Barcelona....and our Social responsibility

This month started with the Doing Good Doing Well conference.

It was great to meet people who share the same expectations. I regret that some interesting conferences were overlapping, but wait and see as IESE might broadcast the videotaped conferences.

I attended the conference about Nuclear Energy. I guess that IESE wanted to generate a debate about energy source. But this conference was a little bit controversial. I ma not a pro nuclear, for sure, but the charismatic anti nuclear panelist was a little bit to "emotional" for us. It might be interesting for a show but what about MBA students. We have our convictions but we are also businessmen "trained" to take decisions based on figures. I do not mean that we should take our decisions only based on figures but at the same time it helps to dispassionate the debate and solve the problem together instead of wasting our time and energy in debates.

My personal opinion is that you can not avoid any solution.
Coal is necessary for developing countries even if this create pollution. 7 out 10 most polluted cities are in china due to their Highly sulfured coal, but at the same time they need an increasing energy capacity today to sustain their growth. I do not want to stigmatize China or Brazil deforesting, but if they are not part of the solution we will not be able to solve our GLOBAL warming problem.

To come back to the Nuclear conference, guest argued on figures, about probability...and at the end most of the attendees where confused. Sunk cost, financial cost, marginal cost...were mixed and not justified or explained. On one hand we must admit that for Areva or utilities, production and distribution of energy is their business and they re not prepared to commit suicide. On the other hand if you not part of the solution, you are part of the problem. What does that mean, Well, instead of blaming utilities or big energetic group, we should encourage them to be part of future, through investment in New technologies, thanks their knowledge of their customers and thanks to their financial resources. Imagine Iberdrola developing a new business consisting in installing and managing in each home a 20 m2 solar plant. Decentralized and secured source of supply....no need anymore for costly and unaesthetic hyper grids. Investment that you could dedicate to grounded European grid interconnections or Offshore wind farms (www.airtricity.com). To the guest from Greenpeace I would say that I appreciate is charismatic convictions, his high dedication and desire to change people perceptions, however It is time to work together to get something done now.

I believe that he tremendous financial liquidity is a chance as many investments can be done in environment, but remember the Internet bubble. After the crash it was impossible to finance any internet project. So what about the Global warming/renewable energy bubble? We have to be wise in our investment and select only financial institutions that are used to long term investments. If not all what will have been done, will have been done for nothing. We need to invest on new technologies to improve renewable energy efficiency. But remember, the technology is tool and a tool needs a vision. A vision that Government, Corporation but more surely entrepreneurs have and accomplish. (www.igniteinovations.com)

I would say that Nuclear energy is necessary for now. Wastes (represent a cost and bet on future), security (zero risk does not exist), decommissioning cost (not know for sure), financial cost (3 Billions€ each),...are necessary drawbacks we have to live with today, may be not in the future. I will not give more figures here as people from both sides might disagree with. You know how we can cook easily figures and let them demonstrate whatever you want (remember you management control class with professor Hoffjan ). But I would like to share with you one website as you might find there some food for thoughts : www.efcf.com/e/reports/...One question, what is the cost of batteries - energetic and environmental. Again it is all about externalities....What is the safest, cleanest and cheapest energy ? It is the one you do not consume! I guess that building every day more power capacity is as clever as creating an anti-anti missile...This is a long term vision. Indeed today we do not have the luxury to invest all our investments in education or close all the State Owned Entreprise in China.

If I could conclude this first post I would say that we need an energy mix, a decentralized and flexible production system which means that we can all contribute to our future. Areva is buying RePower (German Wind mill manufacturer), well great! Let's work all together.