Alternative Energy Boom Has Its Limits

In 2006, major corporations, venture capitalists, investment banks, and hedge funds spent a record $71 billion worldwide on renewable energy, according to New Energy Finance, a London research firm. That $71 billion was a 43 percent increase over 2005. They estimate that 1,250 private equity funds target environmental projects.

However, there are significant limits that alternative energy will face that may not be given full consideration today in the headlong rush of politicians promising change, activists demanding change and investors speculating on change . If it were all that easy, you might expect major energy companies to have taken a bigger bite by now.

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