Distributed Energy Investment Challenge--Expectations Meet New ,
 Title: Energy Technology Investing: The Bubble Bursts
URL(s):

http://www.cera.com/eprofile?u=35&m=2978;


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DISTRIBUTED ENERGY INVESTMENT CHALLENGE--EXPECTATIONS MEET NEW REALITIES

Between 1998 and 2001, investors poured some US$4.36 billion into companies
developing distributed energy (DE) technologies. This investment boom and the
subsequent capital market correction were created by overly optimistic
expectations regarding the size of the opportunity and speed of the market's
development.

*  DE's failure to capture a substantial portion of the California market
during the power crisis in early 2001 and the collapse of the
telecommunications and information technology sectors undermined investors'
confidence. Shifting power market fundamentals and growing uncertainty over the
pace and direction of regulatory change also contributed.

*  Although the short-term market for DE technologies has suffered, in the long
run the revised expectations are part of a healthy trend toward greater
maturity among companies and their backers.

*  Restricted access to capital will slow commercialization of new technologies
and drive consolidation among energy technology companies. Public policy will
become an increasingly important source of funds and other support in the
future.

**end**

Follow above URL for complete Private Report (16 printed pages).



E-mail Category: Private Report
CERA Knowledge Area(s): Distributed Energy



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