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Kagan: Alternative energy evolving to the next level in 2016

You may have noticed how the growth in alternative energy like renewable energy, clean energy and solar energy is changing and accelerating. It is now maturing to the next level. Just like the early days in the wireless industry, the last several years have been full of big swings in stock prices. The marketplace was unstable. So what can we expect in energy in 2016?

Phase two will likely have more moderate stock price swings. The marketplace will be more stable. However, choosing the winners to invest in, work for and do business with is still the key.

As an industry analyst, I follow what’s hot and what’s not. What’s next and why. Who’s winning and who’s struggling. And from what I see, things are very exciting in alternative energy. Energy is exciting, growing and changing. There are quite a few new technologies and companies, large and small, in this space, and it’s clear the industry is shifting from phase one to phase two.

Alternate energy companies want to get on the radar

Increasingly I am getting calls and emails from companies for the first time who want to get on my radar. The reason is they want to get noticed in this increasingly noisy space. As an analyst, they know I get called by the media for comment, I write columns, give speeches and share my opinion in a variety of ways.

Over the last few decades, I have noticed this same wave of change that has occurred in other industries as well. Industries like wireless, telecom, Internet, cable television, movies, books and more. Now this transformation is also occurring in energy.

This is exciting because, as an analyst, I have been down this path before, several times and with several different industries. It is exciting to have an understanding of what is coming next since we have watched this same thing occur over and over again. And it’s important to help everyone understand the direction, the path and what’s coming next.

Attention is what energy companies want

What do most of these companies want right now? They want to be noticed. Noticed by investors, analysts, customers, partners and workers. They just want to get on the radar of everyone in the marketplace. They want to be an industry leader. They want to be a leader and to lead this next wave of change. They want to be noticed so they can continue to grow.

There are plenty of large and small companies in the alternative energy space. Most are not very well known so they want everyone to learn about them. This is the real need for every company. A great idea will simply die if it is not found. That’s why winning companies typically have a good media relations program and strong relationships with the analyst community.

 Which companies and technologies will lead 2016?

One thing everyone wants to know is which technologies, companies and ideas are on the growth side of the wave? Which are the leaders? While every sector is growing, not every company is doing so. Some are growing while others are struggling. And this trend will continue.

Leadership will most likely change over the next decade in various segments as new ideas and technologies take hold in the marketplace. In fact, leadership could change several times. Knowing which companies to invest in or work for and when is key. Knowing which companies are on the growth side of the wave is key.

That’s why it’s vital that you want to know which companies are on the growth side of the wave and which are on the falling side of the same growth wave. This is important whether you are an investor or an employee.

Wind-powered and solar energy winners in 2016

Let me tell you what I see so far. In 2015, alternative energy and more specifically wind power and solar energy were rapidly growing. They far outpaced the rest of the industry.

Wind power is the fastest growing in the U.S., though it’s still a small segment. It accounted for roughly 5% of domestic electricity in 2014, according to the U.S. Energy Information Association.

Solar is less than half of 1%, but still is a rapidly growing segment. So, as you can see, both wind and solar have a lot of growth ahead of them if they stay on target.

What this means is the future shows an enormous and rapid growth opportunity if the industries can keep the runway clear. These same challenges have occurred in wireless many times over the last few decades. Yet wireless continues to grow. In fact, this same change wave is occurring in the cable television, telephone, books, movies, music and other industries as well.

Will this continue?

While no one has a crystal ball, I think this will continue in 2016 and beyond based on what we know today. These areas are responsible for more than half of all new electricity installed in the U.S. and around the globe.

Consolidation will also play a larger role going forward, just like it has done in every other rapidly growing and changing industry. There will still be plenty of opportunity for innovation and transformation, but growth will slow industrywide. While growth slows, chances of meltdowns also slow. This stability should mean good things going forward.

What’s next in energy?

Plus, it’s important to keep your eyes open for new ideas and new technology which can quickly transform an otherwise stable space. New ideas can transform a space virtually overnight. You must stay alert for this or you will miss the opportunity.

This is similar to the rapid transformation which happened in the wireless smartphone space seven years ago when BlackBerry and Nokia lead until Apple iPhone and Google Android transformed the smartphone space over a few short years.

Growth in wind power and solar energy are strong

Generally speaking, I believe wind energy and solar energy both remain strong growth areas for 2016 and beyond. The only question is, within these spaces, which companies will be the winners and losers? The truth is, there will be plenty of both.

Bottom line, any way you slice it 2016 looks to be a great year for winning companies in the alternative energy industry space. The only question is which companies and technologies will be the big winners going forward? Which you should choose and which you should avoid. That’s always the million dollar question. So stay tuned as 2016 unfolds.

ABOUT AUTHOR

Jeff Kagan
Jeff Kaganhttp://jeffkagan.com
Jeff is a RCR Wireless News Columnist, Industry Analyst, Consultant, Influencer Marketing specialist and Keynote Speaker. He shares his colorful perspectives and opinions on the companies and technologies that are transforming the industry he has followed for 35 years. Jeff follows wireless, private wireless, 5G, AI, IoT, wire line telecom, Internet, Wi-Fi, broadband, FWA, DOCSIS wireless broadband, Pay TV, cable TV, streaming and technology.