Renewables offer energy security, U.S. official testifies

WASHINGTON, DC, US, March 8, 2006 (Refocus Weekly)

Renewables can reduce oil imports in the western hemisphere, but legal and regulatory changes must be made to attract private investments, according to the U.S. Department of Energy.

Economic growth and development depend increasingly on ensuring resources to supply clean energy, and nations in the western hemisphere must cooperate to realize greater energy security, the assistant DOE secretary for policy & international affairs told a subcommittee of the House Committee on International Relations. Karen Harbert says high prices for oil and natural gas, vulnerability of energy infrastructure and political volatility in traditional production areas are among the energy challenges confronting the region.

The U.S. is committed to working with other countries to overcome the challenges and to foster an era in which the common goal of hemisphere-wide energy security can be realized, she explained. "We believe that a strong, stable and prosperous hemisphere is created by all countries basing their energy development, transportation and use on market reliance; by allowing for private capital to ensure optimal development; and by using the best technologies and a broad range of energy resources to give consumers the best choices.”

“While the bulk of the energy consumption throughout the hemisphere depends on hydrocarbons, some countries continue to invest in renewable energy and nuclear power generation,” she testified. Hydroelectricity has been a mainstay in many Latin American countries for many years but the “small island states of the Caribbean must reduce their oil dependency and continue to explore the deployment of new technology for developing solar, geothermal and wind resources.”

“A number of multilateral organizations and development banks, especially the Inter-American Development Bank, have a very constructive role to play in expanding the use of and spurring greater private investment in these non-traditional resources,” and the future prosperity of smaller economies may depend on minimizing the need for expensive foreign oil.

“Other renewable sources of energy, such as wind, solar and biomass, have become economically feasible for power generation in many countries, while some countries explore increased use of biofuels in the transportation sector,” and Brazil's use of ethanol for transportation is a model for the region.

“Energy security is inextricably intertwined with economic prosperity and national security,” she added. “But our energy future requires more than just a national approach; we believe that a secure and prosperous Western Hemisphere is vital for our national interest. Integrated markets, interconnected infrastructure, technologically advanced development of a broad range of resources, and efficient end-use will create a strong, confident Western Hemisphere that benefits the United States and the populations of each country in our hemisphere.”

Last year, the U.S. consumed 21 million barrels of oil every day, and net imports accounted for 58% of the total. Energy security in the hemisphere will be enhanced by policies that expand the sources and types of energy supplies, increase efficiency of production and consumption, encourage environmentally responsible technologies, enhance the transparency and efficient operation of energy markets, and strengthen the capacity to respond to oil supply disruptions, she explained.

“Coal continues to make up a vital element of our energy mix, as do our important nuclear energy and renewable energy sources,” she said. Nuclear generates 20% of U.S. electricity, second only to coal, while hydroelectric, solar, geothermal, wind and biomass “continue to grow in importance in providing the U.S. with a secure and stable domestic energy base.”

The Energy Policy Act of 2005 and the Advanced Energy Initiative unveiled by president George Bush in his State of the Union address earlier this year are “bold steps toward expanding the use of advanced sources of energy” with a key focus on important measures such as tax incentives for renewable sources of energy.

“High oil prices have caused resurgence in interest in alternative fuels sources,” and she says “renewable energy offers the possibility to reduce reliance on oil in certain markets but countries will have to make legal and regulatory changes to become attractive to major private investment.” The proliferation of renewables “offers countries in the hemisphere an opportunity to diversify their energy mix away from traditional and expensive fuels, and to reduce emissions from traditional energy production.”

“In some cases, production of renewable energy also offers opportunity to revive domestic industry, as the case may be in Central America and the Caribbean when it comes to raising crops and processing ethanol,” she added. Regional cooperation among governments in the region to standardize energy regulation and coordinate planning could leverage the financing available to introduce renewable energy technology.

“Increasing the use of alternative fuels and promoting greater energy efficiency in the near term using existing technologies requires constant and concerted effort,” but it is equally important to address future energy needs by creating transformational next-generation technologies. President Bush has requested a 22% increase in clean energy research to accelerate technological breakthroughs and, since 2001, the U.S. has spent $10 billion on research to reduce the costs of electricity from wind and photovoltaics, as well as biofuels for transport.

“Energy security depends on the choices countries make, and we are concerned that some of the countries in our hemisphere are making choices that will not optimize the development of energy resources,” she concluded. To attain the most efficient development and use of energy in the region, efforts to achieve energy security must include commitments to market-based pricing and open investment to assure that each country reaches its full potential.


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