This type of crisis was needed to power stocks of alternative energy firms. Up until now, investors saw research in energy conserving technology ranging from solar power to fuel cells as expensive and risky. But now that California, the world's sixth-largest economy, is thirsting for power, alternative energy doesn't seem so futuristic. But some companies are seen as having more of a leadership position than others. Ballard's technology is promising since it can power vehicles by combining hydrogen with oxygen without combustion.
Fuel cells promise to be cleaner than combustion engines and use much fewer natural resources.
Although Ballard's shares rose strongly in January, they're still well below their 52-week high. Another fuel cell company to catch investor attention is FuelCell Energy. But there's more to alternative energy than fuel cells. Shares of Evergreen Solar have performed well as investors hope the sun could be harnessed to solve the energy crisis. Capstone Turbine's shares have benefited from hope that the small-turbines it makes could help private companies that buy them to keep the power on.