3. …but do anticipate a post-ARRA landscape. Despite such shortcomings, the future path of the various U.S. infrastructure sectors may well be redefined, at least at the margin, by ARRA. Through much of the past decade, solar and wind energy witnessed dramatic decreases in cost as production scale and the beginnings of standardization kicked in, largely via European and Japanese subsidy programs. We may well witness the same outcome in smart grid, energy storage, energy efficiency, and other similar areas targeted by the stimulus plan. Furthermore, ARRA is attracting many new and often very innovative players into the energy and infrastructure sectors, which could alter the competitive landscape in the years to come. Thinking through the ramifications of post-ARRA infrastructure markets may be the most important task for both companies and policymakers.
Daniel Gabaldon is a principal with Booz & Company based in McLean, Va. He focuses on providing strategic advice to leading participants in the global energy and infrastructure sectors.
Joseph Van den Berg is a partner with Booz & Company based in McLean, Va. He specializes in formulating new opportunities for energy companies, including mergers and acquisitions and growth strategies.