The economic landscape is becoming brighter. Or
should we say “greener.” The Department of Energy’s
National Renewable Energy Laboratory says that
residential and commercial consumers are choosing to
buy renewable energy.
Investing in renewables carries risks, which are the
investments needed to firm up wind and solar power
as well as the uncertainty tied to public policies
that help support growth. Utilities have therefore
been apprehensive about putting capital into
emerging technologies that may have a longer payback
and that may not be adequately recovered through the
rate base.
But now that consumers appear to be warming to the
idea, companies are realizing the benefits. And that
success has created a renewed push to build
additional green projects and to enact the rules and
regulations to enable that expansion. Wind energy
represents, nationally, about 85 percent of the
electricity generated for green power programs, the
energy lab says.
“Participating in
utility green power programs allows consumers to
support renewable energy above and beyond what
utilities are procuring to comply with state
renewable portfolio standards,” says the energy
lab’s Jenny Heeter. “These utilities are offering
first-rate programs that give their customers an
opportunity to support renewable energy deployment.”
When ranked in terms of renewable energy sales, or
megawatt hours per year, Portland General Electric
is the leader as of year-end 2012. It is followed by
Austin Energy, PacifiCorp, Sacramento Municipal
Utility District and Xcel Energy.
When ranked by the percentage of customer
participation, the City of Palo Alto Utilities
(California) ranks first, as of year-end 2012. It is
followed by Portland General Electric (Oregon),
Madison Gas & Electric (Wisconsin), Sacramento
Municipal Utility District, the City of Naperville
(Illinois) and Pacific Power (Oregon).
Voluntary efforts are one thing. Mandatory ones are
another, or the existence of renewable portfolio
standards. Today 29 states and the District of
Columbia have such requirements. Another five states
have non-binding goals. The standard creates local
demand, which has led to manufacturing and support
companies setting up shop in those places. Job
opportunities jump as a result.
Resistance Ahead
According to the
Governors’ Wind Energy Coalition, state mandates
could help contribute to a total of 103,000
megawatts of green energy by 2025. That would equate
to 10 percent of the national generation portfolio,
which critics say is overly upbeat.
“Politically, they represent a very significant
change in the way we view energy policy at the state
level,” says Lewis Milford, president of the Clean
Energy Group, in an earlier
EnergyBiz Insider story. “Ten years ago (RPS)
was solely the province of the public utility
commissions, but now the legislatures are fully
involved in these decisions. Not only do they see
the environmental benefits, but also the economic
benefits, so there has been a democratization of
renewables policy.”
While certain states such as California, New Mexico
and Texas have strengthened their renewable
portfolio standards, others such as Colorado, Ohio
and North Carolina are exploring ways to ease the
requirement.
The reason for the resistance is both practical and
political: Practically speaking, capital is tight
and utilities might prefer to invest in fuel sources
that have proven to increase reliability. At the
same time, the transmission grid must be expanded to
accommodate the influx of green electrons to be
transported. And, politically speaking, policymakers
who are committed to coal-related technologies are
raising obstacles so as to win compromises to
advance their cause.
“There are some very significant constraints for why
it’s going to be difficult to meet renewable
portfolio standard targets,” says Sharon Reishus,
senior director of Cambridge Energy Research
Associates, at a meeting before regulators last
July. “The two major ones are transmission-related
and cost-related,” she adds, in an earlier
EnergyBiz Insider report.
Policymakers, generally, bend to the public’s will.
In this case, the American people have expressed an
interest in pursuing green energy goals if they are
affordable and they don’t decrease reliability.
While the path was never considered to be free from
potholes, it can be cleared. That is, if those
policies are enacted and carried out in a methodical
way, they can work. The latest data released by the
National Energy Renewable Lab illustrates that.
EnergyBiz Insider has been awarded the Gold for
Original Web Commentary presented by the American
Society of Business Press Editors. The column is
also the Winner of the 2011 Online Column category
awarded by Media Industry News, MIN. Ken Silverstein
has been honored as one of MIN’s Most Intriguing
People in Media.
Twitter: @Ken_Silverstein
energybizinsider@energycentral.com
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http://www.energybiz.com/article/13/06/utility-green-power-programs-are-boasting-success