The Free Market’s Key Investment in Renewable Energy

This past week Walmart signed a historic deal with Plug Power, ordering nearly 1800 hydrogen powered fuel cells. The cells will be given to distribution centers in order to power their factory vehicles such as forklifts and will be an addition to the 500 they already have operating. Hydrogen fuel cells work by turning both hydrogen and oxygen into electricity. Walmart also bought a significant part of their GenFuel infrastructure, including a 6-year service contract for each site. The landmark deal’s numbers are not exact, but analysts report that it is close to $50 million dollars.

renewable energy

While the government does provide incentives for many renewable energy projects, in this case Walmart will not receive subsidies. Since it is just the batteries they are buying, the upgrades are the cost to Walmart directly. The government has seen huge failures in subsidy programs including agricultural and energy related funds. Agricultural subsidies due to the 2002 Farm Bill, drove prices up substantially over the 10 years it existed and renewable energy experienced a similar effect. The amount of subsidies received is directionally disproportionate to the amount of electricity they created. 2010 numbers show that solar and wind power specifically were unable to create the impact under subsidies that was expected. Solar energy in particular is not even on the other chart because its output was so statistically low. However, since a majority of the subsidies have ended there have been an increased number of investors. The most recent example was Google buying solar farms to power their buildings and invest further in technologies such as solar panels and the popular thermostat, Nest.

It is a turning point in the industry as renewable energies such as hydrogen fuel cells have finally advanced enough for it to be used as a viable source for energy.  While the government continues to try to subsidize alternative energy research, the market is making swift moves towards their own objectives. With such recent partnerships between Ford and Honda to research cheaper refueling methods it has been a race to hit the market. Toyota has seen great success with the Prius, and now there’s a demand for hydrogen power. Nokia and Sprint are also entrants into hydrogen power by switching from diesel generators to hydrogen powered generators. These generators will provide a backup for rooftop sites for their wireless networks in order to maintain coverage in cases of emergency.

 Thanks to large corporate participation, the economy could see hydrogen powered vehicles on the road much sooner than expected. This only goes to prove that a free market can in fact introduce renewable energy without and better than government.

Comments (13)

Trackback URL | Comments RSS Feed

  1. BHS says:

    “The government has seen huge failures in subsidy programs including agricultural and energy related funds.”

    An understatement!

  2. Matthew says:

    “This only goes to prove that a free market can in fact introduce renewable energy without and better than government.”

    Exactly. All it takes is a juggernaut like Walmart to get on board.

  3. Thomas says:

    Proof that everything does not need a subsidy. Once companies realize the benefits, free markets will lead the way.

  4. Buddy says:

    “While the government continues to try to subsidize alternative energy research.”

    Of course they are.

    • Bill B. says:

      I enjoy watching the government failed attempts at this while the free market thrives in alternative energy investment.

  5. Moving day can feel more like chaos than order, especially
    when there are half a dozen movers running around your home,
    packing up your belongings, and carrying out your furniture.
    There are ways to make the process simple so that you can continue to experience the thrill of moving out of your house.
    Until government incentives are brought forth, most of these
    companies aren’t going to make any sizable investments into renewable energy.

    my website: South miami movers

  6. Several recent studies have shown Proscar is effective for hair loss and can help regrow some hair on some people, but as I said before, the use of
    5AR inhibitors only deals with a part of the problem and are generally not very effective when used as the only treatment.
    This is because targeting the hair shaft without damaging the
    pigment of the skin can be quite a tricky process.
    * Ginkgo Biloba is an herb which has properties to help improve
    blood circulation to the scalp.

    Take a look at my web-site :: skin care products guinot

  7. Always check with your doctor before starting any new fitness or diet plan For more information on dieting and
    health visit HCGBlue – Bottle. After all, they don’t call them guilty pleasures for
    no reason. B vitamins include B-1, B-2, B-6, B-12,
    pantothenic acid, niacin, biotin and folic acid.

    Look at my site … hcg weight Loss on period

  8. Halt all projects and rearrange priorities sensibly if requirements are
    changed by the unexpected. One thing that can make a room feel dark and claustrophobic is a
    low, flat ceiling. Choosing a style of knob that coordinates with the
    overall style of the room is ideal.

    My web page – pompano virginia beach plumbers beach va

  9. Even frequent blow-drying at extreme heat or brushing
    obsessively can cause your hair to become extremely fragile causing it to break
    and fall out. When too much pressure is put on the hair
    over time it can speed up the hair shedding
    process, resulting in the loss of hairs already in the telogen phase.
    Refrain or limit the amount of heat applied to
    your hair through the use of blow dryers, curling irons, straighteners, etc.

    my site :: capillus272 laser liposuction

  10. Overall, Need for Speed Rivals is a joyful, arcade style of racing game that is actually
    a breath of fresh-air when you look at some of the more
    serious racers out there. They are both from the drawing board racing machines built to accelerate at rates that will put all but a jet
    fighter to shame. When pressed if he was referring to the PS4 version of the game, Nilsson said, ‘I
    think that both consoles will look pretty much on parity, but
    one of them might stick up a little bit.

  11. If this is not done timely, the expat will NOT be
    able to use the exclusion. Contribute the maximum you can to 401(k) or other tax saving plans so that you get maximum
    tax exemption before the financial year ends.
    If all this rings a bell then you have seen how CPA marketing works.

    Check out my homepage – Cpa Firm In Boca Raton

Leave a Reply




If you want a picture to show with your comment, go get a Gravatar.