http://blog.recycled-energy.com/2009/08/07/why-co2-regulation-will-lead-to-lower-electricity-prices/ RED | the new green: thoughts on ways to reduce greenhouse gas emissions Mon, 19 Jul 2010 17:50:47 +0000 http://wordpress.org/?v=2.9.2 hourly 1 http://blog.recycled-energy.com/2009/08/07/why-co2-regulation-will-lead-to-lower-electricity-prices/comment-page-1/#comment-5369 Scot Kelly Sat, 16 Jan 2010 16:56:43 +0000 http://blog.recycled-energy.com/?p=305#comment-5369 Sean - I appreciate your insightful look at the true energy economic reality in the U.S. I think that the vast majority of us in the renewable energy / energy efficiency industry have been guilty of focusing on ROI, Payback Time Horizons and Upfront Cost Structures. I have been attempting to shift the discussion to "Energy Risk" and the marginal cost of adding energy capacity is key to reducing this energy risk. I anticipate the day when companies will be vying with each other to reduce their energy footprint and produce their own renewable energy as a competitive imperative. If a manufacturer in NJ can reduce its energy costs from 30% to 0% through energy recycling and installing solar, and the traditional energy supplied to its competitors rises (who have not addressed their energy risks), then this manufacturer can lower its prices and still have better margins than its competitors. This may even spawn a new breed of corporate raiders who look for large energy inefficiencies at corporations in order to perform an "Energy Investment Arbitrage". Sean – I appreciate your insightful look at the true energy economic reality in the U.S. I think that the vast majority of us in the renewable energy / energy efficiency industry have been guilty of focusing on ROI, Payback Time Horizons and Upfront Cost Structures. I have been attempting to shift the discussion to “Energy Risk” and the marginal cost of adding energy capacity is key to reducing this energy risk. I anticipate the day when companies will be vying with each other to reduce their energy footprint and produce their own renewable energy as a competitive imperative. If a manufacturer in NJ can reduce its energy costs from 30% to 0% through energy recycling and installing solar, and the traditional energy supplied to its competitors rises (who have not addressed their energy risks), then this manufacturer can lower its prices and still have better margins than its competitors. This may even spawn a new breed of corporate raiders who look for large energy inefficiencies at corporations in order to perform an “Energy Investment Arbitrage”.

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