You’ve read the story of The Boy Who Cried Wolf. If you haven’t, here’s the short version. A shepherd boy was lonely and wanted attention, so he would go through his local village crying wolf to get the people out to his fields. When the town’s people arrived, there would be no wolf. The shepherd boy tried this a few more times until the townspeople didn’t believe him. Eventually, a wolf does invade his herd of sheep, and the townspeople are convinced the boy is lying when he cries wolf once more. The wolf devours the sheep and the shepherd boy because he has created too many false alarms.
I’ve been in the energy conservation, renewable energy, and energy efficiency industry my entire professional career. I am saddened by what has happened in this industry. There are some huge benefits that this industry can provide to anyone who invests wisely.
Unfortunately, this industry has been plagued with well-meaning activists and charlatans who have ruined the industry for most stakeholders.
1970’s – Oil Embargo
In the 1970’s, we had the oil embargo from OPEC, long lines at gas stations, and skyrocketing gasoline prices. Skeptics claimed that we would run out of crude oil by 2000. People installed solar water heating systems, built passive solar houses, and some regions forced home builders to use electric heating systems. Federal agencies created regulations to keep cooling temperatures set to 78 F and heating temperatures at 65 F. Many of us suffered in sick buildings because homes were built so tightly, that they allowed no fresh air to breathe.
1980’s – Sick Buildings
In the 1980’s, the energy savings “snake oil” industry emerged that promised free-energy machines that were being kept from unsuspecting consumers by the big oil and gas companies. The ozone layer would disappear if we didn’t act quickly to ban all chlorofluorocarbons.
1990’s – Energy Saving Performance Contracting
The 1990’s ushered in integrity in the energy savings industry in the form of Energy Performance Contracting (EPC). Energy Service Companies, or ESCo’s would retrofit buildings and then guarantee that energy savings would materialize or the ESCo would pay the building owner for any savings shortfalls. New lighting technologies, high-efficiency boilers, variable speed drives, and revolutionary building automation strategies resulted in substantial energy savings for building owners. Even today, ESCo’s can find 20% to 30% energy cost savings for their clients.
2000’s – Climate Change
The 2000s experienced a new sort of fervor over energy savings as climate change and global warming were predicted to end human life on planet Earth. Government spending and private investment poured into solar panels, wind energy, electric cars, and anything that could promise lower CO2 emissions.
Not to miss out, social justice jumped on the climate change bandwagon to form a new metric called ESG or Environment Social Governance. Private investors wanted to do the right thing by prioritizing investments in companies that focused on helping the environment, improving the community, and enforcing social justice among their ranks.
Today – What were we thinking?
Like many fads, ESG, climate change, solar, and wind have run out of steam. Investors are taking money out of ESG funds, they are leaving green companies as profits are failing to materialize. High-flying green energy stocks are down 70% from their highs in 2021. Government spending on transitioning to renewable energy is experiencing headwinds as national debt balloons and interest rates rise.
Once again, like the town’s people in The Boy Who Cried Wolf, green industry stakeholders feel they have been led down the path of failed alarmism.
So What?
Many green energy activists will claim that they have made some sort of headway prompting investors, companies, governments, and the public to become aware of the need for energy savings and renewable energy. Certainly, this is the case for some.
However, many have tired of this cycle of broken promises and fake alarmism. Investors are reluctant to see the benefits of investing in renewable energy or any energy projects. Governments who were convinced they had no choice but to abandon oil for renewable energy, are experiencing the error of their ways. Consumers faced with high prices for gasoline, or high prices for electric cars feel they have been lured into an economic trap.
Now What?
The truth is that we need to create a balanced perspective around energy in between “drill baby drill” and “the sky is falling”. Both sides have merit, and we need government leaders who can moderate the alarmism coming from activists on both sides.
A marathon runner rarely starts at a dead sprint. Instead, he understands how to pace himself to finish the 26.2-mile race. In our world, we need to consider pragmatic solutions for the next century. Promising to be carbon neutral by 2030 or 2050 is a fool’s errand. These promises will be broken when reality sets in on financial and environmental viability. Once again, the towns’ people will be disillusioned and believe they are being lied to.
If we can speak with reasonable language and provide rational long-term solutions to transition from fossil fuel energy sources to alternative sources, we will benefit from more cost-effective solutions as technology advances, and our financial resources will be invested wisely.
About the Author
Jeff Schuster is an accomplished businessman, engineer, and writer. Three of Jeff's books are attempts at helping people understand and solve political problems that are being made worse by political partisanship. His first book, Trial & Error, is a collection of 14 short stories. ReEngineering Education is a story of innovative education reform in the midst of political corruption. Engineering Unity is Jeff's most recent book published in August 2023 addressing political polarization on wedge issues that politicians use to divide us. You are welcome to join our private Facebook group called Reengineering Politics where we discuss politically polarizing topics in a civil manner.
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