If fossil fuel production is finite and if carbon dioxide is concentrating in the earth's atmosphere, then it is imperative that nations seek alternative energy forms that are sustainable and that are more environmentally benign. That's the message from the International Conference on Renewable Energies just held in Bonn, Germany.

For at least the next half century, coal and natural gas will make up the preponderance of fuels that produce electricity—a portfolio that will most likely grow to include more renewable and nuclear sources. The U.S. Energy Information Administration says that about 85 percent of the energy consumed in the United States in 2000 was generated from coal, oil and natural gas while all renewable energy forms and nuclear energy produced seven and eight percent, respectively.

Renewable and other clean-energy technologies must be more competitive to gain wider acceptance in the marketplace and to replace fossil fuels at a faster rate, says U.S. Energy Department undersecretary David Garman. Toward that end, he says that nations must invest in ideas and technologies that increase efficiencies, lower the cost and address barriers hindering the deployment of renewable energy.

“At the end of the day, reducing the price to make renewables more cost-competitive will assure their widest possible use,” says Garman, who adds that the U.S. is committed to extending and expanding a tax credit given to those producers of renewable energy. Still, he says that the U.S. must adhere to an energy policy that is dependable and affordable and as such it supports the need for all countries to diversify their energy supplies.

According to the International Energy Agency, the United States is the leading producer and consumer of renewable energy today. In 2001, it had more than 116 gigawatts of installed renewable energy capacity - greater than Germany, Denmark, Sweden, France, Italy and the United Kingdom combined. And, over the past 20 years, the Energy Department has invested billions in the research and development of solar, wind, geothermal and biomass technologies. This year, the department will spend $357 million on such pursuits while next year Congress has been asked to appropriate $375 million.

It's all helped bring down the cost of renewable energy forms. Today, the cost of wind-generated electricity is about five cents a kilowatt-hour compared to 80 cents a kWh in 1980. By 2012, the Energy Department predicts such costs will come down to 3 cents per kWh. Meanwhile, the price of a grid-connected residential solar system is roughly 25 cents per kWh compared to $2 per kWh in 1980. By 2020, the government agency expects the price to be around 6 cents per kWh.

“Instead of being dependent on a particular energy source or fuel that is extracted and refined in some distant part of the world, we can essentially democratize energy services by tapping into (renewable sources) that nearly every community and every nation can access,” says Garman, at the conference where 154 nations participated.

Complete Success

Altogether, the nations present at the talks announced about 130 goals that involve the expansion of wind, solar, biomass and hydroelectric power as well as working to enhance energy efficiency. Meanwhile, they supported specific policy goals that involved advocating more public-private partnerships and the building of human potential to bring the expanded use of renewable energy closer to reality.

German Environment Minister Jürgen Trittin, whose nation leads the globe in wind energy production providing 40 percent of the world's capacity, declared the conference a “complete success.” Even developing countries such as China, the Philippines and the Dominican Republic made notable commitments to promoting renewable energy. “Together the delegates have paved the way for a global transformation in energy structures and for a massive increase in the use of renewable energies," Tritten said at the forum.

Toward that end, the World Bank, which is the largest lender for renewable energy projects in developing countries, said it would increase its funding in the domain by 20 percent a year over the next five years. Its loans currently average $200 million per year—an amount that will double under the new plan by 2010. The bank says that it will furthermore increase its staffing and become more involved in such renewable projects.

To be sure, it won't be easy to supplant fossil fuel use. According to the Industrial Energy Consumers of America, industrial energy consumers can ill-afford higher power prices. They are already weakened by a fragile economy and the threat of global competitors who have cheaper access to power supplies. Price pressures will only intensify and result in a continued threat to the country's economic well-being, it says.

"The link between affordable supplies of energy and our economic well-being is no coincidence," says the association. "Industrial energy-consuming companies were devastated by high energy costs that resulted in plant closures, plant idling, worker layoffs, and the transfer of production to offshore."

Those arguments get to the heart of the Bush administration's position that it will emphasize affordable and accessible energy fuels such as coal and natural gas - ones that enjoy favorable tax policies that increase barriers to entry for cleaner energy forms. At the same time, the administration and Congress have rejected renewable portfolio standards that would mandate wind, solar and biomass become staples of utilities' generation mixes. Other countries, meanwhile, have taken different positions and set out to actively increase the use of renewable energy. Germany, Spain, Denmark and New Zealand are the leaders.

The emphasis on traditional fuel sources has also manifested itself with the World Bank, which has devoted far more money to fossil-fuel fired projects than for clean energy over the last 10 years. It's dedicated nearly $11 billion for coal, oil and natural gas deals while allocating about $1 billion for renewable ventures.

While many thought that the programs espoused at the renewable energy forum lacked teeth and are therefore skeptical about the level of commitment, others pointed out that the meetings set definitive policy objectives. The tenor there establishes expectations, notably that renewable energy needs to develop at a quicker pace and that it must garner greater market share. That's not just an ideal but a necessity. Fossil fuel production is not only dirtier than most alternatives but will also cease to exist, in the distant future.

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