Welcome!

Microservices Expo Authors: Liz McMillan, Pat Romanski, Elizabeth White, Yeshim Deniz, Zakia Bouachraoui

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.

Microservices Articles
CloudEXPO New York 2018, colocated with DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
Enterprise architects are increasingly adopting multi-cloud strategies as they seek to utilize existing data center assets, leverage the advantages of cloud computing and avoid cloud vendor lock-in. This requires a globally aware traffic management strategy that can monitor infrastructure health across data centers and end-user experience globally, while responding to control changes and system specification at the speed of today’s DevOps teams. In his session at 20th Cloud Expo, Josh Gray, Chie...
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true ...
Containers and Kubernetes allow for code portability across on-premise VMs, bare metal, or multiple cloud provider environments. Yet, despite this portability promise, developers may include configuration and application definitions that constrain or even eliminate application portability. In this session we'll describe best practices for "configuration as code" in a Kubernetes environment. We will demonstrate how a properly constructed containerized app can be deployed to both Amazon and Azure ...
Modern software design has fundamentally changed how we manage applications, causing many to turn to containers as the new virtual machine for resource management. As container adoption grows beyond stateless applications to stateful workloads, the need for persistent storage is foundational - something customers routinely cite as a top pain point. In his session at @DevOpsSummit at 21st Cloud Expo, Bill Borsari, Head of Systems Engineering at Datera, explored how organizations can reap the bene...
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, discussed how to use Kubernetes to set up a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace. H...
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term.
Most DevOps journeys involve several phases of maturity. Research shows that the inflection point where organizations begin to see maximum value is when they implement tight integration deploying their code to their infrastructure. Success at this level is the last barrier to at-will deployment. Storage, for instance, is more capable than where we read and write data. In his session at @DevOpsSummit at 20th Cloud Expo, Josh Atwell, a Developer Advocate for NetApp, will discuss the role and value...
SYS-CON Events announced today that DatacenterDynamics has been named “Media 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. DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.
Consumer-driven contracts are an essential part of a mature microservice testing portfolio enabling independent service deployments. In this presentation we'll provide an overview of the tools, patterns and pain points we've seen when implementing contract testing in large development organizations.