3p Contributor: Bill Roth
Recent Articles
How Wind Powers GE Ecomagination’s Growth
Utility scale wind power plants have emerged as a global low cost renewable energy resource. In this second part of my video interview with Steve Fludder, Corporate VP for GE’s ecomagination, he outlines how GE grew its wind business in just 6 years into a $6 billion annual global revenue business .
And he candidly outlines China’s impressive commitment to growing wind power compared to the U.S. He concludes with public policy suggestions that will accelerate U.S. renewable energy growth.
GE Ecomagination’s Plans For DOUBLING Cleantech Revenues
These are very frustrating times for those who expect government policy to enable solutions for our economy, environment and energy independence. Today, how can a consumer make a rational economic decision between an electric, hybrid, biofuel or gasoline car if public policy does not include the costs associated with a deep-sea oil well blowout or placing boots on the ground protecting someone else’s oil fields in the price at the pump? How can a consumer make a rational economic choice between solar, wind, nuclear, natural gas and coal if public policy does not include the environmental consequences of mercury and green house gas emissions in the price at the electric meter? How can any consumer figure out what is the right choice among competing fuels if ALL of their fuel choices are subsidized by taxpayers?
Intersolar: Lower Prices on Solar BUT Barriers To Growth
The Intersolar Conference held in San Francisco was a dramatic demonstration of the Green Economic Revolution’s potential for delivering lower prices, a cleaner environment, economic development and jobs.
I worked the after-conference receptions (tough duty in behalf of the common good!) to gain candid information on solar’s current pricing and future. I was blown away by how low solar prices have fallen. I can’t name names due to confidentialities but I heard concrete examples from solar power developers that utility scale PV panels are selling for around $1.75-$1.85 per watt. This is approximately 60-70% LESS than the price for panels just four years ago! Inverters are now priced around 40+ cents per watt. Completed solar power plants are coming on line at $3.50 to $4 per watt.
Which Is Cheaper? Nuclear vs. Solar
“Commercial-scale solar developers are already offering utilities electricity at 14 cents or less per kWh. Duke Energy and Progress Energy are limiting or rejecting these offers and pushing ahead with plans for nuclear plants which, if ever completed, would generate electricity at much higher costs — 14–18 cents per kilowatt-hour according to present estimates.”
This is the research conclusion from a study entitled Solar and Nuclear Costs — The Historic Crossover authored by John O. Blackburn, PhD, Professor Emeritus of Economics and former Chancellor, Duke University.
The study’s premise is that traditional energy supplies including fossil and nuclear energy are experiencing what economists called “upward cost curves” or in other words, their costs keep going up and are not likely to ever go back down. However, the research claims of Blackburn/Cunningham are that renewable energy has achieved a “downward cost curve” over the last decade, namely that their prices have gone down and there is a strong likelihood that they will continue to fall in price.
The forces behind renewable energy’s downward price curve are technology innovation combined with the emergence of a global manufacturing base that is producing economies of scale (lower unit prices achieved from mass production efficiencies). Fueling this push for innovation and mass production is the emergence of a global renewable energy market with examples that include China’s recent announcement to increase their wind power supply by 50% beyond their world leading growth levels and Ontario’s success in attracting 8,000 MWs of solar development proposals from their feed-in tariff. Today wind power is price competitive on a kWh basis with coal fired power plants and tomorrow’s post will outline the facts behind the drop in the cost of PV utility-scale solar panels from approximately $6 per watt to less than $2 per watt in just five years.
“Environmental Consciousness” A New Pillar of Consumer Branding
According to Annie Longsworth, Global Sustainability Practice Leader for Cohn & Wolfe, the three traditional pillars of consumer branding are:
- Trustworthiness
- Caring About The Customer
- Product Quality
In this exclusive two part video, Annie introduces us to a new 4th Pillar – “Environmental Consciousness”. This is a sea change in branding that has occurred rapidly with environmental consciousness moving up from a ninth place ranking of importance among surveyed consumers to number four in just two years. Enjoy…
(click continue for part 2)
Video Interview: Charles O’Malley of MyooCreate on Crowd-sourcing To Find Green Solutions
I conclude my interviews harvested at SB10 with a focus upon marketing innovation and the use of social media for connecting with the customer.
My interview with Charles O’Malley, founder of MyooCreate, profiles Levi’s cutting edge crowd-sourcing campaign.
Video Interview: Derek Young of Invista
Invista was a success story I found at the SB10 conference.
In this video interview with Derek Young of Invista, Young outlines how his firm has successfully designed a product to achieve both a lower emissions footprint and price competitiveness. He profiles his firm’s use of Life Cycle Analysis to create carpet fiber. Invista’s new carpet fiber has a 30% lower carbon footprint than traditional carpet and is price competitive with traditional, petroleum based carpet fibers.
Video Interview: Mike Kerwin on Gaining Green Technology Acceptance
Many businesses are finding out the hard way that going green faces significant barriers to implementation from government agencies and utilities slow to accept technology change. In this video interview with Mike Kerwin, a green builder, Kerwin speaks to his experience attempting to be one of the first home builders to incorporate rainwater recapture systems and living roofs into a home’s remodeling:
Video Interview: Travelocity’s Alison Presley On Green Hotel Certification
One company that is succeeding in building credible a green brand is Travelocity. Its Travel For Good program features a path for accrediting a hotel as green and then identifying this green hotel to Travelocity’s site visitors.
My interview with Alison Presley, Manager of Travelocity’s Travel For Good program consists of two parts. Part One is focused on Travelocity’s path for defining a green hotel. It is an outstanding summary of best practices for building sustainability standards that are credible and transparent.
Video Interview: Scot Case of Terrachoice – Connecting Green Customers To Credible Products
In our SB10 Video Series, I next turn to greenwashing, one of the major issues today in advertising, in my video interview series. Scot Case of terrachoice has been working on topics of sustainability and credible messaging for 17 years. Scot’s video interview focuses upon the core business question of how to build credible labeling and messaging.
In this video Scot outlines the thirst among consumers for messaging that is: Accurate, Meaningful, and Relevant.Scot’s interview is a must-view for those sensitive to how to position your green messaging with customers.
Video Interview: Linda Gilbert on Eco-Moms & Dads Looking For Wellness Solutions
Market research is strongly documenting that the shift to green consumption is not being motivated by a consumer passion for saving the world. Consumers are buying green to enhance their lives and the lives of their loved ones or as Linda Gilbert, President of EcoFocus Worldwide summarizes, “my world, my life.” Linda’s research has found that three out of four Americans believe a greener planet starts at home. She observes that 87% of Americans say it doesn’t matter if you believe in global warming, they feel a strong need for a change on how we impact the environment. For consumers, it is a step by step process. It might start with turning off lights today (87% claim doing so) and then moving onto the next behavior, like unplugging electronics (39% currently claim doing so).
A major market segment in the maturation of the green consumer is what Gilbert defines as the Eco-mom and Eco-dad. In this video interview she outlines the marketing path for selling green to moms attempting to be a role model for their children by teaching them to consume more responsibly. She also outlines the size of this business opportunity in a candid assessment on the void of companies effectively connecting with this multi-trillion dollar market segment.
Video Interview: Shelton Group’s Lee Ann Head On Green Consumer Trends
Today’s businesses are being challenged by their customers to supply price competitive products that advance individual, family and community wellness.
However, companies are struggling with how to evolve their operations and product offerings to meet this growing consumer expectation. A common call to action among speakers at the recent Sustainable Brands 2010 conference (SB10) was the need for innovation in strategy, product design and messaging.
To capture this theme I conducted video interviews with SB10 speakers and attendees that I thought had unique insights on customer expectations and how to deal with issues of greenwashing, product certification and consumer engagement.
Video Interview: Suzanne Shelton on The American Green Hispanic Consumer
Issues of sustainability transcend ethic groups. This is an interconnected, global world with 4 billion mobile phone users according to Kirsi Sormunen, VP with Nokia. And increasingly, a major focus of their communications is upon topics tied to their water, energy and food supplies, and the impacts of their production upon the individual, community and environment.
Suzanne Shelton is the founder of the Shelton Group. Suzanne is a leader in conducting focus groups on sustainability topics. At SB10 I interviewed her on the emerging green Hispanic consumer. Suzanne’s video interview outlines her market research on the why and hows of this emerging and significantly powerful market segment force that is now influencing the adoption of sustainability in America. She outlines how the Hispanic market segment is adopting sustainability with unique insights on globalization’s impact upon green consumer awareness.
Consumers Are Confused on What is Green and Who to Trust
Consumer confusion on what is green and who to trust was the major theme of the market researchers presenting at the Sustainable Brands 2010 conference.
The positive news is that, as declared by Suzzane Shelton founder of Shelton Group, going green has “gone mainstream” with 64% of the population now actively looking for green products. Supporting this conclusion was Linda Gilbert, President of Ecofocus Worldwide. She reported, “87% of Americans say it doesn’t matter if you believe in global warming, we have to change how we impact the environment.” Conference presenters poured out insightful terms and phrases defining the emerging green consumer’s buying behavior including “Recycling Republicans,” “Eco-moms” and “A healthier planet a healthier me.”
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