Vestas Wind System’s (OTC: VWSYF) orders for new wind turbines doubled in the fourth quarter of 2008 from the third quarter. That’s extraordinarily good news for the company’s shareholders. And the maker of wind turbines looks set to continue taking advantage of government mandates for greater renewable energy usage in 2009, despite a weakening global economy.

Giant Vestas’ gain, however, is coming at the expense of smaller players in its industry. Mainly, as credit conditions have tightened, dozens of fry have been unable to continue to finance current projects, let alone pursue new ones. That’s forced their customers–mainly regulated utilities and governments worldwide–to focus on the strongest players like Vestas.

Alternative energy’s other big problem now is low oil prices. France-based Super Oil Total (NYSE: TOT) stated this month that its expansion in Canada’s oil sands region would need at least USD80 to USD90 per barrel oil prices to be economic. That’s a very far cry from today’s levels of less than USD40. And the problems with non-conventional oil definitely apply to other alternative energies, from fuel cells and compressed natural gas (CNG) to solar panels.

Simply, if conventional energy is so cheap, there’s no real economic incentive to switch to more expensive alternatives, no matter what their environmental benefit and no matter how much they may aid America’s long-run energy security. In fact, low prices encourage precisely the opposite: The shutdown of projects to increase non-OPEC production and spurring rising energy usage, as opposed to conservation. Recent figures showing a sharp uptick in energy consumption the past month confirm this.

Of course, alternative energies still enjoy considerable support from government. More than 30 states have now embraced energy strategies that encourage greater development and usage of non-fossil fuels for generating electricity. And President-elect Obama and the overwhelmingly Democratic Congress are working up plans for developing alternative energy infrastructure on a massive, nationwide basis, as part of a plan to flood the weakened economy with money and create jobs.

The Republican leadership in Congress is threatening to try to block or at least slow down the Democrats’ stimulus package. But given the state of the economy, it would take an extraordinary effort to prevent the biggest wave of government spending in history. Those who the dirty work can expect little mercy from voters going forward should the economy remain weak into 2010. And anyone who votes against measures to increase US energy independence is putting themselves in double jeopardy.

The upshot: I look for continued massive government-led investment in alternative energy over the next few years. But this is clearly no time to be an upstart. Rather, the advantages of scale are increasingly coming to the fore. The industry’s biggest and strongest will profit as never before. But smaller rivals–even if they are innovative–are in for a rough ride and survival is most definitely not assured.

The New World 3.0 Portfolio–which is up an extraordinary 19 percent since inception in September–features several of the biggest and best, including power producer AES Corp (NYSE: AES), transmission technology developer American Superconductor (NSDQ: AMSC) and nuclear powerhouse Electricite de France (France: EDF, OTC: ECIFF).

EDF has entered a potentially blockbuster venture with Maryland-based utility Constellation Energy (NYSE: CEG) to develop nuclear power throughout the US. The company will own 50 percent of Constellation’s existing nukes as well as stakes in plants currently under development. And its recent purchase of Britain’s nuclear plants offers equally robust growth potential.

All three stocks have demonstrated they have what it takes to weather ups and downs in the alternative energy market. These have historically have been quite extreme and show every sign of continuing to be going forward, particularly as long as the macro situation with the market and the economy remains so unsettled.

Confusing a successful technology with a good stock to buy is one of the greatest mistakes investors have made over the past decade. The 2000-02 bear market was the most prolific for casualties. But this catastrophic downturn has claimed its share as well.

Simply, great ideas and technologies are the stuff that will shape the emerging new world infrastructure. But aside from a lucky few, the biggest winners are still going to be the established companies that adopt the truly breakthrough innovations as their own.

Picking those out from the pack is our primary purpose at New World 3.0. Note my article this week, Curing Water’s Old World Hangover, highlights a company in the most mundane of industries–water pipe remediation–that’s adopted its own patented technology to revolutionize its business: Insituform (NSDQ: INSU). The stock is one of the very few on Wall Street to recently hit a 52-week high and is still cheap at one times sales.

That’s a good portent for its fortunes in 2009, and it’s why we’re adding Insituform to the Portfolio as a buy up to USD20.