A Seattle-based company is hoping to convert the motion of the ocean into electricity. Grays Harbor Ocean Energy Company has called for the Federal Energy Regulatory Commission for permits to harness energy from waves off the coastline of six states.

In all, the company would build seven harnessing sites - in federal waters off California, Hawaii, Massachusetts, New Jersey, New York and Rhode Island - each covering about 100 square miles.

Taken collectively, Grays Harbor said the $28 billion project would be the greatest renewable energy project in the nation. The firm expects to pay for the project largely with private investment, but is also seeking federal help.

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Read more about Investing in Renewable Technologies: Wind, Solar, Geotherm, Hydro, Biomass

Understandably, many are concerned that if oil prices continue falling, it will have a direct impact on the requirement for renewable energy resources. This caution on behalf of investors is not without good reason when one looks back to the 1980’s, a time when advances in alternative energy technology, were severely sabotaged by falling oil prices.

Barack Obama talks about creating millions of new jobs within the renewable energy sector. This sudden onslaught of financial challenges facing the industry will inevitably result in a greater dependence for government financing at a time when Washington is already under monstrous economical pressure.

Mr Woolard, CEO of BrightSource Energy Company, correctly pointed out that the market for alternative energy, remains promising when talking long term, but right now in the current situation, they are at best, unpredictable. The fact that the last few months have seen numerous Clean Energy projects across the United States delayed or even abandoned through lack of finances, is evidence enough regarding the volatile nature of these markets.

Analysts are now saying that this year’s global share offerings by renewable energy companies could be less than half of that which was accounted for in 2007. Global financing regarding these markets fell at a phenomenal rate, from twenty three billion dollars in the second quarter to seventeen billion dollars in the third quarter. Furthermore, market research suggests that the rate of financing will drop even more alarmingly in the fourth quarter.

With such a vast amount of capital having been allocated at the beginning of 2008, the United States is likely to still see an increase when compared to 2007 but whether or not this growth can continue, remains to be seen.

The fundamental questions facing renewable energy at this point are, for how much longer can the financial drought last, and just how far will oil and gas prices fall. Yes, oil is still expensive but one would do well to take into consideration that the cost of oil is half of what it was a few months ago, and if the economy continues to weaken, the price could continue to decline.

Market analysts warn that unless gas prices are eight dollars or more per one thousand cubic feet, companies and investors will steer clear of renewable energy projects. With gas prices currently at around six dollars per thousand cubic feet, companies will rather direct their attention to gas fired plants through which they can harvest highly attractive profits. With the price of gas being this low, the prospect of wind factories becomes unattractive to investors who rate profits high on the agenda. Likewise, considering the costs involved with solar power, the prospect of such investments become unimaginable.

Fortunately there is already some legislation in place which demands the development of alternative energy and together with certain federal requirements, this can to a limited degree, help to ensure these markets continue moving forward. However, it’s the private sector which faces the toughest times. While there are an abundance of willing and eager companies ready to take on mega projects, without capital their hands are tied. If they are unable to acquire the necessary financing, then they cannot continue with developments.

As a result of a tremendous push, renewable energy now meets seven percent of the energy requirements in the United States. While ethanol is already available across the entire country, legislation is continuing to push for a dramatic reduction of imported oil over the next fifteen years. Remarkable success has already been achieved in some fields and is most noticeable when one considers America has constructed enough wind power plants, to supply four and a half million homes with electricity.

When one considers that the total investment in renewable energy increased to a staggering one hundred and forty eight billion dollars last year, it is apparent just how big this market is. Of course, with the current economical climate as it is, this figure is likely to drop this year.

Like all markets, the renewable energy market is determined by the amount of potential profit investors can make. When oil and gas prices are high, the drive to develop alternative energy increases. Likewise, when oil and gas prices fall, investor interest drops away just as suddenly. This was especially evident in the 1980’s when the oil markets collapsed, taking with them, all interest in renewable energy developments. It was around this time that the very heart of the industry moved to Europe, spurred on by extremely strong government support and it was not until recent years that it has started returning, hot on the heals of rising oil prices.

This latest round of market changes is however slightly different, due to coal prices being high, and of course the environmental complications concerning coal. Perhaps the most important difference can be credited to the general public though, as they have shown far greater support towards clean energy now than they did in early years. Of course, the fact that America is at war and the related risks involved, also have strong influence over developing green energy, which in turn would reduce dependence on imported oil. To emphasize the urgency for development, a further seventeen billion dollars has recently been made available in the form of tax credits, while many states have passed laws governing the compulsory generation of clean energy by utilities.

As some analysts have pointed out, without enough financial resources, goals can’t be met and in most cases, this results in simply changing the initial target.

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Read more about Energy Industry Regional Analysis: Europe

Billions of people have been hit by double-digit energy bill rises after two of the United Kingdom’s “big six” companies put up their prices.

Scottish and Southern Energy (SSE) has become the second energy company to declare price rises on its gas and electricity tariff today, following E.ON’s price hike this week.

In a double-whammy, SSE will step-up its electrical energy prices by 19.2% and gas by 29.2% from Monday next week, but stated that it plans no further increases this year. This accompanies E.ON’s declaration that it will raise its electricity prices by 16% and its gas prices by 26%.

The firms are the third and fourth of the big six companies to step-up the cost of domestic energy bills in a second round of rises this summer, with the remaining firms - Scottish Power and npower - expected to follow suit.

Alistair Phillips-Davies, a representative from SSE, blamed energy imports to the Great Britain and said that the world is going through an energy shock of a kind not seen since the early 1970s. He further added that energy suppliers have to take steps towards covering their costs and that he was genuinely sorry that the company could not delay these price rises any longer.

While this will be little comfort, these increases would have been even higher but for the fact wholesale prices have fallen back a little in recent weeks. Comparison site uSwitch said the average household bill for an SSE dual fuel customer was £875 in January 2008 but will have risen to £1,259 by Monday next week. The E.ON step-up raises their average dual fuel bill from £1,063 to £1,297, an increase of £234.

Tim Wolfenden, head of home services at uSwitch.com, said: “Soaring energy bills pose a huge threat to our standard of living - gas and electricity are essential commodities, which have now become a luxury that many can no longer afford.”

Consumers are going to have to adapt rapidly and there are two key steps to this - making a point that they pay the lowest possible price for energy and learning to use less of it. He also said that consumers should look to pay by direct debit and move to an online plan where possible to get the best available prices and limit the impact of spiraling energy bills.

Adam Scorer, campaigns director with consumer group Energywatch, said: “It’s not just consumers who are confused about what drives price rises. The wholesale price of oil and gas has dropped off in recent weeks but companies still feel the need to raise costs by staggering amounts.” Scorer added that with household budgets being extended tighter and tighter the need for action has never been greater.

The hard fact is that prices are still set in reference to an illogical and toxic link to the price of oil. Whether the cure is to break the contractual link between oil and gas prices, or whether it is to find other ways to force greater competition into the European wholesale market, it must be the subject of determined and vigorous intervention by competition authorities at home and in Europe.

With declarations from government and Ofgem anticipated in the next month, the industry is all set to witness whether there is a coherent plan to tackle the myriad failings in this market.

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