IT's role in the clean-energy debate
Published: 10 Nov 2004 11:43 GMT
The landscape of America's energy industry might be chock-a-block with coal-burning smoke stacks and refineries belching pollution into the atmosphere. But is energy fated to remain a low-tech, "dirty" affair? Not at all, says Nicholas Parker, chairman of Cleantech Venture Network, a group of venture capitalists dedicated to seeking out investments in "clean" technologies.
Energy-related clean technology, such as renewable solar fuel, is seeing rapid technical advances and even comparable investment returns to other technology sectors. However, Parker says the creation of viable alternative energy sources as well as a thorough cleansing of the existing energy system will require a lot of IT, especially skills in software and embedded electronics.
Parker spoke to CNET News.com about the intersection of clean energy-related technology and information technology.
Q: How is IT having an effect on the energy industry, particularly on alternative sources of energy?
A: The headlines tend to be solar panels and wind turbines. But frankly, IT is fundamental to the modernisation of the infrastructure and to achieving energy efficiency, energy conservation, energy management goals. There are large energy IT companies out there, which are some of the most successful companies. Algorithms and software is at the very heart of this -- even if it's not shrink-wrapped. It's embedded.
Can you give me an example?
Power electronics. Let's look at wind turbines. Wind turbines are getting very large -- three megawatts. The scale they can generate power in certain regions is at prices that are consistent or better than the cheapest fossil fuels, like coal. How come? There are improvements in materials in coatings, but there are also power electronics inside and management controls systems -- IT-based designs. It's not shrink wrap, but it's IT inside. That's fundamental to this industry.
Are there cases of people from the traditional IT industry getting into the energy-related field?
That's one of the great themes that is jazzing mainstream venture capitalists -- they're saying: "Hang on: real convergence, real cross over. We can get into this space. We have to work with people who have domain expertise; who know the vertical industry. But our generic know-how of IT or materials -- or whatever -- is portable and relevant."
How much does concern for the environment motivate what you do as a venture capitalist?
Sure, we should care, but that's not what I get paid to do. And I care deeply. I see what's happening in the world around me. But I get paid to be in this because I'm [investment]-driven.
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