This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Renewable Energy Becomes a Utility Lifeline

NEW YORK (TheStreet) -- When North Carolina Republicans brought forward a bill pushed by ALEC, the conservative lobbying group, to gut the state's renewable energy standards this year, they figured they had a model piece of pro-business legislation that would sail through.

But, as North American Windpower gleefully reported, it died in committee.

Key to the story is the committee where it died, public utilities and energy. It died there because the state's electrical utilities, mainly Duke Energy (DUK), which bought out rival Progress Energy last year, didn't support it, despite the fact that the bill's prime sponsor formerly worked there.

What happened?

Duke has found out how to make money with renewables. Its non-regulated Duke Energy Renewables unit plans to double production from wind, solar and biomass projects this decade. Big customers including Google (GOOG) and Apple (AAPL), both of which have large data centers in the state, are supporting a new green energy rate, reports the Charlotte Business Journal.

It turns out solar and wind projects offer big advantages to electric utility companies. They can get a premium rate for solar power, whose supply peaks in the afternoon alongside the higher load of air conditioning. They can make a big profit from homes and businesses that install panels, paying off-peak rates for the same power.


Even the additional storage capacity needed to deal with such projects can become a profit center. A Department of Energy rule called FERC 890 effectively doubles the value of storage projects, which the agency lists at its energystorageexchange.org site.

Imre Gyuk, program manager for energy storage research at the Department of Energy, said in a recent Atlanta talk that there were 686 Mwatts of storage capacity online around the world as of March. He estimated that for every five watts of power available, one watt of storage is necessary to assure the stability needed by modern cloud data centers. But there is over 300 Gwatts of continuous load throughout the U.S. grid alone. The opportunity, in short, has barely been touched.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,001.22 -38.27 -0.22%
S&P 500 1,988.40 -3.97 -0.20%
NASDAQ 4,538.5510 +6.4470 0.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs