"A smart grid is one of the holy grails of 'green' technology, enabling utilities to deliver resources when and where they're needed and reduce resources when they're not," says Brendan Coffey.

In The Cabot Green Investor, he explains, "There are larger companies in the smart metering arena, but Echelon (NASDAQ: ELON) has posted some significant wins in the marketplace recently and appears primed to generate more."

"Right now, grids are set up to provide as much power as needed at peak times, all the time. Studies show that when customers are part of a smart grid, and have more information to reduce energy usage, demand is slashed by up to 50%, particularly in areas where rates are discounted depending on the time of day.

Brendan Coffey is a specialist on "green" investing; in his The Cabot Green Investor, he looks to alternative energy firm American Superconductor (NASDAQ: AMSC).

Here's his review of the company, which is a player both in wind power and energy efficient wiring that can play a role in improved power grid systems.

"Long an R&D company, focusing on highly conductive wiring, American Superconductor made a game-changing purchase of an Austrian wind company, Windtec, in early 2007.

This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

"As the government and corporations look to get more environmentally sound, they'll be turning to Tetra Tech (NASDAQ: TTEK), an environmental consulting company," suggests 'green technology' specialist Brendan Coffey.

The editor of The Cabot Green Investor explains, "Tetra Tech is the expert people turn to the figure out the nitty gritty of getting eco-projects done." Here's his review of the stock, which he selects as his favorite investment idea for the coming year.

"President-elect Obama looking to resuscitate the economy, wants to do two things at once: immediate stimulate job growth with an aid package of perhaps $700 billion while laying the groundwork for the country's long-term economy health.

"He's identified the core of that dual strategy as going green -- to wean us off oil, counteract the eventual dire effects of global warming and make the country the technological leader in alternative energy, creating five million or more jobs in the process.