Can IT Help Propel a Fundamental Shift in the Energy Industry?

Clean-tech venture capitalist Vinod Khosla writes in a Newsweek.com posting that beyond increasing support for research, the government can require a market for renewable fuels and renewable electricity. That, he writes will encourage entrepreneurs to develop these technologies and venture capitalists to invest in them. And, he's convinced the best companies that emerge can achieve unsubsidized market competitiveness relative to their fossil-energy competitors.

Is the idea of such fundamental change in the energy industry too idealistic? Here's Khosla's answer:

I think not. Just over a decade ago, every major telco said that it would not adopt the Internet protocol as its core network, even as a company called Juniper was being launched to produce IP equipment. Now Juniper is a successful public company, and carriers using its equipment are offering free long-distance calls using Internet technologies that have become the norm. As a result, telecommunications has changed more in the past 10 years than the previous 50.

The same seems likely for energy as IT know-how will help make its distribution and use more efficient.

2009 Prediction: Information TechTurns to Energy Opportunities

2009 is just around the corner, and with the new year, comes predictions. Cleantech Group Executive Chairman Nicholas Parker has come up with nine trends to watch for in 2009. What's dear to Tech2Green's heart is No. 7.

The IT and telecom industries over the last few years have started to get increasingly engaged in clean technology. Companies like IBM, Autodesk, Cisco and Intel are becoming ever more important.

What we’re seeing now, and this was particularly clear in India this year, is that the IT industry is seizing the energy opportunity as a chance to make money in this area. Whether it’s moving towards more integrated energy management systems or platforms, or smartening up the grids, or lowering carbon content in the supply chain, we see the IT industry turning on the taps this year and really rolling out new a range of products and offerings and driving a great deal of innovation in the cleantech space.

2009 will be the year IT turns its eyes to energy opportunities, not just in algorithms and software. For example, Intel is turning its quantum dot people, who’ve been working on next generation processors, to the solar challenge and opportunity, looking to develop new nano-based solar cells. We could well be in 10 years time calling Intel an energy company, in much the same way Applied Materials is becoming better known as a solar company.

Here are all nine of Parker's predictions:

1. Energy efficiency infrastructure boom initiated.

2. Global climate talks bog down—no serious deal until 2011/12.

3. U.S. passes national Renewable Portfolio Standard, but cap and trade bill only in 2010.

4. Wind stocks come back; thin film photovoltaics shakeout.

5. Clean technology venture capital stabilizes at $7 billion globally; private equity more active.

6. Failure rate of clean-tech startups doubles.

7. IT turns to the energy opportunity.

8. R&D stagnates; corporations acquire green growth assets.

9. Energy-water-food nexus emerges.