Capital Intensive Clean Tech and Micro-Financed Green Solutions: A Comparison

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Capital intensive clean tech versus people intensive Permaculture solutions David Goodman, PhD

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Speaker: David Goodman, Ph.D. Associate Professor of Management Director of the BA program B.A., McGill University (Canada) M.B.A., Ph.D., Maharishi International University David Goodman is a board member of the Fairfield Entrepreneurs Association and is a consultant to firms helping them write business plans and raise capital. He is currently involved in several green entrepreneurship projects, including a company that manufactures and promotes ceramic tiles with a photovoltaic overlay that allows buildings to utilize solar energy. His research is involved with how sustainable wealth can be created in tune with natural law.

Transcript of Capital Intensive Clean Tech and Micro-Financed Green Solutions: A Comparison

Page 1: Capital Intensive Clean Tech and Micro-Financed Green Solutions: A Comparison

Capital intensive clean tech versus people intensive Permaculture solutions

David Goodman, PhD

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What Do We Mean By Sustainability? -

Use permitted by Creative Commons – GNU Free Documentation License

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Main Point One

There are many perspectives on creating a more sustainable world, from large scale wind farms and solar installations, to low footprint permaculture designs. Knowledge is the basis for our activity and it is structured in consciousness. Contacting the simplest state of consciousness at the source of thought purifies thinking and action. The level of our consciousness determines how we interact with others and the natural environment. Higher consciousness means action in accord with all the laws of nature and is thus naturally and spontaneously life affirming and supporting.

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Comparison of models

Same economic system although pushback occurs

High capital intensive clean tech

Requires enormous capital Out of reach for most Conforms to economic norms

and top down control and economies of scale

Follows limitations related to inconsistent supply

Best example: large wind farms where farmers are disempowered and paid little economic rent

Challenge to economic system moving towards biodiversity and self sufficiency

Permaculture “compost” concept micro financed

Low entry barrier, but requires personal and community commitment

Requires an understanding of systems and knowledge of how to design and execute an ecological design program

Hands-on and intensive Practical?

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Steady strong wind: Power is generated as the cube of wind speed so more is better

Large blade sweeps: Power is generated as the square of blade size so more is better

Wind and sun are not constantly and consistently available and so either superior storage is required or a mixture of both wind and solar (and on-grid backup) is suggested

Utilities will (reluctantly) offer net metering, often at avoided cost, except for Feed-in-tariff programs such as in Ontario and in Germany

Clean Tech Nerdy Stuff

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May or may not be in best economic interest of utility Marginal cost of building one new facility is so high

that it is in best interest of power companies to incentivize power saving and net metering

Utilities are either regulated monopolies with political power, or actual government enterprises; engaged citizens can challenge utility policies working with regulatory bodies

Utilities are in the business of selling electricity and laws are generally supportive of their unique position in society

ROI in clean tech (analog) not like huge multiples in digital investments, at least not yet

Selling Electricity to Utilities

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Agriculturally based design system that is a contraction of permanent agriculture and permanent culture that understands and makes use of the interdependence and relationships in the “life-shed”

Aims to create ecologically sound systems that are self-sustaining and involves erosion control, organic cultivation, and the built environment

Is this for everyone? Should it be?

Permaculture is Counter Culture?

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Rainwater collection

Nontoxic materials

Permaculture in South Africa

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Large Scale Wind Project Example

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Manufacturer   Enecom      

Model Enercom 101-135 m  

Capacity 3,000 kW 3MW

Height 135meters    442ft

Rotor  Diameter per turbine 101meters 331ft

Swept area per turbine    8,011.85 m2

86,239ft2

Power Curve Data        

  Wind Speed  

m/s mph kW m/s kW

0 0 0.0 13 3050

1 2.2 0.0 14 3050

2 4.4 0.0 15 3050

3 6.7 37.0 16 3050

4 8.9 118.0 17 3050

5 11.2 258.0 18 3050

6 13 479.0 19 3050

7 15.6 790.0 20 3050

8 17.9 1200.0 21 3050

9 20 1710.0 22 3050

10 22.3 2340.0 23 3050

11 24.6 2867.0 24 3050

12 26.8 3034.0   25 3050

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 260.0

500.0

1000.0

1500.0

2000.0

2500.0

3000.0

3500.0

mphkW

Power Curve Graph--- kW from mph wind (Note how steep it is)

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Smaller System Challenges One family is challenged to finance a small

turbine or even solar systems Banks need to provide mortgages for

retrofits What are their concerns? Group of families must create a legal

cooperative utility and fight laws that protect utilities

Example: Abundance Eco-village

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http://www.dmsolar.com/4grwibabaper.html

4KW Grid-Tie with Battery backup ($2.42 per watt!)

Item#: 4000w-pv-kit Availability: Usually ships in 3-4 business

days Regular price: $12,000.00 Sale price: $9,686.00

Do it yourself (if you can)

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DM Solar DG House.ret

This can work on my garage

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Solar power is becoming more cost effective but financing is still an issue

Wind power is not practical in most urban areas

Wind for grid electricity only works with big wind and big turbines

FIT programs help but are rare Semi-rural wind can work, especially for co-ops

Conclusions on Clean Tech

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We need to rethink community… Runoff that causes flooding is due to non-

systems thinking One tree can…

http://www.americanforests.org/discover-forests/tree-facts/

We should think big and plant 1 billion trees

Coming back to community…

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When cost of capital is high decisions are short term and occur when economy is heating up…

Capital is available because return is high but decisions are weighted to quick paybacks

If future is so discounted, how can decisions be made for long term sustainability, e.g. Seven Generation thinking?

Present value of 10 million dollars in 100 years @ different interest rates…

About financing…

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Interest RateYearly compounding

Future ValueHow far in future (years)

Cost of Capital Present Value

$ 10,000,000 100 1% ($3,697,112.12)2% ($1,380,329.67)3% ($520,328.40)4% ($198,000.40)5% ($76,044.90)6% ($29,472.26)7% ($11,524.50)8% ($4,545.95)9% ($1,808.63)

10% ($725.66)11% ($293.56)12% ($119.73)13% ($49.22)14% ($20.39)15% ($8.52)16% ($3.58)17% ($1.52)18% ($0.65)19% ($0.28)20% ($0.12)

Let’s not even think seven generationsHow about 100 years? Cost of capital and sustainability.xlsx

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That is consciousness, the first and final frontier Expanded awareness can take care of current

needs while providing the basis for future needs; spontaneous right action in accord with Natural Law characterizes higher states of consciousness

With higher collective consciousness the total costs are calculated, i.e. no externalized costs such as negative externalities

With higher consciousness there are no unpaid positive externalities, such as a benefit to the world that is unpaid

There has to be the second element…

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The many approaches are all valid as long as there are no negative externalities; however unseen and unintended consequences will always occur when awareness is not grounded in the home of all the laws of nature, pure consciousness, unbounded awareness, the Absolute, which is easily experienced through Transcendental Meditation. The bottom line is we need enlightened individuals to create an enlightened world.

Main Point Two

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Back to the topic… Capital intensive clean tech versus people intensive

Permaculture solutions Is there a third solution, more quantum with large

multiples? Let’s start the conversation; there are many solutions at

different levels of operation Let’s be practical Let’s teach systems and calculate total costs Let our democracy be responsive to everyone, not a

servant to corporate greed Let’s raise consciousness from its source in the Unified

field of all the laws of nature, the light of pure consciousness, the will of God and liberate Creative Intelligence

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Different perspectives…

Triple bottom line Short term bottom line

Radical transparency Mass collaboration No secrets Systems thinking and

empowerment driven Towards Seven

Generation thinking Sustainable Upsets status quo

Proprietary Competitive, paranoid Tilting the playing

field regardless of ethics or environmental consequences

Bottom line and “shareholder wealth maximization” used as modus operandi

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Environmental Determinism: we are ruled by nature

Possiblism (free will): we can control nature

Ecological/Systems Perspective: we are interdependent

Three views of humanity and environment

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Connecting the parts of knowledge with the wholeness of knowledge

Different approaches to sustainable business

1. So-called clean technologies can generate low carbon electricity, which is essential in a time of dangerous global warming and dwindling fossil fuel resources.

2. Permaculture solutions, which are based on ecological design, systems perspective, community, water, soil, and built environment interdependence are holistic in nature, but require serious change in lifestyle for many.

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Transcendental Consciousness is the experience of pure awareness, the simplest state of consciousness beyond thought, but the source of thought, which is easily experienced in Transcendental Meditation. This conscious contact attunes one’s awareness with that cosmic intelligence which is at the basis of the universe; it guides everything without a mistake.

Higher States of Consciousness

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Impulses within the transcendental field: The liveliness of the transcendental field is like a lamp at the door illuminating the silence and the dynamism from silence. The knower gains insight into the known.

That pure consciousness is lively…

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Wholeness moving within itself: In unity consciousness the knower, remaining in unbounded awareness, perceives the truth and ultimate reality of any perception. The environment is perceived in terms of one’s unbounded awareness. “I am that. Thou art that. All this is that.” This is real in unity consciousness. In unity consciousness, Supreme knowledge is total knowledge, perfection. This is life in fulfillment. This is true sustainability.

Complete Enlightenment

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The purpose of creation is the expansion of happiness and we are all here to enjoy and radiate happiness everywhere.- Maharishi

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“Life is here to enjoy. Tell everyone — nobody has to suffer anymore.”

— Maharishi