Engineering Inc. - September/October 2009 - 5

MaRkET WaTCh Surge in Renewable Energy Market Creates Plethora of Options, Opportunities By Joe Salimando R enewable energy markets—from sun to wind to geothermal and biomass—are experiencing a boom, as businesses look for environmentally friendly, socially acceptable, costeffective methods to power their operations. Global warming looms large, as do the difficulties in building coal-fueled power plants (a significant number of these projects have already been canceled or put on hold); with a 10- to 15-year build cycle, nuclear power plants have fared no better. The word of the moment in modern engineering circles is “green.” Consumers want to buy it. Clients want to be it. And engineers are expected to be able to design it. Just how widespread is the trend? One analysis of government energy data by the nonprofit Sun Day Campaign found that renewable energy production in the United States spiked by 7.4 percent in 2008, with that number expected to increase in the near term. Across the nation, a spate of local, state and federal government mandates is driving demand for alternative energy production. New York Gov. David A. Paterson, for example, proclaimed recently that his state conceivably could generate some 45 percent of its electricity from renewable sources by 2015. A recent international scientific congress on climate change suggested the world could generate 40 percent of its power from renewable energy sources by 2050. Opportunities for engineering firms abound. Solar Practically speaking, the sun is the generator that powers the Earth. Television scientist Bill Nye (“the Science Guy”) suggests more than 400 trillion watts of solar power reach the Earth’s surface every second! Think about that. Now, ask yourself this: How can we, as a 21st-century society, harness that power? A few ideas: Photovoltaics (PV): DC power is created in solar modules. PV is scalable, from individual buildings to utility-size fields full of modules. All that’s left to do is collect the energy created by the sun and use it. Concentrating Solar Power: This energy is used in utilityscale power plants, with mirrors concentrating the sun’s heat on a central water source. The concentration creates steam, which can be used, for example, to turn a turbine. Solar Thermal: In the United States, this technology is used mostly to heat water in individual buildings; solar thermal technologies are even bigger in Europe. Building-Integrated Photovoltaics (BIPV): BIPV includes installing solar modules on rooftops and installations on sides of buildings. Photovoltaics present the biggest opportunity. Speaking at Intersolar North America in July, analyst Shyam Mehta of GTM Research predicted that the U.S. market for solar panels would hit 2.13 gigawatts (GW) by 2012, a nearly six-fold increase from 342 megawatts (MW) in 2008. Beyond utility-scale projects and rooftop installations, work in this area for engineering firms also might include design of PV manufacturing plants. “The industry’s view is that the United States will be a leading market for supply and demand,” wrote Mehta on the industry website, SeekingAlpha. com. Wind BTM Consult out of Denmark said in a report posted on RenewableEnergyWorld. com that “more than 200GW of wind power capacity could come on line before the end of 2013.” Denmark is currently the world leader in wind energy. According to BTM, 28.2MW of new wind capacity was added worldwide in 2008, with the global total reaching 122GW at last year’s end. In the United States, Emerging Energy Research (EER), a consultancy that tracks the progress of renewable energy in global markets, suggests the potential for 9GW in new 2010 installations and 11GW of additions in 2011. “By 2020, the United States could see windpower growth of 15.5GW,” according to EER analysts. Contributing to anticipated U.S. growth is a 30 percent investment tax credit “combined with U.S. Treasury grant options.” Other Renewable Energy Sources A recent study by New York University’s Stern School of Business observes that geothermal energy is “less expensive than wind, solar power, or biomass,” but suffers from being “very geographically constrained.” Biomass: A 2007 report from the 25x’25 Alliance—which promotes biomass production as essential to its goal of deriving 25 percent of U.S. power needs from renewable energy sources by 2025—was reinforced by a recent University of Tennessee study, which stated that “feedstocks produced by fields, farms and forests could produce 86 billion gallons of ethanol and 1.2 billion gallons of biodiesel,” reducing gasoline consumption in this country by some 59 billion gallons annually by 2025. Possibilities and Priorities Geothermal: Statistics show that geothermal energy comprises 6 percent of all energy produced in California, 10 percent of energy produced in Nevada, and 25 percent of energy produced in Hawaii. With the federal government contributing extended tax credits, stimulus money for some current renewable energy support and increased funding for research and development in these areas, it’s safe to say alternative energy production is enjoying its time in the sun. How long that will last depends on the viability and staying power of these emerging energy markets. Regardless, there exist tremendous opportunities for firms prepared to balance the risks inherent in investing in these latest methods with the potential rewards. Joe Salimando writes on the construction industry at www. electricalcontractor.com. He can be reached at ecdotcom@gmail. com. ENGINEERING INC. SEPTEMBER / OCTOBER 2009 5

http://www.electricalcontractor.com http://www.electricalcontractor.com

Engineering Inc. - September/October 2009

Table of Contents for the Digital Edition of Engineering Inc. - September/October 2009