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Sunday, October 16, 2011

Why wind and solar together? Ever noticed that it's often windy when it is cloudy, and sunny without wind? Using both a wind turbine and solar panels offsets changes in weather to deliver more consistent energy. These sun and wind chart estimates for Skystream Hybrid 6 illustrate this concept for New York, Iowa, and Arizon:
NEW YORK
IOWA
ARIZONA Wind and solar hybrid systems: A complementary relationship There has long been a debate about which source of renewable energy is superior: wind or solar. In recent years however, it has become clear that one source most often does not outperform the other. Instead, there exist seasonal benefits to each source. It has been determined that both wind and solar have compelling benefits within their seasonal range. A wind/solar hybrid system is fully integrated and designed to provide improved system efficiency. Throughout the seasons, hybrid systems provide a balance and increased energy production when both wind and solar energy are available. To understand the benefits of a wind/solar hybrid system we must first examine the seasonal fluctuations of the wind and Sun. Read more Will it work for you? See http://www.greenspacepros.com Get a free Sitelook wind and solar energy assessment. Go now.

Wednesday, September 21, 2011

Oil Says: “Recession Is Coming”

This was a great article to post here...from www.alternativefuelsnow.com and www.greenspacepros.com By Sean Hyman, Editor, Currency Cross Trader Dear Sovereign Investor, The other day I was watching the King of Queens... In the show, Arthur Spooner said to Doug Heffernan: “Yeah, back in my day I could really sell.” So Doug asked him what he used to sell. He replied: “Gasoline.” I couldn’t help but laugh at that. I mean, when was the last time you needed a salesman to talk you into filling up your tank? I’d say never. In reality, we all buy gas because it’s a necessity, pure and simple. Every day, gas prices shift because the underlying commodity - oil - moves in price. Oil moves in price because the worldwide supply and demand for oil is changing. That has major implications for the global economy as a whole. As a trader, I watch oil prices (and gas prices) to get a clearer picture of what’s really going on with the economy. It’s one of the purest indicators I watch. Right now, oil prices are predicting a recession. Take a look at the oil chart below and you’ll get a far more accurate picture of what’s happening in the world... Oil Peaking in May & Breaking Its Uptrend in August = An Economy Heading for Recession!
Oil Tells Us TWICE on the Chart That The Economy Has Turned South There’s an old saying on Wall Street: charts don’t lie. So if you want to know what’s really going on in the markets, and get a completely unbiased, accurate look at the economy, look at the charts. That’s especially the case when you’re watching assets that are vital to the economy. And nothing is more vital or broadly used in the economy than oil. As you can see from the chart above, oil prices peaked as we rolled into May. What do you want to bet that the economy had already peaked by then - if not before? Then oil broke its uptrend line in August. That’s huge. Oil held this uptrend throughout the entire recovery, going back all the way to 2009. Breaking that uptrend means that the economy is heading south a lot faster than everyone is saying. For the moment, oil is consolidating as it gets ready for its next leg down. The next leg down will be fast and severe. That’s when more and more people will see how bad things are “really” getting. OPEC & Oil Shippers Agree With the Oil Chart But to add to what the charts are saying, I found it interesting that OPEC and a huge oil shipper are both confirming what we’re seeing above too. For instance, the CEO of RS Platou, Norway’s biggest shipbroker, said that as a result of slowing economies and curbed shipments, the demand for oil supertankers has dropped to zero! He went on to say that America is importing the smallest amount of Persian Gulf crude in 14 years. He’s also still expecting super-tankers to lose money for at least another year. Pretty sobering words from this CEO right? I think so. But he’s just confirming what I’ve been saying for a while about oil and the slowing economy. However, OPEC is also backing up my opinion too. On Monday, OPEC said that fuel demand will falter as economic growth in the U.S. weakens and as the debt crisis in Europe worsens. In addition to this, the usable oil supplies are about to increase as Libyan oil comes back online according to an OPEC speech in Dubai. According to OPEC, Libya has only been able to produce about 45,000 barrels of oil a day, compared to the 1.6 million barrels a day that they used to produce as recently as last January. So this will increase the supplies of usable oil available, but with a waning demand, oil will go down on both accounts (increasing supply & decreasing demand). How to Cash in on $60 Oil and Lower As a currency trader, I’m loving this pullback in oil. It’s the ideal opportunity to short the Canadian dollar. You see, Canada supplies the U.S. with more oil than any other country. So when oil prices drop, Canada’s economy and currency suffer. Therefore, if oil is heading south...so is the Canadian dollar. At the same time, when economies slow and oil prices suffer, the U.S. dollar tends to rally. Investors rush for the safety of the U.S. dollar like they did in 2008. Knowing this, you can easily bet against the Canadian dollar, and buy the U.S. dollar for as long as this economic slowdown persists. (And unfortunately, that may be a while.) As the Global Economy Turns South, USD/CAD Heads North
This change in oil is already causing a pivotal shift in the dollar vs. Canadian dollar pairing (USD/CAD). However, the train has not completely left the station yet. So there’s still time to hop on board. As a Forex trader, you can take advantage of this by buying the USD/CAD pair. As always, if you’re interested in trading this pair, be sure to set a stop-loss and profit limit to protect your overall capital. Oil prices are predicting a severe economic downturn. But it doesn’t mean it has to be that way for your personal portfolio. You can proactively protect it by positioning yourself into the plays that will rally as the global economy slows. Bottom line: a recession isn’t the end of the world. As the economy suffers, there will be plenty more opportunities like this.

Sunday, May 29, 2011

Energy Bull & The Momentum's Against You

I'm an energy bull, no two ways about it.
It's not difficult to see why...
You just need to look at this:






That's it.
If you want to make safe, long-term profits in the market for the next forty years, invest in energy of all kinds.
Here's a list of energy ETFs to get you started:
· Oil Services (NYSE: OIH)
· Ultra Crude Oil (NYSE: UCO)
· Global Nuclear Energy (NASDAQ: NUCL)
· Cleantech (NYSE: PZD)
If you're 30 years away from retirement, you should be all set. If you're not — or if you want to do more than buy and wait — listen up...
The Momentum's Against You
While long-term population and energy demand trends will yield unavoidable profits in the market, short-term scenarios aren't as cut and dry.
Political debate continues to swirl around various types of energy technologies.
The dollar ship continues to sink while the Fed adds holes to the hull.
Public debt in Europe and the EU continues to mount, putting pressure on both pension funds and traditional safe havens like bonds.
The middle class continues to erode.
Staying above water can be difficult enough in this environment, let alone trying to turn a respectable profit...
A study out this week from the National Bureau of Economic Research showed 50% of Americans would struggle to come up with $2,000 in a pinch.

Tuesday, July 13, 2010

Price fixing by way of renewable rebates...the damage to the market




Energy Efficiency Emerges as Strongest Cleantech Sector

My Chat with the Street's Most Powerful Investment Bankers

By Nick Hodge
Tuesday, July 6th, 2010

Let's face it...

The overall performance of renewable energy stocks has been terrible. The reason is price fixing on the part of the utilities. Contact your Justice Department and ask for an injunction against rebates from utilities.








At the Euromoney Renewable Energy Finance Forum - Wall Street last week, I sat and listened to a group of investment bankers quantify the difficulty, and point out where the best future investments will be.

Ray Wood of Credit Suisse showed just how bad it's been for our sector over the past two years and so far in 2010:







As you can see, clean equities have lost anywhere from 40% to 72% of their value over the past 24 months.

And market performance like that jams up the entire system.

Morgan Stanley's Kevin Genieser noted the private companies looking to pay off their early investors (private equity, venture capital, etc.) with initial public offering (IPO) proceeds have been met with stiff resistance:


Recent big ticket IPOs from A123 Systems (NASDAQ: AONE), Codexis (NASDAQ: CDXS), and Jinko Solar (NYSE: JKS) have all disappointed.

And that dismal performance sends ripples all the way down the chain.

If VCs and private equity fund managers don't see a profitable exit, they aren't going to lend money in the early rounds.

Throw in the utter lack of policy guidance in the United States (lack of a national Renewable Energy Standard (RES); no price on carbon) and you get what you've got now: everyone with much-needed capital refusing to play the game either 1) because everyone that has played recently has lost; or 2) because the rules aren't clear enough.

As the rest of the world races ahead, here are what the big banks say they're doing until the U.S. gets its act together...

Forget about supply

With the massive finds of shale gas in this country, every banker on the stage said they expect nat gas to remain well below $8.00/Mcf for the foreseeable future.

Gas that cheap translates into electricity at $0.05/kWh. That makes it tough for wind and solar to compete, even with subsidies.

And again, without an RES or a price on carbon, banks are really hesitant to lend to new clean energy supply projects; there are simply too many uncertainties.

But the one sector that has a proven payoff is efficiency. It doesn't matter how cheap natural gas goes... If you consume less electricity, you save more money.

Same goes for grid investments. Reducing grid congestion and inefficiencies can be profitable no matter the going cost of electricity, and it's a fundamental pillar for the introduction of more renewable capacity in the future.

Here's a chart Parker Weil of Bank of America-Merrill Lynch shows to illustrate our grid's shortcomings:




During the session, Parker went on to say that:

· Power transmissions have life spans of ~40 years that have already expired. Since the industry was deregulated, the grid new build maintenance expenditures have been reduced

· The North American power grid caters to 335 million customers

o The pillars of this complex network are just three independent systems (WECC, ERCOT, Eastern Interconnection)

o Any disruption in the 200,000-mile-long voltage lines can escalate through the system, resulting in massive power outage

o 50% – 60% of the electricity is lost in transmission due to faulty lines and obsolete infrastructure

o The current system does not identify exact location of power outages, so the authorities take calculated guesses

· Electricity production accounts for 40% of emissions in the U.S. and is the largest contributor to pollution

· There is pressure from power generated by renewable sources for which the grid has limited provisions

Given that world electricity demand has risen to 18.8 trillion kWh from 14.6 trillion kWh in 2000, and is expected to reach 35.2 trillion kWh by 2035... Bank of America believes the best investments it can make are in the area of efficiency.

It believes efficiency has the potential to reduce annual energy consumption 23% by 2020. And given all the current market variables, efficiency is the easiest to finance right now because it has the lowest up-front capital costs and the fastest payback:






This is why Bank of America — and several of the other panelists — see efficiency as the best short-term clean investment, and see investment in the sector hitting $216 billion in the next few years.

And they see a three-pronged approach to easy profits...

First, reduce demand by retrofitting homes, offices, and factories with efficient lighting, appliances, and HVAC systems.

Second, upgrade the distribution infrastructure.

Third, deploy smart meters to create a networked smart grid and advanced metering infrastructure.

I'll have more on steps two and three in coming weeks, but for now you need to focus more on the most immediate profit opportunity: reducing demand.

That's what the world's most profitable companies are doing to ensure their increased profitability. From McDonald's and Starbucks to Disney and Marriott... the goal is to reduce operating costs through efficiency.

They're optimizing their supply chains, using less cardboard and paper, doing less laundry, and — most important for us — swapping out all their old lighting systems.

Nothing saves energy — and money — like switching out the millions of lights these companies use.

Lucky for us, one company has been selected to do this for all the companies mentioned above — and many more.

It's a small engineering firm with a big lighting solution. The share price has already doubled as word gets out about its success but, as the Bank of America suggests, we're only in the early rounds of efficiency's dominance.

Call it like you see it,

Nick  Hodge

Nick

SOURCE

http://www.greenchipstocks.com/articles/efficiency-emergers-as-strongest-cleantech-sector/1026