Energy offers powerful ways of making money

 

The first "oil crisis," in the 1970s, managed to predate even the reign of the father of George W Bush.  Maybe this time around, even the oil man is right and change is in the air. Perhaps in 30 years time a report will not open with something along the lines: "Historically, government energy RD&D budgets in IEA member countries increased sharply after the oil price shocks of the 1970s. By 1987, they had declined to about two-thirds of their peak level and thereafter they remained relatively stable at this lower level through to 2003."

 

This history lesson comes in the report "Renewable Energy: RD&D Priorities, Insights from IEA Technology Programmes".  As you'd guess, this comes from the International Energy Agency. It is a detailed assessment of R&D on alternative energy.

 

The press release with the report, says that it is intended "to assist governments in prioritising their RD&D efforts for renewable energy". But these days governments don't buy the technology needed to turn that RD&D into commercial opportunities. That is down to the private sector.

 

As the report puts it: "The challenge is to continue to reduce costs and broaden the market base to ensure continued rapid market growth worldwide. These technologies have very broadly followed the rule that each doubling of deployed capacity leads to a 20% reduction in investment cost. On this
basis the potential for further cost reductions is considerable."

 

There are plenty of ideas out there. For example, one recent suggestion comes from academic likes the idea of "traditional water wheels". Don't dismiss this as theory. The press release announcing this activity says he's advising a company that want to install one.

 

The IEA's analysis does not seem to see much in water wheels, underwater turbines are in there, but it does discuss plenty of other alternative energy sources. The book doesn't just describe the technologies on offer, it also describes the technical challenges ahead, essential knowledge from would be investors in the sector.

 

The IEA also reckons that governments can't wash their hands of the subject. Back in the 1970s, they were much more likely to infest in energy R&D through then privatised energy companies. Time to find another way to do it? "We strongly recommend that governments consider restoring their energy RD&D budgets at least to the levels seen, following the first oil crisis, in the early 1980s," says the IEA.

 

Perhaps, then, the first opportunities will come for start ups and academics who want to fund funds to do R&D rather than to make things.

 

One view, though, is that anyone seeking to profit from the energy situation would do well to check out this volume and look at the underpinning technologies that it will take to commercialise renewable energy. Why not look at the materials needed to make them work, for example? You can't do anything without materials. And even if the energy technology you back fizzles out you will still have some technology that might have other uses.