Why energy will be free in under 10 years

It’s easy to forget how many things we used to pay for that we now get to use and consume for free.
Energy is very close to becoming one of them. The global economy is very quickly transforming to an all electric economy. Yes, for both your house and your car. Very soon we’ll only have to pay a one off set up fee to go entirely off grid and generate all the energy (electricity) we need, for free. It will come from the worlds most powerful energy source, the original fossil fuel called the sun. I hear you saying a one off set up free isn’t free, and that’s true, but this is where the economy is changing and catching many existing industrial companies off guard.

 

In the past the factors of production were all centralised: Factories, Retail Stores, Power Plants, Media Channels, Computers. Sector by sector, they are being decentralised as technological advances allow these tools to be cheap enough for us to access them or own them for a very low cost. The super computer in your pocket comes to mind, or the factory you don’t have to own as you access manufacturing capacity via Alibaba. They way it will work is in 3 simple steps:
     

  1. Set up solar panels + Battery storage  = Price X
  2. When Energy bill > 20% of Price X
  3. Finance will fund the off grid set up. (cost of money around 7% for unsecured loans + principal repayment)

It will be much like what happened with our shift from the dumb phone to the smart phone. We have a contract to pay off the hardware (which actually includes hidden interest costs), but in this case, the hardware is paid for by the money we’d normally be paying the electricity company with a quarterly bill. But now it will go to the companies setting up a mini power plants in our homes.

So where are we today with the cost of going ‘off grid’ and having enough energy to power our homes?

The average home in Melbourne, Australia (where I live) uses 16 kwH per day. In order to set up a solar PV, inverter and battery system which can provide this level of energy on a daily basis, in all weather, it currently costs around $25,000 – just google “off grid solar 16kwH” to see the various options. The current average energy bill in Australia is $550 per month. Already the cost is very close to the switch covering the cost of finance and repayment in 3-5 years – the typical length of unsecured loans. The switch will happen very quickly when we consider the rapidly declining cost of both solar panels and batteries. Currently the cost of Lithium Ion rechargeable batteries is falling by 40% every 2 years driven by large scale production efficiencies. Based on the current price trend, within 5 years the cross over will start to occur.

And here is where it gets interesting. It will happen quicker than we think based on other non-battery based system efficiencies:

Solar Panels (PV cells) cost performance improvement 20% per doubling of manufacturing capacity – otherwise know as Swanson’s Law. This too will continue. Within 5 years their cost will be 75% less than they are today, and they will be more efficient at capturing energy, due to energy capture improvements. Since 2011 the average PV panel went from only capturing 11% of available joules of energy to 19% currently. Add to this the potential of a curve jump to better technology and we could surpass even our current optimistic estimates. A report just this week from the Journal of Material Science revealed a way to recharge Zinc Air batteries which could be 5 times more efficient than Lithium Ion. 

And finally, lets not forget that the amount of electricity / and energy we use in the home currently has wastage rates of up to 30%. New devices and IoT functional smart homes will significantly reduce the energy wastage in our homes. Once our houses become IoT enabled, not only will the efficiency and capture of an off grid system be much better, there is a highly likelihood we will not require as much energy as we do today. This is because most devices requiring energy in our homes will essentially become computers. This is where Koomey’s Law comes in. Koomey’s Law states that at a fixed computing load, the amount of battery you need will fall by a factor of two every year and a half. This will  have a more dramatic impact on the energy industry as most machines we use computerise.

When we add this up, all these pieces from different previously isolated sectors, it is clear to see we’ll have all the energy we need from the sun and other sustainable sources. Which means, that unless you sell oil or burn coal for a living, the future is certainly bright.

Check out my new book – The Lessons School Forgot –  thrive in the technology era.

The inevitable merger of our species with machines

It is said that we become the thing we are immersed in. I feel like we are starting to merge with the technology we have become so reliant on. From the world’s most connected human, to a gentleman named Mr Meow Meow who recently had an NFC chip installed in his body to make catching public transport more convenient in Sydney.

For a long time we have been augmenting our bodies with technology – hip replacements, heart valves, contraceptive devices, but until now, most of the technology has been static and does not interact with anything outside the body. We may be on precipice of radical change.

This week I had a discussion with ABC radio on the issue and even a potential split in our species – organic humans and augmented humans, or cyborgs… These here are interesting times. Click here to have a listen.

Be sure to follow my instagram page – @sammartino with regular posts on the evolution of technology, and making sure you too, are future proof.

Stay rad, Steve. 

Expertise during a data explosion

No one really knows how much data is being created in the world. We know that most of the data that exists was created in the past couple of years. Some people say it is doubling every year. The reason that this is even possible comes back to lower barriers of entry. Until we had low cost computing, internet connectivity, and more recently the smart phone, data was isolated, segmented and verified by institutions who were given the authority to create, curate and store it. Authority in this instance was a function of finance. The cost of creating permanent information was expensive – print materials, broadcast hardware, costs of distribution all limited the ability for information to be created and shared. It meant there was far less data, but it also meant we knew where to look to find what was available.

Data has moved from being something which was structured, in know-able places, to something which is unstructured, distributed and without authority. It’s now organic, alive and rapidly evolving. Authority and tools go hand in hand. Now that the tools of creating and storing data are omnipresent and almost free, their is no authority governing it. This means two important things:

  • It will continue to increase exponentially
  • Knowledge no longer has a boundary

So how can anyone be an expert on anything?

In this environment expertise has no choice but to change. No one can know everything, even in the most niche of subjects. If we add to this the idea that the major factors of production are shared – that being 1’s and 0’s – then the potential for cross fertilisation of ideas is infinite. What is true today might be kiboshed tomorrow by new inventions, ideas and collaborations.

The new art of expertise has to become this – knowing where to look and who to rely on.

While we’ll never know everything that has ‘just happened’ and we’ll never be able to predict exactly what is next, we can study the trajectory. Pattern recognition, is quickly becoming more important than knowing. What experts will need to be able to determine in the future is how likely something is, how to assess the sentiment of future behaviour and how to be able to verify what just happened. Expertise is becoming a weird kind of reverse archaeology.

Increasingly what we need to know is how to work with the tools to uncover knowledge as it is created.  The age of memorising things for future reference is quickly becoming obsolete.

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Come join me Tuesday Night in Melbourne to dig into your future and some of The Lessons School Forgot – register here. See you then, Steve.

The one word that ties this revolution all together

If I had to use one word to tie together this technology revolution we are living through it would be this:

Mobility.

Once we think about all the tools arriving and what they allows us to do, much of it revolves around geo graphic independence and mobility.

Smart phones – mobile computing in all it’s capacities. Mobile communications.

Driverless cars – increased mobility of people and things, independent of human touch.

Wikipedia / Blogging / Vlogging – Mobility of information and ideas, not locked down the the physical location of books or other data sources.

Social networks – Mobility of connections to people, what we are doing and saying flies across the globe at the click of a button.

Work – Ability to get information work done anywhere in the globe.

Drones – Mobility of things, visual footage and data points, and soon people.

Payments gateways – mobility of finance outside of physical banks.

Crypto Currency – mobility of money and payments, independent of any geography or government.

Blockchain & Smart Contracts – Mobility of promises independent of location, and premised on execution of that promise without parties having to meet physically.

3D printing – Mobility of manufacturing – send a file, make it anywhere.

Crowd Funding – Mobility of innovation outside of funding ecosystems.

e-commerce – Mobility of retail, sell to anyone, anywhere.

Cloud Computing – Mobility of data storage – it follows you around the world

Cloud Manufacturing – Alibaba providing access to the world of manufacturing with a few clicks

Freelance markets – Mobility of labour forces for information work.

Given all of this, we need to ask ourselves a simple question to future proof ourselves and or the company we work for;

How are we increasing the mobility of what we make sell or do. It’s a great place to start.

If you want to increase the mobility of your future join me for my new book launch – The Lessons School Forgot – on Tuesday night in Melbourne. Reserve your seat here for a night of inspiration & ideas with good people.

See you then, Steve.

Why I choose people over profit

I’m currently working on a TV  show with some major producers and media stations. I’ve teamed up with someone to make this a reality, and quite frankly the concept is strong – first of it’s kind globally and I know it is going to rock. Put it this way, it’s something the world needs right know a lot more than learning how to cook a soufflé or renovate a bedroom – as much as I love cake and nice houses, I care about peoples futures much more. This show once made, will help everyone who watches it future proof their lives.

During discussions with various people, it has been mooted that they want to do it, but might need to bring in their own people. You can guess the line…. get famous hosts and all the rest.. Which, for this concept isn’t necessary – it’s something different, it’s not not about shiny famous people. I was told at some point in the development process I might have to choose between supporting my team and people, or making the project work. And here’s what I said:

I’m loyal to people, not projects or profits. If that means a project might fall over, that’s fine by me, projects come and go, I value loyalty far more than a project or some profit.

Maybe I’m crazy, maybe I’ve missed out in the past by having this philosophy?

But here’s what I know, if the project is strong enough, we’ll find people who’ll work with us and our chosen team. In any case, the project has more chance of succeeding when the team is pumped, keen to work together and put their hearts in it because they believe in each other.

Only once we look after each other, is there ever enough to share around.

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Join me in Melbourne on June 20th and get your mind around ‘The Lessons School Forgot’. 

I’ll be doing a talk on how to hack your way to a radical future, and answer all the questions you might have about finding a path to independence. It’s going to be a great night.

Click here to reserve your Free seat. 

See you then, Steve. 

Why machines can never replace humans

The internet is terrific at serving up things we didn’t know we needed, enjoy and very often love. That’s why there are currently 72 million cat videos of youtube. I happened upon one such youtube channel recently – Dude Perfect. For the uninitiated, it’s a channel which shows a bunch of people doing ‘trick shots’ – like getting a basketball through a hoop from a bounce off a 10 story building – I’m betting they’ve done this, thought I haven’t checked.

Their latest version shows a Super Bowl champion Drew Brees doing amazing trick shots with a football. You can watch it here. It is mind blowing.

There are machines that can already do many of the shots they do with a 99.9% success rate. In a few short years some soft robots will be able to beat these guys at every shot they take. But here’s the thing – we’ll still watch their channel. And for one simple reason – it’s amazing because a human is doing it.

The future of what we get paid for in many realms wont be because it is the most efficient way it can be done, but because people are doing it. As a society we are interested in what we can achieve, even if a car can go faster than a human, we all still know who Usain Bolt is. There’s a good chance a lot of things robots will be able to do, the highest paid versions of it will be those with human imperfections as part of the reason we buy. Humanity is where the future of work and money lives. Who knows, maybe intelligent robots will pay to watch humans play sport one day?

Artificial Intelligence isn’t about replacing us, but outsourcing the things we’d rather not do. Once artificial intelligence takes away the mundane, the inhumane and repetitive, we can get on with the creative, the interactive and the enjoyable.

Come and hang with me on June 20th – I’ll be giving you the human live version of my new book – I’ll be wearing my heart on my sleeve in all I say, some of which will include truths my publisher wouldn’t put in print or the screen…

Book your seat here – see you there.

Stay rad, Steve.

This year the internet arrives in Australia

We don’t really have the internet in Australia. I mean, sure we are connected to it, but we aren’t even in the top 50 countries for internet speeds. That’s a total travesty for our economic future. Some of the countries with faster internet include Kenya, Lithuania, Slovenia, Moldova and many developing economies. This is the modern day equivalent of having unpaved roads, no electricity or running water. Outside of the three S’s – Search, Social & Streaming, we barely have web services which can turn industries upside down. But some of that is about to change.

Later this year Amazon arrive in Australia and with their cheap capital (free shareholder money they don’t pay dividends on) and serious intent to dominate this new market. We will finally get, at least one part of the internet, other markets have had for years. If you think you’ve seen disruption to industry in Australia, buckle your seat belt, because we are about to see what they other half of the world already have.  We’ll get to know not only what same day delivery feels like, but 2 hour delivery. We’ll get to know how great it feels for that delivery to be free and we’ll get to pay prices which will make our local retailers seem like robber barrens. It will change our consumer and business landscape because it will be an example of possibility.

I was a guest of the award winning podcast Future Sandwich episode aptly titled, Surviving Amazon. Have a listen here, or wherever you get your podcasts.

Also be sure to check my media page for weekly interviews I’m doing on Tv & radio on all things future.

Don’t forget to join me for to celebrate my new book launch The Lessons School Forgot, on June 20th. Free tickets here, see you there! Steve.