INVESTORS BUYING WIRES, BATTERIES

Green dollars moving to smart grid, energy storage
Poornima Gupta (w/Matthew Lewis), August 17, 2009 (Reuters)

"The U.S. green technology sector, which suffered a drop in funding early this year, is seeing renewed interest with venture dollars flowing in once again to promising startups and some companies looking to resurrect public offerings that had been set aside.

"Investment is seen shifting from capital-intensive energy generating technologies, such as solar and wind, to those associated with energy storage, transportation and efficiency…[like] lithium-ion battery makers and startups in the smart grid sector…Smart grid technologies aim to make the existing power grid more efficient and reliable…"

Investment was way off in the 1st half of 2009. (It will likely pick up in the 2nd half). (click to enlarge)

"Industry experts and company executives are expecting the appetite for investments in green technologies, sometimes referred to as cleantech, to see a significant pickup as early as this fall, with continued improvement through 2010…[But] activity is unlikely to reach the $2.6 billion peak seen in the third quarter of 2008…

"...$100 billion for a wide variety of green technology [from the Department of Energy (DOE)] is also providing a big boost…[but] government grant and loan money is still making its way to the companies…Overall, green technology venture investments rose 73 percent to $572 million in April to June from the previous quarter, according to a study by Ernst & Young…[There is reportedly] a lot more money on the sidelines waiting for…when the economy brightens…Some big institutions are already braving the risks…Calpers, the largest U.S. pension fund…committed $60 million to prominent Silicon Valley-based Khosla Ventures in June…"

Investment in solar was WAY off in the 1st half. 2nd half - no comment. (click to enlarge)

"Green technology companies…[set investment records] in 2007 and 2008 on heightened worries about global warming and soaring oil prices…But investments dried up last year as oil prices tumbled…and the U.S. economy slipped into a recession…Solar companies…were the hardest hit…Solar venture investments hit a three-year low in the second quarter…[because] investors now are more interested in [less capital intensive] technology…[like] smart grid infrastructure and energy efficiency…

"Inventing less costly ways to store energy has so far been a stumbling block toward widespread use of renewable energy…That quest helped lithium-ion battery maker A123 Systems attract $69 million last quarter…[R]esidential smart grid company Tendril attracted $30 million in June. Energy efficiency company CPower and Grid Net, which builds software for smart meters, also were successful in raising money…A123 Systems and biotech firm Codexis are actively monitoring the markets to launch their initial public offerings…"