Alternative energy’s banner year ends with a clang

DENVER (AP) — As the United States became the world leader in wind power, venture capitalists poured money into alternative energy projects until the recession hit in October, drying up investments and stalling projects.

The quick turnaround shows how rapidly the global economy deteriorated and how fast money for alternative energy dried up.


Fourth-quarter venture capital investment totaled $954 million, down 44 percent from $1.7 billion invested in the third quarter of 2008, according to an analysis released Tuesday by Ernst & Young LLP. For the year, venture capital investment hit a record $4.7 billion.

There is a wide belief that the alternative energy will experience immense growth in the coming years, yet frozen credit markets and falling stock prices have been particularly harsh on the sector.

AP