Energy Department Report Could Make Wind Power More Palatable

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Energy Department Report Could Make Wind Power More Palatable

Written by Miranda Marquit

Could 20% of our electricity come from wind power by 2030?

Energy Department Report Could Make Wind Power More Palatable

Photo:Aunti K, Creative Commons, Flickr

One of the things that wind power has going against it is the fact that it is not as politically popular as other alternative energy concerns. Options like biofuels have garnered support due to lobbyists (in the case of biofuels: Big Ag) that can swing the votes for subsidies. Wind power, on the other hand, meets with opposition from those ranging from the wealthy, who do not want their views "spoiled" by windmills, to the those who think that global warming isn't something humans can do anything about.

All of that could be changing, though.

Last month, the Office of Energy Efficiency and Renewable Energy came up with a plan that would make it feasible to see wind power providing 20% of America's electricity demand by 2030. And, with the price of oil expected to remain above $100 a barrel (despite recent pullbacks), wind power is beginning to see a little more political support. MarketWatch describes another reason why this change of heart is slowly coming about:

What's different -- and promising for wind -- today is the rising specter of climate change policies aimed at curbing greenhouse gas emissions and the possibility of a carbon tax on industry in the near-term.

The threat of climate change and the growing attention to it are helping to position wind power as an increasingly attractive option for new power generation.

For the savvy alternative energy investor, this could present an opportunity. Imagine "getting in" on wind energy now, while it is relatively inexpensive. Funds like PowerShares Wilderhill Energy Fund (PBW) offer these inexpensive opportunities. The fund invests in a number of companies involved in clean energy, some of them manufacturers of wind turbines and other necessary equipment.

PBW isn't the only example, though. There are also venerable companies, like General Electric (GE) that are making moves to invest in wind energy, which may appeal to the risk-averse investor. For investors that can stand the risk, there are penny stocks (like Western Wind Energy Corp -- WND.V) and start-ups. But watch out for these companies: They may be cheap, but you want to ensure that they really will grow along with wind energy.

The alternative energy sector is growing - albeit in fits and starts - and wind power may be one way to get in on the trend while it is still relatively cheap.

Disclosure: I do not invest in anything listed above. I am considering PBW.

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