Silicon Valley’s shift to ET
Silicon Valley - the world’s center of innovation in the IT industry - is turning to smart energy technologies to save it’s competitiveness, prosperity and attractiveness. Although SV has attracted bright-minds from around the world for decades and is the place where start-ups emerged to become corporate giants, it’s not immune to the global economic downturn. Cash-strapped venture capitalists are hesitating to fund start-ups which threatens to undermine the creative capacity of the Valley. The IT industry has cut thousands of jobs in recent months. In addition, Southern California is especially exposed to falling real estate prices.
Ever since last year’s oil price rally gave us a first idea of how the post-peak oil era will look like, it’s clear that energy technology will be the next megatrend. While President Obama aims at doubling the share of renewable energies in the U.S. energy mix within the next three years, solar energy is becoming competitive with fossil fuels and car makers are busy preparing the grand-scale introduction of electric cars. Energy efficient computers and household appliances, technologies to manage one’s electricity consumption intelligently, smart power grids as well as electric cars could all come from Silicon Valley soon. Tesla Motors is just one example. The Valley could become the new center of the American auto industry and the electricity to power electric cars can be generated locally from sunlight.
While computer hardware and software companies are struggling, green tech firms have the necessary support in D.C. Investments into green-tech companies have risen by 94% in 2008 alone. Long-sighted investors have spotted the opportunity of energy tech companies. While venture funding for other start-ups is drying up, forcing numerous early-stage companies to cease their operations, manufacturers of solar panels, wind turbines, smart electric devices, electric vehicles, and other enterprises from the Clean Tech sector are growing. Investments into the Clean Tech sector totaled $1.9 billion in 2008.
Becoming a “magnet for green innovation” and “a new epicenter for solar technology” is the golden opportunity for Silicon Valley and the entire United States. ET means earning lots of money, countering global warming and reducing dependence on oil imports. It’s a win-win for everybody.
California running out of water and cash
