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Renewable energy companies don’t have to be Big

one of the goals — and strengths — of renewable energy is its diversity and the ability to distribute its production, Adler said. “The nature of the technology doesn’t require the kind of scale and vertical integration [of oil companies],”

When Will Renewable Energy Companies Overtake Traditional Energy Companies? Renewable Energy World by Jennifer Kho, 9 Jan 2010 California, United States Renewable energy has got buzz, growth and growing government support. But it’s no secret that it still makes up a small portion of the overall energy mix. As interest in renewables increases, the question has begun coming up more and more often: When will renewable energy companies catch up to conventional energy companies? That is, when will we see an Exxon Mobil Corp., Chevron Corp. or ConocoPhilips of renewables?……….

One of the most obvious ways to attempt to answer the question is by looking at how much of the world’s energy comes from renewables today. According to the International Energy Agency’s World Energy Outlook in 2008, renewables made up 18 percent — or 3,470 terawatt hours — of the global electricity generation in 2006, with most of that coming from hydroelectric and wind power. In the same report, the agency forecast renewable-electricity generation would overtake natural gas, becoming the world’s second-largest source of electricity after coal, “soon after 2010.” According to those predictions, renewables are on track to account for 4,970 terawatt hours in 2010 and more than 7,700 terawatt hours, or 23 percent of the global electricity production, in 2030…………..

All together, Velosa said, he expects to see world-scale renewable-energy companies emerge in 15 to 20 years.Independent analyst Peter Lynch also forecasts it will take at least 10 years — and potentially “decades,” as fossil-fuel companies continue to receive subsidies and government support far beyond renewables — to see companies at that size…………

And of course, a spot on the Fortune 500 isn’t the only measure of success. Dan Adler, director of the California Clean Energy Fund, said while he wants the renewable industry to be huge and profitable, his gut reaction to the question of when renewable-energy companies would catch up to conventional energy players was “hopefully never.” He would like to see the renewable industry retain a larger number of players rather than the few energy giants that exist in oil, gas and coal today.

While oil companies, for example, have to be big because oil’s so expensive to produce and oil resources are more centralized, one of the goals — and strengths — of renewable energy is its diversity and the ability to distribute its production, Adler said. “The nature of the technology doesn’t require the kind of scale and vertical integration [of oil companies],” he said. “If we start to see a lot of consolidation, we may be moving away from that strength.”

When Will Renewable Energy Companies Overtake Traditional Energy Companies? – Renewable Energy World

January 8, 2010 - Posted by Christina Macpherson | renewable, USA | renewable energy, renewables, solar