Joint ventures and unions: making renewable energy market strong
Renewable energy companies have been in a tough situation for more than twenty years (since the beginning of renewables' sector). Two fires, two enemies to fight, the first is the entire fossil fuels' sector, the second is the internal competition in its own sector. The first is a strong, old and rich institution, with thousands of billion of dollars and has exponents like Shell, BP, Total, Exxon and Chevron. The second is also strong and in a long-term can monopolize the entire energy market, it's the internal competition in renewable energy sector, where companies double their profits in less than a year (like First Solar or SunPower) and hydroelectric sector growth rises every year of 3.1%.
The slow but inevitable ascent of renewables in the energy market can't be stopped although it can be delayed and this delay can represent a high environmental price and the Earth (and also us) will pay it. We're talking about the deadly consequences of climate change, triggered by an abudance of fossil fuels usage. It's vital, for our lives and for our environment, that fossil fuels leave the market in the fastest way as possible and to do that alternatives are required, strong alternatives. To improve and strengthen remewable energy market one of the two enemies must be fought: fossil fuels (already happening) and internal competition. How can renewable energy companies overpass this obstacle and become a strong, united market? Joint ventures.
Someone already thought about that, like Solar Power Inc. The company, which 71% is owned by China's LDK Solar Co., has formed a partnership with Wircon GmbH to build projects in the U.K. The joint venture intends to own and sell the projects it develops in the U.K., Roseville, California-based Solar Power said today in a statement. The company initially intends to build about 55 megawatts of capacity. This will go to reach U.K. goal of the 30% of the country's power from renewable sources by 2020. In Japan the lack of land territory brought Kyocera Corp. and Century Tokyo Leasing Corp. to build two solar power stations designed to float on the surface of reservoirs.
I've mentioned it already before but it's here again: DESERTEC project, building renewable power plants in territories with an abundance of solar and wind energy and connecting three continents with energy infrastructures. The consortium which administrates the project is one of the biggest companies union in the world. The Dii GmbH is composed by E.ON, ABB, Siemens, Enel Green Power, Terna, State Grid Croporation of China, Deutsche Bank, Flagsol, Abengoa Solar, Schott Solar and RWE. This consortium administrates more than $500 billion and operates in three continents.
Another consortium focused on energy infrastructures is Medgrid (focused more on Middle East) and formed by Abengoa, GDF Suez, EDF and other companies. Between the many examples of joint ventures in the world there's the cooperation between First Solar and BELECTRIC for the construction of PV power plants or 3SUN, the biggest solar power joint venture in Europe including Enel Green Power, Sharp and STMicroelectronics.
Joint ventures help new companies to invest in foreign countries and strengthen relationships between companies increasing the profits and the total capacity of renewable energy power plants all over the world. But if we want to accelerate the process the number of joint ventures and consortia have to double. The final target? A global renewble energy network, connecting all the companies of the sector. In fact, a renewable energy OPEC doesn't exist, it must be created. In a world where everything is connected it's unthinkable that renewable energy companies are isolated and under the pressure of fossil fuels companies. Like oil is transported from Middle East to the U.S. so renewable energy must be an international fuel to power a clean and green future.