Renewable Energy: The Good, the Bad, and the So-So
Author: Gary Patterson
The green movement has created a plethora of buzzwords. One of the more popular phrases is renewable energy. And for good reason. Businesses, traditional and emerging, will soon be affected by how they will respond to the reality of renewable energy depending on where they fall in the supply chain.
The mechanisms used to generate electricity from these sources vary considerably. For sunlight, there are photovoltaic technologies that generate electricity directly from sunlight. But there are also systems that use the sunlight to heat an intermediate fluid, which is used to turn turbines to generate electricity. There are multiple ways that water can be used to provide electricity, of which the most commonly used is the hydroelectric dam.
Other systems that produce electricity from water include wave power systems that convert the kinetic energy of waves into electricity, tidal power systems that use the kinetic energy of tidal flows in a similar fashion, and systems that take advantage of the temperature differences between surface waters and deeper waters in the ocean to generate electricity. Geothermal systems rely on the heat of the earth's interior to generate electricity in various ways, depending on the specific nature of the site. Biomass and biofuels consist of fuels derived from plant and other organic matter, which are renewable depending on the sustainability of the agricultural practices that provide the biomass. Examples include ethanol and biodiesel liquid fuels for transportation, and solid biomass from unused portions of other crops for electricity generation.
Presently, renewable energy sources provide only a small fraction of global energy production, and the majority of this is from biomass burning such a wood (which while renewable in the strictest sense is not environmentally friendly) in undeveloped regions of the world. Renewable energy provides less than 1% of the world's energy production even though its use is expected to grow rapidly amid rising concerns about global warming and the rising price of oil.
The biggest impediment to the widespread use of renewable energy sources in the past has been its price compared to the price of coal, natural gas, and petroleum. At present, wind energy costs [POST CONTENT].04-[POST CONTENT].08 per kWh, while coal costs [POST CONTENT].04 per kWh. Other renewable energy sources are even more expensive, such as solar thermal at [POST CONTENT].12-[POST CONTENT].34 per kWh and solar photovoltaic at [POST CONTENT].25-.60 per kWh. Water sources vary in cost from being cheaper than coal to costing three times as much. This cost differential, however, is narrowing as the price of oil rises and new technological innovations are bringing down the prices of renewables.
Looking forward, the increasing likelihood of carbon taxes or emissions trading schemes being implemented in much of the developed world means that the cost of generating electricity from coal, natural gas, and petroleum will rise even more precipitously, which will make renewable energy even more attractive for future development.
The future of renewable energy depends on how government energy policy will develop over the course of the next presidential administration and congress. Will carbon taxes or emissions trading schemes be enacted to limit greenhouse gas emissions? Will green grid technologies become widespread? Will the development of new oil supplies be allowed? All of these possible scenarios will affect the future deployment of renewable energy technologies.
As an example, consider the application of rooftop solar photovoltaic systems. Not only will these systems provide electricity to homes and businesses, but they can even be used to sell energy back to the power utility. Farmers and ranchers can plant wind turbines on land unsuitable for growing crops. The widespread use of smart grid technologies can become a major method of decentralizing power generation.
Similarly, if emissions trading schemes are enacted, then the rising cost of carbon-producing energy sources will force a shift to renewable energy technologies for large portions of our energy needs. This is deemed so likely that many believe that renewable energy technologies will be the next major industrial boom, similar to the computer technology revolution of the 1980s and the internet revolution of the late 1990s. Increasingly, large quantities of venture capital are pouring into renewable energy companies in expectation of just such an outcome.
How you position your firm to take advantage of the probable boom in renewable energy depends on your business's energy needs and usage. If green grid technology becomes widespread, the opportunity presents itself to businesses to become both an electricity consumer and a supplier. If carbon taxes or emissions trading systems drive the move away from petroleum transport fuels to biomass transport fuels, it is important to be prepared for that as well.
As the renewable energy debate gains momentum, NOW is the time to prepare for its eventual inevitability to help protect your business from rising energy and transportation costs.
Article Source: http://www.articlesbase.com/regulatory-compliance-articles/renewable-energy-the-good-the-bad-and-the-soso-498382.html
About the Author
Bottom line? - Apply this information to improve your profitability, reengineer business models, and strengthen or gain competitive advantage in the marketplace. And apply the free Fiscal Test at http://fiscaldoctor.com/fiscaltest.html.
From Gary W Patterson, www.FiscalDoctor.com Copyright 2008
greenjobs.com is a good place to start.
In addition with lots of head-way to be made companies like the one I work for PGE now have a Renewable Resource department, which is huge encompassing things such as research into tidal energy production, hydroelectric, wind, etc.
How do I enter the renewable energy industry?
I just left my job as an online advertising manager for a successful online retailer. My personal interests and sense of responsibility to help save our planet have prompted me to seek an opportunity in the renewable energy industry.
Does anyone have any advice on how I can break into this hot new field? My background is journalism and a specialization in online channel partners, especially eBay, Amazon, and Shop.com.
Thanks!
Erik
Why can’t the Federal Govt increase subsidies to renewable energy companies instead of passing Cap and Trade?
All they have to do is increase their subsidies and incentives to companies in the renewable energy industry, create an easy to entry barrier with full Govt support, these Co.s will then invest the money in R&D and very soon there will be the advent of a new breakthrough in technology which will be cheaper than the current energy sources we have today.
This, in place of taxing CO2 and every molecule out there with out including H2O and O2.
This certainly looks like a good idea to me.
At present the world wide recession has taken pressure off demand for fossil fuels but as economies recover demand will rise again and we will see prices reach unprecedented levels. This in turn will increase demand for alternative sources of energy, including renewable sources.
Some will say that the renewed demand for energy will stimulate fresh exploration for fossil fuels and the exploitation of untapped reserves but it is undeniable that fossil fuel companies are increasingly being forced to exploit more difficult fields (deep sea, beneath ice caps etc) and that this is bound to result in price increases. So the demand for alternative sources of energy is certain to rise.
Another stimulus to demand for renewable energy is the climate change issue. Governments are becoming increasingly concerned that CO2 emitted when fossil fuels are burnt is acting as a greenhouse gas and is leading to climate change. In order to avert the economic cost and human suffering that rapid climate change would cause they are seeking to reduce the use of fossil fuels by taxes and other measures. Again this is certain to provide a growing market for renewable sources of energy.
Another growth industry will be the development and supply of energy saving technologies.
I hope you will find this advice and the contributions of others helpful to you and wish you well in working to solve a couple of the most serious problems facing the world.
Best wishes for a sustainable future.
I’m thinking of taking HE in Renewable energy so that i can look for a new career.?
Does anyone have any thoughts as to whether this would be a good choice, or better still, is there anyone who works in the renewable energy industry who can offer some advice?
What is the best online source for renewable energy news?
I am looking for an educational online website for reliable renewable energy news and industry information.. I’d appreciate it, thanks!
I have a good one for you, try http://www.renewable-energy-news.info/ for information along those lines. They seem to be getting into biofuel, tidal power, and other “emerging” green energy technologies.
Most likely, the options cost you nothing. What the company is saying is that at a later time, you are allowed to buy a certain number of shares of the company at 4/$1. If, at that time, the stock is $5, then you can turn right around and sell it on the open market, and make money. On the other hand, if the stock is 0.24, then your options are worthless.
How much the option is worth depends on the total number of shares issued. If there are 10,000 shares outstanding, and you are allowed to buy 100, then that’s 1% of the company. Pretty good, if it turns out to be the next Microsoft or Google. If there are 50 million shares, then that’s not much.
An initial public offering of a stock is typically at $5 or more. Are you VERY SURE that the company is going public this year? These are hard times, and a startup has to be doing well to go public. Personally, I would be very surprised to see a new solar company go public in the coming year.
If I actually had to pay money to buy the options, now, I would be doubly suspicious of whether the company is actually going public. Maybe they’re just trying to raise money (although, I don’t know how much they could get from you).
If you have a wealthy and successful relative, I would go to them with the particulars of the deal, and ask them what they would do. Don’t trust Y!A for major financial decisions (not even me!)
The cost of developing renewable technology at the moment if far greater than developing the current technology of coal, oil and gas. Because of these high cost the returns for developing renewable energy are not there yet. There are some renewable energy companies but the energy market is dominated by oil and gas companies.
Giving the firms subsidies will not solve the problem because the firms will still not get the return they want and it would be very costly for the government. We don’t know how long it would take to develop a reliable renewable energy technology that could replace oil, coal and gas.
Necessity is the mother of invention and we do not require large and expensive R&D projects in renewable technology yet. When it becomes economically viable they will all be jumping to renewable energy. In the not to distant future energy companies will find it more difficult in securing energy resources and it will be these companies that will invest money and develop renewable energy that can be sustainable.
Stocks in Solar/Renewable Energy Industry?
The company I’m working for is willing to give me stock options at $.25/share… I never ownned stock before and I dont have any clue how this works, all I know is that if the company grows, my stock grows… I was woondering if Im getting a good deal. The company is still private and its going public this year..
Solar/Renewable Energy Industry a good place to invest your money? Does it yeild big return?