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Renewable Energy: A Market Perspective from Industry . February 16, 2011 Bob Rasmussen The Shaw Group .
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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 National Security Readiness Mandates Stretch Goals Urgency/Action Needed Significant Opportunities • Limited $ • Capital Budgets • 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