A private enterprise strategy is feasible for forging a clean
renewable energy economy. Unless alternative energy sources
develop, like fusion, the principle sources for such an economy are
solar and wind energy. Nuclear energy at present is not cost
competitive.
One of the problems with developing and selling wind and solar energy
is the variability of these sources. Typically, alternative energy
companies are small and horizontally organized. Many solar and wind
companies have failed, in part due to the inability to market power
that is not dependably deliverable, and in part due to variability in
government support.
The variability in delivery problem may in part be solved by use of
improved energy storage and transportation means. See:
http://www.mtaonline.net/~hheffner/HotCold.pdf
http://www.mtaonline.net/~hheffner/BigPicture.pdf
However, much of the reliable delivery problem can be immediately
solved simply through effective business strategy and business
synergies. The solution is a vertical integration approach. By
diversifying energy sources, the reliability of delivery is
increased, and great technical synergy is possible. By owning energy
transmission systems, the delivery strategy can be optimized with
reduced exposure to external manipulative schemes.
Wind companies should, during buildup of capacity, also acquire or
build conventional generating capacity for the purpose of smoothing
energy deliveries. Small methane fueled jet engine powered electric
plants might be a viable way to build this capacity. Energy delivery
reliability for a wind based producer can also be improved by buying
or building alternative power sources, like solar, or biofuel
generating plants. Merger with existing power generating utilities
may make sense, and should be facilitated and expedited by regulatory
commissions when application is made by all the merging parties.
This nominal approach can be greatly enhanced with technological
improvements and a more integrated approach.
Wind farms can readily be used to store energy in the form of
liquified air. This capacity, combined with use of heat storage plus
waste heat from a nearby peak load generating facility, can
dramatically increase the efficiency of that facility, as well as the
energy storage capability of the overall plant. There are many
synergies that can exploit existing technology through vertical
integration.
A large new source of reliable power, deliverable in the form
electricity, can readily be absorbed. Home heating can easily and
cheaply be upgraded and augmented by electric heaters. Radio
network based, home heating control systems can be implemented that
optimize use of the generating, transmission and distribution systems
by timing the use of auxiliary electric heat according to codes
broadcast by utility management systems. Electric vehicle technology
is close to being deliverable in a big way, so home charging can be
managed in a similar fashion. The utility control systems could
broadcast demand area designation codes and desired demand percentage
values. The home systems would respond by attempting to meet
auxiliary home demand with the designated amount of auxiliary
electricity.
The remaining problem, variability in government support, can only be
attacked by reaching the critical mass required to support adequate
lobbying.
A solid business plan and big financing may be the key to quickly
cracking the energy nut. Alternatively, a mutually formed business
consortium or even merger of alternative energy producers and
manufacturers might be achieved to take advantage of the dramatic and
obvious economies of scale and synergies available to alternative
energy producers. A vertically integrated renewable energy industry
strategy is superior to most if not all other US business
opportunities in profit magnitude, reliability, and feasibility.
The capital sufficient to fully execute a large scale vertical
integration strategy unfortunately lies principally in the existing
carbon based energy industry. Some companies doubtlessly do not have
the leadership ability or motivation to adapt to, much less to
rapidly forge, a renewable energy future. Yet the business
opportunity lies there for the taking. Some entity will sooner or
later, by evolution or by design, take advantage of it. It is
hopeful the foresight and energy to do so will come from US companies.
