More renewables would save money and reduce emissions in U.S. interior

BOULDER, Colorado, US, 2004-06-02

(Refocus Weekly)

The western interior of the United States could generate 20% of its electricity from renewables by 2020, while saving US$2 billion a year and reducing GHG emissions by 40%.

Adding significant amounts of renewable energy resources and energy efficiency measures to the western power grid between now and 2020 would reduce regional electricity costs by billions of dollars, says ‘A Balanced Energy Plan for the Interior West’ prepared by Synapse Energy Economics and Tellus Institute for Western Resource Advocates.

Increased use of renewables in Colorado, Utah, Arizona, New Mexico, Nevada, Wyoming and Montana would create a more secure business climate by reducing economic and environmental risk and, in some risk scenarios, the region could save $5 billion annually by adopting a more balanced plan.

The seven states will need to generate electricity for the equivalent of five new cities the size of Denver by 2020. Under the proposed plan, 20% would come from renewables and there would be a significant investment in energy efficiency.

“The Balanced Energy Plan addresses our need to diversify energy sources and reduce the cost of electricity,” says Joanna Prukop, state energy secretary in New Mexico. “This is the first study to do a hardnosed comparison of the costs of continuing to rely on fossil fuels as opposed to adding more efficient, cleaner renewable energy sources.”

Compared with a business-as-usual scenario, the plan would reduce the cost of providing electricity to the region by $2 billion per year by 2020, stabilize electricity rates by reducing reliance on natural gas generation, and would reduce the cost of generating electricity by $2.5 billion a year if natural gas prices increase more rapidly than expected and by $4.9 billion a year if climate change regulations are adopted by the federal government. It would also reduce nitrogen oxide and sulfur dioxide air emissions from power plants by 31% and 38% (respectively) and reduce CO2 emissions by 42% by 2020.

The main risk with the ‘business-as-usual’ scenario was its reliance on fossil fuels, says John Nielsen of WRA, which would expose electricity customers to rising or unpredictable natural gas prices, hydroelectric shortages caused by drought, and future environmental regulations.

“We think it’s inevitable that carbon emissions will be regulated in the future,” he explains. “When carbon is restricted, it will be very expensive to address the carbon emissions from the coal plants that are being proposed today.”

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