Stocks of companies that generate electricity from solar or wind power -- or make the equipment to do so -- soared during the last three years. But the global credit crunch, higher prices for raw materials like polysilicon used in solar panels, and cuts in government subsidies to consumers, such as in Germany last month, have made investors much warier. High oil prices, analysts say, can't compensate for all that. "Some months ago, it was still true that a rising tide lifts all the boats," said Thomas Germann, an analyst at Zuercher Kantonalbank. "But investors are now scrutinizing what's going on at the company level, because cost efficiency has become more important." ..."The easy money has been made," said Jean Ryan, who oversees three funds with about €2 billion in assets at KBC Asset Management International Ltd., a unit of Belgium-based KBC Group NV.

The green energy sector has a lot riding on 2009. Policymakers from Washington to Beijing have pledged billions of dollars in "cleantech" investment to jump-start the depressed global economy and create millions of new low-carbon jobs. ...As with the solar industry, wind power has been hit by a sudden slowdown in private sector investment as credit has dried up and the price of oil has fallen from its mid-2008 high. The industry hopes public spending will help fill the gap until the global economy gets back on its feet.

As energy costs continue to soar, and an increased reliance on traditional oil and coal is questioned, alternate sources of energy are examined more closely. Many in the five largest countries in Europe and in the United States like the idea of renewable energy, but do not want to pay any more for renewable energy sources. A majority of adults who have some form of responsibility for paying household energy bills in Great Britain (54%) and Germany (50%), pluralities in Italy (44%), France (42%) and the U.S. (40%), as well as just over one-third of adults responsible for paying household energy bills in Spain (35%), all say they would be willing to pay nothing more for energy if it was from renewable sources.

The race to build new sources of alternative energy from the wind is running into a formidable obstacle: not enough windmills...Numerous wind-power projects from Virginia to California have been stalled due to the shortage. But for some renewable-energy companies in Europe, where wind power has been in vogue for almost two decades, the logjam is a lucrative opportunity. These firms anticipated a shortage of turbines and locked in orders with makers. They're now using their considerable buying power to gobble up smaller utilities in the U.S. that couldn't otherwise get their hands on turbines.

MILAN, Italy, May. 11 (UPI) -- In order to continue its high rate of growth, the wind industry has many opponents to convert and obstacles to overcome. From siting to operation, wind project developers face a barrage of challenges. First, though regulations vary, you can't put a wind turbine within a certain distance of an area of national, historic or natural value. Also, unless residents are offered a share of the project, locals sometimes oppose them, citing aesthetic concerns.

Once-trendy biofuels like ethanol produced from corn are now being derided by the authorities, who say the fuels have little value in the fight against global warming. Vital components for windmills and solar cells have run short over the past year, requiring expensive projects to a halt. Meanwhile, subsidies for renewable energy remain at the whim of politicians, creating a boom and bust cycle for wind farms and solar projects, particularly in the United States. Such a risky environment means some bankers are placing bets on projects that are unlikely to develop into serious, profitable alternates to fossil fuels, and could ultimately slow investment flows "Some of these green investments are going in the wrong direction," said Yvo de Boer, the executive secretary of the United Nations Framework Convention on Climate Change. "Very well-intentioned projects can go awry, particularly where government policies on cutting emissions aren't clear." ..."The world is repricing risk, and these are risky assets," Liebreich said, referring to renewable energy investments.

Babcock & Brown Ltd. Chief Executive Officer Phil Green is under increasing pressure to sell European wind farms to stave off a possible debt review, triggered by a share collapse this week. ...A successful sale could trigger a rebound in Babcock's shares, which trade at less than three times earnings after falling 83 percent this year, said ABN Amro Holdings NV analyst John Heagerty. Failure may increase the risk of banks demanding early repayment on A$2.8 billion of debt.

The third annual Euromoney and Ernst and Young Global Renewable Energy Awards were announced earlier this week at the Renewable Energy Finance Forum (REFF) in London. Winners included some household names not usually associated with renewable energy, such as Goldman Sachs (ticker: GS) and John Deere (DE). Also honored were the likes of BP (BP), whose Alternative Energy arm has helped define the field, and Allianz Group (ALVG), the global insurer.

Carbon offset schemes are designed to neutralise the effects of the carbon dioxide our activities produce by investing in projects that cut emissions elsewhere. They work through the rapidly growing trade in carbon credits, each worth the equivalent of a tonne of carbon. Offset companies typically buy carbon credits from projects that plant trees or encourage a switch from fossil fuels to renewable energy. They sell credits to individuals and companies who want to go "carbon neutral". Some climate experts say offsets are dangerous because they dissuade people from changing their behaviour.

Barclays, Credit Suisse, Goldman Sachs, and Swiss Re have all committed themselves to it. Not to mention Leonardo DiCaprio, Dido and Pearl Jam. Carbon neutrality is the latest game in town, and carbon offsets are becoming the "it" commodity.

CHEERLEADERS for renewable energy are fond of pointing out that patches of desert receive enough energy each year from sunlight to power the entire world. But few deign to explain how the construction of the millions of solar cells required to convert that energy into electricity would be financed. Utility bosses and policymakers tend to dismiss wind and solar power as noble but expensive distractions, sustainable only through lavish subsidies. But new studies suggest that renewables might not be as dear as sceptics suspect...These figures, of course, rely on all sorts of questionable assumptions.

William Kovacs, at U.S. Chamber of Commerce, warns: "Anyone who thinks you can have a cap-and-trade system in which trillions of dollars of new securities will be traded is just not paying attention to what's happening on Wall Street." Meanwhile, prices in emerging carbon markets (Carbon Finance) globally have held up better than in other commodities markets, but financial analysts caution that these markets are too immature to provide a safe haven for investors (Reuters). Though sales of carbon emission offset credits--investment in green projects in lieu of direct emissions reductions--have been strong, some experts still express concern over the quality of oversight (WSJ) these projects receive.

Clipper Windpower Plc, the partner of BP Plc in U.S. wind-energy projects, fell to an 11-month low in London trading because a faulty component will lead to a delay in shipments. ...Production of Clipper's 2.5-megawatt Liberty wind turbine has been hampered by problems relating to the supply of externally-sourced components. The company forecast a first-half loss after turbine production was ``constrained'' by difficulties in obtaining parts. ``They have slipped up on quality issues twice,'' said John-Marc Bunce, an analyst at London-based Ambrian Partners Ltd. ``This could potentially be damaging to their sales ability going forward.'' Bunce lowered his recommendation on Clipper to ``sell'' from ``hold.''

INTERNATIONAL power companies are increasingly worried about energy security and greenhouse emission but still plan to build much of their future on coal, according to PricewaterhouseCoopers' Utilities Global Survey 2006.

When the decision of whether to pay more is expressed in terms of real currency, the survey found even greater reluctance to go green. The European Commission estimates that it would cost each household the equivalent of $220 per month to cut greenhouse gas emissions and use more renewable energy. When faced with that number, strong majorities of bill-paying adults in all six countries said they would be unlikely to pay the higher amount, the survey found. "Until people are forced to do so, or the price for renewable energy comes down considerably, people will not make the ‘green' choice," the Harris Interactive survey said in commentary on the findings. "This is especially true as economies around the globe tighten. When it comes to food or solar power, food will win for the consumer each time."

But while the problems faced on either side of the Atlantic are much the same, America and Europe have taken different paths toward finding solutions. Neither side can claim victory. Despite a host of initiatives, new technologies and regulations, alternative energy remains a patchwork affair that has done little to offset needs. Increasingly, both sides are looking to the other to see what can be learned. The guiding principal in Europe has been government mandates. European Union member states are led by ambitious long-term targets to reduce greenhouse gas emissions. Rules also require they develop increased energy capacity from renewable sources. By comparison, Washington, D.C. still prefers to let technology be the driving force in the quest for low cost alternatives to fossil fuels. While some tax incentives do exist (for ethanol and wind energy), there are no federal energy mandates besides a meager Renewable Fuel Standard passed last year by Congress to boost production of ethanol and biodiesel. Mostly it’s left up to the individual states.

THE tiny Greek island of Serifos, a popular tourist destination, depends on its postcard views of sandy beaches, Cycladic homes and sunsets that blend sea and sky into a clean wash of color. So when a mining and energy company floated a plan earlier this year to build 87 industrial wind turbines on more than a third of the island, the Serifos mayor, Angeliki Synodinou, called it her "worst nightmare."..."These are not just one or two turbines spinning majestically in the blue sky and billowing clouds," said Lisa Linowes, executive director of Industrial Wind Action Group, an international advocacy group based in New Hampshire that opposes wind farms.

EDP Energias de Portugal said its US-based subsidiary Horizon Wind Energy has agreed to develop wind power projects with a consortium comprising JP Morgan, ABN Amro and Morgan Stanley. EDP said the consortium will invest about 700 mln usd and the portfolio of projects will have an installed capacity of 722 MW, according to a filing with stock market regulator CMVM. The company added that the deal, which comes in the wake of the acquisition of US-based wind power company Horizon, will allow EDP to get the production tax credits linked to the wind power production of the projects and the depreciation of the Horizon wind parks.

MILAN, Sept 26 (Reuters) - Italy's biggest utility Enel (ENEI.MI: Quote, Profile, Research) said on Tuesday it has struck a deal to buy a stake in a U.S. wind energy company which would allow it to develop more than 1,000 megawatt worth of wind projects in the United States. Enel said in a statement it has signed equity purchase and strategic partnership agreements with the U.S. wind power developer TradeWind Energy, LLC (TradeWind), which has projects worth more than 1,000 MW in the pipeline.

LISBON -(Dow Jones)- Portuguese utility Energias de Portugal SA (EDP.LB) Tuesday said it has finalized the purchase of U.S. wind power company Horizon Wind Energy LLC from Goldman Sachs Group Inc. (GS). "The final price of the transaction was set at an enterprise value of $2.74 billion for Horizon, already including the capital expenditures supported by Goldman Sachs between the end of 2006 and today," EdP said in a statement.