Renewable Energy Trusts in Canada
Canadian renewable energy trusts are one of the many green investment options available to both Canadian and US investors. Similar to renewable energy cooperatives, wherein a group of investors pool funds to erect a renewable energy power source, investors invest in a renewable energy trust based on existing renewable energy projects. Profits generated from the projects within these funds are distributed to the investors according to their investment level. Many renewable energy trusts distribute these profits monthly.
Renewable energy projects can include ethanol plants, wind turbines, and hydroelectric power plants. Canadian renewable energy trusts can see gains of anywhere from three to 35 per cent annually, with individual renewable energy companies, on extreme occasion, seeing more than 100 per cent gains overnight.
Most provinces in Canada already have instigated energy plans that require specific action toward increasing the use of renewable energy sources. British Columbia has mandated that renewable electricity comprise 90 per cent of overall generation, and Ontario has launched nearly 700 new contracts for clean energy projects in association with its Green Energy Act that took effect early this year, aiming to eliminate all coal fire plants currently in operation.
Hydro-Quebec has partnered with the Public Service of New Hampshire to create a green energy project, termed Northern Pass, which will bring 1,200 megawatts of renewable hydroelectric power from Quebec to the northeastern region of New England, United States, through a converter station being built in Franklin, New Hampshire. This project is slated to create 1,200 jobs and put $1-billion into the state of New Hampshire’s economy. This is the largest project to hit the region, and is forecasted to provide 40 years of nation-to-nation service.
The Smart Grid
Another new green innovation that has hit the market is the Smart Grid, what some investment advisors claim to be the best investment of the 21st century and a near $300-billion industry churner per year. General Electric has recently acquired Opal Software, a software and engineering firm that aims to improve the efficiency of water, gas and utility systems, to create its own smart grid system.
A smart grid is, essentially, an electricity network with digital metering, transmitting and monitoring capabilities, which aims to save energy loss and cost to consumers by utilizing renewable sources and controlling energy waste.
It seems that innovative, alternative energy sources may also prove to be innovative, alternative investment options.
