Goldman Sachs Weighs In On Renewables

Renewable energy has proven to be a hot commodity in the investment world, with stocks soaring for companies involved in wind, solar, biomass, and sustainable hydro (for example see Plutonic Power's stock chart over the past two years).

Goldman Sachs, the large investment bank, continues to be enthusiastic about renewable energy. They have identified five key events for sustained growth in this area. These areas include:
1. Enacting renewable portfolio standards - requiring power companies to provide a set percentage (usually between 10 and 25%) from renewable sources;
2. Boost enforcement of existing renewable portfolio standards;
3. Enact a carbon tax or a cap and trade system - many provinces and states have already indicated they are heading in this direction. Tim Kingston, a managing director with Goldman's expressed confidence that one or the other would be in place imminently across the US;
4. Continued escalation of oil prices - most analysts agree that the long term forecast for oil is higher prices; and
5. New administration in the White House in 2008 - George Bush has steadfastly resisted a carbon tax or a cap and trade system. Early indications are that a new administration would be more receptive to moving forward in combating climate change.