EER Research Directions

The energy industry is undergoing an unprecedented transformation, requiring a new approach to industry research and analysis. Three major forces are driving the transformation:

• global warming concerns are beginning to dictate public policy decisions at the highest levels -- the two leading contributors to global warming are coal-fired power generation and auto emissions;
• energy supply concerns -- the pace of depleting finite fossil fuel supplies, the political risks of depending on supplies based in regions of conflict, and a growing awareness of the linkage between energy supply and national security – are directly reflected in rising fuel prices and increasing energy price volatility;
• liberalization of energy markets is enabling a host of new players to step in to address the increasing challenges, from niche IPPs to new technology players.

Since 2000 steadily rising fuel prices, including sharp peaks in oil and natural gas prices, coupled with growing concerns about fuel supply security and the environment have created unprecedented global support for the development of clean and renewable energy sources. As the costs of traditional energy generation escalate, non-traditional energy sources become increasingly cost competitive. Wind power is already cost competitive on a new-build basis and a number of other renewable power technologies are closing the gap. Clean coal technologies have yet to be fully proven but offer enormous potential if implemented with carbon sequestration strategies.

In the power sector, the world will require nearly 5,000 GW of new electricity generation over the next 25 years to meet growth in demand in developing countries and to replace coal and nuclear plants that will become obsolete during the period. A host of electricity generation technologies will be required to meet global energy needs. Wind power and other clean and renewable technologies are growing in importance alongside ‘modified’ traditional generation such as clean coal, advanced CCGT, and next generation nuclear.

In the transportation sector, biofuels such as ethanol and biodiesel have the potential to supplement fuel supplies with minimal impact on the environment. In the longer term fuel cells fueled by hydrogen may replace the internal combustion engine, offering emission-free operation. However, a number of hurdles remain including producing, transporting and distributing hydrogen economically. In the meantime fuel cells are beginning to find niche applications where users are willing to pay a premium for remote and/or emissions-free, reliable power.

EER is dedicated to helping clients understand, anticipate, and leverage the trends that will continue to transform the energy industry. We will continue to expand our range of services -- market studies, advisory services, and consulting activities -- to target the leading edge of change in the energy industry. Our research is currently focused on these three key areas:

Global Wind Energy
Clean and Renewable Power Generation
Hydrogen, Biofuels, and Fuel Cells