Get Energy Smart! NOW!

Can we say better later than never?  Earlier today, the RES-Alliance for Jobs held a press conference announcing a broad alliance of businesses to fight for a serious Renewable Electricity Standard.

“This is the first time that we’ve had the renewable energy come together under one umbrella because we’re ready to go, now. ”  Dr. Charles Gay, Applied Solar

This group has come together to fight for something like the renewable electricity targets that candidate Obama set out: a doubling of renewable energy by 2012 and 25 percent of US electricity from renewable energy by 2025.

Let us be clear, these are eminently doable targets. Without question.  But, this is far stronger than what we are seeing in both House and Senate legislation.   The House ACES has a 20% by 2020 target, with 8 percent of that from efficiency (plus some loopholes).  The Senate bill has a 15% standard, with 4% by efficiency (and, again, more loopholes).  The politics, therefore, aren’t supportive of getting to the sort of levels that are clearly achievable. Educating Congress about the viability of these targets is a key goal for the alliance.

“The whole purpose is to educate decision-makers about the implications, across the entire process, as to the implications of their decisions.”  Denise Bode, AWEA

There are real concerns, across all these companies, that the current bill won’t drive enough investment into the renewable energy sector to help the nation achieve these doable targets.

“What we are concerned about, particularly, is that the legislation as currently written creates a business as usual situation in 2012-2013.  … The bills are not providing the type of structural support that will allow renewable energy projects to attract capital and get off the ground.”  Robert Cleaves, Biomass Power Association

This sort of higher RES target is what MoveOn and environmental organizations are calling for as well … independent of this business association effort.   And, this is something that Americans want …

A national poll conducted by Garin Hart Yang Research Group from April 29-May 1 found that:

• A national 25% RES draws strong and deep support: Three-quarters (75%) of voters favor an RES proposal requiring electric utility companies across the nation to generate at least 25% of their electricity through renewable energy sources by 2025, and that support is deep: a 53% majority strongly favors a national RES, dwarfing the total of those who oppose (both “strongly” and “somewhat”) (16%).
• Support for the RES is bipartisan: 62% of Republicans favor the RES proposal, as do 71% of independents and 86% of Democrats.
• Support for the RES runs nationwide, ranging from 84% positive in the Northeast, three-quarters support in the Midwest and West, and 71% support in the South.

Now, while this is a useful step forward, let’s lay out concerns. When questioned, quite directly,

• The group refused to state a specific target for RES that they would like rather than ‘something better’ than what is in the House / Senate bills. This suggests that they can claim “victory” with even the most marginal improvements in mediocre RES standards.
• The speakers could (or would) not lay out a Washington strategy, how they plan to influence a discussion that is (clearly) well underway.

Thus, better late than never … and hopefully not too late. And, better something than nothing, but hopefully they will lay a more serious marker than “better” in the future.

Some statements from the Press conference

Robert Cleaves         Biomass Power Association

Industry has suffered since early 1990s due to a lack of meaningful government standards.

Quite frankly we are losing the race to Europe and China in the race to meaningful power from biomass. If you look to the opportunity for power from biomass, the prospects are best in the Southeast.  By 2025, 25 percent  of power from renewable sources and two-thirds of that from biomass in the Southeast.  … But we need a meaningful RES that will help push the needle. …

Denise Bode, AWEA

We believe that we are one of the only bright spots in the economy. In 2008, added 35,000 new jobs while the economy was doing poorly and opened new manufacturing facilities.  … RES is all about jobs.

Edward Lowe,  General Electric

• Europe has target of 20% by 2020
• China has target of 100 gw of wind by 2020 and considering raising to 150
• Excited by this because believe RES has the ability to drive jobs.  GE is largest wind turbine manufacturer, roughly 1/2 of wind turbines in US.  If we saw a strong standard would clearly have to revisit our investment plans.
• Wind business really started in Europe and the manufacturing base remains there.  We’ve talked to our foreign suppliers and they are very interested in investing in the US if they see a long-term commitment.

Dr. Charles Gay,  Applied Solar

• Over past 30 years of real-world use, we’ve proved the durability of solar PV and the ability to scale to megawatts
• Already, solar PV is competitive with peak power prices in some parts of the US
• What we need is a real target to provide predictability in planning
• Over 2 gigawatts of solar PV installed in Germany in 2008. Contributed some 50k jobs.
• In Germany, there are some 120,000 renewable energy jobs which is basically the same as the entire German auto industry.