Anyone with money invested in the stock market already knows the bad news. But let’s review. Over 35% drop in the DOW over only a brief few weeks. Up to 1,000 point daily swings that richochet around world markets at the speed of light. Scant assurance that the floor has been found. Lousy earnings reports. And a general consensus that the way out of this mess will be down a very long and rough road.

Good times for bottom feeders flush with cash. Meanwhile the rest of us squint into the gloom looking for signs of life after recession. The good news is you don’t have to look too hard to find an emerging area of opportunity. That bright spot is the new alternative energy economy already emerging out the perfect “energy” storm that will likely rage on for years to come. That perfect storm is the trinity of declining supply (& increasing cost) of conventional fuels, climate change, and the growing recognition that real energy independence is now synonymous with improving our national security (sans body bags). For those who would offer the recent dramatic drops in oil and gas prices as counter argument, think of it as hurricane “Terminator” as the eye passes overhead whispering “I’ll be back”.

The alternative energy economy is not another one of those theoretical no-show forecasts. It’s already here. Last year alone almost $150 billion of capital was pumped into renewable energy. Congress just passed a long awaited multi-year extension to the wind and solar tax credits. To date, these credits have been the essential catalysts that have stoked the early growth of renewable energy. And with all signs pointing to an Obama presidency, investments in renewables could accelerate in a big way. Time Magazine recently had the following to say about Obama’s plan in relation to our current economic problems:

He wants to launch an “Apollo project” to build a new alternative energy economy. His rationale for doing so includes some hard truths about the current economic mess: “The engine of economic growth for the past 20 years is not going to be there for the next 20. That was consumer spending. Basically, we turbocharged this economy based on cheap credit.” But the days of easy credit are over, Obama said, “because there is too much deleveraging taking place, too much debt.” A new economic turbocharger is going to have to be found, and “there is no better potential driver that pervades all aspects of our economy than a new energy economy … That’s going to be my No. 1 priority when I get into office.

So what exactly would an Apollo Project for energy look like? According to the Apollo Alliance, which Obama supports, a rigorous program channeling $500 billion over 10 years to alternative energy projects is needed. That money would be dedicated to:

• Generate clean power (25% from renewable sources by 2025 vs. ~6% today)

• Improve energy conservation and efficiency

• Cut energy bills

• Improve US technological and industrial capabilities

• Create 5 million green-collar jobs

Nick Hodge at GreenChipStocks.com is very excited at the prospects and has lots to say on the subject on his website. Worth looking into if you’re looking for more background and specific investment recommendations.  Nick provides the alternative energy “clock” shown below. Never mind that it’s a counter and not a clock but you get the gist.

Numbers like those shown below are hard to grasp. So I did a quick calculation on the oil counter. Picture in your mind an average size swimming pool. Now imagine completely filling up 2 of those pools every single second of every minute of every day of every year…..with crude oil. Mind boggling.

Perhaps there is a silver lining to our current perfect storm of economic, climate and security woes. Except it’s green!

Tags: energy independence, energy policy, oil, renewable energy