BP Solar's role in the alternative energy industry

BP Solar

Ever-increasing technological advances in entertainment are pulling together various media forms such as television, movies, computers, and music. Integration of media sources will provide an environment for fast moving changes in society. Driving these changes requires more efficient energy resources and the ability to provide more power at a lower cost. In addition to this need, companies must do so in a way that ensures sustainability for the near and distant future. Driving these technological changes are energy companies which are beginning to see the benefit of investing in more efficient alternative energy opportunities. BP solar is one such company and is currently a leader in the alternative energy field. The following will explore BP Solar and the contributions that it is making to assuring that the energy needs of the future are met.

Company History and Overview

BP is been a leader in the petroleum industry since 1908 (BP. http://www.bp.com/extendedgenericarticle.do?categoryId=3&contentId=7005342BP facts and figures").Its headquarters in London placed it in a strategic position to broker Persian Oil throughout the world. In 1954 it changed its name to the British Petroleum Company (BP. http://www.bp.com/extendedgenericarticle.do?categoryId=3&contentId=7005342BP facts and figures"). Throughout its nearly century long existence BP has seen many changes in energy needs, distribution, and procurement methods. This has placed BP in a position to anticipate future energy needs and to see trends before they happen. This advantage allows them to stay ahead of the competition in providing the world's energy needs.

BP is a well-known brand supplying BP petroleum and derivative products primarily through a global network of BP service stations. This brand equity makes it easy to establish new products and services under the BP name. Brand equity and access to an efficient distribution channel have allowed BP to grow into a company that grossed a 253,621 billion U.S. dollars in 2005 (BP. http://www.bp.com/extendedgenericarticle.do?categoryId=3&contentId=7005342BP facts and figures"). BP is one of the largest employers with nearly 96,200 employees worldwide (BP. http://www.bp.com/extendedgenericarticle.do?categoryId=3&contentId=7005342BP facts and figures").

BPs current structure involves four vertically integrated sectors; private sector oil, natural gas, gasoline and derivative products such as fuel oil. Now BP has decided to extend its products and services into the growing field of alternative energy. BP Solar is the world's leading producer of solar panels. Like the early evolution of its petroleum products BP established itself as a world leader through a series of acquisitions in the solar power industry. BP has decided recently to extend its holdings in alternative power to include wind and hydrogen power as well. This new branch would be known as BP Alternative Energy.

Technological Perspectives

In order to meet the growing energy demands of increasing technology companies need to develop ways to use what we have more efficiently. We know about the negative consequences of increased petroleum product usage. The challenge for the future is to meet increasing demand without further destroying the environment. BP has 30 years of experience in the solar industry. It is a leading manufacturer and marketer of photovoltaic modules and systems in the U.S., Spain, Australia, and India (BP Solar International Inc.).

The focus of BP solar has been to build in solar panels that are more efficient using thin-film technology. Its most recent project is the introduction of laser grooved monocrystaline solar modules. These cells represent a 30% increase in solar efficiency from the previous technology. They expect to increase production capacity to 200 mega watts by the end of the year 2006 (BP Solar International Inc.). Solar energy is seen as the answer to the problem of producing safe and efficient energy for increasing energy demands.

From the standpoint of an energy user the switch to solar power will mean very little other than the source of the energy. Energy will still be accessed by plugging into wall outlets just as you do now. The beauty of the new technology is that solar energy does not have to be an all or none venture. Solar can be used to supplement current energy sources and to eliminate excess usage. For instance, for the home user one can take the most expensive appliance off of the grid and supply it using solar energy. This helps to reduce consumption of petroleum-based energy sources. This will result in a reduction of energy costs for the home user.

Solar energy systems come in a variety of sizes and shapes that were not available on the market twenty years ago. For instance, partial systems are now available where solar panels provide energy during the peak hours of daylight and demand but the system seamlessly switches over to the traditional grid on cloudy days or nights. Solar energy is an excellent alternative where the grid is not available. Solar systems are relatively low maintenance and have no moving parts. Although the initial cost is steep, the savings are realized over the longer period of time.

BP built its empire through foresight and the ability to anticipate future needs. BPS success in the future will stem from the ability to turn a liability into an asset. The oil industry has been criticized by environmentalists, government agencies, and the general public for their lack of concern for the environment over profits. BP absorbed much of the brunt of this criticism because of its position as a giant in the oil industry.

BP will be a leader in the solar industry because it sees the need to develop more efficient, environmentally friendly energy alternatives. It has decided to use its position as a global leader in the energy industry to become a leader in the use of alternative energy. This will accomplish two goals for the company. It will help to alleviate its image as an environmental enemy and will encourage growth. It will increase innovation in the development of new technology, including media sources that will mean increased energy demands.

It is yet to be seen whether alternative energy will eventually replace petroleum products or whether they will simply enhance the efficiency, cost effectiveness, and availability of energy in the future. BP's move into alternative energy will help it to position itself as a leader regardless of which direction the market decides to go. BP's move makes sense from many perspectives. It makes sense for a marketing perspective because it will help to improve BP's image to one that is more environmentally friendly and in line with current public consciousness. It will help it to make better use of natural resources from production to end use of all of its product lines.

One advantage that BP has over many of the other companies entering into the alternative energy field is that it has experience in providing the needs of mass consumers. It understands the technical difficulties of supplying energy to millions of people across the globe. The growth of the alternative energy industry will depend on research and development. There is a need to make panels that are more efficient and cost effective for the average consumer. This research and development is capital intensive, which makes it cost prohibitive for many. BP has the financial backing and resources to develop technological innovations that will meet the needs of the industry.

Many oil companies see the green movement as adversarial. They see it as all are none, an "us or them" situation. However, BP saw things differently and has decided that the solution to providing energy for tomorrow's needs is in the partnership that combines traditional petroleum energy products with new alternative "green" ones. The ability to see things differently is what allowed BP to become a leader in the petroleum industry. This same attitude will also allow it to become a leader in the alternative energy industry as well.