Smart Grid Summit Panel Session: Venture Capitalists View of the Movement

The Smart Grid Summit, held in conjunction with TMC’s (News - Alert) ITEXPO East, currently being held at the Miami Beach Convention Center, is hosting a variety of speakers that are offering their advice, information and critiques of the current state of the smart grid movement and its evolution in the near, and distant, future.

 

In one of today’s panels, Dharmesh Thakker, vice president, Advanced Technology Ventures, or “ATV Capital,” spoke to a crowd of wide-eyes attendees on the smart grid movement from the perspective of a venture capitalist.

 

According to Thakker, Cleantech Venture Capital, or “VC,” declined significantly from 2008, but is on par with 2007 and is moving towards reversing the trend from early 2009.

 

“More importantly, Cleantech investments as a percentage of overall investment dollars is showing clear positive trends,” Thakker said, adding that recent other factors are driving investments including A123 and S-1 filings and DoE.

 

And, in regards to the smart grid market, not all sub-sectors are created equal.

 

In comparison to solar, wind and biofuels, energy efficiency and smart grid investments are significantly higher in cost.

 

But, Thakker discussed, why the trend from generation towards efficiency and smart grids?

 

“Pure Economics!” Thakker said.

 

“From an LCOE perspective, Energy Efficiency and supporting Smart Grid initiatives most cost-effective in achieving our GHG and RE goals, relative to ‘sexy’ technologies including solar and biomass,” he added.

 

In summing up the presentation, Thakker gave the audience some strategic drivers for the smart grid.

 

“Expected demand outstripping supply,” Thakker said, adding that electricity consumption is expected to grow at 31 percent in 2030, while renewable energy is only predicted to grow by 22 percent.

 

In summary, the thorough panelist gave additional tips including:

 

•      Aging electrical system

–     DoE states 70 percent transmission lines and transformers > 25 years old and approaching EOL

 

•      $1.1 trillion in United States energy economy riding on aging infrastructure! Urgency to effectively network and manage grid to ensure reliable energy delivery