EnergyBiz - September/October 2007 - (Page 21) wind and tidal while fundamentally changing the way in which we utilize the grid,” says Sterba. Not every enterprise reflects the kind of high-tech innovation usually associated with venture capitalists. Some of them are “why didn’t I think of that” concepts that nevertheless have tremendous economic potential. ICE-Energy closed a $25 million round of financing led by Goldman Sachs and Good Energies this past May. ICE, which is already in the revenue-generating stage, manufactures the ICE Bear storage air conditioner, which attaches to a building’s regular HVAC system. The ICE Bear uses a large container filled with water, which is frozen solid by running the compressors during off-peak hours, at night. The cold generated during the night is then used to cool the building during the day, essentially shifting the load from peak to off-peak hours. But when it comes to actually deploying renewables and grid-management technologies, the model is quite different from the traditional way venture firms operate. In particular, big electric requires big capital, construction experience, and land acquisition skills. John White, CEO of the Center for Energy Efficiency and Renewable Technologies sees smaller-scale, distributed generation technologies as most suitable for venture investments. He includes everything from fuel cells to photovoltaics, micro turbines, demand response and smart-grid technologies. “The green sector generally is getting very lively, but the barriers to entry in the electric utility sector are pretty high,” White says. External factors, particularly on the legislative and regulatory fronts, could significantly influence development of renewable technologies. Sterba believes the extension of investment tax credits for eight years, rather than the typical two or three years, and opening the ITC to utilities would help drive investment in solar. He also thinks the general regulatory environment, which favors construction of new power plants and transmission facilities, needs to shift focus to level the playing field between the demand and supply sides. Failure to realign legislative and regulatory priorities could, in time, dampen interest in new investment. For now, the key question is, with all the venture activity over the past few years, is the sector heading for a fall, at least short-term? Straser of Mohr Davidow isn’t concerned. He notes that it took a boom-bust cycle to get a $30 Internet connection to the home. And, of course, the bust usually comes during much later stages of development, long after the venture capitalists have exited their positions. But there’s a strong sense that the venture interest in renewable and new energy signals a fundamental change. “I can’t predict whether a bubble will happen,” Straser says, “but I can tell you I feel a wave is happening for sure, a wave that’s sweeping through industrial technologies causing changes or disruptions that push across society as a whole.” No Apple Required.* Online Training that Delivers Prepare your workforce for the challenging and dynamic gas and electricity marketplace. Enerdynamics’ online training offers the quality of our instructor-led courses plus a variety of time and money-saving benefits. *No time away from work, no travel costs, no pre-set training schedule, and no apple for the teacher. Visit www.enerdynamics.com/online to view our growing curriculum of online courses. Or call 866-765-5432 to launch a customized training program today. www.energycentral.com E n E rgyB i z 21 http://www.enerdynamics.com/online http://www.enerdynamics.com/online http://www.energycentral.com
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