Recent issues in the government have lead some to question the administrations decision to provide financial backing to many alternative energy firms. They believe that the amount of money being subsidized to these companies does not come produce a benefit which is high enough to justify the cost. One measure in particular has come under fire recently. The government had planned to loan 1.3 billion dollars for a series of wind farms in the Northwest United states. However, many people are saying that this price is too high for the amount of clean energy that the farms would produce.
This leads to another question which will have serious implications for renewable energy businesses and those wishing to invest in them. Is it worth it to spend money on a process which may not be the absolute most cost effective at the moment, but has the potential to shift the entire climate of the economy as a whole. Those lucky investors that find themselves to have backed the source which ends up taking control of the market will be in a unique position. So how can investors use this knowledge? Should they try and support a government which will give money to alternative energy ventures, or should this be determined by the market? Only time will tell which ends up getting us to the next big thing in the energy industry.
http://online.wsj.com/article/SB10001424052748703506904575592843603174132.html?mod=WSJ_Energy_leftHeadlines
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