Investing Daily

Don’t buy the hype surrounding alternative energy; this sector faces severe headwinds that will only intensify as EU nations prune budgets.

The solar energy industry is transitioning from first-generation thin film to second-generation technologies; the pioneers of thin-film solar like First Solar (NasdaqGS: FSLR) blazed a bold path, but the torch may be passing.

American ingenuity and innovation offer hope in the alternative energy space.

Widely hyped solar and wind power companies have handily underperformed the broader markets and the energy sector as a whole so far this year. One reason for that is simple politics: Alternatives are completely dependent on government subsidies and mandates for growth.

Hydroelectric power is ubiquitous in many Canadian provinces, so much so that the word “hydro” has come to stand for electricity generally; the names of the government-run companies that provide such power reflect this significant presence.

Letting your politics dictate your investments is a terrible “strategy,” but don't ignore political developments.

We may not know exactly what political developments will shape the great energy debate in the US, but global investment in natural gas and renewable energy in all its forms will continue to rise for some time to come.

One thing is clear, ClimateGate or not, CO2 regulation is coming and soon. Here's how to profit.

Zero greenhouse gas emissions, 90 percent average availability as a power source, minimal land requirements and competitive costs: Those are just a few of the advantages of geothermal power.

Geothermal energy will never take over the world. But it’s already a profitable business for its leaders. Only a fraction of the globe’s opportunities have yet been tapped in. And developers enjoy enormous tax advantages, including here in the US, where the Obama administration has enacted favorable new rules.

Alternatives Field Bet Company Name (Exchange: Symbol) Entry Price (USD) Total Return Since 01/24/07 (%) Total Return for 2008 (%) Advice Covanta Holding Corp (NYSE: CVA)* 28.23 -3.0 -3.0 Buy ...

Massive subsidies and mandates for ethanol, particularly of the now experimental cellulosic variety. Loan guarantees for new nuclear, clean coal and renewable power plants, as well as energy efficiency and carbon sequestration projects.

In 2005, renewable energy accounted for less than 6 percent of US energy supply. But with energy prices on the rise, these alternative and renewable technologies are grabbing far more than their fair share of the limelight.