An Ignoble Experiment

2. Successful water companies embrace changing industry

The benefits of fossil fuel energy to society far outweigh the social costs of carbon (SCC) by a magnitude of 50 to 500 times, according to a study‎ released by the American Coalition for Clean Coal Electricity (ACCCE).

Credit: AmericasPower.org

"It is without question or debate that our national and global societies have benefited from fossil fuels. And those benefits will continue to be realized from coast to coast and around the globe for generations to come," ACCCE President and CEO Mike Duncan said. "If this administration attempts to calculate the future costs of carbon, it's imperative that policymakers also consider the actual and potential benefits of our carbon-based economy. Fossil-based energy has powered three industrial revolutions, including today's ‎technology revolution."

According to the study, over the past 250 years, global life expectancy has more than doubled and incomes have increased 11-fold. This has been due in large part to increased energy production and delivery, most of which has been fossil-based. And although a Federal Interagency Working Group (IWG) estimated the social cost of carbon (SCC) to be $36 per ton, the actual societal benefits of carbon -- as a by-product of energy production -- is 50 to 500 times greater than the perceived cost, according to ACCCE.

"Even the most conservative estimates peg the social benefit of carbon-based fuels as 50 times greater than its supposed social cost," Dr. Roger Bezdek, lead author of the report, said. "And the benefits are actual fact, founded on more than two centuries of empirical data, not theoretical summaries based on questionable assumptions, dubious forecasts, and flawed models."

Coal is the world's fastest growing energy source and has increased nearly as much as all other sources of fuel combined, according to the report. Much of this growth is in emerging economies like China and India, and it is expected that coal will continue to be the leading feedstock for electricity generation around the globe for at least the next three decades. Additionally, according to the Energy Information Administration, fossil fuels will provide 75 to 80 percent of the world's energy for the foreseeable future.

In the United States, coal remains the largest feedstock for baseload electricity generation, supplying nearly 40 percent of the nation's electricity. But the Environmental Protection Agency's (EPA) proposed rule for new coal-fired power plants, the New Source Performance Standard (NSPS), has been widely criticized as unachievable. NSPS requires the use of a technology that is not yet commercially viable -- carbon capture and storage (CCS) -- for all new coal-fueled power plants.

These regulations seem to ignore the $130 billion the industry has invested in clean coal technologies that have already reduced emissions by nearly 90 percent over the past forty years.

"Fossil fuels have provided the energy to improve farming yields, grow manufacturing and business, and are now powering data servers and even the Cloud," Mr. Duncan said.

"And while we have all benefited from reliable, clean coal electricity, there are still those who seek to end this American form of power. More and more, this Administration has abdicated its energy policy to the EPA whose regulations will shutter existing coal power plants and thwart the construction of new ones. We would hope that evidence in support of the benefit of fossil fuels, including clean coal, will help bring common sense to the regulatory process."

Recent reports that electricity supplier PJM is asking regulators to lift the power price cap because of the high cost of natural gas this winter season joins mounting evidence that the United States needs a diversified energy portfolio to ensure affordable, reliable electricity, according to ACCCE.

"This waiver is proof positive of the challenges our nation's electric grid faces should the current Administration and environmental activists achieve their goal of shutting down clean coal plants in the United States," said Laura Sheehan, ACCCE's senior vice president. "Coal provides nearly 40 percent of the baseload electric power in this country, supports manufacturing, heats homes, and energizes communities from coast to coast. Unfortunately, because of an overreliance on natural gas in some areas of the country, many Americans will see a price spike in their heating bills this winter. And this is a result of just one cold snap. The implications of an entire winter season with reduced coal-fired power, or none at all, would bring serious economic harm to families and companies across the country."

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Support for fossil fuels has rebounded

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By Barbara Vergetis Lundin

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With the water industry landscape rapidly changing with globalization of economies and technologies, companies need to constantly reinvent themselves to stay ahead in the fragmented water market place, according to Frost & Sullivan, and successful water companies look beyond just finances and technologies to encompass a holistic view of the water business environment.

Credit: Thomas R. Machnitzki/Wikimedia Commons

"Water companies are facing multi-dimensional challenges since the new millennium as competition becomes saturated with numerous market participants offering similar products and services, compounded by the fluctuating global economy," said Melvin Leong, research manager, Energy & Environment Practice, Frost & Sullivan Asia Pacific.

First, municipal and industrial end-users have become more selective and careful with their expenditure on infrastructures and treatment systems. Second, cost of energy is rising and this affects energy intensive treatment options such as desalination and wastewater reclamation. Finally, environmental regulations and policies are continuously evolving, especially in Asia.

"A sustainable and successful company needs to identify its core competency in the marketplace where offerings of water products and solutions are aplenty. However, it is insufficient to have niche solutions without targeting the right group of customers concurrently," Leong said.

In addition, the water industry seems to respond well to partnerships and alliances among water companies or stakeholders in the water market value chain. In the increasingly competitive market, such practice becomes necessary as a strategy to gain new customers and entry into country markets.

There must also be continuous innovation in products and services while taking into consideration the expanding customer reach and satisfaction. Companies need to recognize the changing demographics and customer segmentations, such as evolution of mega cities and emergence of the middle-income group.

From a business perspective, companies will need to understand, prioritize, and realign their business objectives. It is not uncommon that water companies become too ambitious in taking up projects that do not match their core competencies, and this may lead to unnecessary financial damages and divestments, according to Frost & Sullivan.

Industry convergence is inevitable, says Frost & Sullivan research, and can be seen in the water industry, in which desalination companies are combining their competencies with renewable energy companies to create new innovative platforms such as solar desalination plants.

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3. IoT and energy harvesting

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4. SEIA "shouts out" for solar

The Internet of Things (IoT) is a broad term referring to applications as diverse as Internet-connected vehicles, consumer electronics and smart phones. However, the edge of the Internet of Things network will consist of simpler sensors and wireless devices that provide, among other things, the identification of objects, sensing, control and automation, according to Raghu Das, CEO, IDTechEx. The simplest, passive RF devices, with relatively short range, will potentially be the highest volume of all devices and come in at the lowest price points. Adding power to RF devices with relatively short range enables more functionality such as sensing, mesh networking and automated control, Das said.

The adoption of small scale energy harvesting, across all applications, by value of the energy harvesting component alone. Click to enlarge. Credit: IDTechEx

The adoption of small scale energy harvesting, across all applications, by value of the energy-harvesting component alone. Credit: IDTechEx

However, the return on investment of many wireless sensors in different applications is dependent in part on the lifetime of the device, which is most usually a function of the battery lifetime. A device lasting 10 years versus two has a dramatic change on the ROI calculation, particularly if these sensors are embedded in devices adding significant labour cost for battery replenishment, according to Das.

Energy harvesters can help in this regard, although there are several challenges moving forward.

For example, the cost of a primary battery is less than that of an energy harvester and associated interfacing electronics. Over the life of the energy harvested powered device the energy harvester version may be cheaper, but buyers may be incentivized by low upfront cost without taking into account the long term costs. Further, some batteries last for longer periods of time, particularly as the energy requirements of circuitry falls, but usually command a premium price.

The widespread publicity of the Internet of Things will help to gain recognition for wireless sensors and how they can add value. Wireless sensors, forming part of the fabric of the Internet of Things, will increasingly use energy harvesting as a power source, according to Das.

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By Barbara Vergetis Lundin

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5. Microgrids could quadruple by 2020

Educating Americans about the benefits of solar energy is at the heart of a new social media campaign, America Supports Solar, launched by the Solar Energy Industries Association (SEIA) in conjunction with National "Shout Out For Solar" Day and SEIA's 40th anniversary as a national trade association. SEIA plans to use this platform as a way to showcase the industry's innovations, continued growth and successes.

Sharon Solar Farm in Sharon, Vermont. Credit: SayCheeeeeese/Wikimedia Commons

Supported by both businesses and environmental groups, hundreds of thousands of people from across the United States and around the world are expected to take part in "Shout Out For Solar" Day and roll out of the America Supports Solar website, which highlights solar energy's popularity and growth across the United States. Solar in 2013 is expected to account for more new electric capacity than any other source of renewable energy since the late 1980s, according to SEIA.

"In recent years, our industry has created tens of thousands of new American jobs, pumped billions of dollars into the U.S. economy and helped to reduce pollution," said Rhone Resch, SEIA president and CEO.

While 2013 was a record-breaking year, 2014 is predicted to see 30 percent growth due, in part, to the fact that the average price of a solar system has dropped by more than 50 percent since 2010, according to SEIA.

"In 2006, there were less than 600 megawatts of grid-connected solar in the United States. Right now, there's an estimated 13,000 megawatts," Resch said. "…through an outpouring of support on social media, Americans nationwide are 'shouting out' this success story on Facebook, Twitter and other social media platforms, proving that the real power of solar is the millions of people who support it."

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By Barbara Vergetis Lundin

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