New energy. It's where you want to be over the next couple of decades. Sure, hydrogen powered cars are way off in the distant future, but how about a hydrogen powered house or office building instead?

I keep looking to the stock market for new opportunities, and time and time again all I see is the alternative energy investment theme. I'm not excluding other opportunities; I just see the market becoming very active in this one area.

Alternative energy, renewable energy, new energy--no matter what you call it, you've got to have some of it in your portfolio. The timing is now right, and speculation in this market sector is taking off.

A fascinating company in this sector is Distributed Energy Systems Corp. (NASDAQ/DESC). Formed in December 2003, this company's entire focus is the new energy marketplace. The company boasts two established businesses: Proton Energy Systems and Northern Power Systems.

Northern Power Systems is headquartered in Waitsfield, Vermont, designing and building reliable electric power systems for industrial, commercial, and government customers. Proton Energy Systems is based in Wallingford, Connecticut, manufacturing proton exchange membrane (PEM) industrial and laboratory hydrogen generators and fuel cell-related products.

The great thing about this early-stage company is that it's working on the energy needs of customers using both old and new energy technologies. It represents the best of both worlds, integrating new technologies with old technologies.

The company isn't making a profit--yet--but it's raising revenue guidance, and investors are jumping on the bandwagon. This company is just one more hot stock in the burgeoning alternative energy marketplace.

I can't tell you where the broader stock market is going to go over the next couple of years, but I'm going with my gut instinct on this one--the new energy investment theme is here to stay.