Chicago Business

Issue date: 11/15/07 Section: Perspectives

I came to the GSB with energy on the brain - specifically, new energy technology - and I've been delighted to find that I'm not alone here. In fact, there is a robust dialogue on alternative energy at the GSB. I've met many people who share my career interests and my concerns about peak oil and climate change. My hope is that we can continue to broaden that dialogue; it's the great moral issue of our generation. And it's about more than energy alone, it's about overall consumption: consumption of everything from fish to kW/h to new homes. As developing countries catch up with "first world" nations, resources will become increasingly scarce and the environmental impact will grow exponentially. Something has to give. I say this is a moral issue because it's ambiguous and easily ignored, as many moral dilemmas are, and our inaction will have a direct and lasting impact on future generations. We cannot pass the buck as our parents have. It's plain wrong.

Here, I'm going to focus on new energy technology (although I may go on some tangents, like fish farming) and opportunities in that industry, particularly for MBAs. Future energy development is not just a moral issue, it's a business opportunity. Whether you give a damn about the world or not, it's in your best interest to pay attention. Today, I'd like to get started with an overview of the industry with more specific analysis and resources to come later.

Wind Power. It's clean, it's renewable, and it's free (the wind, that is). For those reasons, it's the world's fastest growing renewable technology. You will see a lot of impressive statistics about wind power. For example, "Wind power could provide many times the world's current energy consumption." Beware of statements like that. Wind power is promising but has its limits. For one, wind power is unreliable - the wind isn't always blowing - and electricity isn't easy to store and save for later. Electricity supply has to meet demand at any given point in time and wind power cannot do that. Also, people don't like the aesthetics of wind farms so it's hard to build them where they're needed most, near cities. Nevertheless, major investments are in progress. Some companies to check out:

www.acciona-energia.com

www.iberdrola.com,

www.scottishpower.com,

www.vestas.com.

Solar Power. Again, clean, renewable and free. Although the technology for solar isn't as competitive as wind, the future is promising. One statistic I've seen pop up lately claims 700 sq. miles of solar panels could provide the US with all of its electricity needs. However, that estimate assumes a concentration of solar panels in the sunniest part of the country (i.e. Arizona) and it doesn't factor in the costs of transmitting the electricity across the country, which isn't feasible. Plus, the sun isn't always shining, not even in Arizona. A few solar companies to check out:

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