Energy Analysis Lead, IronOak Energy Capital Founder & CEO, Resispeak, Inc. President, Terracel Energy, LLC What do you do within the renewable energy sector and why is it essential?
I have two main activities in the renewable energy sector. My company, Resispeak, develops and licenses utility bill collection and analysis software. Resispeak has analyzed energy usage data on behalf of home energy efficiency programs, electric utilities, building portfolios, and others in order to make their energy management initiatives more effective. My consulting practice, Terracel Energy, provides clients (consulting firms, large corporations, investment funds) with advisory services such as energy technology evaluation and market intelligence. Some of these clients make substantial commitments in the energy sector and I inform their capital allocation processes as objectively and insightfully as I can. Can you describe 2 of your most impactful past projects or engagements?
What are you most excited about for the renewable energy industry in 2017-2018? Energy efficiency has always been a neglected stepchild of the energy sector and remains an intractable problem due to its complexity. In the spirit of Eisenhower’s famous quote that “if a problem cannot be solved, enlarge it”, we are beginning to see the emergence of software applications whose purpose it is to connect residential energy efficiency development with other initiatives whose goals differ but whose activities overlap, such as poverty alleviation, weather resilience, and indoor air quality improvement in support of healthcare cost reduction. This comprehensive approach may create meaningful forward momentum towards comprehensive energy efficiency strategies and perhaps even innovations in energy efficiency investment as an asset class. What are you most concerned about for the renewable energy industry in 2017-2018? My biggest concern is that with cost-effective renewables and low natural gas costs in North America, energy efficiency will remain a significantly neglected option. The business cases for energy efficiency are already often marginal, and with low natural gas and wholesale power prices it can be difficult to make the math work. My other big concern is that we will terminally loose the desire and then the ability to deploy large new nuclear power generation. New reactors in Georgia and South Carolina are experiencing cost overruns on the order of a billion dollars a year per reactor, and unless we can demonstrate that new nuclear is cost effective to develop we will loose any remaining appetite for new nuclear power generation, at least in the U.S. What is one trend in the renewable energy sector that few are paying attention to? At the end of last year, NuScale became the first company to submit a reactor design certification application to the U.S. Nuclear Regulatory Commission for a small modular reactor (SMR). Unlike large site-built reactors, SMRs would, in theory, be constructed in a factory and shipped to site, thereby taking advantage of manufacturing economies of scale. More than a dozen companies are pursuing SMR commercialization with a wide range of designs. Clearly not all of these companies will succeed, but our best chance for ensuring a role for nuclear power in our energy future may come from SMRs, so look out for advances in this space. Why is good energy analysis important? If we are trying to reduce a community’s total winter heating costs, we should know how much energy is being consumed for winter heating, and by whom. If we are optimizing a building’s operation, we should observe trends in energy usage from the smart meter data. If we are investing in energy efficiency, we should measure how much energy we are saving. However, very often we do not take these straightforward actions, resulting in wasted money and energy. Proper energy management at any level begins with proper energy analysis, without which energy managers and other decision makers are essentially flying blind. What has surprised you most about your career in the renewable energy sector? What has surprised me most is how hard it can be to commercialize new energy technology. In an article I wrote about a couple of years ago and published in GreenTech Media, I remarked how innovative energy technology often competes against something that currently exists and already works well. A better mousetrap is rarely enough – doing something innovative in the energy sector generally requires not just technical innovation but also financial innovation, organizational capabilities, and a network of partners that share a common vision and are willing to collaborate on implementation. What are 1-2 pieces of advice you would give someone thinking about entering the renewable energy industry today? Renewable energy is a very rewarding and intellectually stimulating field to work in, but it can also be quite frustrating due to the extent of regulatory, economic, and technical challenges that need to be overcome to make a real impact. If you are exploring opportunities in the renewable energy industry, my advice is to be sure to budget realistically and ensure others do so as well, since projects often take longer and cost more than optimistic proposers would otherwise hope. What do you do within the renewable energy sector and why is it essential?
Quantified Ventures advises organizations in the social, public, and private sectors in designing and structuring impact investment transactions, primarily through a Pay for Success model in which payments for services are based on the outcomes achieved. We work to deploy impact capital to scale proven solutions that will make a difference in achieving social and environmental outcomes Can you describe 2 of your most impactful past projects or engagements? Quantified Ventures is leading the way in applying the ‘Pay for Success’ model to the environmental sector. We recently helped the DC Water and Sewer Authority issue the nation’s first ‘Environmental Impact Bond’ to fund implementation of green infrastructure, and are working to apply this approach in addressing other environmental issues such as in agriculture, forestry management, fisheries, and energy. What are you most excited about for the renewable energy industry in 2017-2018? Quantified Ventures strongly believes that the Pay For Success model can be used to de-risk public investment in renewable energy and look forward to pursuing such transactions in 2017-18. What is the role of impact capital going to be moving forward? There is now $16B in ‘Impact Capital’ available for investment to scale innovations that will make a difference in the world. All the major financial institutions, plus foundations and high-net worth families have Impact Investing units that are an attractive source of capital for companies that can deliver both financial and social returns. What are 1-2 pieces of advice you would give someone thinking about entering the renewable energy industry today? Jump in and innovate on Day 1 to advance/scale what works and shed what doesn’t. Energy Infrastructure Finance Lead, IronOak Energy Capital Co-founder and Managing Partner, Energy Intelligence Partners (EIP) What do you do within the renewable energy sector and why is it essential?
EIP provides insight, expertise, and operational support to startups and large corporates alike. Our backgrounds allow us to not only support innovation, but also financing, growth, and strategic decision making. This full “life-cycle” experience gives us the ability to make recommendations, but then, if needed, step in and help execute on a day-to-day basis to make those recommendations realities. Can you describe 2 of your most impactful past projects or engagements? We were engaged by one of the world’s largest R&D organizations to help build a business model around a new grid-edge technology they had developed. Initially, we helped assess the opportunity and delivered go-to-market recommendations. As the engagement evolved, we were asked to become more and more involved resulting in us helping to spin out a new company. I took the role of CFO and VP of business development of the new entity, helped secure several million dollars in seed financing, signed the first two large customers as we deployed the technology in a commercial setting. Being able to not only identify the opportunity, but also help execute, is very rewarding. In a more challenging situation, we were engaged by an investor with a large interest in a project that was not going as planned. They realized they needed not only financial support, but also energy and project expertise to totally understand their risks, opportunities and options. We were able to accurately assess the situation both operationally and financially, quantify the risks and opportunities within the decision matrix, as well as provide new options that were previously not available. Having investment, operational, and technical experience from financing and operating power plants allowed us to provide a one-stop-shop to resolve this difficult situation. What are you most excited about for the renewable energy industry in 2017-2018? Non-battery energy storage. We are seeing a lot of innovative ways to store energy at well below the cost of batteries and there are lot of very smart people developing the technologies to leverage these novel approaches. We have helped groups take advantage of these resources and leverage utility tariff structures to save significant amounts of money. This trend will only grow, and it could be a game changer for the power grid and the environment. What are you most concerned about for the renewable energy industry in 2017-2018? The pace of innovation is far outstripping the grid’s ability to understand and incorporate it. The result is often a reluctance to test and implement new technologies, or a sporadic deployment that has suboptimal results. Energy decisions often have very long term implications. For example, for every gas plant that is built instead of implementing demand side management technologies, we lose years of potential cost and performance benefits. We see massive changes happening as technologies are being deployed that allow consumers to manage when they use electricity which the grid must deal with. What is one trend in the renewable energy sector that few are paying attention to? Biofuels and biomass. This sector has been really beaten up over the last 8 years, after being the darling of the clean tech revolution. Much of the failure of the sector was a poor understanding of the challenges beyond just the technology. We have a lot of experience in this sector and have seen a number of new ideas that could make the promise from 8 years ago a reality. If you asked one of your early stage clients what they value most from an engagement with you, what would they say? Early stage companies and investors are often short on resources and time, but need expertise and execution support from professionals who understand the sector and the challenges of startups. We have found they appreciate our experience and insight into their business, and come to truly value our ability to provide flexible hand-on support as they execute over the long term. What has surprised you most about your career in the renewable energy sector? The rapid evolution of the demand side. Consumers have so many options and are impacting the grid like never before in both good and bad ways. As an example, our experience with isolated and island grids has taught us that even efficiency can have unintended negative impacts. What are 1-2 pieces of advice you would give someone thinking about entering the renewable energy industry today? Success in the energy sector takes a long time, so be patient. While it would be great if we could replace certain infrastructure overnight, the reality is that these are long-lived high cost assets. Having said that, hold on tight, because there are few industries as volatile. Energy Storage Finance Lead, IronOak Energy Capital Co-founder and Managing Partner, Energy Intelligence Partners (EIP) What do you do within the renewable energy sector and why is it essential?
EIP provides expertise and operational support to clients in the energy sector. We serve startups and large corporates alike. We are differentiated by our backgrounds and the fact that we can also step in and help execute after assessments and recommendations are made. Can you describe 2 of your most impactful past projects or engagements? I have over 15 years of experience with energy storage technologies and markets. Assisting with investor due diligence on energy storage investment opportunities is always impactful. I recently supported an investor group as they considered investing in a new energy storage technology. In these cases, I’m able to leverage my technical, startup, and investing experience to identify the key risks and provide feedback on the technology, market, and deal terms. This is particularly helpful for groups new to the energy storage space. Another impactful engagement involved a client that needed help assessing the opportunity for a new energy technology developed in-house that was complementary to their core business. We determined three commercialization options, ultimately focusing on one market that was an ideal fit based on the client’s technology, capabilities, and goals. EIP also developed and secured two strategic partners for future joint ventures, and even procured strategic partner hardware for preliminary testing. What are you most excited about for the renewable energy industry in 2017-2018? We see a lot of market dynamics that others do not because we are working with clients every day that are striving to disrupt markets. What most excites me is that the way we consume and produce energy is changing fast thanks to the convergence of low cost hardware, a fast and robust communications network, and smart devices behind-the-meter. We are witnessing the start of new distributed energy infrastructure that will ultimately make our energy mix cleaner, more efficient, and more stable. It’s happening a lot faster than people think, and with change there is opportunity. What are you most concerned about for the renewable energy industry in 2017-2018? I’m most concerned that there is a looming shake-out in the energy storage industry. There is so much OEM competition and pricing has dropped so quickly that I suspect many companies will exit the sector in the next few years. Also, I’m concerned that the energy storage industry’s reputation may suffer a setback because expectations are so high. It’s time to deliver on the promise. What is one trend in the renewable energy sector that few are paying attention to? Few people are paying enough attention to the fact that the regulatory and policy frameworks that utilities operate within are not keeping up with energy innovations. This is going to make it more challenging to manage the grid in the short-term because behind-the-meter assets are being rolled out at an increasing pace. Electricity consumers are benefiting at the expense of the utilities, who will continue to lose visibility, control, and revenue. Established business models are also at risk because utilities will start changing the rules of the game. Why would a large corporation engage EIP rather than a larger, traditional consulting firm? Our boots-on-the-ground experience provides large corporate clients with assessments and analysis from a real-time market perspective. As an example, we work with early stage companies on a regular basis and see market changes first-hand and often before others. The insights we have from these experiences are highly valuable when large companies are making important strategic, product, and go-to-market decisions. What has surprised you most about your career in the renewable energy sector? I am surprised how much attention energy storage has garnered over the past three years and how much and how fast lithium ion battery prices have come down. What are 1-2 pieces of advice you would give someone thinking about entering the renewable energy industry today? Come to the industry with an appreciation of the enormous infrastructure in place and the scale of the industry. It is very challenging to introduce disruptive energy technologies and business models. However, there are a lot of market inefficiencies and thus opportunities. U.S. Energy Law and Policy Lead, IronOak Energy Capital Associate Dean for Academic Affairs, Hugh B. Brown Presidential Endowed Chair in Law, and Presidential Scholar, University of Utah What do you do within the renewable energy sector and why is it essential?
My work focuses on law and policy analysis for renewables and other clean and emerging energy technology sources. It is an extraordinarily exciting time to be working in this area. Law and policy for renewable energy are moving fast; they need to. The sector is rapidly evolving, and the old rules of the game are quickly being changed. Can you describe 2 of your most impactful past projects or engagements? Last year, Sanya Carley and I conducted an assessment of the factors that led to changes in the net metering laws in Nevada, compared against other jurisdictions that have considered moving away from net metering but decided not to. This work has been very useful, I think, to those concerned about what is going to come next in rooftop solar, and where possible solutions might be found. I have also provided analysis to the Korean government about green growth as well as about how feed-in tariffs and renewable portfolio standards function. That experience was very rewarding. What are you most excited about for the renewable energy industry in 2017-2018? Opportunity. I think that’s what this year holds first and foremost. There is opportunity emerging at every turn as prices for different technologies continue to fall, as the public becomes increasingly interested in participating in the energy sector, and with the promise of new infrastructure across the nation. States like Nevada are looking to build electric vehicle corridors. Rooftop solar has transitioned from a minority position to a major player. And there are so many more opportunities that are only now emerging or are about to. In these and other opportunities that we cannot yet see, there is significant potential for the renewable energy industry to contribute—to change the way we make energy, to improve the security of our nation, to help forge new paths forward. For those of us who work in the industry, that makes these very exciting times. Our task is to capitalize on these opportunities—to be leaders and innovators. What are you most concerned about for the renewable energy industry in 2017-2018? Uncertainty. We already were living in quite uncertain times, and that uncertainty has only heightened as the new administration has assumed office. Conventional wisdom is that national efforts to curb carbon emissions are likely to be allayed—or evaporate—but exactly how and when that will happen remains to be seen. At the same time, energy is often a more bipartisan issue in Washington, D.C. than other topics, so there is good chance there will be federal legislative movement on energy this year. Meanwhile, the states have been very active in their own right, and I only expect that to continue. While uncertainty is always difficult to deal with, it also opens doors for new and innovative solutions. So, while the uncertain times of today of course concerns me, I remain eager to help find those solutions going forward. What is one trend in the renewable energy sector that few are paying attention to? Breadth and diversity. I think many people view the renewable energy industry as one particular thing, when in fact that is not true. Both the scope and the differences within the industry are wide, and important. Renewable energy is not just wind or solar or distributed generation. It’s that but a lot else as well, including large centralized projects, storage, and a million other imminently creative solutions that are not receiving adequate attention, are just emerging, or are not yet discovered. Why does renewable energy law and policy matter? I can’t emphasize enough how important it is that every part of the renewable energy industry works together. What this industry is really building is a massive, new, emergent ecosystem. So law and policy cannot get lost in that mix, just as finance, engineering, sales, and every other part of the industry can’t be forgotten. It all goes together; it all relies on each other. Law and policy set the ground rules for the game—and they can and do change, and can be influenced by those who must play within their constraints. What has surprised you most about your career in the renewable energy sector? In my prior career, I represented (usually large) investor-owned utilities. That knowledge is extremely useful, because the clean energy industry is growing in a world that the historical vertically integrated utilities created. There is also much room for synergies between that part of the energy industry and the renewable energy industry itself. Synergies matter. And they are available. What are 1-2 pieces of advice you would give someone thinking about entering the renewable energy industry today? Buckle up. It’s a fun ride, but there is no question you’ll go fast. In many ways, what we are working on today is really a project in building the future. Transportation Innovation Lead, IronOak Energy Capital Founder, CBC Consulting (Global Transportation/Technology Consulting Firm) Board Director, Association for Commuter Transportation What do you do within the renewable energy sector and why is it essential?
I am the Founder for CBC Consulting, a global transportation technology consulting firm. We work with cities and transportation and technology organizations around the world. Our focus is to advance new transportation and municipal infrastructure options that are energy efficient and designed to deliver better mobility and living experiences. Examples include the high speed air/surface transportation options, drone travel, autonomous transport movement, municipal electric vehicle programs, electric buses/trolleys and more. Can you describe 2 of your most impactful past projects or engagements? I had the opportunity to be on the Vulcan/USDOT Advisory Council for the Smart City Challenge project in 2016 that promoted smart city planning in 80+ cities across the US. This project emphasized a reduction in greenhouse gas emissions in municipal energy grids, the advancement of electric vehicle programs, the launch of alternate transportation options (bike share/EV buses/trucking) and new energy options for cities (wind, solar and hydro power). This project spurred a whole new wave of smart city planning/investment in the US that continues today. Our firm also developed the first self-driving vehicle simulator comprised of a 3D printed electric vehicle and fully-immersive autonomous vehicle driving experience. We deployed our self-driving vehicle simulator in Seattle last year and have plans to bring this simulator to other facilities/markets in 2017. Our objective is to help educate the public on what it will be like to travel in self-driving vehicles and to gain some insight into the future of vehicle manufacturing - highlighting alternative manufacturing materials that promote energy efficiency and environmental sustainability via recycled vehicle platforms. What are you most excited about for the renewable energy industry in 2017-2018?
What are you most concerned about for the renewable energy industry in 2017-2018? The Paris Climate Meetings in late 2015 represented a groundbreaking moment for the future of renewable energy adoption. The gathering of 183+ countries and the subsequent agreement to reduce greenhouse gas emissions in order to achieve a 2-degree Celsius reduction in global warming was a huge first step toward reducing fossil fuel consumption around the globe. The outcome of these meetings was a global recognition that change is required in our energy production and consumption. Fast forward to February 2017. We are now seeing the Trump Administration signing executive orders to reverse advancements in alternative energy measures in favor of traditional coal, oil and natural gas exploration. Executive orders to approve the development of the Keystone Pipeline, the Dakota Access Pipeline and renewed shale fracking represent a stark reversal in earlier federal policy intended to promote renewable energy adoption. None of these Executive Orders align with the goals of the Paris Climate meetings and represent a roll-back in US GHG reduction goals. In addition, the Trump Administration has proposed the removal/reduction of EPA standards and guidelines that impact air quality restrictions for coal facilities and pave the way for a renewal in coal exploration. Lastly, the new Department of the Interior is being urged by the Trump Administration to reduce restrictions on offshore oil exploration and oil fracking operations by now allowing possible access to federally protected land for more energy exploration. None of the above activities help encourage renewable energy, better air quality, responsible management of federally protected land and a general focus on improving the environment. What is one trend in the renewable energy sector that few are paying attention to? Advancements in Graphene over the last 2-3 years are introducing new possibilities for renewable energy via hydrogen energy, kinetic energy and other fuel cell options. Graphene has the potential to be a real game changer in energy, industrial manufacturing, medical research, consumer electronics, transportation and more. Why are you motivated to do you what you do? The global warming trends of the last 10-15 years clearly cannot continue without causing irreversible harm to our environment, our long-term quality of life and our ability to sustain a planet that can support a rapidly growing population. The adoption of renewable energy measures is not a fad or trend but truly a recipe for a sustainable environment that balances growth with responsible resource management for generations to come. What has surprised you most about your career in the renewable energy sector? I never thought I’d see the day when solar energy could power an entire airport in India. Nor could I envision that a car could be 3D printed, equipped with an electric motor and driven down the street. The advancements in new technology and energy are changing how we move around the planet in ways I never thought were possible. What are 1-2 pieces of advice you would give someone thinking about entering the renewable energy industry today? The renewable energy market is a gold mine of opportunity. This market represents perhaps some of our biggest potential breakthroughs in energy development, transportation, medical research, clean water options and urban development. What do you do within the renewable energy sector and why is it essential?
I help renewable energy (i.e. solar, storage, efficiency, etc.) business owners sell their companies by running a process to find the right buyer at the optimal purchase price. A healthy M&A market is an essential tool for companies looking to achieve scale and for equity-holders to realize returns on their investments. Can you describe 2 of your most impactful past projects or engagements? Leveraging Duke Energy’s acquisition of a wind energy services business to expand the company’s service offerings to other wind energy asset owners. Co-leading the 2014 Duke Energy NC Solar RFP and successfully acquiring 128 MW of solar projects and signing 150MW in new purchase agreements. What are you most excited about for the renewable energy industry in 2017-2018? I am excited to support the rapid maturity of wind and solar businesses in the market. As companies continue to consolidate with one another, the efficiencies gained will further drive down the costs of renewable energy installations making them more and more competitive with traditional fossil fuels. I am also confident that over the next two years the renewable energy industry will continue to shock and awe with dramatic increases in installed capacity of matured technologies and with its pace of innovation. What are you most concerned about for the renewable energy industry in 2017-2018? Policy or rather “bad” policy is always a concern for stewards of the clean energy industry. Uncertainty in any market can slow growth and stifle innovation. I am concerned about the resistance in the renewable energy industry for there to be winners and losers in terms of the types of technology and methods of deployment that win the day. If the industry tries to advocate for everyone to be a winner it will result in sub-optimal policies. Encouragingly, the renewable energy industry has time and time again proven its resilience to political uncertainty and I think is well on its way to being even less dependent on the whims of elected officials. What is one trend in the renewable energy sector that few are paying attention to? I think the trend of EVs becoming closer and closer to mainstream is sometimes lost in the noise created by Tesla, as if the whole EV industry depends on Tesla succeeding. At one point, I would have agreed, but now I see daily announcements for new EVs by all the major manufacturers and the cars actually look good. It feels like EVs are finally becoming mainstream enough that most consumers won’t see them as weird spaceships but rather consider them a viable, affordable, and attractive alternative to a gas-powered vehicle. Why hire an investment banker to sell your business? For the same reasons you would hire a lawyer to write an operating agreement or an accountant to do your books, you want experts to help you with non-core competencies. All we do as an investment banking firm is sell companies so we are good at it and know the pitfalls, the same way a good solar developer knows the permitting traps to avoid. What has surprised you most about your career in the renewable energy sector? I have been surprised by how much finance played a role in the success of the industry. The renewable energy economy has been built on innovations in financial structures sometimes for better or for worse (remember yieldcos). What are 1-2 pieces of advice you would give someone thinking about entering the renewable energy industry today? As a theater major, I never thought I would end up being an investment banker with a career in renewable energy. I am a testament to the fact that there are many paths to the same place. My advice to someone would be to try something scary, don’t get stuck in your comfort zone. |
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