Renewable Energy/Bears

Hard to predict winners in this market, since startups are usually tied to a technology, and at the moment there is no clear technology - be it ethanol, or hydrogen, or lithium batteries - that is the clear solution / winner. Also, most of the initial changes in the energy market may come from energy demand reduction efforts (insulation, alternative building construction practices, intelligent electronics/appliances that avoid running during 'peak' consumption periods) which may not be captured in "Energy" stocks.

Also, small co's are competing with the likes of GE, and so on.

Most of the companies acting in the renewable energy sector are depending on government support. Political investment is not always a safe bet, and government financial support for renewable energy has yet to reach levels where the technology could be competitive with conventional energy.

While renewable energy is becoming more affordable as oil prices rise, most renewable energy sources are still very expensive compared to non-renewable energy sources. For example, the average $/kWh for U.S. electricity is under $.10. The $/kWh for wind and solar is between $.20 and $.30.