Energy In the News

Guest Opinion 

By Nancy Floyd

May 23, 2007

Ten years ago, venture capital investment in clean energy was less than $50 million annually. Last year, it was $2.4 billion, representing one in every ten venture investment dollars. No wonder clean energy is being touted as the growth industry of the 21st century and is expected to create many dynamic new companies and hundreds of thousands of new jobs.

The global market for renewable energy technologies grew 39 percent last year to $55 billion. It's projected to quadruple in the next 10 years. This rate of expansion recalls nothing so much as the PC, wireless and web industries during their heyday.

For Oregon this represents both a major opportunity and a significant challenge. No one state has a lock on the clean energy business, and competition from other states and regions for clean energy investment is fierce.  California, New York, Massachusetts and other states are mounting comprehensive efforts to make themselves global clean energy centers. Their efforts include public policies to give their companies a leg up in the global market.

To build world class, competitive clean energy companies here in Oregon, we need to enact forward-looking clean energy policies -- policies that include ambitious goals for the development of renewable electricity and renewable fuels, tax policies that spur investment and expansion of the clean energy industry, and support for emerging technologies and markets.

Oregon is poised to make important strides this legislative session toward creating strong clean energy policies. For example, Senate Bill 838 would establish a robust and sustained market for clean energy by requiring that 25 percent of Oregon's electrical power be generated by new renewable sources by 2025. While 22 states have passed similar legislation, that high percentage would vault Oregon into the top three or four. By ensuring a reliable market for clean energy, Oregon can capture the investment capital that comes with new, renewable energy projects and manufacturing. It positions the state to attract new business.

The Oregon Senate has passed SB 838 by a two-thirds majority, but the vote in the House could still go either way.

This Renewable Energy Standard legislation is essential for building our state's clean energy industry. Companies in this sector locate where there is widespread and vigorous support. SB838 is a fundamental market-making policy that will drive that kind of innovation and investment. We can see significant investment in wind energy projects in the Gorge and wave projects on the coast -- Seven of the top 25 wave energy sites in the world are on the Oregon coast.

We have unique assets that make Oregon stand out: high-tech entrepreneurial talent, a strong brand-identity around sustainability, specialized green buildings expertise, innovation in agriculture and forestry, and a robust silicon industry already attracting the attention of next-generation solar companies. Enacting strong public policies such as those now being considered by the Legislature is exactly what's needed to make Oregon fertile ground for tomorrow's clean energy economy.

Nancy Floyd is founder and managing partner of Nth Power, a venture capital firm managing over $400 million with an active portfolio of over a dozen clean energy companies.