Summary
Economic renewable energy projects require a targeted approach; they must solve specific problems without government subsidies. There are excellent renewable energy projects to invest in that solve legislative issues while at the same time provide a shelter from the current economic storm.
Analysis
There are a few economical renewable energy projects available for exceptional returns on investment. The commonality of those projects are 1) they meet a specific mandate whether it be from government legislation or from public pressure or from purely an economic view point; 2) they do not require government subsidies to provide them with long term exceptional returns on investment; 3) they address risk and can withstand significant downturns in our current energy infrastructure pricing such as oil, gas and coal; 4) they have a pay back of 2 years or less.
An excellent opportunity exists in a combination of energy efficiency and renewable energy replacement that addresses a new legislative requirement. Industries in many nations are required to reduce Greenhouse Gasses (GHG’s) take for example Canada 18% by 2010 from reported emissions in 2006. A start-up company has addressed that challenge for upstream gas producers and oil sands producers with an innovative combination of renewable energy specific to the problem and with a payback of less than 2 years. The business model for the company is also designed to weather the volatility of the oil and gas markets all without any government subsidies. The opportunity that exists for this company ranges just within Canada is over $2,000 mm per annum.
In conclusion the current market meltdown could well be the very best thing that happens for the renewable energy sector, it separates the wheat from the chaff. There are well defined projects available right now requiring financing that will provide excellent returns on investment in the renewable energy sector. The key for those who due to the market meltdown find themselves with large liquid positions is to identify the real winners in the renewable energy sector. Should you require assistance with that you need only contact Gerson Lehrman Group and set up a consult with me now.
