Alternate Energies

Alternate Energies

“The Theory of, a lot more than we know now”

As presented earlier: “While fossil fuel dependence is rarely mentioned as an economic threat by the CBO and leading US economists, it is for all intents and purposes an equal or greater threat than medical liabilities. Initially as global usage increases so will its price, as the stocks start to deplete, its price will rise again, and when it’s gone it’s gone. Talk of nuclear fusion is a gamble, possibly even a dangerous gamble; the process of sustained large investment in solar and other alternate energy sources needs to start immediately.”

On the 19th May 2012 President Obama sited high energy prices as a major problem in current economics, in theory a sustained large investment in solar and other alternate energy will lower current energy prices, as the supply and demand – “its going to run out someday”- factor would be reduced.

Besides the clear and present economic threat, fossil fuel usage is a grave ecological threat. Any initiative to solve one problem solves the other, and as such, this solution is presented as “a lot more than we know now”. The solution, as with most solutions within “American Butterfly” is simply a matter of finance; with enough finance most goals can be reached.

Fortunately it appears investment in alternate energy is one of the most sensible long term investments any company could make. Currently Donald Trump and Apple are investing in Solar Arrays, suggested to become profitable within 9 years. Presumably that means if one invests $1 million, in 9 years one will have made $1 million from selling the power, which equates to an 8% annual interest rate. After which one could have paid for the facility and enjoy a revenue in the region of $110,000 a year, which considering the only cost is maintenance would generate profit of around $100,000 a year.

On the 17th of May 2012, Spain auctioned bonds for just over $3.2 billion at an interest rate of 4.8%. With the Euro Zone on the brink of collapse and Spain the second most publicized troubled economy after Greece, which is seriously considering defaulting on all outstanding loans; it’s far from a safe investment.

Why anyone would invest in a risky venture for 4.8% when one can invest in Solar Arrays and receive 8% or more is beyond me, especially as the US is currently offering tax exemptions.

Best estimates put the USA as using 2.4Trillion in Energy a year, split roughly into 4 sectors, with a further 7.6% exported

Industrial usage at 28.2%
Transportation at 26.4%
Residential at 20.7%
Commercial at 17%

Last year US power consumption fell, due to both increased efficiency and the slowing of the economy. As the “American Butterfly” solution is aimed at bolstering the US economy, one needs to allow for an increase in usage, as such an uninflated (at today’s prices) figure has been estimated at $4 trillion by 2040.

As illustrated earlier, the university research department will be applying a strong and sustained effort in alternate energies, in particular increasing the energy output of each solar panel. On average, every two years the number of chips that can fit in a microprocessor doubles. Given sustained research it is presumed within 12 years, the mass of minds will at the least have doubled energy efficiency.

If $4Trillion is needed to power the US by 2040 and it currently takes nine years for a solar array to break even, $36Trillion is needed. However this can be divided in half if the expected doubling of energy output goes into effect.

Thus $18 trillion divided by 8,192 resorts leaves just under $2 billion per resort; this figure is split over 16 years, making $137 million per year. Furthermore, this figure is split in two, half being a BABY POP commitment, the second half covered by POP1. (BABY POP1 always starts after 4 years, POP1 is only enacted after a company is generating over $1 billion a year.)

So a $68.5 million Baby POP annual investment per resort added to a later equal “POP1” investment will provide all the USA’s power eventually, provided efficiency can be doubled. In total, generating a $4 trillion income to the network, most likely the single greatest industry income, although due to the “more money in people’s pockets” economic stimulus initiative, the price will probably be reduced.

(Retrospective Note: Renewable energy spending per network has now increased to over $200 million per network per year, just in case the energy efficiency is not doubled)

Electric Cars

Without the popularization of electronic cars, the 26.4% transpiration petroleum usage will still be in effect. Three initiatives are currently being considered.

  1. Subsidized cars: Within the BABY POP financial structure $20 million per network is destined for the purchase of electronic cars. If in the first phase 16 manufacturers are chosen, each of whom can mass produce only one car, production costs become streamlined.The initial 2018 guaranteed order would be $320 million per manufacturer. For the sake of easy mathematics a target sales price of $10,000 per car would require manufacturers to make the cars for $6,000

    At $10,000 per car each resort will receive 2000 cars a year. Initially a car is given to each Spartan as a part of their salary package. After this, the remaining cars will be sold at a 50% discount to all employees of partner businesses, thus employees pay $5,000 for their cars, 80% of the cost of manufacturing.

    After 4 years, the car can be sold back to the manufacturer for 50% of purchase price being $2,500, after which the manufacturers can schedule reconditioning and reselling. Netweok employees effectively pay only $52 a month.

  2. Glamorization. There is no logical reason why manufacturers can’t make electronic cars look like their concept cars, or their fueled counterparts. The new Volvo C30 looks just like any other car in its class. Whenever possible each resort shall have its own racetrack, where inter resort competitions are held.
  3. The biggest problem with electronic cars is the battery: in their weight, their charge and their lifespan. The Volvo travels for up to 93 Miles (150KM’s) at speeds of up to 80 Miles (130KM’s) an hour with a Torque of 220NM. However “National Harbor” based in Pala Alto (Silicon Valley) has recently created a vastly improved version that will be able to drive a car for 300 (482km’s) Miles on a single charge, a charge that costs only $10.

America Butterfly Question, AB6: Given each resort can afford the annual $137 Million, (now over $200 million) has the case been made that once all have completed their 16 year programs, the combined 8192 resorts can provide most of the USA’s energy needs?

Definitely ________ Probably ________ Unlikely ________?

“Location, Location, Location”

Location, location, location, the real estate agents’ mantra: Identical homes can increase or decrease in value due to location, which is the number one rule in real estate, and it’s often the most overlooked rule. The Epitome of Location, Location, Location: You can buy the right home in the wrong location and improve it, but you cannot move it.

What realtors say about residential real estate also applies to many small businesses: The three most important considerations are location, location, location. Location is especially important for businesses in the retail and hospitality trades because they rely a great deal on visibility and exposure to their target markets.

“The value of a property, will rise and fall, due to its Location”