If you’re looking for the article to read about the state of affairs in the alternative energy space, covering the present as well as near- and long-term projections, this is it.

The article touches on all the major alternative energy sources- Wind, Geothermal, Biofuels, etc.- and most importantly, it goes into the economics of each source. How cost effective is solar power these days? How many cents per kilowatt hour does it take to produce biomass in a plant? How much does cost matter when it comes to going mainstream? This article is a guide to these kinds of questions.

The New Math of Alternative Energy

By REBECCA SMITH
February 12, 2007
The Wall Street Journal

The numbers are starting to look promising.

For years, the big criticism of alternative energy was cost: It was too expensive compared with energy based on traditional fuels like coal and natural gas.

Even though the fuel was often free — such as wind or the sun’s rays — alternative-energy producers had to plow lots of money into finding the best way to capture that energy and convert it into electricity. Fossil-fuel producers, on the other hand, could draw on billions of dollars in infrastructure investments and decades of know-how.

Governments struggle to find policies that will spur renewable-energy industries — without coddling them. Plus, buy efficient appliances, unplug your TV, and read other tips for reducing your thirst for power.

Alternative energy still can’t compete with fossil fuels on price. But the margins are narrowing, particularly since oil and gas prices have been rising. The math looks even more favorable if you consider the environmental cost of fossil fuels — which most purely economic calculations don’t.

For full article, click here.