For those that follow me you already know that one of the longer term investment themes that merits attention is that of electrical power generation.
There are many reasons for this including the growth of electrical power usage from the new “computer society”, the dawn of the electrical vehicles and climate change itself. These are demand side issues.
On the supply side we have a frail old electrical grid across North America, long dated regualtory processes to bring on any major power generation facilities such as nuclear power or hydro power.
Wind power,natural gas power generation and solar offer will and do offer a modest contribution to the power supply, but in my opinion will not be sufficient over the longer term.
Coal continues to the the primary source of power generation but continued pressures to “clean up the enviroment” in North America and around the world will limit growth from this area.
Regardless of where the power is sourced it has to be “manufactured” processed and distributed.
Everything requires power these days from computers to toothbrushes and one can only surmise that it will continue to grow.
In particular is the nuclear energy issue with 26 nuclear power plants on the drawing board in the USA alone. There has been no new nuclear power plants in the US for over 30 years. I suspect that will change. See The Nuclear Wait at the NYT here.
As we roll through this “market correction” during November of 2009 we will be on the lookout to acquire more “power assets” on the cheap.
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