Most investors find sector investments risky. However, with oil prices soaring, it is advisable to explore energy investments to balance your self-directed IRA. The renewable energy sector has immense potential to develop. Recent government policies to boost renewable energy offer lucrative investment options in the sector. Until recently, energy investments were virtually unheard of for the investor looking to protect their retirement portfolio. Even the passive investor is waking up to the volatile consequences of a series of disappointing economic events in recent years. Investors should have a complete understanding of the benefits of investing in energy assets through their self-directed IRAs. Although a self-directed IRA gives you the freedom to select, invest and manage your portfolio, choosing a mix of direct and indirect energy investments. makes your IRA portfolio powerful and balanced. Such a portfolio benefits from reduced taxes and asset protection. For example, you can benefit from tax benefits offered by the government if you invest in renewable energy through your self-directed IRA. Energy investments include investment in oil, natural gas, coal and renewable energy sources like solar energy, wind energy or biomass etc. . Investment in energy can take the indirect or direct route. Investments in energy through stocks and mutual funds are the indirect route, while investments through limited partnerships or leases take the direct route. How to invest in energy? In today's economic environment where oil prices are reaching higher levels every day, investment options vary from choosing the right oil stocks to investing in long-term master limited partnerships. Energy stocks that are...... middle of paper ......ing wind power by using windmills or wind turbines to create electricity. With an annual growth rate of more than 30% over the past decades, particularly in Europe, wind energy is the fastest growing renewable energy, after the biomass energy sector. Companies such as Vestas Wind Systems have increased their wind turbine capacities alongside the huge influx of capital supporting the wind sector. Companies are adapting to energy-efficient business practices. As businesses continue to demand more and more renewable energy, opportunities for green industries have grown significantly. Google's $400 million investment in green energy had a positive impact on its stock price. Similarly, shares of GE Capital, ConocoPhillips and NRG Energy saw positive price increases after announcing plans to form a joint venture to invest $300 million in new energy development..