That the developing and developed world will need considerably more electricity in the decades ahead would not surprise most investors / readers.

That both economic zones can achieve this goal while adding a minimal amount of soot to the atmosphere, however, would.

And the technology that will undoubtedly serve as a key energy-generation component in emerging markets' 21st century power grid? You guessed it: nuclear power -- the power generation form that has lagged in the United States for more than 20 years, due to environmental regulations.

China, India push forward with plant plans

China and India are two emerging market nations that recognize that nuclear power is an essential part of meeting future electricity demand. Nuclear power will account for more than 5% of China's power output by 2020, Bloomberg News reported Monday. Meanwhile, India will start three nuclear reactors this year.

Economist Glen Langan said that while nuclear power is not, strictly speaking, a renewable energy, it has to be considered as part of the next-generation energy mix [along with wind and solar power] to meet the U.S.'s growing demand for electricity.

The rise in commodity prices is set to complicate the growth plans for yet another sector.

Projected costs for a new generation of nuclear power plants on the drawing boards are increasing at an enormous rate -- in some cases double to quadruple their earlier, rough estimates - - The Wall Street Journal reported Monday(subscription required).

Further, that new generation of nuclear power plants has emerged as an important component of the United States' future energy supply, due to $100-plus oil and the technology's superiority to high-pollution, coal-fired energy plants, The Journal reported Monday. However, surging costs for cement, steel, and copper, among other factors, have caused nuclear plant construction costs to soar to $5-$12 billion -- a trend that could lead to delayed or canceled projects.

Rising energy costs

Economist Peter Dawson told BloggingStocks Monday what investors should take away from the rising nuclear plant cost phenomenon is not so much a comparison of the positives/negatives of each energy technology, but the rising cost of energy, across all platforms, in general.

General Electric and Vestas Wind Systems are reaping the benefits as U.S. utilities assertively add generating capacity from renewable/alternative energy sources, Bloomberg News reported Wednesday.

For example, XCel Energy (NYSE: XEL), the U.S.'s largest provider of wind power, is buying 67 General Electric (NYSE: GE) turbines for a Minnesota wind farm, and GE expects its turbine sales to increase 25% to $6 billion this year, Bloomberg News reported. GE was the largest supplier of wind turbines in 2007, with a 45% market share. Siemens AG (NYSE: SI) and Vestas are two other major global manufacturers of wind turbines that should continue to benefit as wind power usage increases: each is opening manufacturing plants in the U.S. to accommodate increased wind energy-related sales.

GE's shares gained 89 cents to $34.29, while Siemens AG rose 20 cents to $128.20 in Wednesday afternoon trading.

Readers of this space know that the investment bias is toward large-cap companies with demonstrated business models and who have a competitive advantage in established markets, preferably with a favorable global trend as a support. But every once in while an exception is made for a non-conforming but innovative/promising company, and along this line EnerNOC is worth a review.

EnerNOC, Inc. (Nasdaq: ENOC) develops and provides clean power solutions to commercial, institutional, and industrial customers, as well as to electric power grid operators and utilities.

Analysts really like ENOC's next-generation, technology-based business model. The company uses its network operations center to remotely manage electricity consumption across a network of end-use customer sites and to make electric capacity and energy available on demand to grid operators and utilities.

I read a quote in an article recently which stated, "What Wall Street is about is smart guys thinking about ways to make money from dumb ones." That quote is attributed to one John E. Fitzgibbon, the publisher of an online newsletter, in an article from Eric Dash via The New York Times. While Mr. Fitzgibbon's remark might validate special investing skill on the part of some smart and timely investors, I take exception to the notion that all those investors who lost money in the markets over the past year are the dumb ones.

The question now is, where is the smart money headed?

Just call NRG Energy the power generator with renovation and reclamation on its mind.

NRG Energy, Inc. (NYSE: NRG) is a wholesale power generating company that owns/operates power plants with a net capacity of 24,175 megawatts.

A majority of NRG's revenue is baseload power. The significance? A stable cash flow. Further NRG's power source is largely natural gas-based, which is preferred, given likely additional restrictions/regulations moving forward for coal-fired plants as nations like the U.S. address climate change. NRG's power source mix: 45% natural gas, 34% coal, 16% oil, 5% nuclear.

NRG's strategy is to repower existing facilities and develop new generating capacity in markets where NRG owns assets, with an emphasis on baseload capacity, long-term power sales agreements, efficiency, and environmental enhancements. So far, NRG's business is on-track. The Reuters Fiscal Year (FY) 2007/2008 EPS consensus estimates for NRG are $2.24 to $2.26.

The odds of a 2007 Energy Bill passing the Democratic Party-led U.S. Congress, with President Bush's blessing, "Are still likely," according to a Washington-based, public policy lobbyist with knowledge of the matter.

"The bill will need a few revisions, but I'd say it's a 70/30 go, in favor of the bill being signed by the president," the lobbyist told Bloggingstocks Tuesday, on condition he not be identified by name.

The lobbyist, who represents primarily Democratic Party-based constituencies, said the the bill's renewable energy component and potential tax increases remain the hangups in the bill.

Modification likely

"More than likely President Bush will get the renewable energy component modified, but the Democrats may gain extra footing with better solar/wind energy credits," he said.

The bill current would require utilities to generate more power from renewable energy. Lawmakers from the Southeast U.S. have said they're concerned that utilities in their states will not be able to meet the requirement, due to a lack of wind power, The Wall Street Journal reported.

In typical times, investors with years to invest look for innovative, dynamic companies in growth sectors. It is the lifeblood of a healthy, growing equity market.

But as most investors/readers know, these are not typical times. And under these conditions, sometimes tried-and-true safety of capital, plus a modest return, is more than enough. Consolidated Edison (NYSE: ED) is a prudent play with the above in mind.

Utility Consolidated Edison, or "Con Ed," is the holding company for the primarily electric utility that serves the five boroughs of New York City, most of Westchester County, N.Y, other parts of New York state, Pennsylvania and New Jersey.

Residential and commercial electric utility customers represent the company's main revenue stream, comprising 63% of revenue in 2006. Natural gas customers accounted for 16%, non-utility revenue 14% and steam 5%. In short, Con Ed is a classic regulated utility play, and its results reflect that:strong, steady cash flow, low customer turnover, conservative technology implementation cycle, and a solid dividend.

If you're looking for a balanced, longer-term utilities play, consider Duke Energy Corporation (NYSE: DUK). Duke is that rare type of utility that offers investors an ample amount of safety, an adequate dividend, and the potential for a decent capital gain upside via growth.

In general, analysts expect DUK to register adequate revenue results in 2007-2008 following the integration of Cinergy, acquired in 2006. Duke has exited several higher-risk businesses, and what's left is impressive: 3.9 million utilities customers in the South and Midwest, 8,700 MW of unregulated generating capacity in the U.S., and 4,200 MW of generating capacity in Latin America. Further, given current population, household formation, and economic projections in the South U.S., the long-term trends look good for a considerable portion of Duke's operations.

Other positives: Look for Duke to better-utilize its Midwest gas-fired plants, and maintain cost-control discipline, in the years ahead. Further, DUK's 4.6% dividend and a reasonable p/e of 15 adds to the favorable mix. The Reuters F2007/F2008 EPS consensus estimates for DUK are: $1.23 to $1.26.

The downside? Duke's revenue could be hurt if a generally-favorable regulatory stance in its regions changes; an unusually cool summer could also keep revenue below analysts expectations. Don't look for a major upside revenue surprise with Duke, but everything else, from a utilities investment standpoint, lines up.

The First Call mean rating for DUK is: Hold. [18 firms.] Mean 2007 target: $19.90. [high: $23, low: $16.]

Stock Analysis: Duke Energy is a moderate-risk stock not suitable for low-risk investors. Consider buying Duke's shares if your portfolio does not contain a utilities stock. Investors with an investment horizon longer than 1 year should be rewarded from DUK's shares. Sell / Stop Loss if you were to purchase this stock: $12.

Crude oil's upward arc continues. The price of natural gas, while cheaper than oil, seems to track oil's move higher. Meanwhile, coal, while substantially cheaper as a fuel for electricity generation, still rates as a dirty fuel, despite the use of moderately-cleaner coal-fired generation technologies. And renewable energy sources, while gaining momentum, are not a present-day or near-term solution.

An option left to meet the U.S.'s growing energy needs? The above suggests that nuclear power will play a larger role, and among the nuclear plays, Entergy (NYSE: ETR) is worth a look.

Entergy is an amplified energy play, of sorts. For those seeking immediate cash, there's Entergy's healthy $3 annual dividend. But for those who want more than a typical utility stock, there's the company's present nuclear power operations, and its prospects for significantly larger nuclear power operations, moving forward. Entergy closed Tuesday down 61 cents to $123.54.

One wouldn't think a light bulb/electronics company could serve as a defensive play, but that's the case with Philips (NYSE: PHG).

Amsterdam-based Philips is the world's No. 1 light bulb manufacturer and a series of converging events has put the company in an advantageous position.

First, technological advancement has driven down the cost of fluorescent light bulbs, which are substantially more efficient than the incandescent bulbs that have been in widespread residential use for decades. Second, Europe's governing bodies have mandated use of the new bulbs to reduce energy use, and hence greenhouse gas emissions. Third, growing environmental awareness among consumers has substantially increased demand for the bulbs in nations where their use is not mandated, such as the United States. Philips shares closed Tuesday down 36 cents to $40.89.

If you're looking for a reliable stock with good long term potential, you may be interested in Wisconsin Energy Corp. (NYSE: WEC). This company provides power in Wisconsin and Michigan's Upper Peninsula. It's a region that has been lacking in electricity infrastructure, and WEC has been approved by regulators to expand significantly. The company is calling its growth plan "Power the Future," and it has spent hundreds of millions of dollars annually for the past few years, (and expects to spend another $2.5 billion by 2010) to add natural gas, wind and coal powered plants.

In addition to getting approval to expand, WEC has also been given the latitude to charge profitable rates; because these rates are regulated they should be reliable in delivering earnings in the coming years. The downside of the stock is that the capital expenditures will keep profits down for the next couple years until the new plants start coming online in 2009 and 2010. The second quarter results reflect this situation, with revenue up 11% but earnings down 9% -- though the company still beat expectations.

If you're comfortable waiting for your returns, this is a good stock to buy. It may take a few years, but the payoff should be worth it. And it may not take that long; Goldman Sachs recently released a report with a $54 target for the next 12 months. The Goldman analyst also predicted that the dividend, which is currently low for a utility like WEC, could also grow after 2009.

Type of Stock: A rapidly growing utility with solid long-term potential.

Price Target: WEC is currently trading near its 52-week low, after hitting $50 in the spring. I think it's a solid buy in the low $40s. If the Goldman report is correct, you'll see a return of nearly 30% in twelve months, and if you can hold until 2009, you may see the stock start rising more as the new plants come online and profits increase.

Hilary Kramer is a financial editor and money coach for AOL and an authority on investing. Visit her at www.hilarykramer.com

I bring an interesting tidbit for those who are involved in alternate energy source investment. This concept may actually turn into the world's greatest scientific discovery in the realm of energizing consumer devices. It would appear that an exciting development has been made that claims to harvest usable electrical energy from the operating temperature of the human body. This energy is created by utilizing the difference in temperature between the body and the surrounding ambient temperature. The technology is called the principle of thermoelectricity generators (TEG), and it seems to have incredible potential.

Imagine for instance if Pfizer (NYSE: PFE) could make available a dynamic blood sugar monitor that would give a diabetic patient a constant blood sugar readout simply by being put in contact with the body and would never require a battery change. Could I interest you in a wrist watch that uses you as its power source? How about a battery free iPhone, might that pique your curiosity? Has it already aroused the curiosity of Apple Inc. (NASDAQ: AAPL)?

Scientists are focusing their efforts on bringing this technology more to the forefront. They have successfully harnessed an electrical current of 200 millivolts from human thermoelectricity, but they came up against a problem with that. Given the fact that many of today's gadgets require between 1 to 2 volts for operation, 200 millivolts is not about to do the job. That is, of course, unless you create new types of circuitry that will operate at such low voltages. Creating that lower voltage circuitry, which can be energized with as little as 50 millivolts, has reportedly been accomplished. It might be time to cut loose some of those investments in battery manufacturers.

Peter Spies, manager of this sub-project at the Fraunhofer Institute for Integrated Circuits stated, "We combined a number of components in a completely new way to create circuits that can operate on 200 millivolts. This has enabled us to build entire electronic systems that do not require an internal battery, but which draw their energy from body heat alone."

Some scientists are convinced that thermoelectrical power generation is the way of the future. It is said that the greater the difference in temperature, the greater the voltage that can be generated. The concept not only applies to human body heat but can be utilized in any situation where a disparity of temperatures exists between surfaces or between a surface and the surrounding ambient temperature.

How soon will it be possible for us to not only conceive of, design, and build spectacular gadgets, but to also power them by our own individual electricity? Science is saying that day could come very soon. If you don't think this concept will someday be manufacturing reality, might I remind you that not so long ago computers weighed several tons and took up entire rooms. That's food for thought my friends.

Earlier this month, Green Progress News reported that Chevron Corp. (NYSE: CVX) was teaming up with the city of Rialto, California, in the construction of a system to take the greasy waste water and sludge generated by restaurants and transform it into a usable energy source. The team is using the impending necessity of waste-water treatment facility expansion for Rialto to take advantage of construction expense outlays that would have been expected anyway.

Fats, oils, and grease that are routinely sent out as waste from restaurants, and that currently go directly to landfills will instead be deposited at the Chevron/Rialto facility, which shall be the recipient of the waste hauler's "tipping fees" also. Tipping fees are simply the haulers' cost for emptying their loads. Typically, all that restaurant waste, and the potential trapped within it, ferments in our landfills, creating methane gas, most of which ends up in our atmosphere unless it's burned off immediately. The Rialto/Chevron project will instead process these wastes utilizing an organic matter "digester," producing methane for conversion into hydrogen, which can then be used to generate electricity.

The financial angles on this project will present some noticeable impact both in expenditure and returns. It is estimated it shall cost a bit over $15 million to build the system and bring it to operational status. When completed, the project will become eligible for a $4.05 million rebate on the fuel-cell plant cost from California's Self-Generation Incentive Program. The balance of the costs will reportedly be recovered through energy cost savings, and there are no expected taxpayer costs. Additionally, the system will be utilizing a bit less than 1,000 kilowatts of generating capacity to provide baseload power, which should assist in keeping consumer electricity costs stable. Grace Vargas, Rialto's mayor, has stated: "It's a 'win' for multiple stakeholders -- our city taxpayers, restaurants, grease haulers, and the environment."

On April 26, 2007, Allied Waste Industries (NYSE: AW) announced yet another waste-to-gas project in their continuing effort to put a dent in America's dependence on petroleum fuels. The newest methane production project is being undertaken in concert with Ameresco, Inc., Columbia Water & Light, and the State of Missouri. It is expected that the methane recovery project situated at the Jefferson City Landfill in Jefferson City, Missouri, will produce more than 3 megawatts of electricity. That's enough wattage to power up to two thousand homes. Additionally, heat generated at the facility will be used to power two Missouri prisons.

The story as reported by Green Progress News indicates growing trash conversion interests for Allied Waste. To me, this signals excellent long-term prospects for growth and sustainability for the company. Donald W. Slager, president and chief operating officer for Allied Waste, stated: "With over a dozen alternative-energy projects in the various stages of approval and development, we expect that our portfolio will continue to grow in the future." Do these types of trash-conversion projects offer long-term profitability? Given their growing popularity I would like to think so, but experts in the field indicate that the conversion of trash to usable energy and the associated compounds produced through the process is a science that is still early in its learning curve. An enlightening discussion on the subject is presented by the Science to Life blog.

I tend to believe that investment in these types of ventures should for now remain restricted to simple methane-capture propositions, such as those being utilized by Allied Waste. There are some very futuristic developments on the horizon, and as with any budding technological field there is much yet to be learned and confirmed. Governments and industry are steadily pushing to find the holy grail of successful waste conversion, and there are some promising developments in the works, but it's all just science for now and there's little to find in practical use.

Perhaps the Flux Capacitor is just around the corner but I'm not holding my breath just yet.