An Obama National Energy Plan

[Joanne98]

America votes tomorrow.

And unless the forecast is for extreme cold weather in hell, it’s looking like a firm Obama win.

For clean energy investors, this is certainly the premium choice.

But what, exactly, does an Obama administration mean for clean energy?

Let’s find out.


An Obama National Energy Plan

Per his website, Obama outlines a series of bullets his national energy plan would seek to accomplish. Each bullet is then elaborated on in detail.

Let’s start with an overview of each of the main Obama national energy plan objectives, and then thoroughly explore the ones that offer the most profit potential.

Here are Obama’s main energy goals:

Provide short-term relief to American families facing pain at the pump

Help create five million new jobs by strategically investing $150 billion over the next ten years to catalyze private efforts to build a clean energy future.

Within 10 years save more oil than we currently import from the Middle East and Venezuela combined.

Put 1 million Plug-In Hybrid cars — cars that can get up to 150 miles per gallon — on the road by 2015, cars that we will work to make sure are built here in America.

Ensure 10 percent of our electricity comes from renewable sources by 2012, and 25 percent by 2025.

Implement an economy-wide cap-and-trade program to reduce greenhouse gas emissions 80 percent by 2050.
While each of those is a noble energy goal worthy of pursuing, it’s bullets four and five that offer the most retail level profit potential. So let’s explore those further.

Obama: 10% by 2012, 25% by 2025

Attaining 10% of our electricity from renewable resources by 2010 is an incredible goal, and it will require incredible investment.

Getting 25% by 2025 means even more money will flow to the clean energy sector.

Right now, the U.S. gets about 2% of of its electricity from renewables, if you don’t count hydroelectric sources.

To get to 10% renewables, Obama lays out a clear plan.

First, we have to deploy the cheapest, cleanest, fastest energy source. And that’s energy efficiency, negawatts, demand reduction, or whatever you want to call it.

By reducing demand, less renewable energy is needed to meet the 10% target. And Obama plans on reducing electricity demand 15% from projected levels by 2020.

But he can’t do it without the private sector!

That means a bevy of energy efficiency companies are about to see increased business.

Here are the ones I’d take a look at:

American Superconductor (NASDAQ: AMSC)
Comverge (NASDAQ: COMV)
Echelon (NASDAQ: ELON) and
EnerNOC (NASDAQ: ENOC)
Each of those companies had startling valuations earlier this year. . . perhaps a bit too early.

Investors knew that energy efficiency was going to be a huge part of a new energy economy. They just placed their bets too soon.

The credit crisis has dragged each of those worthy companies down from their yearly highs.

But a new president, focusing on energy efficiency, could put them back on Wall Street’s radar.

It’d be wise to scoop up a bit of each, and ride them to long-term profits.

Obama: Get 1 Million Plug-In Hybrid Cars on the Road by 2015

This is the second Obama energy initiative that has major implications for alternative energy investors.

While I usually stray away from discussing hybrid and battery technology investments in lieu of the energy-producing technologies like wind, solar, and geothermal, this type of opportunity is too hard to resist.

Getting 1 million plug-in hybrids (the ones you charge up) on the road in the next six years would be an absolute boon to the industry.

You see, the Big Three are on their way out. GM, Chrysler, and Ford only have enough cash on hand to stay in business for a few more months–or so I’ve heard–unless they are sold or receive some type of government assistance.

This is because of their failure to recognize the major trends of the auto industry that Japan and South Korea were focusing on.

And it’s their own fault. I have no sympathy for them.

But there are plenty of new age, new wave automakers waiting in the wings to take over the top spot.

And while I envision a future auto industry that isn’t dominated by three key players, here are the best candidates for extreme upside once plug-ins start coming off the line in bulk:

A123 Systems (IPO Soon)
Tesla Motors (Potential IPO)
Altair Nanotechnologies (NASDAQ: ALTI)
UQM Technologies (AMEX: UQM) and
Ener1 Inc. (AMEX: HEV)
Each of those companies plays a pinnacle role in the manufacture of rechargeable automobiles.

Tesla and A123 are still private companies. But they’ve almost single-handedly revolutionized the plug-in market, combining high-performance, high efficiency automobiles with an electric drive train.

The other companies are providing supplemental technologies, like battery cells and specialty parts, that will see increased use as more electric cars are manufactured.

You should be in each of those companies as well.

That’s how I see the investment angle of an Obama national energy plan.

Stay tuned for additions after the election.

To green energy, and green profits,

Chris
CleanEnergySector.com

http://cleanenergysector.com/2008/11/03/an-obama-national-energy-plan/

[excess_3]

1. the electric car is coming .n/t