Energy: Wind/Solar Outpacing Hydro...This Is "Hot Air" To Pay Attention To!!

Before getting to the "hot air"....
A Friendly and Important Disclaimer Note (in addition to legal language below):   If you’re reading this email and are not currently investing with Soos Global (which, of course, is something we should discuss!), please bear in mind that while we share details on changes made to our portfolios, it's important to consider that our portfolio decisions are taken in a much broader context of our overall portfolio strategies and our assessment of each of our investor's unique financial profiles.  As such, what we do, and when we do it, is specific to our investor portfolios and is NOT intended, in any way, as advice for use by others.  Readers are reminded that all comments posted here are for information and entertainment purposes only!  Any commentary, especially those that include specific mentions of 'buying' or 'selling' or 'positions', is made solely for those limited informational and entertainment purposes, and NOT as advice.

Thanks for reading.  And please email or call w/any questions or to discuss in more detail.   Also, please visit http://stockcharts.com/public/1587236 to see our charts of close to 100 stocks/etfs on our radar screen.

Best, Ed
 (If you'd like to exchange thoughts on this post or on other subjects, please connect with me through the Private Chat tool on the right side of this page, or if you'd like to email thoughts, please do so through the Contact Form feature.  For public airings, please use the Comment feature below.  Looking forward to hearing your thoughts!)

 And now, the 'hot air'.....



Fyi….One of our global macro themes in the energy space focuses on the growth in the generation of and use of renewable energy sources.  The tweet below from the US Energy Information Administration (EIA) shows some very interesting dynamics within the renewable basket, with sources from wind and solar (ergo: the pun, “hot air”) starting to outpace hydro (for a long time, the primary renewable in the US).  I’d recommend a read of the EIA article linked in the tweet.  Here are some clips:

April marked the eighth consecutive month that total monthly nonhydro renewable generation exceeded hydropower generation. Only a decade ago, hydropower—the historically dominant source of renewable generation—accounted for three times as much generation in the United States as nonhydro renewable sources

EIA projects that 2014 will be the first year in which annual nonhydro renewable generation surpasses annual hydropower generation

Hydropower capacity has increased by slightly more than 1% over the past decade, although actual hydropower generation can vary noticeably by season depending on water supply conditions. Wind capacity, on the other hand, has increased nearly tenfold over that same period. Although wind often has lower capacity factors than hydropower, wind generation increased from 3% to more than 30% of total renewable generation between 2003 and 2013.

We’re constantly in the hunt for optimal ways to invest in this theme.  Currently, one of our positions is TAN, an etf which is a basket of solar related stocks.  (And while it wouldn’t be the primary reason for investing in Google (GOOGL), it’s noteworthy that Google has made major investments in the alternative energy space including wind farms!)

I included a chart that shows TAN vs Oil (the West Texas Intermediate Oil index).  There is a great deal more to what drives TAN than just the price of a barrel of WTI, but it’s noteworthy that since the ISIS/Iraq and Israel/Hamas troubles in the Middle East have flared up, the correlation of the two has been more positive.  As oil has been coming off those crisis-shock highs, TAN is following along.  At some point, however, I believe that TAN will hold its own based on the longer-term theme cited in the EIA article, and I’ll be looking to add to the position.

Will keep you posted as our positions in this space grow.

Best,

Ed

 

Today in #Energy: US nonhydro #renewables often surpassing #hydropower generation http://t.co/gzGXn2TSuM #wind #solar pic.twitter.com/IcMU9Zy0oA
— EIA (@EIAgov) July 31, 2014

 Please continue to visit Soos Global Market Musings for updates.

(Sign up to "Follow by Email"!  And share with others!)

(Please note: This article is solely meant to be thought provoking and is not in any way meant to be personal investment advice. Each investor is obligated to opine and decide for themselves as to the appropriateness of anything said in this article to their unique financial profile, risk tolerances and portfolio goals).
Disclaimer: Please read and consider important information related to all communication made by Soos Global on this site by clicking here.
Additional Disclaimer: currently long many stocks/ETFs including TAN.  Positions may change at any time without notice.