Making Clean Energy Attractive to Investors

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April 15 (Bloomberg) -- Former Sierra Club Executive Director Carl Pope and Draper Fisher Jurvetson Founding Partner Tim Draper discuss clean energy on Bloomberg Television's “In The Loop.” (Source: Bloomberg)

You here.

First, let's talk about things that cities can be doing, the easy stuff to try to improve their energy.

I think the lowest hanging fruit is parking.

If i look outside my window in san francisco, a third of the cars driving by are looking for a parking space.

There is a vacant parking space on every block.

So a driver could know exactly where it is in the right to that space and know how much it will cost.

Transportation a big issue.

What about the way warp rations are burning fuel -- corporations are burning fuel?

Is that something that can be changed.

Go right now the average american city half of the fuel bill is to keep the great outdoors.

It is not needed to be heated and cooled in the summer.

People do not recognize there are pretty simple barriers.

If the city does not have enough able to process permits and you have to wait six months to get a permit to put topsoil on the building or insulate your windows, a lot of people will not do it.

That is a barrier that does not need to be there and one that cities can eliminate.

Energy has seen a lot of investments over the years.

1.4 trillion poured into the space.

What is interesting is that it is coming in in a different way in the traditional oil and natural gas space.

Mlp's have been setup to deal with that.

Less of a traditional finance mechanism surrounding new energy.

Why is that?

I think you might have ideas on how that can change.

My perspective on this is we backed tesla and solar city and a number of companies that are improving energy today.

There and there was a height to find a clean tax and people through too much money in.

There was not enough real space.

Now there really does feel like it is a good place to put money.

I think lane tech will be a good place to put money.

There will be a lot of opportunity for investors.

-- i think clean tech.

I think what cities can do are encouraged things like solar city panels on the roofs and encourage people to buy teslas.

This is an example of the consumer at work.

There is an incentive and the reason people want to save on their energy bills and want to drive a cool car and tesla fits that bill.

Can a lot of the change come from individual consumers and businesses themselves?

You were talking about mlps.

The reason they are not using the renewable energy space is the internal revenue code does not allow them to be used.

When we tried to get that freed up so that ordinary people could invest, we got a push back, well you can probably guess where we got the pushback from, the guys at the oil industry.

On the other hand, if you look at what happened with clean tech, i think people forgot the lessons of the gold rush.

In the gold rush, a lot of money was made.

Investing was not a very good place.

It was investing in levi strauss.

Who really made money in clean tech was the supply chain.

The people who made poly silicon dupont, they did not lose money.

The united states runs a big surplus on solar products.

We import the panels.

So i think the space has not been understood and there has not been good information for investors.

You made a major investment and off grid solar in the first world.

I think there are a dozen important companies, you just pick one and maybe you will make the right bet.

What i like is there are a dozen plays and a dozen people investing in them and one of them will come out on top.

Tesla a map on top.

It is clear tesla figured out the formula.

That is the way capitalism works.

Most of the car companies existed in 1915 were bought by 2025. it does not mean we were driving horses and buggies or the automotive revolution was a hoax.

I think we need to look at claim energy through the lens of what we committed to previously.

It sounds like you are saying unleashed this though the industry can thrive on its own with the capitalist infrastructure that our economy already has.

You do not want to inhibit investment with not allowing people to set up the equivalent.

I just want a level playing field and open markets and transparent information.

What happened to government subsidies?

Does that have to go away you go it can go away.

If you do the rest of it right, you do not need the subsidies.

Right now, public utilities can borrow money for two percent, something like that.

At two percent all of the products are extremely viable.

Public utilities are not allowed by the public utilities commission to invest in rooftop solar.

That is why you have companies like solar city.

We have to open it up.

What about countries like china and india where they may not be as incentivized to put into place green energy programs?

What do they need to be learning and what needs to be told to them?

You look at cold and how environmentally bad it is for a country and the cost that comes with the two people on an individual level and as an economy therefore.

How does that message get communicated cap go i think the message is being communicated by reality.

People are dying from burning coal.

China has about 25,000 environmental protests per year.

25,000. we do not read about it because they do not have an open reporting system but there is a massive citizens resistance to dirty energy in these places.

I think again, if you look at india and you look at rooftop solar in the theory was you have 60% of the population that does not have water in their house.

The idea was these people have the best market for solar.

They are not turning out to be the best market because they are very poor.

The best market is people on the grid but only operating four percent per day.

This is the consumer change you're talking about?

Bottom up consumer change.

If you open up the finance, creates a financing mechanism, people can afford this.

Solar is cheaper than diesel.

You just have to be able to get a loan to do it.

Have to create the financing.

The engineers and people like tim will fall the problem.

He is going to make money on it.

Of course he will solve the money -- solve the problem.

Some of the investments will make me money.

That is the good news.

Thank you.

Wonderful to see you.

Former executive director carl pope and venture capitalist tim draper.

This text has been automatically generated. It may not be 100% accurate.


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