Below is a complete example of a hot topic update from the PracticeView Monitoring service. It includes background information, client discussion points, and resources and commentary which can be used by your firm and its professionals to stimulate discussions with clients and/or prospects. Click here to learn more or subscribe to PracticeView.
Background
“The only thing that is certain about the future of energy is that consumption is going to grow exponentially in the next few decades” (5 Predictions for the Future of Energy, CEB Views). Whether continuing to rely upon established power generation or developing alternative energy sources, developed and emerging markets alike are dependent upon power to operate their businesses. While wind generation is still in its development and implementation stages in many regions, consumers need access to an energy source.
Some may argue that the opportunity to harness wind energy is producing more limited results than at first anticipated. A number of health and safety issues associated with wind energy continue to arise, which previously have not been considered by its advocates. Increasingly tight regulation of all businesses, including the energy sector, is not giving a “pass” to wind energy – renewable energy is subject to the same strict standards as traditional energy transmitters and other industries. Because start-up costs for alternative energy development are so high, the industry relies heavily on government subsidies that may be declining, further hindering its growth.
Implications
Gas distributors must remain competitive in the face of emergent renewable energy, including developing strong alliances with wind power generators. Wind energy continues to face challenges that may be slowing its anticipated growth. Bottom line: Consumers need access to power, and the most competitive energy source will be able to serve a broader range of customers.
Client Discussion Points
- What effort is the client making to address competition from renewable energy sources and better align its market position?
- To what extent would the movement of government subsidies impact competing producers?
Resources & Commentary
- Reed Smith – Wind Generators Deemed Transmission Owners and Operators for NERC’s Reliability Standards
- Navigant – Incorporating Gas-Fired Generation and Renewables – Looking at the Whole Picture
- McKenna Long & Aldridge – Ancillary Benefits of a “Golden Age of Gas”
- Mayer Brown – Wind Farm Development: Efficiently Capturing Governmental Incentives in Project Contracts
- FTI Consulting (Policy Exchange) – Climate Change Policy – Time for Plan B
- Navigant – Navigant Gas Market Forecasts More Optimistic than Others – Future Gas Optimism
- Deloitte – About the Deloitte reSources 2011 Study
- Ernst & Young – Turn Risks and Opportunities into Results: Exploring the Top 10 Risks and Opportunities for Global Organizations (Power and Utilities Sector)
Click here to learn more or subscribe to PracticeView.
Comments on this entry are closed.