Download Dr. Alexander B. Suma CEO IBIS Power Klokgebouw 112 5617AB

Dr. Alexander B. Suma
CEO IBIS Power
Klokgebouw 112
5617AB Eindhoven
[email protected]
DATE 31 MARCH 2016
REF.NO.[20160322.01.]
Dear Standing Committee on Economic Affairs,
IBIS Power is a fast growing SME in Eindhoven at the forefront of innovation in sustainability. We create
solutions that are not only technically sound, but also aesthetically beautiful and fit into the desired
environment of the future. An example of this is PowerNEST; an architecturally integrated system that
simultaneously generates energy from wind and sun on high buildings. This newly launched on the market
innovation is the only solution that can give real meaning to renewable energy generation on buildings higher in
relation to the law recently adopted "Energy Performance Fee".
With this solution we have been recognized by the European Union and one among very few Dutch companies
that won a H2020 SME Phase II. In this round, we were evaluated at 96% , the highest score in Europe, and have
been placed in the Champions League of European most promising SMEs. With the same innovation, we also
have won the Herman Wijffels Innovation Award, TEDx Amsterdam Award, and the US Defense Energy
Challenge.
I, as CEO of IBIS Power represent this call disruptive innovation, cross-sectoral by cutting into the top sectors of
renewable energy and High Tech Systems and Materials, SMEs, start-ups, Grow-Up and Scale-up, and a vision of
opportunities economic growth in a time of necessary sustainability. I have following paragraph was added by
my views.
1. Ranking and vision
The Netherlands is placed 5th in the global competition index [World Economic Forum Report 2015-2016], 5th
European place [Eurostat, 2015] and 25th worldwide [World Factbook, CIA, 2015] in the Gross Domestic
Product (GDP) ranking, and 9th in the global export ranking (World Factbook, CIA, 2015), but the Netherlands is
ranked 27th in European Sustainability. This puts Netherlands at the bottom of the list in regards to generated
renewable energy, at 1/3rd of the European average. Countries high on the competition index and high on the
sustainability list are Finland, Norway, Sweden, Denmark and Germany. These economies will have an advantage
making it hard for the Netherlands to be equally competitive . Netherlands currently has a good position by
strong economic pillars such as export revenues from Agriculture & Food, Chemicals, Oil, and Port of Rotterdam,
Schiphol and overall infrastructure. But how stable are these pillars, and what if one of these suddenly collapses,
as seen in the case of oil and gas revenues? In addition, there is an increasing societal energy dependency which
makes us an even more fragile economy.
2. Politics in leadership role
The government must show more leadership and have a stronger vision to move quickly to a greener and
sustainable economy. The Energy Accord and Energy Performance fees are good first steps, but more steps are
needed. Are firmer in conducting vision and policies; and yet just close the coal plants. Take to aim to get into
the European top 5 in terms of Sustainability in 2025.
3. Partnerships and cooperation Top Sectors
What is being done for sustainability in the other top sectors (energy saving costs), and can we find some cross
examples ? For example:
• Logistics: Sustainable truck Walmart, electric monorail for goods, or reducing transport costs windmills or
transport of solar panels from China.
• Agriculture & Food: multiple use of land in the summer (harvest) and winter (energy)
• High Tech Systems and Materials: carbon footprint reduction, materials with longer life and minimal
maintenance, self-cleaning / entertaining, 3D printing by location, etc. (see also IBIS Power's innovative
PowerNEST).
4. Unfair policy in energy
Energy consumers
Large consumers pay between 2.6 and 9.0 cents / kWh, while individuals pay about 23 cents / kWh. In this way
there is no innovation or a possible business case for sustainable energy, and this is too big a brake on any
chance of progress. If you really want to make an impact, then big polluters should pay more or atleast the
same. Also polluters should be taxed on CO2 emissions. This extra income can be invested in the energy,
whereas now only taxpayers money (Citizens) is given away through SDE + schemes.
Emergent Solutions of Renewable Energy
Placing 1000 windmills in the coastal regions to achieve the H2020 targets is not a sustainable solution. Betting
on such a large expensive solution is not a wise approach, since it may not achieve the set goal. Windmills at sea
are expensive, absolutely not sustainable in carbon footprint, and economically straining.
A windmill at sea costs on average 7M Euro, a cost at which many more innovations can progress. For example,
placing 80 to 100 PowerNEST units at the cost of 1M Euro will collectively produce atleast as much energy with a
lower CO2 footprint without public resistance and visual amenity, incorporating wind and solar energy at the
location considered (eliminating transmission losses). Supporting homegrown innovations, creates avenues for
newer jobs, faster growth of SMEs and the possibility of a future export product in a rapidly growing market.
5. Subsidies, innovation and research
Subsidies in the Netherlands are well organized in general. WBSO & RDA have merged with ease. There are
several types of project financing for demonstration projects within RFO. However, the success rate for grants
for startups is minimal and often not worthwhile to invest time and resources.
Europe's H2020 is an excellent example of investment in bringing research to the business, especially SMEs. SME
is the best filter to discern what is potentially rich and what does not succeed because entrepreneurs do not just
take a granted description of technology. It is important to clearly divide subsidy budgets, where universities
have for example a mandatory SME budget or SMEs into a compulsory research budgets at universities.
Enter a (tax) benefits in order to encourage more strongly that research, innovation and even capital investment
is done from companies in startups (India has the famous 3% rule for large enterprises). The above will also
ensure a good flow of students and young entrepreneurs who are eager to be able to give their contribution to
the world.
6. Banks, investors and future economies
Dutch banks behave still as a post-crisis safe-but-for-highest profit mode, take zero risk, but questions the
highest fees to entrepreneurs. This makes the Dutch innovation and startup growth climate disabled! In the rest
of Europe and the world banks take a different attitude and it is much cheaper. The government should force
banks to think in the growth of society and the business instead of just making the banks rich, and not to think
of their social responsibility. The commercials on TV are false reflection of reality.
The Dutch investment climate is much more restrained than, say, China, USA and Germany. This puts the
possibility of success and deployment of innovations hard or causes startups to be too dependent on subsidies.
The above financial environment is hopeless for high-potential innovations and startups and keep the best
talent, game changers and disruptive innovations within the borders.
In addition, the rising circular economy which is highly dependent on large investments that banks should play a
central role.
7. thinkers roll government for innovative applications
The government can help innovation evaluation by the introduction of license free zones for demonstration, as
permits are a major brake on the use of innovation. Architects have known prosperity free zones, why not
permit free zones for innovations and demonstrators on land provided by the government. The government
should be a forerunner in the application of demonstrators in its own buildings (RGD). It has a large holding of
buildings, but is last to make it sustainable. This not only stimulates the economy and potential, but also
familiarize officials with new possibilities.
The government should more sustainable solutions than just solar panels allow unlicensed to encourage a more
rapid progression of multiple solutions. This shortens the lead time namely, implementation time and increases
the chances of success and growth of SMEs.
Hoping that I have succinctly conveyed my point.
Sincerely,