Obama to Invest in New Energy Economy
Despite the slowing economy, energy and environmental policy is poised for dramatic change under an Obama administration, according to CNET News. Renewable energy advocates and environmentalists anticipate a comprehensive national energy plan focused on fostering clean-energy technologies, states the report. CNET quotes Dan Farber, a Professor of Law at the University of California at Berkeley, as saying, “The election is over. Now the hard work begins. Change is on the way.”
Executive search firm, A.E. Feldman, says right now opportunities are opening up for investment professionals with expertise in energy and alternative technologies. The firm reports that right now across the country, the wealth of individuals and institutional investors getting involved in the energy and clean technology sector is enormously high. A growing number of law firms with close ties to the VC community and strong IP practices have jumped onto the green energy bandwagon. The firm also notes that legal jobs are opening up as firms build practice groups that target the clean tech sector.
President-Elect, Barack Obama, has said that as president he would spend $150 billion to develop more environmentally friendly energy sources…and in doing so he would create 5 million so-called “green collar” jobs. Another key proposal under Obama’s plan is to extend the Production Tax Credit (PTC) - a credit used successfully by American farmers and investors to increase renewable energy production and create new local jobs. Large scale renewable energy projects rely upon the Federal Production Tax Credit (PTC), which provides incentives for development of renewable energy.
In an interview with Time published on October 22nd, Obama outlined his plan to launch an “Apollo project” to build a new alternative-energy economy. “From a purely economic perspective, finding the new driver of our economy is going to be critical,” according to Obama. The days of easy credit are over, he said, “because there is too much deleveraging taking place, too much debt.” A new economic turbocharger is going to have to be found, and “there is no better potential driver that pervades all aspects of our economy than a new energy economy … That’s going to be my No. 1 priority when I get into office,” Obama said.
Now with the election behind him, Obama is getting down to business. His administration is expected to first push for small yet significant measures, such as efficiency and renewable energy mandates, and then lay the groundwork for far-reaching climate initiatives, according to CNET. The report also states that clean-tech company execs noted that during the campaign Obama voiced his belief that environmental protection and economic development can be closely related. During Obama’s acceptance speech, he once again made reference to “new energy to harness and new jobs to be created.”
Clean-tech professionals expect that energy and the environment, which were hot-button issues during the campaign, to continue to command the attention of politicians and the electorate, according to CNET News. The report adds the combination of a Democratic-controlled Congress and Obama administration bodes well for a government stimulus spending targeted at the energy business. CNET also quotes Ethan Zindler of research firm New Energy Finance, as saying, “There’s a growing sense that investing in infrastructure, even if it means more deficit spending, is a good thing because it will help economic growth in the short and long term. And green energy has come to be regarded as a 21st-century infrastructure play.”
Some technologies stand to benefit more than others if Obama’s administration is successful in implementing its proposals, adds CNET. Topping the list are renewable energies. Obama has called for a national renewable portfolio standard to mandate that utilities get 10% of electricity from renewable sources–wind, solar, and geothermal–by 2012, and 25% by 2025. The report quotes Rhone Resch, President of the Solar Energy Industry Association as saying, “That’s the backbone the country needs to invest in.”
The Renewable Energy and Job Creation Tax Act of 2008’s solar investment tax credit provisions will extend for eight years the 30% tax credit for both residential and commercial solar installations, according to Congressman Joe Sestak (PA). The $2,000 monetary cap for residential solar electric installations has been eliminated along with the prohibition on utilities from benefiting from the credit. It also authorizes $800 million for clean energy bonds for renewable energy generating facilities, including solar.
In contrast, wind received only a one-year extension, but CNET argues an Obama White House increases the chances that wind energy will also be extended further.
Moreover, when it comes to smart grid technology, Obama’s plan also calls for a power grid modernization program and stricter building efficiency codes in federal buildings. That means efficiency products such as demand response, advanced metering, and sensors to monitor usage should further benefit from government incentives, reports CNET.
“Clean energy is increasingly identified as the sector with the largest growth potential in the U.S. economy, and offers the best promise of meeting the twin challenges of economic and environmental decline,” said the study’s Co-Author, Ron Pernick, Clean Edge Co-Founder and Managing Director. A.E. Feldman’s CEO, Carol Schwam, says the burgeoning clean tech sector is looking for super-brokers who can funnel money into their businesses. She notes, however, that entrepreneurs in this sector must bridge the gap between the science behind the technology and a successful business.
Are you working in energy or clean technologies? If you want to grow your career or your company’s bottom line, contact A.E. Feldman’s President, Mitch Feldman, today!
