Alternative Energy/Competitive advantages in AE

Answer the question

Define the competitive advantages in the field and the barriers of entry

Geographic Variations

• States with better renewable resources (solar resource in sunny southwest states, wind resource in windy mid-west and west Texas, tidal/wave resource in coastal states, geothermal resources in western states) can take advantage of better payback metrics for development of an AE plant because they will produce more electricity and therefore make higher profits.
• AE plants that are located closer to transmission wires can take advantage of a cheaper interconnection cost.
• State policies for AE plant development vary and can b more generous in some states than in others. The technologies that are supported can also vary.
• R&D for new technologies will depend on access to university researchers and professionals, which are typically clustered in particular areas of the country.
  • the US Department of Energy laboratories are often clustered near these research centers.

Financial Variations

• access to startup capital

Intellectual Variations

• patent portfolios

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