Green Energy For the Future - An Interview with Professor Gerry Wrixon.
The following interview took place in September 2009 between Professor Gerry Wrixon and Mike Collins of
The Coaching Partnership.
Mike Collins: "You agreed to chair the Green Entrepreneurs conference in Kinsale on November 6th. What caused you to accept the invitation?"
Gerry Wrixon: "I've always been interested in green issues - especially renewable energy. In the EU today, renewable energy employs about 450,000 people and has a turnover in excess of 45 billion euro. Take Ireland's population - about 3% of the EU - and we are nowhere near 3% of those figures. There is no reason why we shouldn't be."
"I believe there are huge opportunities out there in every sphere. There is green energy generation - wind, solar, electronic control systems and the installation and maintenance associated with those."
"Then you have the minimisation of energy requirements - Hybrid Cars, minimising energy consumed by appliances and the design of houses to minimise the use of energy."
"So, there is an enormous spectrum of business opportunities there. All these efficiencies can be measured by the amount of carbon used by each. Put a cost on that carbon and all of these industries can be rated at how effective they are."
I think that it would be very fruitful for companies to pick out the appropriate green industries - use the technologies that already exist in this country - and to go into them."
"But I have some concerns for Ireland. For example - Denmark, Germany and Spain between them produce about 70% of the world's wind turbines - why aren't we in there? We have a better wind regime than any of these countries."
We certainly have green ambitions - such as having 20% of our electricity renewable - by 2020. But I'm not sure that is going to happen. I think we are going about it the wrong way. For example - we are planning for a concentration of large wind farms to be concentrated in the west - far away from any grids."
"On the other hand - take electricity micro-generation - a lot more people could generate their own electricity. However - in other countries - Germany, France, Holland, every unit of electricity generated by micro-generation would get 40c per Kw/H - here I get 10c per Kw/H and another 9c up to a maximum of 3000 KW - that's more than my PV plant at home produces in a summer!"
"So, there is no incentive for people to go and invest in micro-generation equipment. There are a lot of artificial constraints at the moment. A good approach would be to subsidise payment to producers of micro-generation equipment - that generates the industry."
MC: "You paint the big picture - and energy is at the centre of that picture. But if I am a business person with a short to medium term view and cannot see the supports you specify - should I get involved in green industry?"
GW: "There are a lot of artificial inhibitors to the growth of this industry at the moment. But, let's face it - Green Entrepreneurship can happen in this country without any help from the ESB. However, I think a whole larger spectrum of businesses would open up if we had a more rational discourse in this country about our energy sources and about generating more renewables."
MC: "Let me change the question a bit. If you were an investor just now - where would you put your money and energy?"
GW: "Well, I'd support wind farms in areas that there is already a developed grid. But my problem is that all the equipment for windfarms needs to be imported. I heard the CEO of a local shipping company comment the other day that the biggest item they are importing are parts of windmills."
"Next, if the rules of the game were changed in micro-generation - that would be a very attractive investment. The nice thing is that it would encourage manufacturers to get into manufacturing for the rigorous Irish environment. I think we've missed the boat as far as the giant windmills are concerned - but we could still make a play for the sophisticated controls they require."
"Then I'd look at areas like retrofitting of older houses with insulation, development of new, more efficient space heaters, cars - batteries for hybrids and electric vehicles and so on.
MC: "Most of those suggestions are around designing and manufacturing for a worldwide audience."
GW: "Yes - take the example of micro-generation. One thing you could do with micro-generation is to produce smart hybrid energy systems, a renewable powerstation for a village - for third world countries. This could be produced as a sealed unit - like a diesel generator replacement."
"There is no really big player in the micro-generation market at the moment, as there are in the big wind turbines. That represents to me a business opportunity."
MC: "Do you think the general appetite is among the public for green products and green services?"
GW: "I don't think the demand for green products is mainstream at all. I do think it will become mainstream when green means saving money. The carbon tax will have a focusing effect - it should bring green solutions to people's attention."
MC: "So I shouldn't expect a "show of greenness" in my business to cause the public to take notice and buy?"
GW: "I'd agree with that, yes. You will always attract a certain type of person - and hopefully they will grow over the years. But a business is there to make a profit. I wouldn't invest in green for green sake - hoping it would add to the bottom line."
MC: "A year from now, in 2010, if you were coming back to this conference - what would you like to see happen in the interim?
GW: "I think the carbon tax will begin to focus minds. I would like to see part of that carbon tax going to encourage green enterprises - with the overall aim of reducing our dependence on imported fossil fuels. We are 95% dependent on importing fuels for transport and electricity. So you have to look at it from a national point of view."
"I would also like to see more opportunity for micro-generation. I think that if every farmer had a 10Kw generator, it would do a huge amount to raise peoples' awareness. A town like Kinsale could put up a large windmill - and people could invest in it from a community point of view, like they do in Denmark."
"I'd like to see the interconnector between here and the UK go ahead. I'd also like to see planning for an interconnector between here and France."
"For those things to happen, the business climate for a green society has to be put into place. I would like to see things happen that are already in many other European countries. I would like to see this "catch-up" happen at the very least."
MC: "Thank you for your time Professor Wrixon."
