Solar Power Expected to Heat Up, Talent Flocking to Sustainables
World energy use is expected to skyrocket. The Energy Information Administration projects energy consumption to jump 50% by 2030 due to population growth and rapid economic expansion. The government report adds that as energy use soars, greenhouse gases will see a similar surge and oil prices will range from $113 to $186 a barrel. High oil prices, however, are expected to encourage expanded use of renewable fuels. In fact, the EIA says use of renewable energy is expected to increase nearly 70% by 2030. The report also contends that government policies and incentives to increase the use of renewable energy sources for electricity generation are expected to encourage the development of renewable energy — even when it cannot compete economically with fossil fuels.
Looking ahead, many industry analysts and experts believe that solar power offers the promise of contributing a significant percentage of America’s and the world’s energy needs. According to the 2008 Utility Solar Assessment (USA) Study compiled by Clean Edge, Inc. and Co-op America, solar power could provide 10% of U.S. electricity generation by 2025.
Talent Flocking to Sustainables
Executive search firm, A.E. Feldman says there is a huge rush of talent and money into sustainables - or renewable energy sources, such as biofuels, wind power…and solar power.
One senior industry veteran and recruiter working with A.E. Feldman says, “Very few people understand this business yet but the wealth of individuals and institutional investors getting involved is enormously high. Interest in alternative fuels is absolutely growing and attention to the sector will only increase.” A.E. Feldman’s CEO, Carol Schwam, says the burgeoning alternative fuel industry is looking for super-brokers who can funnel money into their businesses. She notes, however, that entrepreneurs in this sector must bridge the gap between the science behind the technology and a successful business.
A. E. Feldman has cultivated relationships with companies that have access to the financial resources to help fund U.S. based solar initiatives. The Federal Government has also stepped in to support the development of solar power, which will deliver energy at or near the point of use, zero fuel costs, minimal maintenance requirements and zero carbon-based source emissions.
U.S. Department of Energy (DOE), Secretary Samuel W. Bodman, recently announced that the DOE will make available up to $2.4 million to 12 cities across the country, chosen for their commitment and comprehensive approach to the deployment of solar technologies and the development of sustainable solar infrastructures. These projects further the federal Solar America Initiative (SAI), which aims to make electricity from solar photovoltaics cost-competitive with conventional electricity by 2015.
“The Energy Department is working aggressively to make clean, abundant and affordable solar energy the norm, and no longer an ‘alternative’ source of energy. The innovative programs already underway in each city will help us raise the bar of what’s possible, and will help cities and towns across America harness the tremendous potential of the sun,” Secretary Bodman said.
The Economics of Solar Power
For the first time solar power is beginning to reach cost parity with conventional energy sources, according to the 2008 USA study. The report shows that as solar prices decline and the capital and fuel costs for coal, natural gas, and nuclear plants rise, the U.S. will reach a crossover point in about seven years.
Meanwhile, solar energy is becoming more economically attractive as technologies improve… and the cost of electricity generated by fossil fuels rises, according to a McKinsey report. The group estimates that by 2020, hundreds of billions of dollars of investment capital will probably boost global solar-generating capacity 20-40 times higher than its current level.
The investment required to arrive at the USA study’s projection of 10% solar power in the U.S. by 2025 is $450 billion to $560 billion – that’s an average of $26 billion to $33 billion per year. The research contends, however, that given utilities’ existing capital costs this level of investment is not prohibitive (especially considering utilities spent an estimated $70 billion on new power plants and transmission and distribution systems in 2007 alone
The Future of Solar
“The future of solar is in the hands of utilities,” said Ron Pernick, Clean Edge Cofounder and Managing Director. “Reaching 10% of our electricity from solar sources by 2025 will require the active participation of utilities along with the support and participation of regulators and solar technology companies,” he says.
In the past 12 months, a number of utilities and solar companies have already announced aggressive programs to deploy large-scale solar power projects, according to the study.
- Southern California Edison’s plan to install 250 megawatts of distributed solar PV
- Duke Energy states a goal of investing $100 million in rooftop solar
- Pacific Gas & Electric announced plans to invest in thousands of megawatts of concentrating solar power in California’s deserts.
“Solar power is a growing field and will meet a portion of our energy needs going forward. That means solar power will displace some of the demand for fossil fuels,” according to Steve Eber, Professional Engineer at National Grid Energy Services - one of the world’s largest utilities.
“As capital and fuel costs have doubled or tripled for coal, natural gas, and nuclear power over the past few years, solar power costs are coming down,” explains Alisa Gravitz, Co-op America executive director and USA Study project director. “For the first time in history, cost-competitive solar power is now within the planning horizon of every utility in the nation.”
McKinsey concludes that “as the new sector takes shape, producers of solar components must drive their costs down, utilities must place big bets despite enormous technological uncertainty, and regulators must phase out subsidies with care. The actions these players take will determine the solar sector’s scale, structure, and performance for years to come.”
For more information about solar power or other job opportunities related to energy, sustainables or green technology contact A.E. Feldman President, Mitch Feldman, or the firm’s Energy Team here.
