Solar has highest potential for renewables in Arizona

PHOENIX, Arizona, US, April 27, 2005 (Refocus Weekly)

Increased reliance on renewable energies could create thousands of high-paying jobs, conserve water and improve public health over the next 15 years in the state of Arizona.

“Investing in a clean, renewable energy supply is a smart bet for Arizona,” says Diane Brown of the Arizona PIRG Education Fund. “By developing home-grown and sustainable resources, Arizona would keep more energy dollars here in the state, generating thousands of new high-paying jobs, boosting Arizona's economy, conserving scarce water supplies and improving public health."

The report examines the impact of developing renewables to supply 10% of total electricity consumption by 2015 and 20% by 2020. It was released as the Arizona Corporation Commission is considering an increase to the state's environmental portfolio standard.

The target would increase net employment by an annual average of 380 jobs per year, for a total of 6,100 person-years by 2020, concludes ‘Renewing Arizona's Economy: The Clean Energy Path to Jobs & Economic Growth.’ It would also increase wages by a net annual average of US$66 million, with a total net present value of $570 million.

It would increase the gross state product by a net annual average of $200 million, with a net present value of $1.6 billion, and generate direct property taxes of $600 million in rural areas to fund education and other local government services. Greater uses of renewables would also conserve a total of 23 billion gallons of water and reduce annual CO2 emissions by 8 megatonne by 2020, equivalent to removing 1.5 million cars from the road, as well as 11,000 tons of nitrogen oxide and 9,000 tons of sulfur dioxide.

State policy can accelerate the penetration of green power into the electricity market, and encourage investment in manufacturing, installation, servicing and financing of solar technology and wind turbines. Currently, the state exports half of its energy dollars to purchase natural gas from out of state while renewables would have a greater impact on the state economy.

The report “makes clear that solar is by far Arizona's most abundant clean energy resource,” says former U.S. congressman Matt Salmon, who is chair of the National Advisory Board of Americans for Solar Power. “It is also the most valuable in that it provides electricity on peak when it is most expensive and most needed.”

“To stimulate the retail solar market and provide consumers with a real choice as to how they generate a portion of their electrons, the Environmental Portfolio Standard must include a section devoted to developing a sustainable distributed solar market,” he adds. “Specifically, the program must guarantee homeowners, small businesses and other commercial enterprises the ability to easily and cheaply connect to the grid as well as an incentive designed to make solar electricity systems economically attractive purchase options for electricity consumers and homebuilders."

"Farmers and ranchers see renewable energy as a way by which they can supplement their farming and ranching operations in light of probable cuts to the farm program,” says Kevin Rogers of the Arizona Farm Bureau. “Farmers are America's original environmentalists and we hope this report gives legs to increased renewable energy in Arizona. Solar and wind power are a perfect fit for ranchers."

“Overall, renewable energy is an excellent investment that will provide strong returns for Arizona,” the report concludes. “At the cost of a few dollars a month, Arizona electricity consumers would lock in stable energy prices for 20 to 30 years (the life of a renewable energy installation), hedge against the risk of fossil fuel price increases, reduce demand and price for natural gas, and reduce the need for transmission infrastructure and increase reliability by shifting to distributed energy systems.”

For comparable investments, renewables produce a greater net benefit for Arizona’s economy than traditional technologies, and the Arizona Department of Commerce says the state exported $5.5 billion in 2000 to purchase electricity, natural gas and petroleum from out of state.

Arizona has more concentrated solar energy potential than any other state in the U.S., with a potential for 100 million MWh a year or 50% more than the state’s current demand. Windy areas could generate 5 million MWh every year while geothermal state could provide another 5 million MWh of electricity each year.

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