Cleantech investment and private equity: an industry survey
To the extent that cleantech-generated electricity cannot, on its own, satisfy the world’s increasing energy needs, what (in the long term) do you envisage will be the single most important alternative energy source, or complementary technology, in meeting this anticipated deficit? (All respondents question) Investors 7.1% 3.8% 7.6% 51.7% 27.5% 2.4%
Both respondent groups selected greater energy efficiency and nuclear/cleaner gas fired stations as being the two most important technologies in meeting any perceived energy deficit. Between them, these two technologies received 79.2% of mentions from the ‘investor group’ and 62.3% from the ‘cleantech companies group’. However, the relative importance given to each technology by the two groups was different, with the majority (51.7%) of the ‘investor group’ selecting nuclear and cleaner gas fired stations, and most (39.8%) in the ‘cleantech companies group’ opting for greater energy efficiency technologies. Another notable difference was the larger number of Other suggestions offered by those in the ‘cleantech companies group’ (18.9%) as compared with the ‘investor group’ (2.4%). Of the suggestions made by both groups, the most frequently mentioned fell within the energy efficiency arena, followed by carbon capture and storage (CSS) and hydrogen.
Cleantech companies 4.4% 9.2% 5.2% 22.5% 39.8% 18.9% Carbon intensive fossil fuels The use of storage technologies such as batteries and fly-wheel The use of demand management systems Nuclear and cleaner gas fired stations Greater energy efficiency technologies Other
010 Norton Rose Group July 2010
A number of respondents felt that the assumption in the question was incorrect, and that cleantech-generated electricity, particularly from solar, would be able to satisfy the world’s increasing energy needs. However, the consensus opinion concurred with the assumption of the question, that cleantech-generated electricity cannot on its own satisfy the world’s immediate energy needs and will not be able to within the foreseeable future - and it is arguable that it will take a generation to achieve the scale required to displace fossil fuel based technology. It appears probable that, in reality, a mixture of many different technologies will be needed in order to achieve a full transition from a dependency on fossil fuel-based energy. These technologies range from those with the potential to be rolled out quickly (eg, some smart grid technologies) to the extreme of mechanical engineering technologies such as marine renewables.