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No Energy Bill in 2010

Green Chip's Weekend Edition

By Nick Hodge
Saturday, July 24th, 2010

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


We don't need an energy bill to profit.

There. I said it.

While it certainly would be helpful, considering the bill being debated in Congress calls for both a cap on carbon and a 15% renewable energy standard, we've simply reached a point where our investments can no longer be held hostage by delayed legislation.

Complaining about it doesn't make money.

Spreading the green gospel and participating in petty political posturing doesn't make money.

Only making smart investment decisions based on market and legislative conditions makes money.

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The bill's been killed

I've conveyed to you several times that I didn't think an energy bill would be passed this year.

And my concerns were proven correct this week when, as the New York Times reported, “Senate Democrats abandoned their summer efforts to pass a broad energy and climate bill, essentially declaring it dead for the year.”

Though it's a far-reaching and complex bill, we're basically talking about a failure to do two things:

  1. Put limits on greenhouse emissions, and

  2. Establish a national renewable energy standard

Now let's be clear...

This is a blow to the renewable energy industry.

Without a limit or price on emissions, utilities have no reason to reduce them and financiers find it difficult to lend to clean energy projects.

Same goes for the RES — without a mandate on the amount of electricity to be derived from renewable resources, utilities, financiers, and developers will be even slower to act.

As it stands, if a utility needs to build a new power plant, they'll choose natural gas every time. And I can't blame them.

But ranting about this injustice, real or perceived, doesn't pay the mortgage.

If that's what you want to do or that's what you're after, stop right now. Close this window and mouse over to some non-profit environmentalist website.

We're here to make money no matter the legislative hand we're dealt.

Still profits in the cards...

No energy bill means a rough road ahead for developing technologies still dependent on government support.

If the Treasury Grant Program is allowed to expire at the end of the year "the level of capital that is available to finance renewable energy is anticipated to decline by more than 50%," according to the American Council on Renewable Energy.

Wind and rooftop solar would be hit the hardest.

And those are the two best-known cleantech sectors, so you'll have to be well-versed in the industry to succeed.

Smart grid looks good because efficiency is the cheapest energy there is. I've profiled why here, here and here..

Natural gas is also looking good — not just for electricity, but for transportation. And tax credits for its use could sneak through Congress in legislation being pushed in response to the BP disaster.

You'll want to read this report before that happens.

Finally, you'll also want to take a look at Chinese solar companies ahead of earnings in August.

You can find that article, and plenty of others, in the rest of this week's Green Chip coverage below.

Call it like you see it,

Nick

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Media / Interview Requests? Click Here.


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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Comments:

Comment by Tom D Stevens on 2010-07-26
This is a good thing for me. According to CCEF here in CT, they won't be funding PV solar; they don't know that their rule of not funding energy systems that cannot be built for under $3.50 a Watt. Most wind installations will be cancelled as well for the same reason. My steam generator which uses recycled electrolyzed water is below that threshold, so I will get it approved soon. You are right; Natural gas is the in-between step; however let's discourage the shale source; it uses too much water & pollutes the ground water. with chemicals.