Demand for renewables in U.S. to increase 5.2% by next year

WASHINGTON, DC, US, August 3, 2005 (Refocus Weekly)

Demand for renewable energies in the United States will increase by 5.2% by next year, according to the latest forecast from the Department of Energy.

Under a base case scenario, demand will increase from 6.591 quadrillion Btu in 2005 to 6.934 quads in 2006, says the Short-Term Energy Outlook released in July by DOE’s Energy Information Administration. That compares with a 3.8% increase from 2004 to 2005 and a 2.1% increase from 2003 to 2004.

In the electricity sector, hydro will increase 8.9% into next year, to 3.046 quads from 2.797 quads this year. This increase compares with a 4.6% increase from 2004-05 and a decrease of 2.6% from 2003-04.

Geothermal, solar and wind energy will grow 5.9%, to 0.487 quads from 0.460 quads this year, following recent increases of 2% and 6.9%. Biofuels will increase only 1.1%, to 0.538 quads from 0.532 quads in 2005, following a 4.7% increase from 2004-05 and a decrease of 2.7% in the year prior.

The total for the electricity sector will be a 7.4% increase by next year, to 4.071 quads in 2006 from 3.789 quads in 2005, following a 4.3% increase from 2004-05 and a decrease of 1.5% from 2003-04.

In the non-power sector, demand for renewables in homes will be higher than in industrial or in commercial facilities, where demand is expected to drop, but it will not be as high as in transportation where demand for ethanol is growing.

In the residential sector, a 2.1% increase will take demand to 0.476 quads next year from 0.466 quads this year, following increases of 2.2% from 2004-05 and 4.8% from 2003-04. In the commercial sector, demand will decline by 0.8% going into next year, dropping to 0.121 quads from 0.122 quads this year, in sharp contrast to the 6.1% increase from 2004-05 and a 8.5% increase from 2003-04.

For the industrial sector, demand will increase 1.4% into 2006, as demand increases to 1.928 quads from 1.902 quads this year, although demand is also lower than the 2.9% increase from 2004-05 and a 5.6% increase from 2003-04. In transportation, the increase will be 8% to 0.337 quads from 0.312 quads in 2005, compared with a 4.3% increase from 2004-05 and an increase of 25.6% from 2003-04.

The average for all non-power sectors will be a 2.2% increase into next year, to 2.863 quads from 2.802 quads this year, following a 3.1% increase in 2004-05 and a 7.4 jump in demand from 2003-04.

DOE tracks hydroelectric output in conventional facilities only, and excludes hydropower generated by pumped storage. Biofuels include fuelwood, wood byproducts, waste wood, municipal solid waste, process waste and alcohol fuels, while transportation demand is ethanol blended into gasoline.

The data include minor components of non-marketed renewable energy tjay is neither bought nor sold, such as stand-alone green power or most green heat applications.

Production of non-hydro renewables will grow to 3.82 quads in 2006 from 3.74 quads this year, compared with 3.55 quads in 1996. Total energy production in the U.S. next year is forecast to be 73.46 quads, of which coal will provide 24.20, natural gas 19.52, crude oil 12.13, nuclear 8.27 and hydroelectric will provide 3.02 quads.

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