Farming for Energy

As eco-friendly energy becomes more cost-efficient, convenient, and feasible, the time may be right for a growth spurt

As oil prices continue to rise, power companies and consumers have started to look elsewhere for their energy needs. Voila: Alternative energy producers are clambering out from the shadow of the oil industry giants, ready for their moment in the sun — or the wind or the ocean, as it were. Though the trend is worldwide, Europe is a particularly friendly setting for renewable energy these days, both as a center of homegrown innovation and as a theater for overseas investment and development.

The European Union’s commitment to the Kyoto Protocol has created a gradual opening in the market as the continent works to phase out its greenhouse gasemitting energy sources and as individual member states actively encourage the growth of eco-friendly energy.

LOCATION, LOCATION, LOCATION.

Germany, for instance, offers significant financial incentives to users and producers of renewable energy. And the Alternative Investment Market, or AIM, a subsidiary of the London Stock Exchange, has proven to be a safe haven for domestic and international alternative energy firms seeking financing [see BusinessWeek.com, 4/5/06, “Europe Opens the Tap for Clean Energy”].

Although more traditional power sources still dominate, the Old World has become the global leader in renewable energy use and production. As eco-friendly energy becomes more cost-effective, convenient, and feasible, its growth rate is likely to increase.

Business Week