A Sustainable Energy Industry Cluster
for Mesa Del Sol

By Adam Serchuk and Virinder Singh^*

1. Introduction

In coming years, the world will increasingly rely on cleaner, more efficient energy systems. Several developments will drive this trend. Powerplant economics will continue to shift, as small, efficient generation sources near the point at which customers need power become better able to compete with the large, centralized facilities on which we have traditionally relied. Mounting evidence of environmental degradation will make low- and zero-emission generation technology more valuable. And a growing realization that pollution equals physical waste, which represents economic waste, will motivate improved energy efficiency. Other factors will be important as well.

Amidst this sea change in the way the nation produces and uses energy, we do not know which particular technologies will win out. But we do have a general sense of what "sustainable energy" will look like. We know that the sustainable energy sector will be large; that it will have global significance; and that therefore, in economic terms, it will be a prize worth having. The region that attracts these industries-be it New Mexico's Mesa del Sol or elsewhere-will have gained a vibrant, burgeoning prize that will contribute to the local economy, improve local quality of life, and form a core for sound, continuing local development. More specifically, a sustainable energy industry cluster will provide two benefits: an expanded opportunity for citizens to choose clean energy at home; and jobs from manufacturing sustainable energy products for out-of-state and foreign sale.

The following review outlines the characteristics of, and potential participants in, a sustainable energy industry cluster. While we do not discuss explicitly how to build a cluster of sustainable energy firms in Mesa del Sol-that task falls to other members of this project team-we emphasize factors that strike us as relevant to that endeavor. Specifically, we will

• Define our terms: sustainability, sustainable energy, and industry clusters;

• Outline the factors driving these industries;

• Map the principle sectors of illustrative sustainable energy industries;

• Note some financing opportunities;

• Suggest what these industries might require in order to consider participating in an industry cluster, and;

• List some of the major players.

A note on sources: We gathered much of the information in this report from corporate websites, the internet addresses of which we list in the final section. Other information came from personal interviews with the individuals thanked in the first (*) footnote. For each technology, an endnote lists additional sources of information.

A Sustainable Energy Industry Cluster
for Mesa Del Sol

1. Introduction
   
2. Defining our Terms
3. Industry Drivers
4. Mapping the Sustainable Energy Industries
5. Selected Finance Programs for Sustainable Energy
6. What Might Sustainable Energy Firms Seek in a Location?
7. Major Players

copyright © 1999 by Renewable Energy Policy Project