Accelerating the shift to clean technology
As featured in The New Yorker, December 2011 issue
The global demand for energy is expected to triple by 2050. With a finite supply of fossil fuels, energy needs must be met with renewable sources of energy. Experts predict that massive investments in clean technology solutions will essentially meet that upsurge. So how can businesses and governments rise to the challenge and how can companies ensure that they are on the right side of the investment curve? In this installment of the Singapore Sessions, held in association with The New Yorker, we explore how businesses have successfully implemented low-carbon innovations.
The Session
Ole Enger — Have carbon tax on CO2 emission
"In the past", says Ole Enger, "there has been a lot of skepticism as to how we can price solar energy at a cost that is competitive with conventional fossil fuel". World leaders, Enger believes, "have not yet truly understood how fast renewables are moving".
Would there be a market where renewable energy competes head-on with fossil fuels? And will establishing a fair trading system bring out clean technology's potential?
"Fossil fuels and other energy sources that have great CO2 emissions should pay for it. This process will go much faster if we have a carbon tax on CO2 emissions, while reducing subsidies", says Enger.
Yes
NoAbout the sessionist
Ole Enger
President and CEO
Renewable Energy Corporation
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Professor Joachim Luther — In renewable energy, there's no 'one size fits all'
Ask Professor Joachim Luther about the role that renewable energy plays in the new energy infrastructure, and he answers with another question. "What is realistic and what are the criteria. Today's energy system works perfectly. But there are two main problems: one is the climate issue and the other is energy security. If we don't have these problems, we would continue as we have done".
Having said that, Professor Luther believes that when it comes to renewable energy, like any other new technology, there is no one size that fits all. "Price situations of different technologies are different. Wind energy makes no sense in the tropics because there is not much wind. so it needs less support compared to solar energy", says Professor Luther.
So how do you pick the right technology to bring out the full potential of renewable energy? Professor Luther thinks there's only one way to do this, "By knowing the market, knowing what technologies are available and employing the right people."
About the sessionist
Professor Joachim Luther
Chief Executive Officer
Solar Energy Research Institute of Singapore
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Benj Sykes — Look at technology in the right context
In order for clean technology's full potential to be realized, Benj Sykes recommends the assessment tools his company has developed- "Four Journeys". It helps match the right technology to the right purpose.
Firstly, "we look at what the company needs in order to succeed because good technology isn't going to make it if there isn't a company that is going to exploit it". Secondly, "focus not just on developing the technology, but also the company".
Thirdly, do market research as "some of the markets are very hard to break into". Last but not least is the policy journey. "You can get the technology right but if the policy framework and the legislative framework aren't there to support that scale, you are still going to have a problem", explains Sykes.
About the sessionist
Benj Sykes
Director, Innovations
The Carbon Trust
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Ray Wood — Drive down the cost of capital
"The beauty of renewables is that it covers the entire gamut of risk or returns from a financial perspective", says Ray Wood. "The problem, however, is the price of capital. For renewables to become part of the supply chain it requires billions of dollarsand it has to rely on subsidy".
But there are still questions left unanswered. How much subsidy can businesses or governments afford and how quickly can renewable energy wean itself off?
The key to financial viability of this sector, Wood believes, is in the credit market. "It's a capital-intensive business; you need to decide how to deploy the capital and how quickly to grow the business. If we can finance that at a much lower rate, we can accelerate", says Wood.
About the sessionist
Ray Wood
Managing Director
Global Head Renewable Energy
Investment Banking
Credit-Suisse
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JAN 201205
Posted by Dieter, Singapore
Dear all,
to remember in the 1960/ 70 ties all industrial water in Germany (Europe/US) flows in the rivers and contaminate the
In the end the citizen has to pay for that later with taxes, water conservation fees, whatever is a name it works loke a tax.
So for that it will be better to clean direct and do it to the product price. Nobody should believe there is no price increase. But the users have to pay and not the whole community. So for CO2 will be the same: lower Electricity consumption= lower CO2, same for flights and cars.
To be clear whatever we do we have to pay. It's better to pay at source instead of the end of the pipe for cleaning, i
Dieter Hofmann Singapore
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