Washington DC (Platts)--5Dec2007
If the goal of the US Congress is to be energy independent, then removing
fossil fuels from the equation won't get us there, a panel of energy experts
told the Republicans' House Energy Action Team on Wednesday.
At a forum on the role of coal in America's energy security, panelists said
that while they support the move to increase the use of renewable energy,
ignoring coal as an energy source will only hurt US consumers and the economy.
At this time, they said, renewables like solar and wind power are very
expensive, generate less than 3% of total energy consumed and are not a good
source of reliable electricity.
The Republican representatives are trying to keep coal on the table as the
energy bill was being debated. Currently, the bill focuses on increasing the
use of renewables and coal is not mentioned. The House was expected to vote on
the bill late Wednesday.
The experts agreed that mandating a certain percentage of electricity be
generated from renewable energy will only increase the price of electricity.
The energy bill includes a renewable portfolio standard that requires
investor-owned utilities to generate 15% of their electricity from renewable
sources.
Energy costs are driving businesses out of the US and hurting consumers who
are paying higher electricity bills, said Frank Stewart, president and chief
operating officer of the American Association of Blacks in Energy.
With the push to reduce carbon dioxide emissions, natural gas will be the
obvious move for states, panelists said. That move would increase demand for
natural gas that is already in short supply and push up prices even further,
said Frank Clemente, professor at Pennsylvania State University.
"Reliability is another big issue the US isn't addressing," Clemente said.
"The limiting factor with renewables is that they need a backup."
If Congress wants to develop a domestically produced petroleum-based product,
they have to look no further then coal, Roger Bezdek, president of Management
Information Services, testified.
"The liquefaction of coal can provide a fuel that the military and some US air
carriers have already said they are interested in using," Bezdek said. "With
oil prices approaching triple digits, we have no alternative but to look for
other sources."
"Coal can provide cheap electricity and an alternative petroleum-based fuel in
the form of coal-to-liquids. It's ludicrous to take it off the table,"
Clemente said.
-- Regina Johnson, regina_johnson@platts.com
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