EcoSearch "State of the Nation" Update - April/May 2010

It seems we have a lift!

The big question is “for how long?”. I’m sensing an underlying nervousness, what will happen post summer, post election, post Greece?

For a whistle-stop tour of what else I’m seeing;

Finance & Investment in general: -

• Early stage Innovation businesses in cleantech are still suffering from lack of finance although there’s some Creative fund ideas are emerging but these are pre-fund raising and still some months away
• There is still a lack of quality investments – with all investors sticking to traditional post revenue models
• Large scale asset based projects based on “known technologies” are more appealing to investors although a switch to investing in “IP” is being detected for some areas

CRC (Carbon Reduction Commitment):

• Public sector – enquiries are up across the board but delivery is problematical
• FM – large companies gearing up internally to tackle CRC opportunity but clients showing frustration with over-layered FM business models
• Government Knowledge & Advice on procuring these products and services is sadly lacking and will affect the placement of orders

Microgeneration:

• Consumer & Business Demand is growing for product – however manufacturing problems in small wind, supply problems for inverters & Solar PV are issues
• Installer capacity to deliver projects and scale-ability will be an issue in the near term
• Renewables purchasers are frustrated with a fragmented market, product comparison is hard to action, corporate “slickness” is lacking in delivery
• The present MCS accreditation framework appears to be preventing the industry from reaching “sales” maturity
• The present sales & distribution models are problematical – especially in small wind

Business Models:

• The SME Services & Product Sector for Renewables & cleantech is suffering casualties, further casualties are expected from cash flow burn-out crisis
• Specialist & experienced installers will perhaps be prime for acquisition but managing integration will be key for any acquirer
• The Corporate & Utility sector is struggling to internally ratify traditional operating models with highly adaptive, flexible & fast moving emerging markets
• Innovation in the Corporate arena is constrained due to cash flow/focus on core business, smaller workforces & lost internal entrepreneurial ability

Disruption Technologies & Conspiracy Theories?

• … suffered from professional anti-blogging attacks? Well interestingly – now the furore of East Anglia has died down we uncover a rise in this type of activity. So who are the organisations having sufficient funds who have a vested anti-lobbying interest to procure the services of these anti blogging rings.
• And is it wrong to believe that some of those same industries are also buying up IP to shelve “disruption technologies” …
• UK Manufacturing – over-engineered & over-priced? KISS for the future – the Chinese are coming!

These are personal views. I welcome comment, debate and discussion – debby.lloyd@ecosearchglobal.com

Debby Lloyd,
Managing Director, EcoSearch

Image by Micky on Flickr

Smart Metering – A Trojan Horse For The Utilities?

This may be a little controversial but my sound-boarding conversations in the sector of late have led me to ask questions and draw some interesting conclusions. Where is the product development going – and indeed who is in the driving seat – and really … what are the measurables of the 10-year metering roll out plan?

Are the meter supply companies ready to meet the rapidly evolving demands of today’s wireless savvy and iPod-style green consumer – will they even try or are they focused on serving only the demands of their masters in the Utilities?

Are the meters they will be supplying truly going to serve the Government purposes to educate and influence energy reduction? Are they merely being used to serve the Utilities as platforms for yet more aggressive cross-sell and up-sell opportunities – and contribute to even more consumerism that will actually negate all that energy reduction activity in the first place?

Are the Metering and Utility companies falling into the trap of “one size fits all” in terms of product development? Will Mr & Mrs Blogs in Harpenden really use their smart meter in the same way as Single Mum Jane in Brixton with 5 children under the age of 7?

Will the Utilities – in the effort to control the supply chain seek ever complex ways of controlling the data from the Smart Meters …?

Picture the future – your own smart meter – (I’d like a choice of model and functions thank you!). Something that will intelligently SMS you when the kids have left the heating on for more than 4 hours. A meter that talks to my freezer and switches it to low peak electricity. Something that automatically gets the washing machine going at 2am rather than when I go to bed and my smart meter needs to tell me how much my solar thermal panel has saved me that day and how much renewable energy I’ve generated … is that too much to ask do you think?

Well a cursory glance at some of the products on the market recently has led me ponder on how this sector needs to develop and cope with what seems like opposing and conflicting needs of the various stakeholders!

… ah I forgot, I’m having a flashback, it’s local loop unbundling all over again, only this time the local loop unbundling goes right back to the consumer – control of their own power generation!

By Debby Lloyd
Managing Director, EcoSearch