Obama's green energy plans build hopes

By Jasmin Melvin

WASHINGTON (Reuters) - Proponents of alternative energy and energy efficiency were elated on Thursday by President-elect Barack Obama's economic stimulus speech, but some analysts warned his energy agenda could hit turbulence in Congress or from the slow economy.

Obama asked Congress "to act without delay" to pass legislation that included doubling alternative energy production in the next three years and building a new electricity "smart grid."

He said he also planned to modernize 75 percent of federal buildings and improve energy efficiency in 2 million homes to save consumers billions of dollars on energy bills.

Billionaire oil investor T. Boone Pickens called Obama's comments "an important first step in solving our nation's energy crisis and getting our economy moving again."

The League of Conservation Voters said Obama's plan to create jobs producing solar panels and wind turbines and making homes more energy efficient "is just what the doctor ordered."

But some analysts questioned Obama's ability to boost spending on higher-cost renewable fuels during a recession.

"It will be more difficult to meet the alternative fuel goals if oil prices keep falling and we are in a recession," said Phil Flynn, an oil analyst with Alaron Trading in Chicago.

Obama's plan is still far from implementation, noted Tim Evans, an energy analyst at Citigroup in New York.