Renewable energy sector identified with key growth drivers and market movers

Goldman Sachs has identified five primary drivers necessary to sustain the rapid growth of the renewable energy sector. Key factors include the enactment of renewable portfolio standards (RPS), which require utilities to source a specific percentage of power from renewable origins, and the rigorous enforcement of these standards to provide market incentives. Additionally, the implementation of a cap-and-trade system or a carbon tax is cited as a critical mechanism for reducing greenhouse gas emissions.

Other contributing factors include rising fossil fuel prices, which may drive consumers toward alternative energy sources, and political developments such as the 2008 presidential election.

In the equity markets, certain renewable energy stocks are seeing high trading volumes. Companies such as Quanta Services, which provides infrastructure solutions for electric and gas utilities, and WEC Energy Group, a provider of regulated natural gas and electricity, are noted for their market activity within the clean-energy sector.