Forecast: Sunny and Windy - House Approves Obama Climate Change Bill

WASHINGTON, June 29  /PRNewswire/ -- It was a tense Friday evening for the Obama administration as the House of Representatives voted on the most important part of the President's green energy strategy -- and by the narrowest of margins, 219-212, the American Clean Energy & Security Act was approved.

The wind and solar industries, together with a broad coalition including former Vice President Al Gore and many of America's largest corporations, lobbied intensely for the new legislation. With success in the House, and expected confirmation in the Senate later this summer, burning coal and natural gas to generate electric power is about to become much more expensive for the nation's utilities.

The new climate legislation mandates utilities buy a minimum 15% of their energy from renewable sources.  The result, part of Obama's overall green energy agenda, will be many more wind turbines and solar panels dotting the landscape. A host of companies, particularly those developing and operating the wind and solar projects, have recently been upgraded by Wall Street analysts.

Jefferies and Co published a buy rating on NRG Energy (NYSE:NRG). NRG is partnered with oil giant BP (NYSE:BP) and just completed the first 150 MW phase of the Sherbino wind project in Texas. When fully built Sherbino will rival Horse Hollow - also in Texas - the world's largest wind power facility

CNBC guest analyst Francis Gaskins has a buy on wind power company NACEL Energy (OTCBB: NCEN).  NACEL has 80 MW (enough energy to serve 25,000 homes) underway in the Texas Panhandle.  Gaskins' research note says NACEL "represents a unique opportunity for investors interested in exposure to the sector" and puts a $4 valuation on the small-cap wind company.

Analysts also expect larger solar PV manufacturers to accelerate development of their in-house power projects with the new legislation. Earlier this year First Solar (NASDAQ:FSLR) bought OptiSolar's pipeline of utility scale solar projects. Rival SunPower Corp (NASDAQ:SPWRB) has also announced plans for solar power projects in Florida and California. UBS analyst Stephen Chin upgraded SunPower (NASDAQ:SPWRA) to a buy with a higher $38 price target.

Before the Bell Publishing LLC advises C.M. Biddick is a member of the Financial Industry Regulatory Authority (FINRA) CRD number 2382884. 

DATASOURCE: Before the Bell Green Energy Watch



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