Elements of renewable energy; Unite!

Solar, wind, hydroelectric, biomass, hydrogen, geothermal.

Sounds like TV show about green super heroes.

But representatives from these industries came together under one roof last week for the first ever Virginia Alternative and Renewable Energy Conference held at the Richmond Omni.

Organized by the Virginia Alternative and Renewable Energy Association, a group in its first year, the event attracted about 200 people. The group seeks to promote the development and commercialization of sustainable energy in the commonwealth and lobby state government to pass policy favorable to the industry.

Spearheaded by Ken Hutcheson, a lobbyist for Troutman Sanders Strategies, the group has attracted 40 members in its first 11 months. Hutcheson said he hopes to triple that number over the next year.

The organization brings together many different industries that are sometimes competing for the same piece of the pie, but Hutcheson said together they can do more than they could on their own.

“I think moving forward [the conference] demonstrated to folk in the renewable energy community that they can come together despite their varied interests and objectives and unite around some common goals,” said Hutcheson.

Those goals include favorable zoning, strong tax credits and streamlined regulation, he said.

The state of Virginia, under the Kaine administration, has launched a number of initiatives that support the alternative and renewable energy industry, including a 20 percent reduction in conventional energy use by state agencies, the allocation of stimulus money for renewable energy projects and the formation of an alternative energy task force.

But what is still uncertain is to what extent governor-elect Bob McDonnell will continue to support these initiatives. A key part of his campaign was to pursue offshore drilling leases of the coast of Virginia. In a brief appearance at the conference, McDonnell said he would dedicate a portion of the offshore drilling royalties to a fund that will support the future development of alternative energy research and development.

Hutcheson said he believes McDonnell will be supportive of the of the group’s goals, as development of the emerging industry has the potential to create a large number of new jobs — one of the big promises of the governor-elect’s campaign.

“He has committed to help the industry grow in Virginia and do it in a free market manner, we look forward to partnering with him and try and to improve the opportunities for alterative energy,” Hutcheson said.

Hutcheson said McDonnell is likely to be supportive of cutting red tape in the permitting process and making the regulatory process easier on start up companies and projects.

While McDonnell does not appear very keen on creating mandates for energy usage and allocation, there are still some in the General Assembly who think otherwise.

Fairfax Sen. Chap Peterson spoke on a panel about a bill he introduced last session that would require 20 percent of electricity purchased by the commonwealth to come from sustainable sources by 2020.

The bill failed in committee, but Peterson said it was well received by his constituents.

“It’s tough taking a defeat,” Peterson said, “but one thing I noticed when I was back in the district … groups and civic associations were really excited about what we had been doing.”

“People were coming out of the woodwork who were interested in this. …To get this bill passed, it can’t just be the Volkswagen and Birkenstock crowd. You have to go to the business community.”

Pat Hatcher, professor at Old Dominion University head of the Virginia Coastal Research Consortium, gave a positive outlook on Virginia’s offshore wind potential while speaking on the same panel.

“We have a wonderful shoreline for offshore wind,” said Hatcher. He said the consortium has identified 25 lease lots which if fully developed could produce 3,000 megawatts of electricity.

But funding for renewable projects, whether wind, solar or biomass, is not as easy to come by as it was when the economy was running hot in 2006 and 2007 — the same time gas prices were hitting record highs. Access to capital is the biggest challenge facing the industry, according to several speakers at the conference, including Brandon Ogilvie, business development manager for Richmond-based biomass firm Intrinergy.

“The business climate for all stakeholders was very strong,” said Oglivie. “Then the economy when upside down on us.”

Al Harris covers renewable energy for BizSense. Please send news tips to Al@richmondbizsense.com.