Posted in Clean Energy, Renewable Energy on September 29th, 2008
TIGHTER CREDIT COULD MAKE IT MORE DIFFICULT TO FUND THE SOLAR AND WIND INSTALLATIONS THAT ARE THE BACKBONE OF THE GREEN ENERGY REVOLUTION
While Congress battles back and forth on the pluses and minuses of the Wall Street bailout, this is as good a time as any to ponder what this financial mess could mean to the survival and expansion of the wind and solar energy industry in this country.
But before doing this, it might be good if we take a minute and define what sets wind and solar energy apart from more traditional energy sources such as oil, natural gas, coal and nuclear power, as there appears to be quite a bit of confusion on this matter.
For the record, wind and solar energy are renewable; meaning as long as the sun shines and the wind blows, the supply is limitless. They are also non-toxic, and can be harvested without destroying mountains, poisoning rivers and streams, or ruining the health of unsuspecting people and animals.
Even better, wind and solar energy are local, they’re ours and they are free. And after years of being screwed by Middle East oil despots, free is a good thing.
Lastly, wind and solar energy leave no carbon footprint. There are no tankers, trucks or trains for it to be loaded on. Simple transmission lines from the facility to the grid are all that is required.
Considering the positives that wind and solar energy bring to the table, you would think that Corporate America would be tripping over one another in the rush to take significant positions in this new and futuristic industry. But with the exception of a few mavericks, most notably oil billionaire, T. Boone Pickens, the investments have been few and far between.
This ho-hum, wait and see business model on the part of our nation’s energy companies is surprising behavior considering the public demand for clean renewable energy. And while many of these same companies have moved in and bought up the entire inventories of privately funded wind and solar operations, few have opted to invest in infrastructure.
If I had to speculate as to the reasons for the hesitancy, my best guess would be that it stems from a decision by many of the older, more established energy companies to see if they can ride out this whole renewable energy thing, until such time as the public moves on to something else, and they can go back to business as usual. To help move things along, many of these companies are sponsoring big-dollar television advertising campaigns hoping to confuse the public into thinking that older, dirtier fuel sources such as coal and the so-called clean coal, natural gas and nuclear power are clean and environmentally friendly. Here in Orange County, California, three such campaigns are currently running.
Now this would be laughable, if it wasn’t so damn sinister. But the sad truth is these campaigns are being effective. Part of this is the tenor of the times. It is very difficult to think clearly on such a (for now) non-important matter as to where your electricity comes from and if it is renewable, when you are worried about hanging onto your house and putting food on the table.
The energy companies know this and they are using it to their advantage. Where in better economic times, all but the most out of touch would see these obviously false ads linking nasty, toxic coal, highly explosive, natural gas and the most destructive element known to man, nuclear power to renewable energy, they would rise up and in one voice yell, Hell No!
Because everybody knows that coal is not clean, and while science may have taken steps in that direction, to date there is no such product. Nor has the nuclear industry developed a way of treating and safely disposing of spent nuclear material, or for that matter of preventing Chernobyl sized meltdowns.
It’s almost surreal to think of these energy sources as being anything other than what they are. But much about life today is surreal. Wall Street falling almost eight hundred points, yesterday, and loosing over a trillion with a t dollars is surreal. Our county having to come up with 700 billion dollars to cover the asses of a bunch of elitist, arrogant, well- connected, so-called financial experts is sure as hell surreal, as is the people in jail for stealing mere hundreds. Pondering the lesson that our children will take from this – - to steal billions and not hundreds – – is surreal. But the surrealist of all is the uncertainty, the not knowing what the future will bring and if, as a nation, we will have the money necessary to buy into it.
My big fear is that with the problems on Wall Street, the collapses in the banking industry, and tightening of the credit market, it will become difficult, if not impossible, to raise the massive amounts of capital that it takes to construct the solar and wind installations that form the backbone of the green energy revolution
To realistically compete with the older, more established energy sources, wind and solar installations require extensive land commitments. Significant sums must then be spent, not only on the hardware, which captures and converts the energy into electricity, but also on the feeder lines, which carry the power from the often remote locations of these installations to the electric grid. The good news is that once wind and solar installations come online, their operational cost is minimal, perhaps pennies on the dollar.
Without serious government subsidies, which may not be possible in the wake of our current financial woes, tougher to obtain credit could be a real game changer for the Green Energy industry, as it would force developers to turn to private and corporate entities for their financing, which when available usually comes with unwanted and unneeded encumbrances and partnerships.
The there is also the matter that neither of these sectors has shown any interest in participating in the green energy industry.
The expected credit crunch will also have serious effects on the companies building wind and solar apparatus. Many of these are smaller entities dependant on lines of credit and other financing vehicles for their survival. Tight or more expensive credit could force many of the smaller players out of the marketplace. All of which leaves the market wide open for the coal and nuclear industries with their deep pockets and government contacts to make even further inroads into the energy industry.
And the sad thing is there is probably not a damn thing we can do about it.
- – Denis




