Renewables in U.S. to grow by 1.8% a year

WASHINGTON, DC, US, December 14, 2005 (Refocus Weekly)

Consumption of renewable energy in the United States will increase by 1.8% a year over the next quarter-century, according to the latest forecast from the Department of Energy.

A total of 9.02 quadrillion Btu (quad) of renewables will be consumed by 2030, compared with 5.70 quads in 2003, says DOE’s Energy Information Administration in its ‘Annual Energy Outlook 2006.’ That will be 6.7% of the country’s total energy consumption of 134 quads in 2030, led by oil at 54 quad (annual increase of 1.1%), natural gas at 28 quad (0.7%), coal at 34 quad (1.7%), nuclear at 9.09 quad (0.4%) and other sources at 0.05 quad.

Primary energy production will be led by coal at 34 quad, dry natural gas at 21, oil at 12, with renewables and nuclear both at 9 quad by 2030, out of a national production total of 89 quad. Emissions of CO2 will be increased to 8,115 Mt by 2030 from 5,815 Mt in 2004, an annual increase of 1.2%.

“Incentives intended to stimulate the development of advanced nuclear and renewable plants have particularly noteworthy impacts,” the report notes, with a total of 6 GW of new nuclear capacity projected to be added by 2030 in the reference case as a result of government incentives.

The forecast consumption of coal, nuclear and renewables have been increased from earlier predictions, while petroleum and natural gas consumption are lower, due to higher anticipated energy prices for oil and gas, as well as lower projected growth rates in the manufacturing sector which traditionally is the most energy-intensive industry. There will also be greater penetration by hybrid and diesel vehicles in the transport sector and higher efficiency regulations will reduce energy consumption in the residential and commercial sectors, and slow the growth of electricity demand.

Total consumption of marketed renewable fuels in the reference case (including ethanol for gasoline blending) will grow from 6.0 to 9.6 quad as a result of state programs (RPS and mandates) for green power, technological advances, higher petroleum and natural gas prices, and the effects of federal tax credits. More than 60% of the projected demand for renewables in the reference case is for grid-tied generation (including combined heat and power), while the rest is for dispersed heating and cooling, industrial uses, and fuel
blending.

The use of renewables to generate electricity will grow (including CHP) by 1.7% per year, from 358 billion kWh in 2004 to 559 b-kWh in 2030.

Coal will remain the primary fuel for power generation through 2030, with its share of total generation increasing from 50% in 2004 to 57% in 2030. The share of natural gas will increase from 18% to 22% by 2020 before falling to 17% in 2030, and the average delivered price of electricity will decline from 7.6 cents per kWh to 7.1 cents in 2015 as a result of falling natural gas prices and, to a lesser extent, coal prices. After 2015, average prices will increase to 7.5 cents per kWh in 2030.


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