I just found this, posting it for interest's sake:
The Power Industry is Set for a Revolution
biz.yahoo.com
Bear Stearns Releases a New Report Highlighting Investment Opportunities in Distributed Energy Services
NEW YORK--(BUSINESS WIRE)--Dec. 7, 2000--Demand for electricity in today's high-tech economy is being stretched beyond the means of the traditional power system in this country. Combined with a confused and inconsistent deregulation effort across various portions of the U.S., this has led to dramatic price spikes and much dismay among consumers, governmental organizations and public companies. The confluence of these factors, as well as advancements in both new and old power generation technologies, could provide the next big investment opportunity for the coming decade, according to a new report from Bear Stearns analyst Robert Winters. The report, ``Distributed Energy Services - The World's Power and Transportation Industries: Set for a Revolution - Part II,'' is Winters second major report on the subject in the past nine months. The study identifies technologies and companies which could be poised for growth in the distributed energy services sector.
``Thanks to major technological advances and energy deregulation, a wave of new investment in the power industry has just begun. We believe that this coming era in the power industry could resemble the wave of investments which flooded into the telecommunications industry following the breakup of AT&T in the early 1980's,'' said Winters.
Specifically, Winters' report explores microturbines, a potentially important new distributed generation technology which is in the early stages of market commercialization. In addition, the report examines existing reciprocating engines technologies, including diesel engines, and long existing technologies such as Stirling engines which are suddenly enjoying a revival.
The Need for Distributed Power
Thanks to recent advancements in the high-tech economy, plentiful, reliable and high-quality electricity has become a necessity. Unfortunately, blackouts and brownouts have begun to occur at alarming rates and large power grids have become less reliable. As such, the need for distributed energy continues to grow. ``Companies and municipalities need to find ways to ensure the availability of high quality, reliable power,'' said Winters.
Microturbines--The Best Positioned Technology
According to Winters' research, microturbines are the best positioned of the ``new'' technologies to make an immediate impact. The units, which can be powered by several different fuels, resemble downsized jet engines. The units are relatively small, quiet and efficient. ``Microturbines are incredibly flexible,'' said Winters. ``They can be used as a main power source, a back-up power source or as an alternative when there is a spike in traditional energy prices. Microturbines can also be used in remote locations, including developing countries, that do not have access to electricity.''
Flywheel Technology
In addition to microturbines, Winters' report also expands upon flywheel technology, which was first previewed in his April 2000 report. Flywheels store power in kinetic form, in the spinning motion of the flywheel. This stored energy can then be reconverted back into electricity by running the flywheel as a generator. ``Flywheels can be environmentally and financially attractive replacements to battery-based back-up power supplies,'' commented Winters.
Two Companies to Watch
Along with the report, Winters initiated coverage on two distributed energy companies, Active Power (ACPW), a flywheel pioneer, with a Buy rating, and Capstone Turbine Corporation (CPST), which manufactures microturbines, with an Attractive rating. Additionally, Winters covers two fuel cell companies, Ballard Power (BLDP) is rated Buy and Plug Power (PLUG) is rated Neutral.
More to Come
According to the report, these companies are at the forefront of what is likely to be an explosion of technological advances that will improve the way we produce and use energy. Innovations in fuel cells, microturbines and flywheels, as well as developments in other distributed energy technologies, could result in revolutionary changes in energy and the economy. According to the report, the menu of technologies which can provide high-quality, reliable power will be greatly expanded in the future and there will be a thrust toward pushing the generation of energy closer to the end user through the most economic means possible. ``It is exciting to think we are at the beginning of what is likely to be a period in which we see dramatic changes in the way we, and the rest of the world, think about power generation,'' said the Bear Stearns analyst.
Members of the Press
To obtain the full report or to speak with Robert Winters, members of the press can contact Roseanne Nizzari at 212-272-4314 or Russell Sherman at 212-272-5219.
Founded in 1923, Bear, Stearns & Co. Inc. is a leading worldwide investment banking and securities trading and brokerage firm, and the major subsidiary of The Bear Stearns Companies Inc. (NYSE:BSC - news). With approximately $24.8 billion in total capital, Bear Stearns serves governments, corporations, institutions and individuals worldwide. The company's business includes corporate finance and mergers and acquisitions, institutional equities and fixed income sales, trading and research, private client services, derivatives, foreign exchange and futures sales and trading, asset management and custody services. Through Bear, Stearns Securities Corp., it offers prime broker and broker dealer clearing services, including securities lending. Headquartered in New York City, the company has more than 11,000 employees located in domestic offices in Atlanta, Boston, Chicago, Dallas, Los Angeles, San Francisco and San Juan; and an international presence in Beijing, Buenos Aires, Dublin, Hong Kong, London, Lugano, Sao Paulo, Seoul, Shanghai, Singapore and Tokyo. For additional information about Bear Stearns, please visit the firm's Web site at bearstearns.com.
Any recommendation contained in this report may not be suitable for all investors. Moreover, although the information contained herein has been obtained from sources believed to be reliable, its accuracy and completeness cannot be guaranteed. Bear Stearns may make markets and effect transactions, including transactions contrary to any recommendations herein, or have positions in the securities mentioned herein (or options with respect thereto) and may also have performed investment banking services for the issuers of such securities. In addition, employees of Bear Stearns may have positions and effect transactions in the securities or options of the issuers mentioned herein and may serve as directors of such issuers. Copyright (c) 2000. All rights reserved by Bear, Stearns & Co. Inc. |
