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SHEC Energy Corporation is a renewable energy company that harvests the power of the sun to generate environmentally clean and sustainable sources of energy. We utilize proprietary and patented technologies to produce economically viable, long lasting sources of renewable energy. By deploying our technologies, we support global economies by generating reliable, grid connected energy. In addition, our projects reduce the world's dependence on fossil fuels and limit the environmental impact from energy production. Our commercially viable projects are seen as a way to support the world's energy development in an eco-friendly way.
To be providers of clean, reliable, renewable energy which delivers long term environmental and commercial benefits for the world's energy demands. The technologies deployed will be economical, efficient, durable, flexible and allow SHEC Energy to respond to market and customer needs.
SHEC Energy's focus will be to differentiate itself from other renewable energy firms by its business model. SHEC Energy will be a more efficient, low cost producer for the renewable energy industry. The firm will be able to win market share by utilizing its technological and manufacturing process advantages to produce renewable energy more efficiently and at a price point below its competitors. We will be able to provide the competitively priced products and services to powerful buyers such as national, state and local governments, utility companies and corporations.
Fossil fuel volatility, security and availability as well as rising concerns about climate change are allowing renewable energy sources to become competitive and attract investor's attention. Although no comprehensive U.S. federal policy has been enacted, growing global concerns about green house gas (GHG) emissions are affecting investment decisions in the energy markets, particularly in the electricity and other fuel sectors. In the U.S., regulatory policies to address climate change and green house gas emissions are in various stages of development. Therefore, U.S. electric power generation companies will operate in a more challenging regulatory environment as these policies are enacted.
In the U.S., rapid growth of renewable energy generation is a result of the Energy Independence and Security act of 2007 at the federal level and by Renewable Portfolio Standard (RPS) programs at the state level. As of November 2008, 28 states and the District of Columbia had enacted renewable portfolio requirements that a specified share of the electricity sold in the state come from various renewable sources. As a result, a need has developed at the state level to generate electricity while utilizing renewable sources. As more federal and state regulations are implemented, the need to generate electricity from renewable sources will increase as well. In addition to the above, federal regulations enacted in 2008 authorizes the continuation of the Clean and Renewable Energy Bonds (CREB) program in the amount of $800M. CREBs are issued by tax-exempt project owners to raise capital for the construction of renewable energy plants. The interest on the bonds is paid by the Federal Government in the form of tax credits to the bond holders. This provides the bond issuers with interest free financing for qualified projects.
The US renewable market will become more robust as regulatory support, solar resources, increasing commodity prices and economic competitiveness continue to unfold. The American Recovery and Reinvestment Act (ARRA) singed into law in March of 2009 is intended to support the growth initiatives of the renewable energy sector. The ARRA included grants and loan guarantees to offset the short comings of the federal governments Investment Tax Credit (ITC). The ITC is meant to offset the initial investment in a renewable energy resource and was given an extension to 2016. With the extension, utilities were given the capability to utilize the ITC. When utilities utilize the ITC, they will need to partner with and develop renewable energy sources. The partnerships will foster utilities to drive increased investment in renewable technologies while simultaneously expanding the market as well as to reduce their GHG emissions.
In the U.S. the electric power sector is expected to play a major role in any effort to reduce GHG emissions. According to the Department of Energy, the electric power sector accounted for 41% of energy related CO2 emissions in 2007. As new generating assets come on line, the sector's GHG emissions are expected to grow. Any explicit cap on GHG emissions via federal regulatory mandates or RPS adds an additional cost to the generation of electricity from CO2 emitting sources. To lower emissions the generator will need to turn to more renewable resources and GHG credit purchases to cover remaining emissions. Therefore, electricity generated from fossil fuels becomes more expensive, while renewable energy becomes more cost competitive.
Outside the U.S. regulatory mandates and feed-in-tariffs (FITs), particularly in the European Union (EU), offer lucrative incentives to install renewable energy systems. Within the EU regulatory framework aspects such as renewable energy policies, renewable energy targets and GHG controls are being enacted. More countries are seeking to protect their environments, lower their GHG emissions and secure a viable energy portfolio in conjunction with their populations growing appetite for energy consumption. These factors are contributing to several benefits for the renewable energy sector such as increasing monetary and technical support, a favorable regulatory environment, transmission grid interconnection, utility scale renewable development and market development.
The EU is playing a central role in backing the United Nations climate change negotiations and the ratification of the Kyoto Protocol. The EU has committed to reduce GHG emissions by launching initiatives promoting the production of renewable energy. The EU's proposal to establish a target of sourcing 20% of all energy consumption from renewable energy by 2020 will provide a stable and long-term investment landscape for renewable energy developers and technologies. The EU's flat rate approach to increase renewable energy production on a GDP per capita ratio places France, Germany, the UK, Italy and Spain with aggressive 2020 renewable energy targets. With only 8.5% of total power generation in the EU produced by renewable sources, the targets open the market in the EU dramatically for future renewable energy investment.
The Emerging Markets such as India, China and others in Asia, Africa, South America and the Middle East are building frameworks to increase renewable energy projects. The attraction is largely because of several renewable plants under construction in the Middle East and North African regions. Additionally, there have been several initiatives launched for renewable plants to be built in North Africa to supply power to Europe. Furthermore, data suggests North Africa requires more electricity than it can currently generate on its own. Countries such as China and India with large population basis and increasing electrical energy demands are intensifying their searches for renewable energy sources as the cost of fuel, commodities and environmental concerns limit the building of traditional power generation assets.
