Getting Funded and Working with Innovation with the Israeli Utilities: Dos and Don’ts from Leaders of Innovation at WaTech™ and KARAT – CleanIsrael Network Meetup –  August 2^nd,2011, 9 am. (RSVP: http://www.meetup.com/cleanisrael/events/25000871/)

by Shelli Zargary

In the context of the relatively small Israeli domestic market, utility corporations such as IEC – the Israel Electric Corporation – and Mekorot the Israel National Water Company are giants that benefit from a large bank of employees, a dependable customer base and relatively high economic stability. But these giants don’t slumber in their comfort zones; on the contrary, like the stereotypical Israeli Sabra, they are technologically advanced, ingenious pioneers who embrace wholeheartedly their mission to manage the responsible consumption, development and protection of Israel’s scarce natural resources. To do so, both Mekorot Israel National Water Co. and Israel Electric Corporation (IEC) have accumulated great and diverse assets in terms of knowledge, technologies, human resources, sites and equipment that today they are more aware and interested in leveraging to drive commercially, technologically and ecologically valuable projects that will serve the interests of the utility companies themselves, the water and energy sectors, the State of Israel and sustainability worldwide.

To achieve these both lofty and profit-driving goals, each company has set up a kind of internal incubator to identify, invest in, collaborate with and otherwise promote research and venture projects in their areas of expertise.  Israeli cleantech entrepreneurs developing potential ventures in the water and energy sectors, especially ventures whose business models will require any kind of cooperation with the utilities companies, would be wise to consider approaching Mekorot’s WaTech™ and IEC’s KARAT.  CleanIsrael Network is hosting a discussion with Amikam Levanon, currently Special Advisor to KARAT, CEO & President at Alimo Holdings and former General Manager of Negev-based incubators Iris Ventures and Rotem Ventures; and with Yossi Yaacoby, Director of WaTech™ and former Marketing and Projects Manager at EMS Mekorot Projects.  The session will take a look at how the incubators operate and what entrepreneurs can and should do to maximize their chances of winning KARAT and WaTech™ investment and support.

Mekorot founded the WaTech™ Water Technologies Entrepreneurship Center in 2004 to leverage Mekorot’s values to promote water technology solutions in Israel and worldwide. Aptly titled “water technologies accelerator”, WaTech™ focuses on four primary areas. These include water technology-related business ventures and collaborations; applied research using Mekorot’s internal and third-party knowledge; intellectual property development and patenting, again as a service both for internal, joint and external IP; and water sector information management.  In all these activities the company invests significant resources to promote sustainability and environmentally friendly water technologies that capitalize on non‑perishable natural resources.

WaTech™ manages projects in the categories of water quality, desalination, wastewater treatment and effluent reuse, sustainability (environmental quality and green energies), water security, engineering services, water supply command and control systems and models for optimized water system operation and management. Readers can download a detailed description of Mekorot’s “wish list” as to the technologies they would be most interested in supporting using the following link: http://www.mekorot.co.il/Heb/WaterTechnologies/Documents/WaTech_Reshima-eng.pdf To date WaTech™ has participated in some 20 joint projects from among the some 560 proposals they have evaluated. The supported ventures have benefited from access to a wide variety of Mekorot facilities including alpha and beta testing procedures and sites, professional experts, engineering support, business counseling and a wide network of international contacts. Some of the companies that have collaborated with WaTech™ include Atlantium, Aqwise, Bacsoft, Kinrot Ventures, Lesico Cleantech, Rotec, Solaris Synergy and many others.

The IEC, the national Israeli utility that generates, transmits and supplies electricity set up Karat (Hebrew acronym for “Accelerating Technological Ideas”) as an internal venture management unit within the company to support and invest in innovative initiatives in energy-related fields that promote “green” (clean) electric energy, lower energy costs, and higher energy efficiency, all in concert with the aim to reduce national and global dependency on carbon fuels.  Early-stage ventures participating in the KARAT program receive access not only to funds (up to NIS 2m) and to fund-raising efforts, but also to the electrical grid that is so critical for testing and validating technologies, as well as to IEC’s scientists and engineers, strategic partners and other services that significantly facilitate the ventures’ business success.

Karat promotes energy-related initiatives, in particular in the areas of renewable energy (materials, devices, systems, control, etc.); environmental protection (reduction of greenhouse gases, electromagnetic fields and other emissions, recycling, waste treatment, etc.); use of electricity generation process by-products;   improved energy efficiency, storage and smart-grid systems.  Karat has clearly defined criteria and procedures for acceptance that seek out the most unique yet commercially viable technologies; it now plans to expand support for its portfolio companies by setting up a Global Partnership Program. Hundreds of ventures have been screened; the list of innovative companies approved and operating within KARAT includes promising startups such as InnoSave, Metrycom, Burning Solar Ltd., Even-Or Technologies, PVnanoCell and Powercom.

The thresholds are high and the application processes are not simple, but they can make the difference.  Ventures that go the route of applying to Karat and WaTech™ will already benefit from the evaluation process itself.  Needless to say, those ventures selected as participants will get a big basket of goodies, including funding, publicity, technical and business support and access to strategic local as well as global players that can be the deciding factor to bring rapid business success.

* shelli.zargary@gmail.com

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Jason Eis, Senior Strategy Manager, The Carbon Trust

UK Industry experts shared insights on trends & strategies that can help innovative Israeli cleantech ventures meet with success in the global market

In the dynamic and uncertain waters of the rapidly developing cleantech sector, startups will improve their chances of success by navigating carefully and making smart decisions on their commercial focus and business model from the outset.  To help its members make the right decisions, CleanIsrael invited experts Jason Eis, heading up Innovation Strategy for the Carbon Trust, UK and Richard Youngman, MD Europe & Asia, the Cleantech Group to share their insights, experience and expertise on the topic.  Both speakers indicated that while today’s trends show that currently it is more difficult to obtain funds for new ventures, nevertheless the megatrend bringing cleantech to the mainstream continues. The UK and global markets are expanding and more and more varied sources are seeking innovative cleantech technologies in which to invest.

The event kicked off with opening remarks by Ariella Grinberg, an analyst at ICV, and Gabby  Czertok, CEO of HydroSpin and Managing Director of CleanIsrael, who co-hosted the event for the CleanIsrael Network. Next on the agenda was Richard Youngman, MD Europe & Asia for the Cleantech Group, the world’s premier intelligence service on global cleantech innovation, who previously spoke at CleanIsrael in 2008.  He gave a brief analysis on how VC funding for cleantech companies has evolved since his previous appearance in 2008. From a peak of US$8 billion in 2008, the bulk of which was invested in large-scale, capital-intensive renewable energy and infrastructure technology companies,  the volume of investment has decreased slightly but the number of transactions has grown. Until the market hears reports of success and positive returns on the big cleantech endeavors of the last few years, focus within the sector will remain on resource efficiency projects characterized by secure business models involving smaller investments, partnering and risk-sharing. See graph below.

In addition to cleantech-specific VCs, investments in cleantech are also being made by private, usually low-profile individual and family office investors, as well as by large corporations carrying out technology scouting to broaden their portfolios.  Signs of stronger interest from public equity investors are evident in the performance of the Cleantech Index. Youngman concluded that the cleantech theme has gone from niche to mainstream, from renewables to energy efficiency and from California to China in a short space of time: new startups must take these changes into account when strategizing their market entry.



Source: The Cleantech Group

The primary presentation on commercializing cleantech technologies was delivered by Jason Eis, responsible for setting strategic direction for RD&D programs and planning commercialization support for new ventures at the Carbon Trust, a not-for-dividend company aiming to accelerate the transition to a low carbon economy, through various programs including collaborative RD&D between technology developers and buyers, as well as integrated packages of grants, advice and networking for cleantech entrepreneurs.  A former McKinsey project manager and currently a policy advisor to the British government, Eis shared his insights on the complex and dynamic cleantech playing field, where the rules of engagement are still not clear. He recommends that in order to survive in these market conditions, cleantech ventures must analyze public policies and invest their attention as much in understanding how such policies drive the market demand for their technologies, as they would traditionally focus on the technology itself.  Eis gave several examples of cleantech market uncertainty in the form of technology alternatives that are dependent on differing infrastructure which the market will eventually have to choose between, such as electric versus fuel cell vehicles or CHP versus heat pumps. To date countries don’t yet know where they will invest and policies are often contradictory; effective cleantech companies’ business models recognize and negotiate these issues by supporting and influencing industry and government standards, and by partnering with corporate leaders that have technological staying power and can help them facilitate market access.

Eis described how the Carbon Trust offers a commercial deployment-oriented approach to R&D by bringing together “convened consortia” of large technology buyers in specific subsectors, such as offshore wind, to identify challenges and barriers  and define R&D projects oriented toward commercial opportunities, hence reducing the risk to innovators.. These programs are open to innovators across the world, and they are currently defining new program areas for the next 3 years. This experience and knowledge guides the Carbon Trust in the advice it offers to startups while also positioning them to offer more services and funds to new ventures.

The Carbon Trust also offers incubator services to fast track new entrepreneurs across the cleantech “Valley of Death”. Services include grants, broad networking opportunities and advice using a proprietary diagnostic tool. They have assessed 2000 and supported 300 ventures to date and have capacity to scale up by at least 2-3x this volume. For each million pounds Carbon Trust invested, the companies were able to raise 13 million in private funds, and 67% of the ventures they supported achieved commercial investment. Eis stressed the increasing role of corporates in cleantech that startups can engage as part of an effective business strategy.

Eis cited other UK agencies offering assistance and financing such as the Technology Strategy Board and the Energy Technologies Institute.  Moreover, public funds for cleantech in the UK will be available in the near future via the Green Deal and the Green Investment Bank, the latter is expected to offer £2-3 billion in public money to leverage up to £15 billion in private funds.  Overall the message was that Israeli cleantech ventures would do well to include the UK in their investment and development programs and the Carbon Trust is very interested in investigating Israeli cleantech ventures.

Both speakers indicated that they find Israeli cleantech ventures to be of interest. When asked how he characterizes Israeli cleantech, Richard remarked that Israeli ventures tend to be highly technical, and because the local market is small, most ventures’ route to market involves a challenging cross over a geographical divide at a relatively early stage. To succeed in these tough circumstances, Richard recommends that the entrepreneurs be very realistic in evaluating the time it will take them to get to market and to set business plans accordingly.

Jason’s observations largely concurred; he commented that in many areas of the cleantech sector the role of buildup and achieving maturity in your local market before extending out globally is very significant.  This factor creates a tough challenge for Israeli cleantech startups that face more difficulties breaking into foreign markets than those in other high-tech sectors; at the same time, he notes that Israeli ventures tend to be outward- oriented early on relative to ventures in other major markets.

The event drew a large audience with representatives from cleantech startups, venture capital funds, established firms and academia. The atmosphere was positive and the speakers answered many questions and met with several attendees one on one after the presentation.  The general presentation was preceded by a closed Round Table session focused on innovation in efficient energy & water management in buildings that enabled CEOs and managers of interested startups, such as TriDiNetworks, Emefcy and Panoramic Power among others to present their ventures to the guest speakers in advance and get some valuable individual feedback and have more detailed discussion. Thanks go to the Carbon Trust and to Israeli Cleantech Ventures for co-sponsoring the event.

By Shelli Zargary, shelli.zargary@gmail.com

Shelli Zargary, a veteran marketing and marcom professional with some fifteen years of experience in the Israeli high-tech sector, has joined CleanIsrael to assist with marketing activities.

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He has a successful track record in government relations, having led a major effort that won $7 billion in benefits, as well as international campaigns for various issues. With degrees in Public Policy from Boston University and Journalism from Columbia University, Yosef most recently served as CEO of a multimedia company for a decade.

Winner of numerous awards, Yosef has an extensive global network, having served on the Executive Board of the World Jewish Congress and in other positions.  He has been co-nominated three times for the Nobel Peace Prize for his work in the former Soviet Union, which was underwritten by the European Union and U.S. AID.

Yosef is based in Boston, and has relocated to Kibbutz Ketura with his wife, Rabbi Susan Silverman, and their five children.  His interest in solar power began in high school, where he received a regional award for a solar energy project.

On Arava Power…

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Cleantech & Israel – The Quest for Smarts

Albert Einstein once said “only two things are infinite, the universe and human stupidity, and I’m not sure about the former.”  He must have been talking about how we use energy.  How can it be that we build dangerous coal mines, burn that coal in power plants while emitting NOx, SOx, mercury and other toxins into our air and water, and build vast networks of overhead transmission cables across hundreds of kilometers and into people’s homes, just so we can have the pleasure of turning on a light bulb in our living room?  Not to mention that if too many people turn on their lights at the same time, we all suffer a blackout.  As Jefferson Tester, Elisabeth Drake, and their MIT co-authors illustrate in their landmark textbook, Sustainable Energy, this most common of energy lifecycles – transformation of the chemical energy of a mineral fuel to visible light using an incandescent bulb – has an overall energy efficiency of 1.6%, when accounting for energy losses at the power plant, during transmission, and finally at the light source itself.  In other words, we lose over 98% of the energy potential in a unit of coal during this process, to say nothing of the energy required to mine the coal in the first place and the externalities/pollutants generated throughout this (non) value chain.  Somewhere between our energy generation, transmission, and consumption methods today on the one hand, and relying on candlelight on the other, there has to be a smarter way.  And it is this – the quest to find a smarter way – that cleantech is all about.

Opportunities for Innovation

Scratching the surface of the above example reveals a glimpse into the myriad of markets and technologies that are emerging from the drive to build a more sustainable industrialized energy economy.

1. The coal power plant — coal is the cheapest, most abundant, but also the most carbon intensive and pollution-emitting source of energy in our industrialized world.  Hence the enormous sums of political and financial capital that have gone to (a) reducing emissions from coal fired power plants (b) efforts at carbon capture and sequestration (c) trials using algae to absorb CO2 alongside power plants during cultivation as a biofuel feedstock, and (d) technologies to convert coal into a cleaner, more efficient source of energy such as natural gas, through catalytic processes.
2. Alternative energy generation — coal, gas, and oil account for about 85% of the world’s energy supply.  Nuclear is about 6%.  Wind and solar combined still account for only 1%.  The long term market outlook for these alternatives, to say nothing of biofuels, is compelling and obvious.  Migrating our societies off of fossil fuels and into renewables is one of the greatest challenges and economic opportunities of the 21^st century.
3. Smart Grid — According to the US Department of Energy (DOE), America’s electric system, “the supreme engineering achievement of the 20th century,” is aging, inefficient, and congested, and incapable of meeting the future energy needs of the Information Economy without operational changes and substantial capital investment over the next several decades. The DOE, in its position paper entitled “Grid 2030”, envisions a competitive marketplace for electricity, and one which connects everyone to abundant, affordable, clean, efficient, and reliable electric power anytime, anywhere.  The paper points to several promising technologies on the horizon including advanced conductors made from new composite materials, electric storage systems such as flow batteries or flywheels, distributed intelligence and smart controls, power electronics devices for AC-DC conversion, and distributed energy resources including on-site generation and demand management. This past October, the DOE announced $3.4B in smart grid investment grants, with allocations for smart meters and consumer systems, transmission and distribution grid modernization and projects that include and integrate various smart grid components. In November, the DOE announced $620M in grants for regional, fully integrated smart grid demonstration projects in 21 states and energy storage projects, including advanced battery systems, flywheels, and compressed air energy storage.  President Obama has a stated goal of doubling the amount of renewable energy the country uses in the next three years and is backing that up with significant cash infusions.  Already, we see the rapid deployment of smart appliances, sensors, timers, thermostats, and advanced meters. These in turn enable diagnostics and real time monitoring, demand response, and more sophisticated provisioning and billing from utilities and newly emerging intermediaries.
4. Energy efficiency — According to the International Energy Agency, (IEA), energy consumption is expected to grow by 25 quadrillion Btu by 2030.  This growth will cost $10 trillion for electricity generation, transmission and distribution assets alone.   Providing enough energy for economic growth in the future will require co-generation — using waste heat from electricity production for environmental heating/cooling and water heating.   It will also require entirely new approaches to energy efficiency and conservation within buildings. The IEA reports that existing commercial and nonresidential buildings account for nearly 40% of U.S. energy usage and contribute an almost equal percentage of the CO2.  When viewed specifically for electricity, buildings account for 72% of U.S. consumption.  Piper Jaffray analysts currently expect the ‘green’ construction market to reach $95B – $140B, and perhaps more over the next five years, through the introduction of green building components like energy efficient windows, walls, insulation, construction materials, building integrated PV technologies and other energy saving devices.  Some governments have put in place tax incentives and rebates for conducting energy audits to catalyze the shift to energy efficiency within the business and home.  The incandescent bulb in our example will become extinct through a combination of legislation and technology, as fluorescents and increasingly reliable and cost-effective solid state lighting (LED) alternatives capture market share. Opportunities abound within the enterprise setting as well, with the drive towards efficiency leading to new conceptions of how to build enterprise computing, data storage networks, and server farms.

The Israeli Entrepreneur’s Dilemma

Clearly, the energy markets today are varied, vast, and offer tremendous opportunity for aspiring technology entrepreneurs.  And the above broad market categories still exclude entire swaths of the cleantech opportunity such as transportation, water desalination, water treatment and agritech, all of which tie into our energy economy as well.   Little wonder that cleantech as an investment theme in Israel has gone from fringe to obvious in the span of a few years.  Three dedicated cleantech VC funds have been raised successfully, nearly all generalist VCs have added cleantech to their portfolio mix, and the pace of new cleantech dealflow has grown to about 150 startups annually, up from just a trickle in 2005.

Nonetheless, VC markets are showing signs of stress.  According to the IVC Research Center, Israeli high-tech companies raised $1.1B in 2009 compared with $2.1B the preceding year, a fall of 46%, and projections for 2010 are even worse.  And based on NVCA data, 2009 was the worst year for VC fundraising in the US since 1993.  True, cleantech as a percentage of total VC investments has increased substantially not only in Israel, but around the world.  But with just $150M of dedicated early stage capital for cleantech under management by the most active local VCs, absolute dollar amounts allocated for cleantech in Israel are still quite limited.

So, here’s the problem.  We know that our industrialized energy-intensive economies today are unsustainable.  We know that the next decades will be largely devoted to bringing technology to bear on tackling these problems.  We believe that this offers potential for massive wealth creation on the part of the best and brightest entrepreneurs and innovation-driven businesses.  Yet, right now the VC industry in Israel is going through a tough period and accessing early stage capital for cleantech is not easy.

The key then, for the cleantech entrepreneur in Israel is to focus on bringing unique capabilities to bear on a real, immediate, pressing market need in an industry segment that offers a clear, capital efficient, and quick path to commercialization. The VC industry globally and locally will likely face continued consolidation. Financing startups will be more difficult than in the past. Yet, the best entrepreneurs with the best ideas will continue to get funded, which are in fact the only companies that should be getting funded in the first place.

Israel’s tech sector has flourished through the creation of core technology competencies that are world leading.  These include, but are not limited to digital printing, semiconductors, power electronics, optics, and software.  Over the last two decades multiple billions of VC dollars have poured into Israeli companies in these sectors, market leaders have emerged, and many of the world’s largest multinationals have bought companies and set up shop in Israel as a result.   Israel’s ability to compete globally in cleantech markets will depend largely on our success in leveraging all this know-how.  And we are already seeing it happen.  Entrepreneurs who built their careers in the digital print industry are now taking that expertise to PV cell manufacturing.  Israeli excellence in advanced optics and systems has spawned a number of very interesting utility scale solar companies.  And local technology prowess in power electronics and chip design has found a home in companies doing energy efficient lighting and smarter PV energy harvesting.  It is in these areas, where there is a critical mass of development and engineering talent available here in Israel, that local entrepreneurs should channel their ideas and efforts.  No need to try to solve all the problems in the “light bulb” energy lifecycle.  Many solutions within the energy marketplace do not make sense to build from Israel.  Instead, local entrepreneurs should keep a laser focus on their own core competencies and concentrate solely on those segments where they can bring unique capabilities to bear.  Companies in Israel that marry up world-class business and technology acumen, a deep understanding of the path to market, and capital efficient business models, will have little trouble raising VC financing.

Where We’re Headed

Human industrialized society may have stumbled into a pretty dumb way of turning on our lights, but we are no doubt going to innovate towards a more sustainable paradigm of energy creation and utilization.  As JFK said in 1963, “our problems are man-made, therefore they may be solved by man.  And man can be as big as he wants. No problem of human destiny is beyond human beings.”  Israel with its well documented history of innovation is fast becoming one of the leading global centers for cleantech activity.  And we are only just beginning.

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Overall Environmental Contribution – the Balance of Total Emissions

There is basic agreement in both these reports, as there is in the research and the many articles published in recent years, that the local contribution of the electric vehicle (especially in the urban environment) to the improvement of air quality is absolute and fundamental.  However, the overall environmental contribution depends on the balance of the total emissions and this must take into account the energy sources that are used to generate the electricity. Unfortunately, in both abovementioned reports reference to this balance was not included.

The first recommendation in the Neaman report is to ensure that large-scale introduction of electric vehicles will be based on a managed charging infrastructure which will be able to prevent further loading of the electrical grid during peak consumption. This is true in any country but especially in Israel which due to political circumstances constitutes an “energy island”.

Analysis performed by the electric company determined that, in contrast to other scenarios which will require construction of additional power plants, a managed charging infrastructure will allow the penetration of two million electric vehicles by 2020 without the need for the construction of any additional power plant beyond the existing development plan. This of course has significant environmental implications with regard to the ability of increasing the efficiency of existing infrastructure, without the need to capture more open space which is a limited resource in Israel.

The McKinsey report, which focused on the potential of reducing greenhouse gas emissions, determined that of all technologies they analyzed to reduce greenhouse gas emissions in the transportation sector, electric vehicles have the greatest potential for reduction per km.

Even after the implementation of technological improvements by 2030, gasoline vehicles will emit 152 grams of carbon dioxide per km, diesel vehicles will emit 141 per km and hybrid vehicles will emit 138 per km, while the electric car can go down to 100 grams of carbon dioxide per km in a scenario whereby 25% of electricity production in Israel is generated from renewable energy.

The report also states that even without reaching 25% renewable energy in the electricity generation mix, the electric vehicle does not fall short in potential reduction to the other technologies. In addition, it should be noted that the electric vehicle is the only technology that can further reduce the amount of emissions per km depending on the electricity generation mix, and even reach zero once it is based on 100% renewable energy.

Initial Investment, Annual Cost and Cost Effectiveness

The McKinsey report deals with the issue of the initial investment and the annual cost required for each tool, and projects this cost on the cost effectiveness of the tool.

Without going into discussion about the values themselves, McKenzie’s premise is that all extra cost will be expressed in the vehicle price and would therefore constitute a cost for the economy. McKinsey’s model makes no distinction regarding who bears the additional cost, if it indeed exists, and it is important to note this in light of the importance of the subject matter.

According to the model of “Better Place” for example, the cost of infrastructure and most of the extra cost of the electric vehicle itself is assumed by the company and therefore cannot be considered a cost to the economy. In fact, if the business model of “Better Place” will indeed enable a lower cost per km compared to using a gasoline vehicle, then the cost to the economy of reducing greenhouse gas emissions is zero and possibly negative.

The Pace of Market Penetration

That same analysis is also lacking with regard to the pace of market penetration of electric vehicles. If the end customer is not exposed to additional cost compared to gasoline vehicles, then the assumed penetration rate of 10% in 2030 is extremely low.

Even according to the latest forecast published by the International Energy Organization (IEA) less than a month ago, in 2030 sales of electric vehicles will constitute about 30% of the total world market. If these are the numbers predicted by such a conservative organization then there is no question that the penetration rate can be higher and so will the reduction potential of this tool.

The Improved Internal Combustion Engine Option

McKinsey states that the tool with the greatest potential for reduction in the transport sector in Israel is an improved internal combustion engine vehicle. If we again ignore the numbers themselves then we are debating around a medium upon which the State of Israel has no control.

Manufacturers may meet the discussed emission levels and they may not, but since there is no automobile industry in Israel, you cannot rely on this tool in establishing a national reduction strategy. However, Israel does have control over the fuel mix of energy sources used for electricity generation and therefore the state must do its utmost to encourage penetration and implementation of these technologies by utilizing local resources. Such activity will reduce greenhouse gas emissions from the electricity sector and have an indirect influence on all electricity consumers, including the electric vehicle.

Electric Vehicles as Energy Storage Facilitators and Network Stabilizers

Another interesting advantage which arises in both reports is the ability of the electric vehicle to facilitate energy storage. One of the limitations of large-scale penetration of renewable energy technologies is the fact they are intermittent in nature (electricity generation depends, for example, on sun and wind intensity which vary throughout the day).

McKinsey consultants also explain that in the analysis of the cost of application of solar and wind technologies they added, due to this limitation, an additional cost for network backup and stabilization. These systems, especially for Israel’s isolated electrical grid, may be even more vital than in other Western countries where the networks are stabilized through connections between different countries. In the scenario of large-scale penetration of electric vehicles, the managed charging infrastructure has a potential to serve as a leading contributor to network stabilization. Because private vehicles are in use for an average of about two hours a day, the electric vehicle is a very flexible consumer that can be used as a storage facilitator and stabilizer for most hours of the day. This contribution can reduce the cost of penetration of renewable energy technologies and strengthens even more the synergy between these two mediums.

The Bottom Line

Environmental challenges are handled faster and more efficiently when there is congruence between business interests and environmental goals. The two sectors responsible for most emissions of air pollutants and particularly greenhouse gases are energy and transport, and in both of these, demand is expected to rise significantly. Therefore, Israel will do well to allow maximum utilization of local resources in the field of renewable energy and complementary tools such as electric vehicles.

* Ofer Ben-Dov is a renewable energy expert with vast experience conducting feasibility studies, developing environmental business strategies and management systems as well renewable energy and carbon programs.

He serves as Sustainable Energy & Carbon Director of Assif-Strategies Ltd which specializes in cleantech initiatives and renewable energy as well as in providing environmental strategic consulting services for industry, businesses and financial institutions and as CTO of Elysium – Carbon Trade & Investment, an Assif-Strategies subsidiary.

Ben-Dov has a graduate degree in Business Strategies for Renewable Energy and a diploma in Business & Environment from York University, Canada. His research on renewable energy business strategies earned him the prestigious International e7 Sustainable Energy Development Scholarship.

Previously, he served as campaign director for Greenpeace Mediterranean in Israel and was a founding member of The Natural Step in Israel. He is a Member of the Energy & Agriculture Steering Committee of the Israeli Ministry of National Infrastructure and the Ministry of Agriculture.

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Israel offers great potential and opportunity for countries around the world who are facing serious water shortages as well industrial pollution of their precious water resources.  Israeli government and their policies have guided the water industry to look seriously at innovations and application of these innovations to help address their water challenges and the local water utility Merkorot has helped to ” test bed” the early technologies and help validate the   value proposition of these innovations.

The Office of Chief Scientist along with the Government has established “incubators” and helped to fund innovative ideas and provide a platform to develop innovations. These incubators take the technologies developed at the Universities and the research institutions into pilot scale which can then be commercialized through investments from other venture capital firms.

Such innovation ecosystem model is unique and has resulted in several successful ideas to be commercialized from Israel.

Based on my past five years experience working with early stage companies from Israel, it is evident that these companies have leveraged the support system provided by the Universities, government, and the industrial incubators well and this is a model that other countries can adopt and modify to meet their needs.

Collaboration and Partnership is critical for success especially for early stage start up companies. Israeli companies can benefit from collaborating with international and domestic companies to define the technology merits and value proposition early in the process to avoid hurdles later.

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