Josie Garthwaite | posted on December 29, 2008
Cleantech startups were a bright spot in terms of overall venture funding in 2008. But while the sector pulled in record investmentfrom VCs, as BusinessWeek noted recently, shares of cleantech companies fell harder than the rest of the stock market. According to the Wall Street Journal, the WilderHill New Energy Global Innovation Index of clean energy stocks fell 66 percent in the first 11 months of 2008. Solar stocks alone plummeted a dizzying 76 percent. That’s a significantly deeper dive than the benchmark MSCI World Index, which dropped 44 percent.
Despite this year’s plunge, however, industry analysts say today’s market bears little resemblance to the renewables boomlet — and ultimate bust — of the 1970s oil shock. That’s because the industrialization of India and China is likely to keep energy demand outpacing supply for the next several decades, Paul Deninger, vice-chairman of the investment bank Jefferies, told BusinessWeek. For example, with a population of 1.1 billion, India’s government expectsthe country’s energy demand to quadruple within 25 years. …read full discussion














