Green Tech may be Good for the Environment but Bad for Business
The good news is that 70 percent of the nation's electric utility companies plan to integrate wind and solar energy projects and "Smart Grid" technology in the next few years to curb carbon emissions. But a recent survey of 329 power station managers conducted by Black & Veatch indicated that such renewable energy and smart grid investments may take a while to pay off for both consumers and power companies.
According to the survey, major utility managers are not optimistic about green tech profits. "Their expected leading role in curbing carbon emissions would hit utility costs very hard," explained Black & Veatch manager William Kemp. "Electric utilities will be hard pressed to satisfy both customers and investors over the next few years." The report also noted that utility companies are also facing the repercussions of spending up to "15 to 20 percent of [their] pre-tax earnings to get customers to use less of [their] product."