Renewable Energy: A Market Perspective from Industry Renewable Energy: A Market Perspective from Industry
February 16, 2011
Bob Rasmussen The Shaw Group
The Shaw Group is Fortune 314 Energy Company (Nuclear Power; Clean Coal; Natural Gas; Geothermal;Refineries; Biomass; LFG, PV, Fabrication; Environmental; Base Operating Support; D/B; and Consulting)
Outline
• Market
• Conundrums
• Observations/Experience
• Future
Market
• Market Potential -- $20B+ over next 10 Years
• Wide Range of Workloads/Contract Vehicles
– Consulting
– Renewables
– Infrastructure
• Federally Funded ~ 20 percent
• Developer/Utility Funded > 80 percent
Conundrums
• Major Needs o National Securityo Readiness o Mandates o Stretch Goals
• Urgency/Action Needed
• Significant Opportunities
• Limited $o Capital Budgetso Premium Payments
• Extended Project Timelines
• Short of Expectations
Observations
• DOD Energy Projects are Generally Complex
• Straight-Forward PV Install Project Using Federal Dollars Can Be Problematic
• EULs/PPAs/PPVs require extensive site-specific knowledge
• Obtaining internal management support for unique/one-off projects becoming increasingly difficult
• DOD Market Focus and Opportunities Shifting
• Limited Support for Utility Scale Renewable Energy Projects
• Net Zero, Distributed Power and PPAs for discrete projects are High Interest
• ESPCs, UESCs and PPAs will remain active
Future • Federal Energy Projects will Remain Major Market Focus for Shaw
with Adjustments: • More Focus on Expected Return for Business Development
Investment Dollars (Federal vs Commercial for BD $) • Less Support for Shaping Front End of Projects (e.g.,Measured
Responses to RFIs)• Continuing Pressure to Obtain Upfront Project Information • Longer Term Projects Will Require More Internal Work to Justify • Emphasis will be on “Real” Projects with Short Term Potential • Risk Analysis and Mitigation are Continuing Priorities
• The Major Challenge will be Balancing Energy Security, Energy Independence and Financing/Cost Effectiveness