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The challenges of decentralized energy generation

Interview with Ronald van Rijn, Managing Partner at JBR on decentralized energy generation.

What are the challenges of decentralized power generation

What are the challenges of decentralized power generation?

“I think I can best explain this using a personal story. I have a vacation home in France with its own water source. That means I’m personally responsible for my water. Various small businesses help me maintain my well and purify the water. The government isn’t involved at all—I have to handle this myself.
The same is increasingly true for our energy supply. You have to take matters into your own hands when it comes to maintaining your solar panels and heat pump. In the past, gas and electricity were collective utilities, based on large-scale operations. That has changed. In the event of a disaster, as an organization, you’re responsible for having a backup that can keep you going for 24 hours—just as hospitals and organizations with critical processes have their own power supplies. I’m convinced this will soon happen on a smaller scale for private households as well. Decentralized energy generation therefore offers all kinds of market opportunities.”

Why is energy sovereignty so important?

“Continuity is also threatened from the outside. If Trump forces American data companies to shut down their servers, you and I will have a problem. That’s not fiction: Trump has already ensured that the prosecutor of the International Criminal Court can no longer access his email server. I think that’s an incredible statement. Five years ago, we couldn’t have imagined a thing like this.
More than ever, you have to prepare for disasters and the unexpected, including in terms of energy security. I get the impression that we’re not quite ready for this yet—that we’re all still reluctant to face it—but the geopolitical reality has fundamentally changed.”

Source: Elsevier Weekblad

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Ronald van Rijn
Managing Partner of JBR

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Rogier Tigchelaar
Senior Consultant Corporate Finance