Despite recent declines, alternative energy firms to show resilience
Amid a drop in solar company stocks and concerns over a green-tech investment bubble, Sanford Bernstein analysts issued a report on Tuesday that takes the long view on alternative energy, arguing that the sector is a relatively safe bet.
Persistently high fossil fuel prices and environmental regulations mean that alternative energy technology companies are poised for growth in the coming years, the investment firm said in its report, one of several over the past two years to analyze the changing energy business.
During a teleconference, analysts said there is no end in sight for high prices of oil and natural gas, even though there will be some cyclical changes. That’s because the costs of extracting these fuels continues to go up, due to falling reserves at existing wells and high construction costs.
The electricity generation business, which relies heavily on fossil fuels, will also see higher prices, Sanford Bernstein analysts said. About 60 percent of power generation worldwide comes from coal and natural gas.
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