Mouli Cohen, experienced hi-tech investor andentrepreneur, discusses the future of power

With the start-up fervor continually shifting to energy in Silicon Valley, it is clear that thedot-com era is giving way to the “watt-com”* era. Mouli Cohen has gained a unique perspective on the energy and hi-tech sector with his over 20 years investing in the sector.In this interviewe, Mr. Cohen shares his thoughts on the future of power as we cometoward the end of 2009.

Question:

Does coal power have a place in America’s future?

Mouli Cohen:

Does it or should it? Of course this country will be powered in large part by coal for many years to come. There’s just so much of it under our feet here. We ownsomething around 27% of the world’s recoverable coal reserves, and you’d have to becrazy to think we’re not going to burn it. It’s too cheap not to. Of course we need to find acheap way of burning it cleaner. Clean coal does not exist as we know it. At least nottoday.

Question:

When will clean coal be a viable energy alternative?

Mouli Cohen:

It depends how clean we want to make it. Coal power plants today arealready pollute many times less than those powering the industrial revolution but we cando much, much better. Gasification is an incredibly clean process, but it depends uponextrememly expensive greenhouse gas sequestration. It can be done today, and the coalindustry has spent billions to make it happen and make us believe it is happening. Butthere’s not a single coal power plant out there that actually captures a significant portionof CO2. Until government subsidies make it worthwhile to do so, clean coal on acommercial scale will be a dream.

Question:

Do you think nuclear is safer than coal?

Mouli Cohen:

That’s a slippery question for obvious reasons. I’m not ready to prioritize between the risks posed by climate change and the risks posed by a nuclear contamination. I know nuclear power generation gets safer by the year, as there’s a lot of money, especially abroad, being put into research. There is a lot of fear of nuclear, whichfuels that research and progress. On the other hand, coal tech advancement has remainedmostly stagnant, because it seems mostly innocuous. Truthfully, I don’t think either method of power generation will, or should be, a significant part of this country’s future.We can do better.

Question:

Do you think hydroelectric power has a future in the US?

Mouli Cohen:

The Hoover Dam will generate power as long as the Colorado flows. Butyou won’t see much in the way of new dams here. Still, there’s a good bit of potential for hydroelctric development outside the developed world. Hydroelectricity provides a wholea lot of zero-emission power. Three Gorges, for instance, can power 3% of China whenit’s running at full capacity. That’s 40 million people. It’s an exceptional case consideringthe size of the project, but you can’t deny the electricity generating potential provided byflowing water. Obviously there are serious ecological concerns with hydroelectric power, but I would never say this or any zero-emission process has no future.

Question:

Do you think solar, alone, could ever power this country?

Mouli Cohen:

Is it possible? Yes. Maybe you saw that graphic a month or so ago ongizmodo** where it was shown that a panel field the size of Spain could power the entireworld today. An untold quantity of capturable solar radiation hits the earth every second.It is there for the taking, and we are getting better at grabbing it and we’re grabbing itmore every day. The solar revolution is here. Last year a private solar company called Nanosolar collected more private financing than any other private company. The moneyis moving into the industry. You will start to see the industry move into your life in thenext few years.

Question:

What do you see as the biggest hinderance to clean power?

Mouli Cohen:

There are too many obstacles to overcome, but the biggest has to be population growth. Countries with booming populations can’t force their citizens to gogreen. It’s too expensive and it hinders economic growth and equality on the world stage.Sustainable economic growth is possible, though I’m not sure there’s such thing assustainable population growth. Not in the long term. Earth may have already exceeded itscarrying capacity for humans. Hopefully we’ll remedy the situation before we find outthat’s true.

Question:

Will there ever be a day when the grid is irrelevant?

Mouli Cohen:

No. If things go in the right direction in terms of technologicaladvancement and if we continue to value our environment, households will indeed produce just about all the power they’ll need. But a system of transmission lines willalways connect us in my lifetime. How else could one take advantage of surplus power generated at home? Better batteries will be available, but it would be less wasteful to feedthat electricity into the grid. A grid also offers good insurance that your home will be