with a scientist determined to make the U.S. an algae biofuel powerhouse...

"Cop-16 Kickbacks": The Energy Summit Funneling Huge Profits to Energy Companies
Since 1995, one annual meeting has bumped energy stocks — as high as 114%, 123%, even 294%. In this special report, Green Chip informs readers on how they can get in this year for 27,188% gains.

California Legislation Introduces New Energy Storage Incentives: Bill Proposes California will Obtain 5% of Peak Power from Storage by 2020
Green Chip contributor Hilary Stingley discusses California's new energy storage legislation.

Baltimore Plastic Bag Tax: Pollutions Win On Baltimore Plastic Bag Tax
Green Chip Review's Jeff Siegel reports as Baltimore falls short on plastic bag tax.

Chinese Clean Energy Stocks: The Next China-Fueled Cleantech Cash Machine
Editor Nick Hodge takes a look at the history of cleantech development in China, and highlights what he thinks will be the next lucrative play.

"Cap and Trade" Bill Rebranded: New Title "Pollution Reduction Targets" Aims to Fix the Bill's Reputation
Green Chip contributor Hilary Stingley discusses the controversy surrounding the "Cap and Trade" bill, and a new effort to change its name.

The Green ATF: Historic Policy Coup Creates a $30 Billion Market Overnight
One company just inked a contract worth 264% the company's entire market capitalization. That's a single project worth more than two and half times the company's total current value. It's a major undertaking, projected to generate enough revenue to boost the stock price as much as 171% in the short term, and Green Chip gives readers the name of the company in this new report.

An Investment in Smart Grid Software: The Unsung Hero of the Energy Revolution
Energy and Capital
Editor Chris Nelder takes a fresh look at how software is enabling the energy revolution, by streamlining rooftop solar design, improving home energy efficiency, and putting the "smart" in smart grid...

Aluminum Giant Alcoa Breaks Into the Solar Trough Business: Alcoa's New CSP Technology May Lower the Cost of Renewable Energy
Green Chip contributor Hilary Stingley discusses the aluminum giant Alcoa's new innovative solar trough technology.

American Superconductor Stock: Avoiding a Bout of Bad Information
Editor Nick Hodge discusses American Superconductor and dispels some recent bad information floating around about the company.


Editor's Note: From solar and wind to geothermal and biofuels, Green Chip readers want to know which renewable energy resource will take over where fossil fuels leave off. The answer is...all of the above!

There is no one single solution to today's energy crisis. However, the combination of all viable renewable energy resources, coupled with energy efficiency, conservation and smart grid development will not only lead us to energy independence and a cleaner, more sustainable energy infrastructure — but also to what will soon prove to be the greatest investment opportunity of the 21st Century.





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