Although the global financial crisis stalled the rapid advance of the alternative energy sector, its long-term prospects remain bright—fueled by favorable political, social and economic trends.
Prior to the financial crisis, revenue growth among alternative energy companies was thriving, as global revenues for solar photovoltaics, wind power, and biofuels grew from $75.8 billion in 2007 to $115.9 billion in 2008.1 At the same time, investment in energy technologies, including venture capital and project finance, was on the rise.
Today, a weak global economy, lower crude oil prices, and a prolonged “flight to quality” on the part of investors have hit alternative energy companies particularly hard. “Despite these near-term difficulties,” says Jens Peers, lead portfolio manager of the Calvert Global Alternative Energy Fund, “we see a favorable business landscape beginning to emerge for various segments of this sector—including wind, solar, hydropower, fuel cells, and energy conservation.”
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