Matthew Peloso is a highly-driven entrepreneur whose goal is to establish commercial solutions using technology for a better world.
1. Being named as one of the most innovative companies in 2016 by Fast Company, was surely a proud moment for you and Sun Electric. What is your advice for start-ups and entrepreneurs embarking in the solar industry business?
Be different, really different. Solve real problems. Bring industry problems close to you. Listen to your customers, and get ready for a marathon. Entrepreneurship isn’t a sprint.
2. Do you subscribe to a motto or philosophy in work/personal life?
This has changed a lot from when I started my entrepreneurship journey in 2012. I used to think that I could change the energy industry with innovation – and I was motivated a lot through the potential in knowing that I was doing the right thing, advancing and improving power for consumers and the future power sector. Through this period, I have come to learn that I can’t work through this on my own. I know now that it takes a group to work ahead on the advancement of the energy sector. It is up to us to see the benefits. Through this, I have learnt that we need to be objective and rational in the development of work and life.
3. You’ve been in the solar industry for several years now. Is there a significant achievement or milestone for you personally or for the company?
All around the world, the electricity sector has traditionally been heavily regulated. Despite the barriers to entry in a heavily regulated market, Sun Electric has made a lot of progress on its milestones. To date, we have sealed more than 32 MWp of solar projects in Singapore, allowing previously-underutilised roof spaces in Singapore to generate clean energy for their city. An increasing number of local businesses have taken up clean energy packages from Sun Electric which source their power from their own city’s rooftops. Companies big and small can now play their part for the environment and their city, while saving money off the electricity tariff and making money from their rooftops.
In addition, in June 2017, Sun Electric won the first SolarRoof contract from JTC, Singapore’s leading agency for industrial infrastructure. This 15-20 year contract will allow Sun Electric to install solar panels on the rooftops of 27 JTC buildings and export the solar energy for other users connected to them through the power grid, meaning we have succeeded in marking a new disruptive business model that is transforming the power market. Under existing solar leasing models, power generated primarily served only the building forcing rooftops out of utilisation. The new business model will allow Sun Electric to generate an additional 5 MWp of solar-generated electricity with JTC connecting users across cities. To solve that problem, instead of buildings, we think cities – and that is making all the difference.
4. If you were not doing what you’re currently doing now in the solar industry, what other career option do you think you might have pursued?
Before I set up Sun Electric, I was starting to explore career options in the legal industry and would have been involved in patent law and innovation inside a technology business. I had been a consultant for entrepreneurs, helping them look at ways to register intangible assets or develop them. I was also out in the solar industry looking for work in technology development. Luckily for me, no one made me an offer and I got to become an entrepreneur with the potential to transform the energy sector.
5. The energy industry is in transition at the moment. From the use of hydrocarbons to cleaner renewable energy options. What are your thoughts about when the demand for oil and gas will peak? 2025, 2030, 2035, 2040?
It is notoriously difficult to predict the demand for oil and gas. However, what is driving volumes in the renewable sector is a mix of continued support with the implementation of larger scale installations and price reduction. Outside of the transport sector, oil may already see its peak while gas and renewables come into the mix. However, the demand for gas would not disappear right away. Realistically, renewables cannot cover 100% of what you need unless there are dramatic improvements in storage capacity, so we work towards creating an achievable goal. We believe that most cities (in particular, densely populated cities) can generate about 10% of their power needs from their own rooftops and we are enabling this realistic target through the SolarSpaceTM platform for smart cities. We think setting something achievable is important for our world to look seriously at the renewable power industry to provide the largest benefits to electricity consumers.
6. As Sun Electric expands its presence globally (USA, Australia, Japan, and the Philippines), you will be planning to increase your workforce. What type of skills or characteristics are you looking for in a team member?
Given the heavily regulated nature of the power sector, it requires people with the discipline and patience to navigate through the dense thicket of regulations and the inertia of the sector. At the same time, we require creative individuals with the foresight to see through a new era of energy and to continue innovating. It is a tough mix to balance both skillsets required.
7. Can you tell us the biggest challenges Sun Electric has faced so far, and how did you overcome them?
Given that the energy/utilities sector has always been tightly regulated and that consumers are used dealing with the incumbents, the challenge we face is to give consumers the impetus to switch from their legacy power providers, and to challenge their conceptions around access to clean energy.
8. As Singapore is space constrained, do you see an emerging demand and market for offshore solar farms developing here?
There is some potential demand, which is essentially facilitated by the government. However, the focus on rooftops is still quite important as there are still so many under-utilised rooftops! I believe expertise developed here is much more important in terms of the evolution of the power sector than in offshore solar farms and focusing on rooftop solar provides our firm with capabilities which are significantly scalable and less expensive. Future cities will incorporate energy generating infrastructure within their own architecture. We don’t need to go far from the city to get power from our environment. It is right here already.
9. Other than in Singapore, where else do you think in Asia, has seen significant growth in the solar industry?
Apart from solar energy, Asia has access to multiple renewable energy options including wind, geothermal and hydro. Asia is also home to many densely-populated cities (e.g. Jakarta, Manilla, Bangkok) where demand for energy is high, putting a strain on the nation’s grid and creating the need for a renewable source of energy. However due to space constraints and lack of infrastructure, not all renewable energy sources are feasible.
Solar energy, we believe, remains the most viable renewable energy option for cities across Asia. Our business model has the potential to overcome the challenges faced by densely populated cities, such as space constraints and addresses limitations of intermittent power supply, as the solar-generated power is fully integrated with the grid. We believe that Sun Electric will facilitate the widespread adoption of solar energy, not only in Singapore but in these densely-populated cities across Asia.
10. Where do you see the industry in the next 10-20 years?
We expect major advancements in energy storage capacity (battery) to happen in the next 3-5 years. Tesla recently constructed one of the world’s biggest battery, the size of an American football field, in South Australia to address the country’s energy woes. If the technology proves to be sustainable, this would ease the problem of intermittency - solar will be able to serve not only as a peaking power resource but also be a source of base load power which is currently incapable of doing so. This will potentially change the future of energy globally. Improvements in data connectivity will be a big impetus for new energy technologies. The potential of this will be further enhanced when regulators open up the information systems architecture that traditional utilities companies have access to, to newer and more innovative companies in the power sector.
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Headline crude prices for the week beginning 5 November 2018 – Brent: US$72/b; WTI: US$62/b
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It is a well-known fact that the oil and gas industry has a lot to offer in terms of opportunities - paycheck, lifestyle, and work-life balance. However, like everything else in life, it has a flip side as well. If you are planning to make a career in oil and gas industry, it is important to know the cons as well. Here is a list of risks associated with working in oil and gas industry that you must know to make an informed decision.
Highly competitive: survival of the fittest
Oil and gas industry is highly competitive and dynamic in nature. The job requires high level of expertise and productivity. With digitization and automation of the industry, the work functions are changing rapidly. The employees who cannot cope up and upskill with changing time and need will be automatically pushed out of the system. The foremost challenge in oil and gas industry is to stay relevant and keep upskilling.
Long work hours
Some job functions in oil industry like offshore rig workers have to work in 12-hours shift, seven days a week and for seven to 28 days in one stretch. Sometimes, overtime is also expected due to emergency or to manage the project deadlines. However, the oil companies do give equal amount of resting period to the rig workers to compensate for the long working hours. Even then, the continuous long hours is strenuous for the workforce.
The accident-prone work environment
Although rigorous safety trainings are provided to the workforce along with numerous safety measures and laws in place; accidents do occur. Sometimes, these accidents can be life-threatening. Here is quick overview of the possible accidents that you might encounter:
Risk of confined space and fall- The line workers in oil and gas industry sometimes work in confined spaces like mud pits, reserve pits, storage tanks, sand storage, and other excavated areas, where they are exposed to potential risk of ignition of inflammable vapors, exposure to harmful chemicals, and asphyxiation. Additionally, these kinds of workplaces involve risk of falls, slips and trips too which can cause severe injuries and can even turn fatal. Though the companies are extremely careful and take all safety precautions, but the risk cannot be ruled out.
Additionally, frequent exposure to chemicals used in refineries and drilling operations can impact long-term health. To offset these dangers, oil and gas companies provide comprehensive training to employees to ensure safety protocols and site-specific features.
Working in remote location
The oil and gas professionals have to work on remote location for exploration, offshore duties, pumping stations, gas plants and more. The workers in remote location often feel isolated and they are on their own to cope up with numerous work-related accidents and health hazards.
Working in oil and gas industry is extremely rewarding in terms of career growth, travelling opportunities and compensation. However, the above points must also be considered before stepping into this industry. It is important to mention here that majority of oil and gas companies are aware of the risks associated and thus have sound safety measures in place to avoid any contingency. Moreover, the government and regulatory bodies also impose strict regulations for safety and security of the workforce. Therefore, in many cases, the risk associated is considerably reduced. So, before you accept any offer from any oil and gas companies, you must carefully verify the safety measures and policies of the company. Once, you are assured, your career in oil and gas will be highly rewarding.
If you are looking for relevant opportunities, check out NrgEdge.com to kickstart your career in oil and gas industry.
Due to shortage or limited availability of oil and gas, companies today are evaluating how they can harness alternative energy sources. The alternate fuel market is targeting hydro and thermal power plants, however solar and wind are catching up fast as preferred energy sources. There are still reservations about nuclear energy considering the risk of nuclear waste or manufacturing of nuclear weapons. However, strategies are shaping up to minimize the risk and maximize the profitability potential. Until then, sources such as solar and wind are being focused upon more and new sources like biofuels are explored extensively.
How will the shift towards alternate energy impact traditional oil and gas market?
There have been huge investments in the different alternate energy avenues by most of the big oil majors. These heavy investments on various alternate technologies by big oil majors and other oil companies around the world indicates a positive outlook towards the scope of clean fuel energy. However, the feasibility of its application is still questionable. Whether or not it will be able to meet the energy needs of the world while upholding its profitability is a question that is bothering the world.
Let us understand what the shift means for the companies in the energy sector.
Rate of employment
Among all renewable energy sources that have been studied, bio energy has been most influential. The fuel is created and transported within a confined space. The work is extremely labor-intensive and hence scope of employment increases. Hydropower and wind power will generate job opportunities during construction and project development phase. However, once the unit is commissioned only few operational staff will be required to perform the operational work.
Traditional energy is more expensive than renewable energy. If renewable energy can be produced on large scale, it can eliminate the gas shortage. Even other forms of renewable energy are much cheaper in comparison to traditional oil and gas sector. The cost benefits will be transferred to the consumers and they’ll be able save considerable amount on utility bills.
Improved Brand Image
It makes good business sense to make a move from traditional energy resources to renewable ones. The environmentalists have been arguing about the negative impacts of using and overusing the non-renewable source of energy. The shift towards alternate energy will boost the brand image of the traditional oil and gas company.
Higher market penetration and Mass access to energy
Due to dependence on fossil fuels which are non-renewable sources and expensive, a significant number of people in the world have no access to power. A chunk of people in Asian and Sub-Saharan Africa area are still using traditional biomass for cooking. However, if the alternate energy can completely replace the traditional oil and gas then it will have a deeper penetration into the market and majority of people will have access to it.
Ethical Investment Avenue
Renewable sector is considered as an attractive and ethical investment avenue for the ones who wish to invest outside traditional channels and are futuristic in outlook. The rising investment on alternate energy is impacting the job creation and community cohesion, which is again a positive move.
How the alternate energy is transitioning the oil and gas?
Big oil companies and other oil companies are making practical, well-researched, and steady approach towards renewable energy spanning from solar panels to genetically engineered algae. However, there are still many companies which are in research/experimentation phase and do have a concrete plan in place.
The pathway to clean fuel technology that operates with efficiency and profitability is getting paved. More than 100 countries in developing as well as developed nations have set a clean fuel target and are working towards it. The European Union has set a goal to meet its 20% energy requirements via renewable sources by 2020.
The world has acknowledged climate change and are working together to shift from carbon-intensive to carbon-neutral environment which might pave the way for generations to come.