Norman Business Climate

Norman Business Climate

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Norman Business Climate

Renewable Energy Industry

Political Factors

Norman is predominantly a Democratic zone hence is a favorable geographical area for stationing a renewable energy business due to the support for climate change espoused by the Democratic Party. The predictability of the governance structures occasioned by that would aid in the long-term investment in this sector hence there are minimal trade restrictions in this field. For example, having introduced “the solar surcharge fee” it is predicted that the cost of offering such services will rise a little in order to deter power generation by individuals. As such, firms will reap from such tariffs.

Economic Factors

            The city is pro-renewable energy hence has adopted a 15% policy aimed at enhancing this sector. In fact, lower interest rates are charged for companies involved in this sector. For example, low interest loans are offered to entities in the water, wind and geothermal fields thus making such ventures profitable (Acton, 2013). It experiences a 9% annual employment growth rate in this industry with a higher general economic growth rate than the national average. The city’s GDP is 4.7% thereby eclipsing that of others within the country with a positive trajectory in electricity generation to augment the national grid.

Social Factors

            Norman has an estimated population size of over 110,000 people whose median age is 29. Female citizens comprise of 50.3% while the male group is 49.7%. In most households, there are about two children hence providing a sizeable youthful workforce. Its racial mix integrates 4.3% blacks, 3.8% Asians, 84.7 whites, 4.7% Native Americans, and about 1.9% from various races. As a predominantly Christian community, most people believe in the destruction of the planet hence harbor ambitions of limiting carbon emissions by engaging in renewable energy activities (Pimentel, 20080. Such positive cultural attitudes towards reducing overdependence of oil would be valuable in the setting up of such businesses.

Technological Factors

            The existent of numerous research institutions have helped Norman become a center of scientific innovations especially in engineering disciplines. In fact, there are 37 schools of higher learning and more are being chartered thereby increasing chances of more product development within the renewable energy industry (Tester, 2005). The Moore Norman Technology Center has led in production of automated machines capable of harnessing alternative energy while the huge infrastructure within the city has increased service delivery.  Such of ease of transportation and energy production would aid in advancing this agenda too.

Economic Factors

            Weather patterns in Norman have involved the presence of warm and humid temperatures that are suitable for exercising alternative energy production methods. Long hours of sunshine exist hence favoring solar energy production while an increase in water precipitation over many months guarantee extra source for such targets. Climatic conditions are thus reasonable and since the average temperature hovers above 29 degrees, firms in this industry are well positioned to meet their objectives.

Legal Factors

Tax incentives have been legislated in the city enabling a larger migration to renewable energy. For example, net metering is allowed. The utility rules provide a robust framework for doing business while the Non-Compete Agreement forbids employees for working with rivals thereby enabling the original firm to maintain a competitive edge over competitors. A nondiscrimination policy also exists that would be beneficial to companies as well.

Data Trends

Norman, Oklahoma accounts for more than 3% of power generation especially in wind production. It has been a consistent but slow producer of solar power over the last few years although it has great natural gas deposits as well. Its abandonment of oil dependence and shift to renewable energy production has been a gradual process.

References

Acton, A. (2013). Issues in Renewable Energy Technologies: 2012 Edition. ScholarlyEditions.

Pimentel, D. (2008). Biofuels, Solar, and Wind as Renewable Energy Systems: Benefits and risks. Dordrecht, Netherlands: Springer.

Tester, J. W. (2005). Sustainable Energy: Choosing among Options. Cambridge, Mass: MIT Press.