EIA low-balls renewable energy contributions
December 19, 2013 | By
Barbara Vergetis Lundin
The early release of the U. S. Energy Information Administration's (EIA) Annual Energy Outlook 2014 issued earlier this week continues to show a trend of "low-balling" forecasts for the future contribution of renewable energy sources to the nation's electricity production that are not supported by actual experience, the Sun Day Campaign contends.
The EIA's "reference case" projects that renewable energy sources (i.e., biomass, geothermal, hydropower, solar, wind) will grow only 28 percent over the next quarter-century and constitute just 16 percent of the nation's electrical generation by 2040. However, if renewable energy continues the growth trend of the past decade, its share of the nation's electrical generation in 2040 is likely to be closer to 25 percent, according to the Sun Day Campaign. Rapidly falling prices, technological advances, and the need to address climate change suggest that the actual contribution of renewables in 2040 is apt to be far higher -- perhaps double or more the EIA estimates, Sun Day says. The Sun Day Campaign provides statistics derived from recent EIA and Federal Energy Regulatory Commission (FERC) reports that "underscore how unrealistically conservative the agency's latest set of forecasts" are.
"Even if government support lessens in future years, competitive and ever-lower prices coupled with the pressures of climate change virtually assure that renewables will continue to grow at rapid rates that substantially exceed EIA's projections," said Ken Bossong, executive director of the Sun Day Campaign. "Inasmuch as policy makers in both the public and private sectors rely heavily upon EIA data when making legislative, regulatory, investment, and other decisions, the agency has a responsibility to provide better renewable energy projections that more closely reflect the real-world growth rates of recent years." EIA did not respond to FierceEnergy's request for comment. EIA's 2014 Annual Energy Outlook will be officially released on December 20, 2013. For more: © 2013 FierceMarkets. All rights reserved. http://www.fierceenergy.com http://www.fierceenergy.com/story/eia-low-balls-renewable-energy-contributions/2013-12-19 |