Is Green Energy Wilting?

<p>The alternative energy sector has been booming in recent years, but is now slowing down. Could this be the end of green energy?</p>
March 26, 2008, 9am PDT | Nate Berg
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Everyone it seems has been investing in green energy – from Google to ExxonMobil. But this year the booming sector is suddenly in a serious funk. So is this time to get out – or jump in and snap up some long-term winners?

"CSM: Is the green-energy boom over?"

"Paul Hilton, director of advanced equity research at Calvert: I don't think so. If you look at the long-term trends that are supporting alternative energy, there's no doubt that this really is a good play.... There will be short-term volatility. But if you look at things like the price of oil, the amount of new investing that's going into promoting new companies in this space, all the potential climate-change legislation that we're seeing, this really does create a perfect long-term [opportunity] for this sector."

"CSM: So if oil prices stay high, it's full speed ahead for green energy?"

"Matt Patsky, portfolio manager of the Winslow Green Growth Fund: There's a couple of factors. One is prices. And that's certainly a major factor globally. But you also have to remember that there's now renewed concern about energy security, which has changed the debate in this country to being one of bipartisan support for developing reliable energy supplies domestically. And that has to include renewables. So I think there is tremendous growth ahead over the next decade for renewable energy."

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Published on Tuesday, March 25, 2008 in The Christian Science Monitor
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