San Francisco has potential to capture lead in renewables
SAN FRANCISCO, California, US, 2004-12-08 Refocus Weekly
The west coast city of San Francisco is “uniquely positioned” to capture one of the fastest-growing investment categories in North America – the clean energy sector.
The city is already well positioned to attract a range of businesses in the
clean energy sector, based on its installation of a solar roof on the Moscone
convntion centre and the city’s fleet of 700 clean-fuel vehicles, explains
Clean Edge in ‘Harnessing San Francisco’s Clean Tech Future.’ The report
was funded by the Department of the Environment and the Mayor's Office of
Economic & Job Development, to examine the potential for economic growth
from renewables and to look at how clean energy and clean transportation
technologies can attract new jobs and businesses.
It will take a concerted effort by government, industry, community groups and
other key stakeholders to take the national lead, and the report recommends that
the city align its procurement goals and send a “strong signal” that the
municipal government is committed to purchasing clean energy and can draw
companies to locate within the city’s boundaries.
Solar and wind power, along with other technologies under the ‘clean
technology’ umbrella, such as hybrid electric vehicles, fuel cells and
bio-based materials, has risen to become the sixth-largest venture investment
category in the U.S. and Canada, says Clean Edge. It has moved ahead of
information technology, software, biotechnology, health care and
telecommunications.
“Much as it has over the past half century, California is once again at the
forefront of a
new wave of innovation,” the report says. A recent survey of U.S. venture
firms found that US$339 million was invested in clean-tech companies in the
state last year, representing 29% of all North American investments in clean
technology.
“The ascension of clean technology comes amid a host of local, national and
global concerns, including record-setting oil prices, national and global
security issues, a shaky electricity infrastructure, growing concern over global
warming, and finite supplies of fossil fuels,” it adds. “Governments,
industry, and citizens are now turning to clean technology to provide innovative
solutions to and relief from these and other global problems.”
“San Francisco is by no means alone in pursuing this clean and green Gold
Rush,” it warns, with a number of cities and states also recognizing the
market opportunity and moving aggressively with “dynamic public policy
initiatives” to court companies in the field. Austin, Chicago, Los Angeles,
Portland, Sacramento and Seattle are cited as cities that have “made
considerable headway, increasing the urgency for San Francisco to act quickly if
it is to capitalize on this growing market opportunity.”
The city has abundant natural capital to establish a leadership position in
clean energy, including strong tides, high winds, constant waves and abundant
sunshine to provide a ready supply of renewable energy resources to be tapped by
clean-energy technologies. The tidal power potential is enormous, with 400
million gallons of water moving through the Golden Gate each day.
The Bay Area accounts for 36% of all venture capital invested in the U.S., and
is home to one of the premier funds focussing on renewable energy companies.
Residents demonstrated their support for renewables in 2002 when they
overwhelmingly approved the first solar bond initiative in the U.S., the report
notes. The state has a goal of achieving 20% renewable energy by 2017 and it has
the most aggressive solar subsidy in the nation.
The city must “establish, communicate and coordinate the vision” and remove
many regulatory barriers, it recommends. It should appoint a clean-tech manager
and create a “magnet clean-tech institution” that is dedicated to advancing
clean energy. It should create a high-profile project to establish itself as a
clean-tech hub and launch a clean-energy incentives fund that would provide
grants to support architects, designers and businesses that offer unique clean
energy ideas.
Venture capital investments in clean energy technologies represented 2.4% of
total venture investing in the U.S. last year, a three-fold increase from the
0.8% in 1999, says Clean Edge. The three fastest-growing technologies are wind,
solar and fuel cells, which are projected to expand from $12.9 billion in
revenue in 2003 to $90 billion by 2013.
Solar and wind power generation capacity each have grown by an average of 30%
annually over the past five years, “rates more commonly seen in the world of
PCs and the Internet than the more staid energy sector,” it adds.
“California has led the way domestically, representing more than half of all
new U.S. solar installations.”
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