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Alternate Strategies for Cleantech Start-ups

Over at C|Net, Martin LaMonica takes a look at the money pouring into alternative energy start-ups (most of them solar) and considers how they might be able to attack the big boys of the energy without going head-to-head.  Which, in a way, ignores that some of the big boys of energy now are also taking on the challenge of alternative energy themselves; BP and Shell, for instance, are heavy into alternative energies, Chevron is the world's biggest player in geothermal, and it seems like just about every local and regional power company--right down to the new-fangled co-operatives--are growing alternative energy options.

But, it certainly is wise to look at how new companies and new grid providers can shake up the energy game, especially in electricity production, without trying to build billion dollar companies overnight.  Nothing, after all, will insure a start-ups rapid and spectacular death than if they try to compete on par with the giants of industry.  One of the great things, however, of the alternative energy movement is that the new technology and techniques provide alternative means for producing and distributing power.

For one, we've mentioned several times the possibilities of micro-generation--that is, the production of electricity in kilowatt amounts on or near the sites where it is going to be used.  This is, in fact, one of the more exciting prospects for an alternative energy revolution.  The potential, as distant as it might be, for the eradication of long distance, high tension power lines is one to be viewed with a certain anticipation.  If a house can generate its own electricity, or a neighborhood be self-sufficient, there's a possibility for an end to the major grid suppliers altogether.

A different C|Net article, in fact, tackles this very concept in talking about the Infinia dish solar collector, an alternative to the traditional photovoltaic solar solutions.  The dish, which concentrates solar energy as heat to drive a small Stirling engine, could revolutionize solar installations, working more efficiently than a comparable size photovoltaic array and at a 20-30% lower price point.  While the company's current focus is large scale, grid-supplying installations in the American southwest, the dish certainly has potential for smaller scale neighborhood or home installations.

And like many technologies, this one is easily scalable, which is perhaps the true revolution in alternative energy.  We can plant five of these dishes and start churning out some kilowatts, but the only restriction to expansion is shade-free real-estate, as opposed to massive coal or nuclear plants which are essentially static constructions--once they've been built to a certain capacity, that about does it.  Further expansion is expensive and difficult, whereas with this kind of solar installation, expansion can be done on a rolling basis as the components roll off the assembly line.

The best part of the alternative energy revolution is that it will take many shapes and forms, and while it might be slow to catch the current heavyweights of energy production, the new techniques and technologies have the option of acceleration;  just on the hairy edge of competitive today could be transformative in the next five or ten years, justifying the excitement of VCs and other investors.