A survey, conducted by investment bank Jefferies International, found that over half of investors think AIM will soon be the most important exchange for alternative energy companies.
Bruce Huber, head of technology investment banking at Jefferies International, said that he believes that AIM has many advantages for investors.
He said: “Alternative energy companies often choose AIM because of the lighter touch regulatory environment compared to Nasdaq, the lower cost of listing on AIM, the pool of capital in London and the depth of investor interest.”
London’s junior stock market compared well with the Nasdaq, which was rated as the best place for green companies by just 28% of those present.
The research also found that 80% of investors expect that solar technology will be cost competitive within ten years.
Investment levels are likely to rise, the survey suggests, as 40% think funding for alternative energy will double by 2010 and 42% expect it will increase by more than half.
Michael McNamara alternative energy analyst at Jefferies, said: “A combination of falling prices for solar systems and rising energy prices will allow solar power to be cost competitive with residential electricity prices within the next five years in sunnier parts of Europe and within 10 years in more northerly climes.”
© Crimson Business Ltd. 2006