|
Solar Energy Consulting
The resent increase in oil prices together with additional
proof of fossil fuel induced global warming has recently
caused a renewed interest in solar power. The bulk
of this interest is involved in solar electric power
projects.
In many respects there current situation resembles
the "bubble" of solar energy interest that occurred
in the late 1970's and early 1980's. Investors are
more cautious, however, at the present after seeing
the havoc to the industry that resulted after the prior
bubble collapsed.
There are a number of reasons, however, to believe
that the current situation is different:
- Global warming is now a serious concern and solar
offers a solution
- Oil reserves are not increasing and it appears
that actually running out of oil will be a possibility
in the future. (If you remember, the Alaskan oil
fields were brought into production in the early
1980's leading to an increase in oil reserves and
hastening the demise of alternate energy
- Solar power technology has improved greatly. In
the photovoltaic area, there has been the development
of such innovations as transparent conductors (which
eliminates the "shading" problem on early solar cells),
multiple junction photovoltaic cells (which increased
the percentage of the available solar spectrum that
can be used to generate current), and increases in
thin film and microcrystalline production processes.
In concentrated thermal applications there have been
advances in energy storage (phase change storage
of heat) and reductions in costs of reflective surfaces.
- Solar energy players are now better capitalized,
with large companies becoming major players
There are still major risks. The chief of these is
the fact that there are a number of emerging technologies
with no one clear winner yet developed. In this context
development of a solar electric power plant poses risks
of obsolescence.
Woyke and Company can model these risks and consult
on options to minimize these risks (such as through "take
or pay" contracts, forward sales of power, price insurance,
etc... Woyke and Company can also take an active role
in negotiating such contracts, including assistance
and design of terms, quantifying the amount of risk
and separating risk into various components.
|
