Renewable Energy has faced a very bad year in 2010 at least in terms of stock prices.The failure of the Copenhagen Climate Meet in 2009 and the complete indifference towards the Cancun Meet in Mexico has made the Green Energy Sector one of the worst performing ones.Wind Energy has been the worst hit with falling gas prices and falling subsidies with USA and Europe the worst hit.Other sectors like Solar Energy and Biofuels have not got much love from the markets either.In fact major financial insitutions have sharply reduced their Renewable Energy Holdings with Short Interest Rising to a Record High amongst Green Companies like American Semiconductor,Jinko Solar etc.However despite the ascendancy of the Republicans in USA and the cold shoulder given to climate and energy bill,this might mark a bottom for Renewable Energy
Hedge Funds Short Clean Energy as Goldman Pares Stakes
Hedge funds increased short selling in U.S. renewable energy stocks to the highest level in a year, boosting bets against First Solar Inc. and Tesla Motors Inc. as government support for low-polluting technologies faltered.
President Barack Obama said he may be unable to reduce U.S. greenhouse-gas emissions after Republicans regained control of the House in Nov. 2 elections. Republicans say they will seek to roll back Environmental Protection Agency rules limiting carbon venting, ease curbs on coal mining and may try to block billions of dollars in federal subsidies for clean power.
China is planning to invest $1.5 Trillion Dollars in the next 5 years in 7 New Sectors to structurally change its economy and give it a new direction.4 out of the 7 Sectors relate to the Green Economy namely Renewable Energy,Energy Efficiency,Green Vehicles and Advanced Materials.Note China has become a leader in the Clean Technology Industry which has been acknoledged by both Business and Consultancies in the West.China will account for almost 50% of the Global Demand for Wind Energy from almost zero 5 years ago.It is also preparing itself to be a Leader in Hybrid/Electric Vehicles while Chinese Solar Firms produced 60% of the world’s solar panels.With a Trillion Dollars,China could easily resurrect the Global Renewable Energy Industry on its own while further outdistancing itself by a huge margin from other competitors.
China is considering investments of up to $1.5 trillion over five years in seven strategic industries, sources said, a plan aimed at accelerating the country’s transition from the world’s supplier of cheap goods to a leading purveyor of high-value technologies.
The targeted sectors include alternative energy, biotechnology, new-generation information technology, high-end equipment manufacturing, advanced materials, alternative-fuel cars and energy-saving and environmentally friendly technologies.