U.S. report calls for more support to renewable energies

WASHINGTON, DC, US, 2004-12-15 Refocus Weekly

The U.S. government must increase its support for renewables by US$360 million a year, according to a senior bipartisan group of energy officials.

“Political and regional polarization has produced an energy stalemate, preventing America from adopting sensible approaches to some of our biggest energy problems,” says John Rowe of Exelon and co-chair of the National Commission on Energy Policy. “Our Commission reached consensus on effective policies because of a willingness to take on cherished myths from both right and left. We believe that this package of recommendations can be of value to Congress and the Administration in energy legislation next year and beyond.”

The additional R&D funding of $360 million a year should be targeted at overcoming key hurdles in cost competitiveness and early deployment, explains ‘Ending the Energy Stalemate: A Bipartisan Strategy to Meet America's Energy Challenges’ that contains detailed policy recommendations for addressing energy security, climate change, natural gas supply, the future of nuclear energy and other long-term challenges.

The federal government must also extend its production tax credit for an additional four years to 2009, and expand eligibility to all non-carbon sources such as solar, geothermal, new hydro, new nuclear and advanced generation with fossil fuel that includes carbon capture or sequestration. Government should also support efforts by the Federal Energy Regulatory Commission to promote market-based approaches to integrating intermittent resources into the interstate grid system, and establish a $1.5 billion ten-year program to increase domestic production of advanced green fuels from biomass, including waste.

“The Commission's renewable energy proposals are aimed at finding ways to reduce costs and bring competitive sources to market,” says co-chair William Reilly, former administrator of the Environmental Protection Agency. “Any scenario for tackling climate change and developing clean domestic energy resources must involve expanded use of renewable power.”

The report took two years to write and was funded by charitable foundations in the U.S. Its energy experts came from industry, government, labour, academia, environmental organizations and consumer groups as a “consensus strategy” to address major long-term energy challenges in that country. It is supported by 30 original research studies.

“Taken together, the Commission's recommendations aim to achieve a gradual but decisive shift in the nation's energy policy, toward one that directly addresses our long-term oil, climate, electricity supply, and technology challenges,” says Reilly. “Our climate change plan would both limit GHG emissions and cap the costs of doing so. At the same time, it provides incentives for low- and non-carbon sources like natural gas, renewable energy, nuclear energy and advanced coal technologies with carbon capture and sequestration, as well as for increased efficiency of energy end use.”

To strengthen energy supply infrastructure, the Commission recommends support for a variety of generation resources, including both large-scale power plants and small-scale distributed and renewable generation, as well as demand reduction for both electricity and natural gas to ensure affordable and reliable energy service for consumers.

“The Commission believes the United States must take responsibility for addressing its contribution to the risks of climate change,” adds Rowe. “But we must do so in a manner that recognizes the global nature of the challenge and does not harm the competitive position of U.S. businesses internationally.”


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