Leveraging Outside Innovation For Power Generation Advancement

Posted by Jack Barry on Mon, Jul 28, 2014

innovations in power generationFor the longest time, the energy and power generation industries leveraged their sheer size as a key strength. Whether it was the suppliers of power to the grid or the stable of manufacturers providing industry with the tools to harness this energy or create their own fixed amount, the players and even the innovation were fairly static. 

But domestically and even globally, the energy industry has opened up. New fuels, new companies and new competition have evolved the industry into one where new power generation possibilities are explored almost daily. And a big reason for this pivot had to do with looking at how other industries grew and evolved. 

Here are some of the lessons that that the energy industry is applying today:

  • Fueling power generation with start-up thinking
    The energy industry in general, and more specifically – the power generation equipment sector – have traditionally been associated with large and, sometimes, mid-size companies. But much of today’s innovation is being powered by start-up companies, especially power generation companies looking to leverage solar, wind and other alternative energy sources. For example the start-up, Mosaic, which enables solar energy investment, helps connect individuals seeking solar energy solutions with potential investors. Another nimble start-up player is Sweden-based Sol Voltaics, which has leveraged nanotechnology to develop highly efficient, cost-effective solar cell modules. Channeling innovation through smaller organizations capable of getting things done faster and more flexibly has enabled the energy industry to forge ahead faster than ever before.
  • Competition fuels customer satisfaction
    For the longest time, energy producers faced little competition in the consumer and business-to-business markets. But as the markets opened up and alternatives arose, power generation became a much more competitive marketplace in which the growing cost-effectiveness stoked more intense innovation from the other sources. As a result, costs were driven down substantially. For example, 40 years ago solar electricity cost about $75/watt to produce. Now it’s about 50 cents/watt. And take your typical industrial diesel-powered genset. Where there may have been a narrow selection of options right for your operation, today the range of manufacturers, sizes and features is almost overwhelming. In other words, you can almost achieve custom engineering by still purchasing out of the box.
  • Achieving compliance without sacrificing cost-effectiveness and efficiency
    While many might assume that power generation manufacturers have been held to high standards for decades upon decades, that's not exactly the case. In fact, the non-road diesel engines of any kind didn’t face EPA standards until 1996. Then from 2007 through 2015 – just a year from now – a stringent four-year Tier 4 system was implemented. The upshot? Cleaner, more environmentally friendly standards that regulate carbon monoxide, particulate matter and other damaging emissions. And because of the growing innovation within energy described above, equipment can be developed to maintain compliance without sacrificing cost-effectiveness. (It’s important to note that standby or emergency generators are not subject to the same strict standards, and that many used power generation equipment has been grandfathered in.)

There are other lessons, too. The globalization brought on by the always-active information age has both helped share innovation across borders while simultaneously increasing the need for more mobile power generation solutions. As we work together to meet a global energy demand predicted to grow by 30 percent over the next 25 years, according to ExxonMobil, energy professionals will continue to learn from peers in outside industries – and more likely sooner than later – start contributing more lessons for others to apply.

Next time you're looking for power generation or a motor, see what our inventory has to offer you.

 

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Tags: Power Generation, Energy Efficiency

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