The Past, Present, and Future of Clean Tech and Energy Trends

Key Insights

• Louis Montgomery, Jr., BrainWorks’ Clean Tech & Renewables Practice Leader, interviewed Steve Doyon, former CEO of Onward Energy, about the shifts he experienced in the energy sector throughout his career.
• The clean tech and renewables industry has undergone significant transformation over the past four decades, with increasing government incentives fueling rapid growth.
• Steve Doyon shares his journey from the early days of energy deregulation to founding and leading successful renewable energy companies like Terra-Gen Power and Onward Energy.
• Doyon highlights the future potential for innovations in energy storage, hydrogen fuel, and AI, along with the need for market and regulatory reforms to support the evolving industry.

The clean tech and renewables industry has seen exciting developments over the past four decades. As the shift toward renewables progresses—in part due to government incentives, which increased over 70% between 2022 and 2023—the field will continue its rapid and unceasing transformation.

Steve Doyon, the recently retired CEO of Onward Energy, shared his experiences  in the energy sector throughout his distinguished career with BrainWorks’ Energy & Renewables Practice Leader, Louis Montgomery, Jr. With a background that includes founding executive roles at Terra-Gen Power, Novatus Energy, and Onward Energy, Steve offers valuable insights into the past, present, and future of clean tech trends.

Louis Montgomery, Jr: How did your almost 40-year career in the clean tech and energy industry get started?

Steve Doyon: I started my career in the mid-1980s, not too long after a regulation known as the Public Utility Regulatory Policies Act (PURPA) was beginning to be implemented. PURPA was essentially the beginning of the energy industry’s deregulation, which paved the way for private ownership of power generation facilities. I was fortunate to begin my career in those early days of private generation investment – and at that time we were still developing coal fired facilities. It wasn’t until around 2005 that I became more involved in renewable energy.

I fell into the energy industry. I had an engineering degree and graduated just as private energy generation became widely feasible. My first couple of assignments as an engineering consultant were on new private generation developments in Florida.  Through that experience, I realized that I was much more interested in the development and finance side of this business, rather than the engineering side.

The fundamental necessity of electricity to how we live, coupled with the regulatory changes that allowed competition and investment in the industry, were really exciting to me. I was intrigued by the development of the financial side of the business (how to finance these capital-intensive projects was a new field). Energy isn’t a static industry. It has changed in so many ways, whether it’s the technology, financial structures, regulatory structure, or contract structure—and now, we’re in what’s called the energy transition to low or zero carbon generation. It keeps things exciting, and that’s what kept me in it all those years.

LM: What led you to found Novatus Energy (now known as Onward Energy)? How did you develop it into a thriving firm with 56 wind, solar, and natural gas generation projects, producing over 6.2 gigawatts of power, in 22 States with 260 employees?

SD: I was previously one of the founding executives of a renewable energy company called Terra-Gen Power. It was a private equity-funded development platform started in early 2008. We found a lot of success, developing one of the largest wind farms in the world. By late 2014, we had sold most of our assets, and our original investors sold the company to another investor.

By then, I was interested in doing something else. I felt that the shorter-term investment horizon of many private equity investors was not the optimal fit for long-lived assets like power generation.

I knew some executives at JP Morgan’s Infrastructure Investments Fund (IIF) who asked me to advise them on an entry point into the renewable energy business in the US. We started searching for an appropriate platform to enter the industry, but we ultimately decided creating a new platform was the best way to go. We weren’t able to find an existing one that ticked all the boxes.

With their backing, I created Novatus Energy at the end of 2015. We were blessed with really good timing. There was a lot of stress in the industry; a lot of utility-scale renewable assets were struggling. They had projects that were ready to be financed and built, but they didn’t have the capital to do it. We were ultimately able to acquire about 2.3 gigawatts of construction ready assets, all wind and solar throughout the U.S, which we ultimately brought to operation.

By the end of 2019, with the rapid expansion of renewables in the US, I realized scale was an increasingly important differentiator. Even at 2.3 gigawatts, we needed more scale to be a real player and navigate the competitive dynamics in the market. I believed natural gas-fired generation was going to be a key driver to enhance renewable penetration and help the energy transition. A lot of folks were trying to become a sole player in renewables and distance themselves from fossil fuels, but I recognized our need for it.

In 2020, I began to have discussions with Southwest Generation, which was owned by my investors. They had a portfolio of two gigawatts of gas-fired generation, and we ultimately decided to merge those two companies in the middle of COVID, forming Onward Energy. We subsequently grew Onward by another 50% to reach over 6 GW operating in 22 states.

It’s really amazing to me. In the nine years I was CEO, between Novatus and Onward, I saw this company go from an idea in my Manhattan home office to a large-scale player.

LM: What innovations or trends in clean tech and energy do you find most promising for the future?

SD: First, I love how the entire country and most of the developed world have embraced the goal of becoming carbon-free. It’s that alignment on a lofty goal that will continue to drive innovation. Particularly encouraging is the continued development of energy storage technologies. Innovation comes through addressing needs, and one of the needs in our industry right now is dealing with the intermittency issue of renewables, which energy storage will partially address. We’re going to see a lot of change there.

I’m intrigued by the potential for the hydrogen economy—primarily, at the outset, the use of hydrogen in gas turbines as an alternative fuel. However, this technology has a long way to go to become commercially feasible.  The recent Inflation Reduction Act (IRA) tax credit that was passed provided a lot of incentive for hydrogen projects.

I’m also interested in nuclear energy. To some extent, I classify nuclear in clean tech since it’s carbon-free, with the strong benefit of not having the intermittency issue. I think nuclear could be key to reaching carbon neutrality by 2050.

I’m also excited about the potential of artificial intelligence, AI. When we think about how we operate and manage our assets, we’re still somewhat in the dark ages. Most companies are still managing assets with spreadsheets. Only in the last few years, companies started to utilize data technologies and artificial intelligence. AI will be a real game-changer that allows us to operate with high efficiency and get the most out of our assets.

Finally, I believe we are going to be entering a period of desperately needed market and regulatory reform.  The widespread adoption of essentially zero marginal cost (or in some cases negative marginal cost) generation will eventually render our current market structures obsolete and unsuitable for continued economic health of all market participants – change will be necessary.

LM: What advice would you give to current and aspiring leaders in the clean tech and energy industry?

SD: First and foremost, don’t pigeonhole yourself. When I started out in the industry, I was very interested in a lot of different processes and jobs. I always volunteered if there was something new—if it was difficult, even more so. I was driven by a love of challenges. That proved to be valuable because, as a senior executive, I had a broad perspective on many aspects of the industry, from development and operations to finance and M&A. With a broad background, you are more capable of seeing the big picture. So, my advice would be to volunteer for new things. Learn new things. Volunteer for difficult assignments. Get a broad background.

Additionally, it’s important to distinguish between being a great subject matter expert and a leader. There are lots of great subject matter experts, but that doesn’t mean they’re good leaders. Leadership is about being a role model, having values and ethics you consistently maintain, and sticking your neck out. It’s about accountability, transparency, and trust.  If you desire to become a leader, you have to learn new skills.

Seek out mentors and learn from your role models. Figure out what they’re doing beyond knowing their stuff.

LM: As you’ve only retired as of February of this year, what are your future plans?

SD: I was a CEO for nine years, which is really demanding. It’s time for me to spend more time with my family, travel, and enjoy the things I neglected.

At the same time, I want to stay plugged into the industry. I have a lot more to give in terms of advice and mentoring, and I think I can accomplish that through board or advisory positions. My goal is to, at the right time and with the right entities, focus on a couple companies I really believe in and provide strategic direction.

As the clean tech and renewables industry continues to evolve, driven by innovation, regulatory changes, and the global push towards carbon neutrality, leaders like Steve Doyon have played a pivotal role in shaping its trajectory. His journey from the early days of energy and deregulation to spearheading major renewable energy projects highlights the dynamic and ever-changing nature of the field. For those entering or advancing in this industry, Steve’s insights offer valuable guidance: embrace challenges, seek broad experience, and prioritize leadership development. As we look to the future, the clean tech sector promises even more exciting developments, and the lessons from seasoned professionals like Steve will be crucial in navigating this rapidly transforming landscape.

Are you interested in expanding your clean energy and renewables team? Schedule a call with Louis Montgomery, Jr. today to discuss how BrainWorks can help you find the right talent to drive your success.