Spending down, interest in energy efficiency way up

By Kevin Matthews

Vice President, Energy & Environment Sector

Whether a piece of news gets labeled “good” or “bad” always depends on the perspective.

A recent case in point:

The New York Times Green Inc. blog reported recently that venture capital investments in clean tech companies plunged by 50 percent to $2.6 billion last year as investors put their money in energy efficiency projects instead. The information came from a report released last month by Ernst & Young. The downturn was due to investors shifting money from capital-intensive solar and biofuel companies into firms that use technology to reduce or monitor energy use because the funding requirements are lower and the returns are often faster.

But the report, based on data from Dow Jones VentureSource, also found that while the overall monetary investment fell, the number of deals increased 21 percent.  In addition, the Energy Efficiency category received the most US Venture Capital investment dollars in the fourth quarter of 2009, with $252.8 million and 22 deals, compared to $133.7 million and 14 deals in the third quarter. This category raised $593.3 million for all of 2009. 

Clearly, the fine print is important here. It’s basically great news for any company that has anything to do with energy efficiency, as well as for anyone in the public or private sector who does business with them.

Kevin Matthews is Vice President of Energy and Environment for NSI where he runs the day-to-day sector operations and works with clients on sustainable solutions for interfacing with state and local governments. Prior to joining NSI, Mr. Matthews held various positions with the U.S. Environmental Protection Agency in Washington, D.C. where he worked for Administrator Carol M. Browner and served as both Special Assistant and Senior Congressional Liaison. He also worked as an aide to U.S. Senators Dale Bumpers and Joseph Lieberman. Mr. Matthews holds a B.A. in History from Hendrix College in Conway, Arkansas and an MPA from the Lyndon B. Johnson School of Public Affairs at the University of Texas at Austin. He currently serves on the Editorial Advisory Board of Brownfield News and Sustainability Report and is a certified Environmental Risk Manager from Texas State University.