Click here to close now.



Welcome!

Microservices Expo Authors: Anders Wallgren, Pat Romanski, Jason Bloomberg, Liz McMillan, Elizabeth White

News Feed Item

Report: New Standards Could Help U.S. Policies Accelerate Growth of the Advanced Energy Industry

Interviews with 40 Executives Show Support for Policy Stability, R&D Support, Incentives that Phase Out, and a Level Competitive Playing Field

Policy Guidelines Suggested by Business Leaders Reinforce Energy Tax Reform Principles Proposed by AEE

WASHINGTON, April 17, 2013 /PRNewswire-USNewswire/ -- Advanced energy CEOs and senior executives across America say the nation could spur faster industry growth if U.S. policy was designed to maintain market stability, create a level playing field, support a broad innovation portfolio, limit the duration of incentives, and solve broad problems rather than prescribe narrow solutions, according to a new report released today by Advanced Energy Economy (AEE).

(Logo: http://photos.prnewswire.com/prnh/20120823/DC61994LOGO )

"Advanced energy is a $1 trillion global market and U.S. revenue grew 19 percent last year," said Graham Richard, CEO of AEE. "Advanced energy is an economic opportunity for America. Let's listen to the leaders of this industry and work to align federal policy to make the most of this opportunity."

For the report, Advanced Energy Economy Institute, AEE's educational and charitable affiliate, commissioned PA Consulting Group, a leading industry consultancy, to interview CEOs and top executives of advanced energy companies across a wide range of technologies and services, about how federal policies affect them and their businesses. The researchers interviewed companies big and small, established and start-up, technology-focused and service-oriented.

"When we embarked on this project, we anticipated the greatest challenge would be finding common ground among the CEOs and senior executives interviewed," said Ron Norman, head of the Energy Capital Markets practice at PA Consulting Group. "We felt that the sheer breadth of advanced energy companies represented would virtually guarantee widely divergent views. Much to our surprise, the business executives shared similar perspectives on the standards federal policymakers should consider."

Utilizing open-ended questions about the business challenges facing these executives and the impact of federal energy policies, PA Consulting was able to identify five broad standards for federal policy these executives think would accelerate industry growth. In their view, federal energy policy should:

  • Create market certainty by making rules and regulations stable, predictable and transparent, in order to encourage investment.
  • Create a level playing field by providing advanced energy access to benefits provided to traditional energy and avoiding preferential treatment for particular technology solutions.
  • Support innovation in a portfolio approach by increasing federal funding for research and development and using that funding to assist the widest array of technological possibilities.
  • Limit the duration of incentive support in order to let competitive markets determine what technologies will be viable in the long run.
  • Craft policies around broad problems rather than prescribe narrow solutions, in order to let innovation and competition in the marketplace surface the best answers.

In the report, "Accelerating Advanced Energy in America," business leaders suggest ways both to improve current policies and to develop new ones based on the fundamental standards they identified. Some ways to put these standards into action include:

  • R&D Funding: Nearly every executive interviewed supports the Federal Government's involvement in research and development in advanced energy, especially if done through independent agencies in support of a wide range of firms at varying scales. Advanced Research Projects Agency-Energy (ARPA-E) and Defense Advanced Research Projects Agency (DARPA) were cited as the best existing models, with DARPA exhibiting the added benefit of linking product development to an established defense procurement market.
  • Tax Policy: Tax credits are seen as a powerful tool to incentivize but should sunset in a well-structured and clearly defined manner. For example, the renewable electricity production tax credit (PTC) has generally been extended in one- or two-year increments over a number of years, resulting in boom and bust cycles. It would be better for this mechanism to be extended for a fixed number of years and then phased out in a well-structured and clearly defined manner. Similarly, tax incentives that currently create preferential treatment for conventional energy technologies should either sunset or be widely offered to advanced energy generation technologies. The Master Limited Partnership (MLP) ownership structure, now available only to certain conventional energy facilities, is one that many executives say should be available to advanced energy technologies as well.
  • Demand Creation: Government policy can help bring new technologies to scale by stimulating market demand in a variety of ways. For example, many executives view a national version of the Renewable Portfolio Standards (RPS) currently in 29 states as a potential means to create market demand. They also believe that any federal RPS needs to be technology neutral, meaning it should not privilege one advanced energy technology over another, especially considering regional variation in renewable resources. The executives also cite both Corporate Average Fuel Economy (CAFE) standards and the Renewable Fuel Standard (RFS) as stimulating private investment. But they strongly prefer the CAFE approach, which allows vehicle manufactures to determine the best means of raising fuel economy, over the RFS, which requires production of specific biofuels.  

The full report is available at www.AEE.net/acceleratingAE.

The standards elicited from executives in these interviews are consistent with principles for energy tax reform developed by AEE. These principles were described in a recent op-ed by CEO Graham Richard. According to AEE, tax incentives should and can:

  • Be targeted to driving innovation.
  • Sunset or update automatically when market-based objectives are achieved
  • Provide stability and certainty for businesses and investors.
  • Be technology neutral to support all forms of advanced energy. 

The business association also submitted a comment letter to the U.S. House Ways and Means Committee this week elaborating these principles and sketching out a framework for translating them into the tax code. Through a new structure, the tax code could create credits that are permanent in law but self-regulating in such a way that benefits phase out as energy innovations achieve benchmarks indicating market maturity, at which point these technologies are left to compete on their own. 

About Advanced Energy Economy and the AEE Institute
Advanced Energy Economy is a national organization representing the advanced energy industry. AEE's mission is to influence public policy, foster advanced energy innovation and business growth, and provide a unified voice for a strong U.S. advanced energy industry. The AEE Institute's mission is to raise awareness of the public benefits of advanced energy, drive the policy debate on key topics, and provide a forum where leaders can address energy challenges and opportunities facing the United States.

PA Consulting Group
PA Consulting Group is a leading management, systems, technology and economic consultancy of more than 2,000 people. Independent and employee-owned, PA operates globally in more than 30 countries from offices across Europe and the Nordics, the United States, the Gulf and Asia-Pacific. PA's insights, recommendations and leadership help transform the performance of organizations and guide policy leaders.  PA works with many commercial, government and public sector organizations across many industry sectors including energy, financial services, information technology, life sciences and health care, and defense and security.

SOURCE Advanced Energy Economy

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@MicroservicesExpo Stories
As software organizations continue to invest in achieving Continuous Delivery (CD) of their applications, we see increased interest in microservices architectures, which–on the face of it–seem like a natural fit for enabling CD. In microservices (or its predecessor, “SOA”), the business functionality is decomposed into a set of independent, self-contained services that communicate with each other via an API. Each of the services has their own application release cycle, and are developed and depl...
With microservices, SOA and distributed architectures becoming more popular, it is becoming increasingly harder to keep track of where time is spent in a distributed application when trying to diagnose performance problems. Distributed tracing systems attempt to address this problem by following application requests across service boundaries, persisting metadata along the way that provide context for fine-grained performance monitoring.
The battle over bimodal IT is heating up. Now that there’s a reasonably broad consensus that Gartner’s advice about bimodal IT is deeply flawed – consensus everywhere except perhaps at Gartner – various ideas are springing up to fill the void. The bimodal problem, of course, is well understood. ‘Traditional’ or ‘slow’ IT uses hidebound, laborious processes that would only get in the way of ‘fast’ or ‘agile’ digital efforts. The result: incoherent IT strategies and shadow IT struggles that lead ...
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
If we look at slow, traditional IT and jump to the conclusion that just because we found its issues intractable before, that necessarily means we will again, then it’s time for a rethink. As a matter of fact, the world of IT has changed over the last ten years or so. We’ve been experiencing unprecedented innovation across the board – innovation in technology as well as in how people organize and accomplish tasks. Let’s take a look at three differences between today’s modern, digital context...
SYS-CON Events announced today that VAI, a leading ERP software provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. VAI (Vormittag Associates, Inc.) is a leading independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail and service sectors. An IBM Premier Business Part...
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed...
The (re?)emergence of Microservices was especially prominent in this week’s news. What are they good for? do they make sense for your application? should you take the plunge? and what do Microservices mean for your DevOps and Continuous Delivery efforts? Continue reading for more on Microservices, containers, DevOps culture, and more top news from the past week. As always, stay tuned to all the news coming from@ElectricCloud on DevOps and Continuous Delivery throughout the week and retweet/favo...
In most cases, it is convenient to have some human interaction with a web (micro-)service, no matter how small it is. A traditional approach would be to create an HTTP interface, where user requests will be dispatched and HTML/CSS pages must be served. This approach is indeed very traditional for a web site, but not really convenient for a web service, which is not intended to be good looking, 24x7 up and running and UX-optimized. Instead, talking to a web service in a chat-bot mode would be muc...
In the Bimodal model we find two areas of IT - the traditional kind where the main concern is keeping the lights on and the IT focusing on agility and speed, where everything needs to be faster. Today companies are investing in new technologies and processes to emulate their most agile competitors. Gone are the days of waterfall development and releases only every few months. Today's IT and the business it powers demands performance akin to a supercar - everything needs to be faster, every sc...
At the heart of the Cloud Native model is a microservices application architecture, and applying this to a telco SDN scenario offers enormous opportunity for product innovation and competitive advantage. For example in the ETSI NFV Ecosystem white paper they describe one of the product markets that SDN might address to be the Home sector. Vendors like Alcatel market SDN-based solutions for the home market, offering Home Gateways – A virtual residential gateway (vRGW) where service provider...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
Web performance issues and advances have been gaining a stronger presence in the headlines as people are becoming more aware of its impact on virtually every business, and 2015 was no exception. We saw a myriad of major outages this year hit some of the biggest corporations, as well as some technology integrations and other news that we IT Ops aficionados find very exciting. This past year has offered several opportunities for growth and evolution in the performance realm — even the worst failu...
Are you someone who knows that the number one rule in DevOps is “Don’t Panic”? Especially when it comes to making Continuous Delivery changes inside your organization? Are you someone that theorizes that if anyone implements real automation changes, the solution will instantly become antiquated and be replaced by something even more bizarre and inexplicable?
Welcome to the first top DevOps news roundup of 2016! At the end of last year, we saw some great predictions for 2016. While we’re excited to kick off the new year, this week’s top posts reminded us to take a second to slow down and really understand the current state of affairs. For example, do you actually know what microservices are – or aren’t? What about DevOps? Does the emphasis still fall mostly on the development side? This week’s top news definitely got the wheels turning and just migh...
Test automation is arguably the most important innovation to the process of QA testing in software development. The ability to automate regression testing and other repetitive test cases can significantly reduce the overall production time for even the most complex solutions. As software continues to be developed for new platforms – including mobile devices and the diverse array of endpoints that will be created during the rise of the Internet of Things - automation integration will have a huge ...
I recently spotted a five-year-old blog post by Mike Gualtieri of Forrester, where he suggests firing your quality assurance (QA) team to improve your quality. He got the idea from a client who actually tried and succeeded with this counterintuitive move. The thinking goes that without a QA team to cover for them, developers are more likely to take care of quality properly – or risk getting the dreaded Sunday morning wakeup call to fix something. Gualtieri’s post generated modest buzz at th...