Investing in energy companies needs special attention as the myriad different forms of alternative energy production continue to come on stream. It is the Energy Investors ability to identify the viable innovations/technology that will make it to the main stream that will determine those that stand out from the rest. Some of these technologies will feed the power grid to power industry and homes around the World, and others will power our vehicles and public transport.
Let us take a look at the forms of energy production that are available out there.
Fossil fuel powered power stations
Historically power stations were coal fired water heaters that produced steam to drive large turbines that produce electricity. While these coal fired power stations are still the most common on the African continent, nuclear and other forms of energy production are beginning to become more popular. The pollution pumped into the atmosphere from burning coal as well as the availability of coal resources is a big worry for investors and the power utilities are seeking cost effective alternatives to bolster capacity on their grids.
Nuclear powered power stations
You either love or hate the nuclear power producers, and with some spectacular disasters in the last 10 years, anti nuclear sentiment is only growing stronger. The cost of building nuclear power plants is very expensive and when weighed up against the possible disaster quotient, it is my personal opinion that nuclear should be steered clear away from.
Hydro electric power plants
With some of the Worlds largest Rivers being in Africa and the need to provide water, hydro electric power production plants are currently being built or planned all over the continent.
Solar power farms
As more and more companies around the globe improve solar technology, the reality of homes and businesses being off the grid is fast becoming a reality. Some of the notable investors on a very large scale are Elon Musk, whose solar company is quietly powering the USA and Canada with solar panels.
Wind farms and the technology to produce power from wind turbines has essentially not changed much over the years and to the best of my knowledge no large scale wind power plant has produced low cost energy on any significant scale for wind to form part of my prediction for the future investment opportunities. There are just too many working parts in a wind turbine for my liking and I am averse to anything that could easily go wrong or wear.
Keep a look out for the rest of my thoughts on the following.
Biomass energy producers
Hydrogen fuel cells
Magnetic energy to Electrical energy
Use of magnetic fields