Renewable Energy Standards Pay Off Big Time

wind farm

I recently worked for an energy policy organization in Minnesota, and my colleagues and I worked to get a renewable energy standard passed there. We touted the economic benefits it would bring, like the investment in clean technologies, strengthening rural economies, innovation, entrepreneurship, and the possibility of the state to become a clean energy exporter. All this, in addition to cutting global warming emissions, made a renewable energy standard a no-brainer, and it passed – after many years of debate – with flying colors this past February.

But has an RES really changed the landscape of Minnesota and the 24 other states with a similar policy? The U.S. Public Interest Research Group (USPIRG) looked into it and found that huge strides have been made in states that have implemented a renewable energy standard. In fact, all 25 states are reducing emissions, creating jobs, and fueling a clean energy economy.

“Reaping the Rewards” found that in 2006, more than 66 percent of the nation’s renewable energy was expected to built in states with an RES. In 2007, that number jumped to 70 percent. Clearly, cleantech businesses and investment are going where the rules of the game are clear, the regulatory support is strong, and the state’s economy is open for business.

The global warming impacts are huge as well: RES states will cut emissions by a total of 8.4 million metric tons per year – that’s like taking more than 1.5 million cars off the road. About 1.2 billion gallons of water will be saved because of the decreased reliance on fossil fuels. Texas has seen some of the greatest impacts of an RES. Besides adding 2,000 megawatts of renewable energy, Texas landowners receive about $9.5 million in royalty payments from wind farm operators.

Now that we can prove the positive, local effects of an RES, it’s time for a national renewable energy standard. The House took a step this year when it passed a measure calling for 15 percent renewable energy, but the Senate to follow suit right away. A coherent national policy will help drive America to forefront of the burgeoning cleantech market at a time when the rest of the world is already clamoring to get there.
Maria Surma Manka
Maria Energia

4 thoughts on “Renewable Energy Standards Pay Off Big Time”

  1. Maria,
    Yes, RESs and RPSs have done wonders for expanding the renewable energy capacity in several states, but I have a few concerns about a national level RPS. First, using the current structure of federal production tax credit without some sort of provision that would encourage more smaller-scale generation by individuals, business, non-profits, schools, associations, etc. (small wind, geothermal, rooftop solar, etc.), I believe we will continue to a see electricity markets dominated by big-box utilities and other firms looking for the lucrative injection of a healthy federal tax credit. Second, the current language of the proposed RES would only apply to investor-owned utilities, granting an exception for electric co-ops, municipalities, which accounts for 80% of the total number of electricity providers and 28% of the total number of electricity customers in the U.S.(American Public Power Assn 2007-2008 Annual Directory & Statistical Report )[this data and some other useful stuff found APPA’s website, found at: http://www.appanet.org/aboutpublic/index.cfm?ItemNumber=2691&sn.ItemNumber=2039

    I do not mean to disparage the RES, but I believe it could use some fine tuning to create incentives for a large scale decentralization movement.

  2. Tim – Excellent points. I agree that there should be a balance for incentives for locally owned renewable energy projects that can bring greater benefits to rural and/or local economies.

    While I do a agree that a national RES with a broader scope would be best, I think an RES that covers investor-owned utilities is a good place to start – especially if the fight to get co-ops and munis on board delays any meaningful legislation for years to come. The urgency of global warming should make us examine whether we’re making “perfect” the enemy of “good.”

  3. Renewables standard for investor-owned utilities is a decent place to start, and I hope something of the sort sticks around for the final version of the bill. My concern is that the practice of exempting co-ops and municipalities will become institutionally entrenched; without fully exploring and encouraging other models of ownership, generation, and distribution.

    The large power providers and “energy” companies are trying to solidify the futures of their enormous corporations by solidifying a system whereby they are the ones who generate and sell power and they don’t really want Sophia Solarpanel or Wally Windturbine making any money on “their” grid.

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