Wednesday, July 02, 2008

Can Energy Be Created And Traded?

A couple stories I found of interest in today's Investor's Business Daily.

I can't help but think Nicholas Carr could do a follow up to his Big Switch book with this transformation.

Housing Market Slows, But World Wants Cable

Electricity consumption will have to increase by at least 40% by 2030 just to keep pace with the energy needs of the constantly expanding U.S. population, according to the Edison Electric Institute.

To meet demand, utilities are expected to inject $14 billion a year over the next decade on distribution lines — or low- to medium-voltage cables — and $8 billion to $9 billion on the high-voltage transmission lines, the institute said.

"We believe infrastructure spending is still in the early stages of a multiyear upgrade and buildout cycle in both developed and emerging economies," Next Generation analyst Nat Kellogg said.

He added that it behooves utilities, which are in better financial condition today than they have been in the past, to upgrade and improve the integrity of the grid to deliver more energy efficiency and power to customers.

Latest ETN Tracks Carbon Emission Trade

The first exchange traded note that tracks the global carbon emission market.

Oil and coal are the primary fuels of industry worldwide, and burning them releases carbon pollutants. Under the Kyoto Protocol, companies that pollute beyond a certain amount must buy carbon credits to "pay" for their damage.

So far, the fund is the only one to tap into the estimated $50 billion carbon emission market.

Might be a reason why VCs are now focusing on these areas.

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