The document discusses global energy demand and supply trends, with a focus on the increasing role of renewable energy like solar. It notes that coal, natural gas and nuclear currently make up 88% of US electricity generation but that 53% of new generation capacity through 2030 is expected to come from natural gas and 22% from renewables. The document defines sustainability and its three main components: corporate governance, environmental stewardship, and social governance. It contrasts traditional regulatory compliance approaches to sustainability with an emerging commercial paradigm where sustainability is seen as having economic and strategic value.

1. BEIJING CHARLOTTE CHICAGO GENEVA HONG KONG HOUSTON LONDON LOS ANGELES NEW YORK NEWARK MOSCOW PARIS SAN FRANCISCO SHANGHAI WASHINGTON, D.C.
Taking Up the Clean Energy Challenge
The George Washington University Solar Institute
Solar Energy: A Critical Component of Meeting the Clean Energy Challenge
Washington, D.C.
April 26, 2011
Jerry R. Bloom
Chair, Energy Practice
Winston & Strawn, LLP
jbloom@winston.com North America Europe Asia
(213) 615-1756
www.winston.com
© 2011 Winston & Strawn LLP

2. Global Energy Demand
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3. Global Market: Net Electricity
Generation
Source: U.S. Energy Information Administration:
International Energy Outlook 2010
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4. Global Market: Energy Use by Fuel Type
Source: U.S. Energy Information Administration:
International Energy Outlook 2010
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5. U.S. Electric Power Net Generation,
2009
Source: U.S. Energy Information Administration,
Electric Power Annual
Coal, Natural Gas, Nuclear – 88 %
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6. U.S. Energy Prices by Technology
• Coal
• 4.0 cents per kWh
• Natural Gas
• 4.0 cents per kWh
• Nuclear
• 11.0 - 15.5 cents per kWh (based on new 1 GW plant costs between $6 billion and $8
billion), probably low figure, now escalating given nuclear problems in Japan
• Biomass
• 7.0 - 9.0 cents per kWh
• Geothermal
• 3.0 - 5.0 cents per kWh
• Solar
• ~30 cents per kWh (CPV), 2007
• < 7 cents per kwh, projected 2015
• 13.0 - 17.0 cents per kWh (concentrating solar power technologies >10 MW in size)
• Wind
• 4.0 - 8.0 cents per kWh (depending on actual wind resource and project financing).
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7. U.S. Generation Capacity
Source: The Market Oracle, available at:
http://www.marketoracle.co.uk/index.php?name=News&file=article&sid=26437
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8. Projected New Generation
Source: Energy Information Administration Annual Energy Outlook 2009
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9. Projected New Generation
• According to Energy Information Administration's
Annual Energy Outlook 2009 for the period 2008 to
2030, capacity additions will be:
• 53% Natural gas-fired plants
• 22% Renewable plants
• 18% Coal-fired plants
• 5% Nuclear plants
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10. Sustainability – What Is It?
• The phrase “Sustainable Development” was coined in 1980 by
the International Union for the Conservation of Nature with
the publication of its World Conservation Strategy
• There is no officially established or recognized singular
definition of “sustainable development”
• Most oft-quoted definition
• Development that “meets the needs of the present generation without
compromising the ability of future generations to meet their own
needs.” Report of the World Commission on Environment and
Development, General Assembly Resolution 42/187, December 11, 198
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11. Sustainability – Components
• In the corporate context, the concept of sustainable
development is generally understood to embody three
component parts
• corporate governance
• environment
• social governance
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12. Sustainability – Corporate Governance
Component
• Corporate Governance aspects of sustainability include:
• using open and transparent participatory processes that
actively engage relevant stakeholders
• a strong commitment to running one’s business ethically
and in compliance with legal standards
• corporate accountability and responsibility
• actively working against corruption in the business
community generally
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13. Sustainability – Environmental
Component
• Environmental aspects of sustainability include:
• conscientious and careful use of natural resources (resource
management)
• reducing greenhouse gas emissions
• preserving biodiversity
• managing human consumption
• energy management/renewable energy
• reduce, reuse, recycle
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14. Sustainability – Social Governance
Component
• Social Governance aspects of sustainability include:
• respecting human rights and security
• clearly establishing the rights and obligations of
employees/laborers
• ensuring fair and appropriate wages and safe and healthful
working conditions
• supporting the local community
• recognizing and preserving cultural and spiritual values
amongst the workforce and the surrounding community
• efficient allocation of resources
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15. Sustainability – Corporate Drivers
• Investors
• risk reduction
• cost reduction
• profitability improvement
• Business customers
• Consumer preference
• Brand value/equity
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16. Sustainability – Corporate Significance
• 93% of Accenture-surveyed CEOs see sustainability as
important to their company’s future success (A New Era of
Sustainability, UN Global Compact-Accenture CEO Study
2010 (“Accenture Study”, at 10, 19)
• 96 % of Accenture-surveyed CEOs believe sustainability
should be fully integrated into the strategy and operations of a
company (Accenture Study, at 32)
• 88% of Accenture-surveyed CEOs believe that sustainability
should be integrated through their supply chain (Accenture
Study, at 35)
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17. Sustainability: The Traditional
Paradigm
• Defensive, Involuntary, Regulatory Compliance
• Laws and regulations requiring compliance
• Driver, avoidance of civil and sometimes criminal penalties
• Energy
• Renewable Portfolio Standards (CA, 33%)
• Energy Independence
• Competition with fossil-fuel generation (Coal, Gas)
• Purchaser Monopsony Utilities
• Economic focus on comparative price of electron
• Fossil-fuels win, externalities and commercial value ignored.
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18. Sustainability: The Traditional
Paradigm
• Environmental
• Clean Air and Water Acts (Federal and state)
• Climate Change Initiatives (Federal, state, international (Kyoto))
• Greenhouse Gas Emission Reductions (AB 32, CA)
• Federal and state Environmental Protection Agencies
• State Regulators and lawmakers
• Issues of penalty to competitiveness of business and jobs
• Economic impact on states with high dependency on fossil-fuel
generation and stakeholder interests (oil, coal, gas companies, utilities,
and labor unions)
• Recent barrage of federal legislation to block EPA and federal
governments from regulating emission reductions
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19. The Emerging Paradigm
• Offensive, Voluntary, Commercial Strategic Plans
• Economic Proposition, the “Green” Product
• Voluntary spending by corporations for economic gain
• Responding to demands by customers (wholesale)
• Responding to demands by consumers (retail)
• Responding to demands by Board Members and Shareholders
• Sustainability evaluations in procurement
• Value proposition no longer losing comparison with electron
from traditional fossil-fuel generation
• Value proposition is commercial value of “Green” products
and services (Marketing “Green”)
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20. The Emerging Paradigm
• Economic, Commercial Value Proposition is significant game
changer as compared to playbook of last three decades
• Externalities and commercial values weigh in decision making
• Cost of “Green” no longer solely electric ratepayer issue
• Higher cost of electron absorbed in market and sales
• Fritolay (SunChips)
• Dow Chemical
• The Proctor & Gamble Paper Products Co.
• Walmart
• Seen by leading companies as essential to their future
• Compelling data from CEOs and Executive Managers
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21. Complex and Complicated Path
Forward
• The Metrics – What Qualifies as “Green”?
• Standards for “Green”
• Off-sets for “Green”
• Cap and Trade of “Green Attributes” (Carbon Taxes)
• Creation of markets and trading rules
• Local direct Greenhouse Gas reductions verses remote, purchased or
traded reductions
• Branding, Marketing and Advertising – What can be said
about being “Green”? (False and Misleading Claims)
• Competition: National and International (a US advantage over
China and India?)
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22. Complex and Complicated Path
Forward
• Uncertainties in Implementation Abound
• How to determine commercial value (economic models)?
• Will consumers pay the “Green” premiums, if premiums exist?
• Is the desire for “Green” temporary, or indicative of a permanent
change in behavior (generational distinctions)
• Will competitors follow the leading companies?
• Will global markets and countries follow leading nations?
• If the US delays, will it find itself at advantage or disadvantage in
global markets (Kyoto, “Green” markets)?
• How competitive and accessible are markets for the electrons
associated with “Green” energy production (energy issue)?
• Will another Enron be averted (corporate responsibility)?
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23. The Politics of “Green”
• Social, economic, political circus (global issues)
• Healthcare, a walk in the park in comparison
• Strange Bedfellows
• Leading companies become leading advocates
• Different labor unions align with different stakeholders
• Environmentalists align with Nuclear industry
• Is “Green” a Democratic issue (environmental) or a
Republican issue (business and jobs)?
• Does “Green” create jobs and opportunity or hurt them?
• Can we afford “Green”, do we have a choice?
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