Venture Capitalists have spotted alternative energy as the next hot investment destination. With oil prices shooting up-wards and increased concernsn being shown over global warming, Venture Capitalists (VCs) are looking beyond their traditional business to invest increasing sums of money in alternative energy companies. Against this backdrop, most of the energy companies are revealing their business plans to investors, to identify advances in technologycheap, powerful chips, more capable software and broadband communications which will have an impact on the energy business, resulting in more high-priced deals to be struck. In the recent past, four solar energy companies attracted a stunning $60 mn.

The recent US energy policy emphasizes more on alternative energy for future energy needs. President Bush says, "The country is addicted to oil, which is coming from most unstable parts of the world, and hence we need to replace 75% of oil imports from the Middle East by 2025." The US economy is very optimistic that high oil prices would help in spurring the sustainable alternative energy boom. Even years before the US energy policy, VCs in the US spotted alternative energy or clean energy technologies as one of the hottest investment sectors since the oil price boom began in 2002.

Against these developments, some segments in the alternative energy sector have witnessed heightened action with valuations reaching new heights. For example, the solar energy companies accounted for three large technology IPOs last year amounting to $800 mn. GE's wind power business has made $2 bn and global sales of solar panels have touched $11 bn, up from $7 bn in 2005. Canada's tar sands have been making money in the era of high oil prices. Even nuclear energy is getting a new look because it emits no greenhouse gases. So, alternative energy has become the darling of the financial world.

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