Credit crunch could dull appetite for green tech

The global credit crunch and easing oil prices may take some of the immediate wind out of the sails for investing in green energy, a major growth initiative for General Electric Co (GE.N: Quote, Profile, Research, Stock Buzz), but it is unlikely to reverse a long-term trend toward renewable power sources.

Concerns throughout corporate America that the volatility of energy prices will remain and a new, Democratic administration in Washington that is expected to take a stronger stance on environmental policy than its predecessor will keep some momentum going in the market, experts said.

"As the global economy slows down, so will demand for green energy," said Scott Sklar, president of Stella Group Ltd, a Washington-based green energy consulting and design firm.

"There is going to be less of a push to expand generation capacity."

GE has made its "Ecomagination" initiative -- a broad umbrella that covers businesses from electricity-producing wind turbines to energy-efficient refrigerators and washing machines -- a key part of its corporate branding campaigns since launching the drive in 2005.

The venture has been growing quickly and is on track to hit $17 billion in revenue in 2008, a 21 percent annual rise that puts the initiative on track to represent about 9 percent of GE's total revenue.

Windmills alone account for about one-third of that $17 billion. Earlier this year the U.S. conglomerate said it expected solar panels to be the next big growth vehicle, growing tenfold to $1 billion in revenue over the next three years.

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Source: Reuters