CBC’s the fifth estate aired the made-for-T.V. documentary “The Gospel of Green” back in November 2008.  The documentary profiles Germany’s burgeoning renewable power industry, and in particular Hermann Scheer. Scheer is a German parliamentarian, who is credited with having catalyzed the renewable energy industry in Germany, by introducing a broad set of policy tools to support it. Most important among these tools was the feed-in-tariff system that he implemented. 

A feed-in-tariff system basically allows anyone within a given jurisdiction to become a power generator, and get paid to feed electricity back into a centralized grid. By guaranteeing a fixed rate for power generated from renewable sources (wind, solar, etc.), uncertainty is reduced, and allows individuals and companies to plan far into the future. Check out Ontario’s recently passed Green Energy Act for more details on feed-in-tariff rates, and other relevant information (here). Lastly, be sure to watch MaRS' Cleantech Practice Lead, Tom Rand,  in a promo video for their upcoming Green Energy Act Finance Forum focused on this very topic.

Here’s some food for thought:

Given that Ontario now offers some of the best rates for renewable power generation anywhere in the world, would it not make sense to view the revenue generated from producing this power, as a relatively low risk asset class that could be included in a diversified investment portfolio? Given how much money is being thrown at the financial crisis, many astute investors (see: China) are buying up physical resources and tangible assets, whose value cannot be inflated away in the same way that financial assets can. The (wannabe) entrepreneur/investor/sustainability-conscious individual in me can’t help but wonder if there is an opportunity here to become more sustainable in one’s energy use, while at the same time getting a low-risk return on your money. It seems like a win-win proposition to me.  Let me know what you think in the comments section below.