Change of Power in Washington may boost alternative energy

Can the election of recent past lead to a change in the way alternative energy is seen in our nation’s captial? According to the NY Times it just might.

Now some analysts and money managers are hoping the imminent Democratic takeover of Congress will also be bullish for alternative energy stocks by improving prospects for favorable legislation for the industry.

One likely initiative, known as a national renewable portfolio standard, would require utilities to derive 10 percent of their electricity output from renewable sources by 2020. Currently, less than 3 percent of electricity is generated from such sources. Senator Jeff Bingaman, Democrat of New Mexico, the presumptive chairman of the Senate Energy and Natural Resources Committee, says he hopes to pass “some version” of a renewable portfolio standard in the next Congress

Several alternative energy companies look to be likely benefactors of this shift in power. Analysts are pointing at Sun Power, and Zoltek a maker of lightweight carbon fiber windmill blades.

In the meantime, most ethanol in the United States will be derived from corn, and Democrats in Congress plan several initiatives that would help the growing roster of publicly traded corn ethanol producers like Archer Daniels Midland, Aventine Renewable Energy, The Andersons, VeraSun Energy and Pacific Ethanol.

In a position paper on energy, the Democrats set a goal of having ethanol available at 10 percent of domestic gas stations by 2015, along with a mandate that would require automakers to increase production of vehicles that can run on either gasoline or an 85 percent ethanol mix. Such a mandate is necessary to push major oil companies that own many gas stations to install ethanol pumps, said Senator Charles E. Schumer, Democrat of New York. “We believe we have to push the country into alternative fuels whether the oil companies like it or not,” he said.

Other are also pointing to the re election of Gov. Schwarzenegger in California on a strong pro environmental platform as possbily being a catalyst for other states to increase their move towardss green legislation.

quote: NY Times