May 2008 Edition
an executive view
The path to secure energy
Renewable is the key word in search to find more power sources

By Samuel Bodman, Secretary, Department of Energy
Renewable energy is helping us bring about a new
energy future, one that is cleaner, more sustainable, more
affordable, more secure and less reliant on carbon-based fossil
fuels.
While there is no "silver bullet" that will solve
the world’s energy problems, it is clear that renewable energy and
efficiency technologies are an indispensable component of the
solution. We must continue to aggressively pursue their development
and widespread deployment. And all nations must be involved in this
effort.
The whole set of global energy challenges grows
more acute with time.
But I’m confident that we will meet them. And,
even more than that, I’m optimistic that they represent a major
opportunity for the world.
Because just as the components of the problem are
all too clear today, the components of the solution are also coming
into focus — and more so every day.
First, we have what I believe to be one of the
most important elements of a successful strategy: a global
imperative to act. In this country, as perhaps never before, the
American people are calling for action — and taking action
themselves.
We are seeing a growing — and admirably strong —
commitment to not just affordable energy, but clean, secure and
sustainable energy as well. This is true at all levels — government,
businesses, households — and not only in the United States, but
around the world as well.
Secondly, we have put in place a series of
federal policies to increase our national investment in R&D to break
our over-dependence on fossil fuels and harness the tremendous power
of renewable energy.
Through the President’s Advanced Energy
Initiative, we have identified the technologies that are having the
greatest impact — today and over the course of the next decade. We
are going after them with increased resources, measurable metrics
and milestones, and national plans that include aggressive
timelines. Over the past year alone, the Energy Department has
announced over $1 billion of investments to spur the growth of a
robust, sustainable biofuels industry, and in particular to tap the
great potential of cellulosic biofuels derived from waste streams
rather than edible fuel sources.
Here is the third component of a successful
energy strategy:
All of our catalytic efforts at the federal level
are being reinforced by the indispensable role of the private
marketplace.
Having spent a fair amount of my career in the
financial sector, I can honestly say that for the first time in my
life we are seeing the venture capital community investing more and
more in the alternative energy business.
In 2007, the so-called "clean tech" sector, which
includes renewable energy and efficiency technologies, saw record
venture capital investment levels of $2.2 billion — a 46 percent
increase over 2006 — according to a report by the National Venture
Capital Association and PriceWaterhouseCoopers. Or look at it this
way: in 2005, about $500 million was invested in this sector; in
2006, it jumped to $1.5 billion; and in 2007, $2.2 billion, as I
mentioned. That is remarkable growth by any measure.
The clean-energy market is not just viable, it is
thriving, and particularly in places where innovation and investment
is valued and enabled by clear, simple, transparent and enforceable
commercial and legal frameworks. After all, we know that investors
did not enter this field for purely altruistic reasons, though the
importance of the mission may inspire success. The private sector
recognizes that there is an opportunity here, one that can favorably
impact balance sheets as well as our global energy security and
environmental health.
The bottom line is this: We are seeing a convergence of
forces that tells me that our world is on a path to a cleaner, affordable, and
more secure energy future, and renewable energy is at the center of it all.
We certainly have a lot of work ahead of us, and this is not
going to be an easy fix. But look what we have going for us: We have
forward-looking leadership and funding commitments from Washington and
governments around the world.
We have the dedication and ingenuity of our scientists and
engineers. We have the innovative power and the unmatched capital of the private
sector. And we have the commitment of the global community to achieve together
what none of us can do alone.
Excerpted from a speech before the Washington International Renewable Energy
Conference earlier this year.
What do you think?
Will the information in this article increase efficiency or
save time, money, or effort? Let us know by e-mail from our
website at
www.ToolingandProduction.com or e-mail the editor at
dseeds@nelsonpub.com.