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Gambling When We Don't Have To

Mike Casey
April 14, 2011  |  7 Comments

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Two weeks ago, I visited the office of a friend of mine, a partner at a top cleantech Silicon Valley law firm. He and I shared a concern about the increasingly hostile, anti-clean energy propaganda from dirty energy-funded critics who are trying to position clean energy as expensive, subsidy-dependent, and “not ready.”

The good news, my friend said, was that he’s increasingly hearing from cleantech executives and investors concerned about these growing attacks on their investments. The bad news was that many of those concerned don’t connect the attacks with the dirty energy money that’s funding them.

“Now what cleantech needs to hear is, ‘No more Mr. Nice Guy’,” he told me. “These [dirty energy] guys are out to kick our butts, and they will if we let them.”

I think my friend is right. However, after attending last week’s Bloomberg New Energy Finance Summit, I think there’s a ways to go before enough cleantech players see that dirty energy is using media and government to protect its capital investments and decades-long feeding at the public trough.

The Summit was a highly informative gathering of top-flight speakers and a room full of connected cleantech heavy hitters. Yet, I heard repeated discussions on the stage and in the hallways about renewables’ “subsidies.” All of it was in a tone best suited to a 12-step program: Are we “too subsidized?” How long should our subsidies last? Can we “justify” them?

I didn’t hear a cumulative minute spent on putting public policy support for renewables in an accurate frame:

  • Fossil fuel welfare costs exponentially more than the current, basic policy support for renewables.
  • Policy support for clean energy is something that taxpayers want by overwhelming margins of 70%-90%, while only 8% of Americans want coal and oil corporations to continue receiving their current federal subsidies.
  • Highly profitable, mature dirty energy industries don’t just get subsidies.  They’re also showered with tax breaks, cheap access to public property and forgiven externalities - $500 billion annually for coal alone.
  • Though it claims it’s cheap, dirty energy is on its seventh decade of welfare, without which it can’t survive, according to one of its most ardent defenders.

Reinforcing this imbalance was Danish statistician Bjorn Lomborg, who was invited as a “thought leader” to present his newest diatribe: We should invest (!) in clean energy, but it should be "developed" before it’s commercialized. With his advanced degree in self promotion, Lomborg has acquired the special insight to know that “wind and solar are not going to revolutionize the world,” they “are still very inefficient and expensive,” and they’ve “flatlined.” According to him, clean energy is “trying for something that feels good but doesn’t really do good.”

Alrighty then. I hope he at least had to pay to get on that stage.

I don’t want to be ungracious to the Summit’s organizers. But the fact that a serious cleantech forum gave a high-profile platform to the equivalent of a rodeo clown reinforces that far too many cleantech players are operating from a debilitating and inaccurate messaging frame. Many have internalized the competitors’ view of cleantech as a “not ready,” a deeply flawed, artificial creation of government subsidies.

That framing, and its purveyors, are key parts of the competitors’ playbook. And we’re helpfully going along with them, just like they need us to do.

The question is, why are we doing that?

Cleantech executives are busy. Its investors have a 1990's lens of meritorious markets and capitalism as creative destruction. Still others think government doesn’t really matter. But I think the reason is that very, very few cleantech investors or executives have ever had a reason to spend much time experiencing how the $3 billion influence peddling industry turns government into a weapon of business strategy – with propaganda as integral tool.

So, it’s understandable why so many in cleantech doubt that there’s an emerging, serious challenge from dirty energy that needs to be met. But understandable doubt isn’t doubt without costs.

And those costs can be steep. They can come in the form of $10 billion in handouts for a coal-to-liquids energy plan; blocking a national renewable portfolio standard; stopping a shift of $30 billion in federal oil and gas giveaways to renewables energy companies; or getting coal counted as “clean” so coal plants can get federal renewable energy tax credits.

So far, cleantech’s response has been largely…. Well, to spend time debating ourselves about whether or not the other side has a point.

Shouldn’t we leave that to ExxonMobil, Peabody Energy, and their mouthpieces like Lomborg? Instead, our job should be to ramp up the communications for our individual companies, our successes, our technological advances, and our job creation. We can do that not just through our trade associations and nonprofit allies, but by helping individual companies see that it’s in their bottom-line interests to promote not just their successes, but the promise of the industry of which they are a part. And, we should create new communications infrastructure to engage in an ongoing conversation with customers, policymakers, and the influentials who affect the sales environment for individual companies.

Right now, cleantech is betting that it’s OK to operate from the opponents’ playbook because what our status quo competitors are doing isn’t going to work. I think that’s gambling a lot on a bet we don’t have to make.

The information and views expressed in this blog post are solely those of the author and not necessarily those of RenewableEnergyWorld.com or the companies that advertise on this Web site and other publications. This blog was posted directly by the author and was not reviewed for accuracy, spelling or grammar.

7 Comments

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bob freeston
bob freeston
April 16, 2011
Washington has had almost no movement on energy policy over 8 presidents and 19 congresses. The fossil fuel boys own the place. The decisions now rest with American industry and finance--are they going to create jobs in the US or China and other low wage countries? China is committing hundreds of billions of dollars to leapfrogging the US in renewables. GE is committing to big time solar on top of their 6 billion wind business--how much will be built in the US? On another note I can beat prices in above ad--Gucci, Rolex, Chanel--guaranteed genuine--all credit cards accepted.
Alan Beattie
Alan Beattie
April 15, 2011
SolarFred,
Thanks for the web link. Very useful.
Tor 'Solar Fred' Valenza
Tor 'Solar Fred' Valenza
April 15, 2011
A well thought out case, Mike.

My favorite part is "we should create new communications infrastructure to engage in an ongoing conversation with customers, policymakers, and the influentials who affect the sales environment for individual companies."

We have to courageously engage everyone, and especially those thought leaders who can sway many and question the old assumptions. We have to crate online communities that post and digest information and then share it.

Incidentally, a website, though not really a community, that I like is http://dirtyenergymoney.org. You can see what fossil fuel company is donating money to your senator and representative and how much.

Thanks for posting.
Douglas Prince
Douglas Prince
April 15, 2011
Y'know, a two-by-four upside Lomborg's head would send a pretty clear message, too.
I'm just sayin'...
Alan Beattie
Alan Beattie
April 15, 2011
Thank you, Mike, for finally talking about the eight hundred pound gorilla. There was a time not long ago that Big Fossil and Utility pretty much ignored renewable energy -- they could afford to. No longer. They realize renewables are a clear and present danger to their own business models and fiefdoms.

Many of them will ultimately climb aboard -- there will always be fortunes to be made supplying energy to the masses. Some of the more ideologically-based however will slowly go the way of the blacksmith. It may take a generation or two, but our survival as a global economy depends on it.
Dan Lynch
Dan Lynch
April 15, 2011
What is being lost in this discussion is that there is a third way, namely the negawatt devices. The government's central planning approach to saving watts is load shedding, i.e. save a watt by not doing the work in the first place. This is obviously a Luddite\central planner's style answer in a world that is capacity constrained for a variety of reasons. The better version is to use electrical power more efficiently. The dirty little secrets are that 1) electrical power is far from being clean when delivered to a customer site, and this dirty power is causing 20 to 30% of electricity to be wasted, and 2) that most renewable energy sources add to the noise in the public grid. Sometimes this is by public policy design, e.g. exempting wind generators from some of the interconnect power quality standards. Sometimes it is just a matter of electronics. 3DFS Power Controllers save energy by providing ultra pure electrical energy on an efficient basis (>98%). The net cost per kWh saved is under 1 cent per kWh, a cost figure which is well under the cost of say solar at 16 to 30 cents per kWh and even the most efficient forms of fossile fuels generators such as natural gas at just under 2 cents per kWh before allocation of capital costs. So how do you justify spending large sums of money subsidizing an uneconomic energy source. Deny the other sides' cost figures? I can see more emphasis on R&D as opposed subsidizing installations. I find it revealing that such feel good expenditure to subsidize expenditures are by and large being made by the most fiscally irresponsible governmental entities on both a state and country basis. Let's spend our tax money where it does some good - negawatt devices today and basic R&D on renewables for tomorrow.
Thomas M
Thomas M
April 14, 2011
Mike, great post. I hope all the other posters here who defend gov. schemes read your article. I made a statemnet on another post saying that people would be better of dealing with their local bookie betting on daily KW's or BTu's gained rather than gambling with SREC's and the like. Hopefully they will believe you and your experience dealing with these dirty energy dudes and get on board to continue to push what is right rather than what they are told is right by those who condemn clean energy

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Mike Casey

Mike Casey

Mike Casey is the President and founder of Tigercomm, a leading U.S. cleantech PR firm with offices in Arlington, VA and San Francisco, CA. He uses his 28 years of experience in communications to counsel cleantech executives and investors....
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