Green Investment On the Rise
Posted by Kelly Smith on Thu, Apr 22, 2010
As the global economy begins to rebound from the financial crisis, investors are once again showing interest in making green investments. Environmental companies worldwide are beginning to go public as customers are considering initial public offerings (IPOs). Green energy companies that produce wind power and solar power are some of the most desired stock offerings.
Experts project an investment of approximately $9.6 billion in green businesses through IPOs in 2010. 2009 investments were around only a third of that figure worldwide. Most of this year's green IPOs are for businesses that provide renewable energy. Energy conservation and water management companies are also represented.
One green energy company which is planning to release shares is Europe's Enel Green Power. It will be a large IPO which will help the company almost double their renewable energy generation in the next five years. Wind, solar, biomass, hydroelectric, and geothermal power are all included in Enel's green energy mix.
Although the economic recovery in Europe has been slower than in the U.S., renewable energy continues to be a promising sector of the European economy. One reason for this may be the European Union's goal to have 20 percent of their power mix come from renewable sources in the next decade. This gives green power companies a ready market for their renewable energy generation, even without government aid.
Governments around the world are slowly lowering state investment in renewable energy as private investors step up to the plate. The United States currently offers an area of high growth in renewable energy as federal stimulus money is still available for many green power projects.