The future of competitive advantage in the Renewable Space!

Utilities, in the past, have designated area to developers for renewable energy project development. If such approach towards project site selection becomes a common practice, there could be a cascading effect on competition, and real estate values.

Project developers would be forced to contact the same group of land owners. As developers compete for the same plots of land, the laws of supply and demand would turn against developers. i.e. high real estate prices. Lowering cost, as always, will be a focus point of project development but where can cost saving occur? As the developers ask for the process to be simpler and faster, the competitive advantages obtained through an effective and efficient site selection process could greatly diminish.

Where could a competitive advantage be built then?

High Efficiency + Solar Industry = ???

During our attendance at the Solar Power International 2009 conference, it was obvious that most of us are waiting to see innovations in solar panel efficiency, inverter technology, and storage. Such advancements are sure to bring great benefits, including bringing us another step closer to grid parity.

But, what will be the effect of these advancements on the industry as a whole and strategically for any project developer? For instance, once we have efficient solar panels, what will be the fate of millions of panels already producing power across the country? Will some users opt to “upgrade” their panels?

• If so, is there a guarantee that the point of interconnect transmission infrastructure can handle the increased generation? What will happen to existing PPAs? Utility’s RPS requirements and their hunger for clean energy?

• If not, why should we bypass the opportunity to create more renewable energy using the same amount of space?

The situation will progressively become an issue with increased solar energy generation... Are we ready for the “Solar Boom”?