Daniel J. Desmond is a partner in Peregrine Technology Partners, a Pennsylvania firm started in late 2008 that works on development and commercial deployment of environmentally beneficial technology. Prior to this, he was the Deputy Secretary for the Office of Energy and Technology Deployment at the Pennsylvania Department of Environmental Protection. This office was one of the lead organizations responsible for bringing over one billion dollars in new “greentech” market capitalization to Pennsylvania. Desmond believes we now have enough new stakeholders that, in future, there will be support for renewable energy that is not dependent on the policies of current office holders, especially in the U.S.A.

By Jeanny Lim

Could you please update us on the global trends in renewable energy investment? What are the future prospects for investment?

Renewable energy markets are moving beyond their historic niche market applications into the mainstream. Some of this is due to massive economic stimulus initiatives by governments around the world, and especially in the U.S. This means that we have enough new stakeholders that, in future, there will be support for renewable energy that is not dependent on the policies of current office holders. This is vitally important because in the past, support for renewable energy often declined, depending who was elected to office in subsequent terms. Also, there is a growing realization that conventional energy resources will continue to be more expensive, and that the inexpensive, superabundant energy reserves of the past will be replaced with those that are difficult to extract and ever more expensive. Therefore, renewable energy will become more competitive and ultimately cheaper than conventional resources.

How much investment has been made into the renewable energy industry in the U.S.A.? And what are the future prospects?

Since 2003, Pennsylvania has invested nearly US$915 million to spur on Pennsylvania’s alternative energy industry by supporting approximately 600 projects that have created and retained more than 8,300 jobs. Coupled with the new resources of our US$650 million Alternative Energy Investment Fund and nearly US$16 million Alternative Fuels Investment Fund, the commonwealth has new resources that present a great opportunity for Pennsylvania to remain a leading destination for solar, wind, and biofuel production.

What kind of correlation is there between the price of raw materials, oil and electricity and the renewable energy industry?

As long as energy commodity traders believed that there was an inexhaustible supply of conventional energy resources, and that suppliers could super-produce at will, then there was always a hesitancy to commit fully to investment in renewables. But even the global traders are becoming less confident in the ability of oil or central electric power producers to meet future demands. The direct correlation that had existed in the past is fading and we will see renewables de-couple from the price of conventional resources.

Jeanny Lim is Editor-in-Chief of InterPV. Send your comments to swied@infothe.com.

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