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What are the Barriers to Distributed Renewable Energy?

John Farrell
February 04, 2013  |  10 Comments

The following presentation by ILSR examines the five major barriers to the expansion of community-based and conventional distributed renewable energy.  The barriers range from the challenge of raising capital to forming a legal structure that allows for local ownership and for access to tax incentives.  It also examines the uphill struggle against utility and regulatory inertia toward large scale power generation and utility hostility to local power generation because of its threat to their market share.

There are also several examples of community-based projects that have succeeded despite the challenges, and that offer models for promoting clean, local power generation.

 

Barriers to Distributed Renewable Energy from John Farrell

This post originally appeared on ILSR’s Energy Self-Reliant States blog.

Lead image: Road blockade via Shutterstock

The information and views expressed in this blog post are solely those of the author and not necessarily those of RenewableEnergyWorld.com or the companies that advertise on this Web site and other publications. This blog was posted directly by the author and was not reviewed for accuracy, spelling or grammar.

10 Comments

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Fred Linn
Fred Linn
February 15, 2013
phil----------" fred linn, your suggestion is that desert ecosystems have little or no value."-----------

That is a widely held belief Phil-------but it is not mine, I assure you.

However, without irrigation, much of the food production of this country that takes place in California's central valley would not be possible. It's a desert.

I like the desert---I have spent a great deal of time in the desert.
Phil Manke
Phil Manke
February 15, 2013
fred linn, your suggestion is that desert ecosystems have little or no value. Not so. BUT- IMO, the idea of using solar power for water pumping may have great merit in many societal systems. Consider the vulnerability of the grid to storms and terrorist effects, while also the need for a secure water supply when the grid can fail. Many cities and towns would benefit from investment in solar energy provided public water pumping for the security and durability it offers, while offering a stabil investment over time, with excess power sold to grids providing offsets of operating costs.
Fred Linn
Fred Linn
February 14, 2013
Where there is water, there is life. Where water becomes available, deserts bloom. Where there is water, life can flourish.

Solar power can move water. Wind power can move water.

Use wind and solar power to move water to the deserts.

People and life will flourish.
David Schoenwald
David Schoenwald
February 6, 2013
The challenge is for regulators to provide an incentive to local utilities to embrace distributed generation.
Dipak Kumar Bhattacharya
Dipak Kumar Bhattacharya
February 6, 2013
I consider that the greatest barrier is capitalism & presence of banking & financial sector. After all the real resources are man, nature, science & technology - but in capitalism initial outlay & quick profit is the motto; hence ecology is sacrificed. Scientist & technologists also has become wage-slaves to serve their masters. In a different setup where money is not the prime factor, society by the demand of majority would have diverted the brilliant brain of scientist & technologist to research & development of renewable energy. Harnessing the solar power in Sahara & Gobi desert can be more than sufficient for the whole human race. But it wont be done as there is no quick buck in such good work. So let the world suffer, we must pocket the profit quick in time is the only motto!g
SCOTT ALF
SCOTT ALF
February 6, 2013
Exsisting technologies reflect the origins of conservation. Capitalism having built upon infrastructure that requires desemination of energy for focused financial (Profit)returns,has resulted in the greatest barrrier. Profit sharing from centralized power, is unacceptable to the business model. The decentralized power model spreads the wealth to the consumer, killing the $ source of capital gains.
ANONYMOUS
February 6, 2013
Memo from the International Corporation’s High Command: It is imperative that we nip this distributed power generation idea in the bud. We cannot have individuals and communities generating their own power. The lost revenue for us and the lost taxes for our friends in Washington cannot be tolerated. This might lead to individuals and communities growing their food and that would lead to total capitalistic blasphemy. Heil Corporate!
Phil Manke
Phil Manke
February 5, 2013
I am wondering why you assume that 'FIT's are the only viable distributed energy production incentive program. SRECs have shown, in the eastern states that have maintained reasonable allowance and desire for solar energy to continue, that they will provide great incentive with minimum of political tampering when official parties change political alliance over time. SRECs offer a higher incentive in the begining when solar use is small and 'burn-tec' methods make most of the power and automatically adjust over time as solar saturates provision. Yet, it has proven that no system owner reasonably allows their individual production, per-force, to falter. It becomes a natural market driven and distributed economic incentive, that may also work with community project development. SRECs reflect a more well balanced realization of balancing deferred current waste (pollution) dumping costs.
Eric Christensen
Eric Christensen
February 5, 2013
Here in Washington State, we have been working for some time to develop legal structures that allow capture of state incentives for community solar, federal incentives for renewables, while minimizing costs for meeting securities laws. It takes some imagination but it is possible.
Anumakonda Jagadeesh
Anumakonda Jagadeesh
February 5, 2013
Good post and Video. The trouble with many community based projects(Energy is no exception) in developing countries is CO-OPERATION means MORE COOING AND LESS OPERATION !
Dr.A.Jagadeesh Nellore(AP),India
E-mail: anumakonda.jagadeesh@gmail.com

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John Farrell

John Farrell

John Farrell directs the Energy Self-Reliant States and Communities program at ILSR and he focuses on energy policy developments that best expand the benefits of local ownership and dispersed generation of renewable energy. His latest paper,...
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