Conference Told Energy Prices Will Aid Renewables

Conference Told Energy Prices Will Aid Renewables

Apr 17 - The Santa Fe New Mexican

Dan Reicher illustrated America's interest in energy policy with a photograph of a gas station advertising these prices:

Regular -- ARM.

Mid-grade -- LEG.

Premium -- FIRST BORN.

A venture capitalist who served under Gov. Bill Richardson when he was Energy Secretary, Reicher was discussing the role of venture capital in promoting renewable energy at the North American Energy Summit, sponsored by the Western Governors' Association.

The conference features 212 days of policy talks on everything from natural-gas supplies to renewable-energy development, along with the usual mingling among industry executives, government policymakers and energy-advocacy groups.

But Reicher reminded his colleagues that ordinary folks tend to think of energy in terms of one critical factor: price.

If prices used to work against the budding renewable-energy industry, they are now working in its favor, he said. Citing electricity blackouts, the United States' reliance on Middle Eastern oil and volatility in the natural-gas market, Reicher said the time is right for the country to develop a sustainable-energy policy that enhances national security, protects the environment and saves consumers money.

"These are big challenges, but for clean energy they are also big opportunities," said Reicher, president of Massachusetts-based New Energy Capital.

As conventional prices climb, renewables become more competitive, he said.

Renewables can also broaden the nation's energy portfolio, increase national security and relieve stress on conventional energy, which in turn drives prices down and saves consumers money.

With fossil fuels mature or declining in the United States, Reicher said, the major growth areas in the energy industry are in renewables. At the same time, he reminded, the cheapest way to increase supply is through energy efficiency.

As if to illustrate, a group of 75 Albuquerque students from Kit Carson Academy took a field trip to visit energy displays at the conference Wednesday afternoon -- paying for the bus using money saved through an energy-efficiency program at the school.

"We've been promoting electrical savings at the school, and the bill has gone down 21 percent since last month," said science teacher Robert Zachary.

"And this is our first month."

How did they do it?

"By turning off the lights," Zachary said.

Students, teachers and janitors made a concerted effort to turn off all the lights in any room that wasn't being used, he said. In rooms with sufficient sunlight, some of the lights were left off during class.

This and similar public programs, along with the state's new law requiring electric utilities to generate 10 percent of their energy through renewable resources in the next decade, are worthy of praise, said Alan Nogee, of the Union of Concerned Scientists in Cambridge, Mass.

Nogee said the West is at the center of the ongoing energy debate, and this week's conference in Albuquerque is attracting national attention in the energy industry. About 40 renewable energy advocacy groups are attending and plan to have their own strategy meeting after the conference ends Friday.

"What's interesting to us is the growing bipartisan concerns in the West for really developing the nation's abundant renewable resources," Nogee said.

California, Nevada and New Mexico have become leaders in sustainable-energy development, he said. "We are seeing those three really out there demonstrating the policy commitment to make it happen."

Moreover, Nogee said, development of sustainable energy would relieve pressure -- and consequently reduce prices -- on conventional fuels as well.

The Union of Concerned Scientists says a hypothetical federal requirement that electric utilities produce 20 percent of their electricity through renewable sources could save U.S. consumers $26 billion in electric bills by 2025.

"Renewable energy makes sense for economic development in the West, for protecting the environment, and now with energy prices so high, for protecting consumers as well," Nogee said. "And it's actually free insurance against the threat of global warming."

Richardson called on fellow Western governors to work on a regional energy plan and possibly a North American energy agreement involving the United States, Mexico and Canada. Details regarding how such agreements might work were scarce, but the governor said that is part of the purpose of holding such a conference.