Posted May 8, 2008on:
Just as Web2.0 represents the renaissance of the internet as a playground for innovators, venture capitalists and entrepreneurs, the global energy demand-side crisis has brought energy investing and entrepreneurship back to the spotlight.
Energy2.0 thus is this new era in energy, enabled by long-term upward trending energy prices and driven by the beginning world’s second major wave of global industrialization. Just as the 20th century saw the rise in the standards of living in of the first 20% of the world’s population residing in the industrializing Western nations, the 21st will see the rise of the “next 40%” in the burgeoning economies of China and India.
There is a new wave of energy emerging that should accelerate in the next few years. It’s called efficiency. The really good news is that it produces a higher IRR for the entire value chain. Each element of the value chain (consumer, generator, distributor, and regulator) makes more money while cleaning the environment.
The signs are everywhere that high energy prices are here to stay and that the way we generate and consume energy will be shift radically in the next decade. Investment in the CleanTech sector is increasing at steady rate. Innovation in energy has returned for the first time since the 70s Oil Crisis.
We have undeniably entered a new age of Energy characterized by nationalistic concerns about energy security, record demand levels and prices and desire to address CO2 emissions on global basis. To meet this challenge a new breed of entrepreneurs are emerging, a new generation of financial backers are making bets and the grey hair CleanTech veterans of the 70s are finally having their day in the sun.
Energy 2.0 is here… and every indication is that its here to stay.