At least half of the 50 states can achieve energy self-sufficiency - meet all their internal energy needs from renewable energy generated inside their borders - with the help of locally-focused federal energy policy, says a report released by the Institute for Local Self-Reliance. The report, "Energy Self-Reliant States: Homegrown Renewable Power," provides a state-by-state estimate of the amount of electricity and transportation fuels that could be generated by wind energy, solar energy, and biomass.

Renewable energy is unique because it is available almost everywhere and in many cases, can most effectively be harnessed in distributed fashion. Nevertheless, federal policy unaccountably subsidizes and encourages the harnessing of renewable fuels in a few states and sending the energy long distances to customers in other states.

The rationale for this policy is that renewable energy should be harnessed for the least cost – where the wind blows most strongly and reliably, or the sun shines most often, or the soil is most productive.

If carried to its logical conclusion, this could result in a centralization of our power supply. Advocates of this policy, for example, note that sufficient solar radiation falls on just a section of Nevada to power the entire country. The two Dakotas have enough wind electricity potential to meet over 80% of U.S. annual electricity consumption. The agricultural heartland can grow crops less expensively, and in greater abundance, than coastal states.

This philosophy has led federal policy to focus on developing the means to transport electricity and transportation fuel generated from wind and sunlight and soil out of the middle and southwestern parts of the country to coastal markets. And this in turn leads to calls for a dramatic expansion of high voltage transmission grids and rail lines and terminals.

There is no question that the abundance and cost effectiveness of renewable energy does indeed vary from state to state. Nevada, for example, can produce solar electricity from photovoltaic panels for about 20 percent less than Iowa and about 35 percent less than Pittsburgh, PA.1 Iowa has thirty times the biomass resource of Nevada and could produce biofuel more cheaply. A typical North Dakota commercial wind turbine could produce electricity at a cost close to 30 percent less than an Ohio one. But in most cases, these significant variations result in modest variations in the cost of energy to the ultimate consumer because of the cost of transporting the energy.

For example, if Ohio’s electricity came from North Dakota wind farms – 1,000 miles away – the cost of constructing new transmission lines to carry that power and the electricity losses during transmission would surpass the lower cost of production, resulting in an electricity cost 15 percent higher than local generation with minimal transmission upgrades.2

State based renewable energy strategies can strengthen local and regional economies. States have clearly indicated their desire that renewable energy be harnessed within their borders and in most cases consumed by instate businesses and households. For example, Minnesota enacted a Community-Based Energy Development statute that helps secure more locally owned wind power, and an ethanol producer payment that supports small-scale ethanol plants. Missouri has an incentive for locally owned biodiesel refineries and also provides a producer incentive for ethanol, but only if it is made from in-state agricultural products.3 Louisiana recently passed a biofuel law that prioritizes in-state production of “advanced biofuel” from Louisiana-grown feedstocks.4 Delaware requires its major utility to request proposals for new in-state generation.5

A handful of states do focus on renewable energy exports largely because their renewable energy production currently exceeds in-state demand. But in-state markets could expand as the country moves to higher proportions of renewable energy. For example, Minnesota exports almost two thirds of its in-state ethanol production. Much of it goes some 2,000 miles to California. This is because of a federally imposed 10 percent limit on the amount of ethanol Minnesota vehicles can use. If this limit were raised to 30 percent, all Minnesota ethanol could be consumed within the state. This would be attractive to Minnesota biorefineries because they could avoid the cost of transporting their product long distances. It would also be attractive to consumers, who would be less reliant on the vagaries of the international oil market.6

How much energy could be generated by states tapping into their own renewable resources? In this report we examine the potential for renewable electricity and transportation fuel. The report does not include the third leg of U.S. energy consumption – building heating. Thus, about 30 percent of a state’s energy use is not considered in this analysis.7

The data is preliminary and we hope others can refine and expand on it. But the data we have suggests an important conclusion: the majority of states could satisfy a significant amount of their internal electricity and transportation fuel needs from local resources and by tapping their human ingenuity. Indeed, as the report discusses, we believe current data may considerably understate the potential.

For the complete study go to:  http://www.newrules.org/de/energyselfreliantstates.pdf