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Standing Firm on Clean Energy in the Political 'Silly Season'

Clint Wilder, Clean Edge
June 08, 2012  |  5 Comments

To those of us in the industry, clean-tech deployment in the U.S. is still a long way from what it could or should be. But as was seen in last week's release of Clean Edge's 2012 State Clean Energy Index, there are plenty of signs of positive momentum, especially in light of how far the industry has come from a nascent, specialized niche a decade ago. Consider the following findings from the Index, our third annual ranking of all 50 states in clean-energy leadership in technology, policy, and capital:

  • Six states, twice as many as last year, now generate more than 10 percent of their utility-scale electricity from wind, solar, and/or geothermal. Topping the list for percent of in-state, utility-scale generation from renewables in 2011 were South Dakota (22.3 percent), Iowa (18.8 percent), and North Dakota (14.7 percent).
  • The number of registered hybrid cars in the U.S. grew to nearly 2 million while all-electric vehicles neared the 50,000 registered-vehicle milestone. California had nearly half a million hybrids and more than 22,000 pure EVs registered at the end of 2011.
  • The 29 states with renewable portfolio standards, along with Washington, D.C., account for nearly two-thirds of the nation’s total generating capacity.
  • California’s clean-energy venture capital dollars in 2011 — more than $3.7 billion — exceeded the total of all the other 49 states combined.
  • Clean-energy patents granted to U.S. entities in 2011 exceeded the 1,000 mark for the first time. Such patents were granted in 32 states, although more than half of them were distributed across just three states: California, New York, and Michigan.
  • The top five states in our Index are perennial clean-energy leaders California, Oregon, Massachusetts, Washington, and Colorado. But many states from coast to coast demonstrate leadership in different aspects of clean energy. The top 25 includes such key election-year ‘swing states’ as New Mexico, Michigan, Iowa, Wisconsin, Nevada, and Pennsylvania 

Nationwide, U.S. solar installations grew 109 percent, adding 1,855 megawatts of new PV to the grid ­– thanks to falling PV prices, favorable policies in key states, and the aggressive business strategies of installers/financiers like Solar City, SunRun, and SunEdison. U.S. wind capacity grew at a solid pace as well, with 6,816 MW of new capacity good for a 27 percent increase in wind-derived electricity generation over 2010. Perhaps even more significantly, 35 percent of all new U.S. power capacity in the past five years has been from wind. 

Government and private capital poured $48.1 billion into clean energy in the U.S. in 2011 — the total among asset financing, public market, venture capital, private equity investment, and spending on small distributed projects — regaining the nation’s position as the world’s largest clean-energy investor and dethroning China, which had held the top spot for the last two years. Even the jobs picture contained good news, with research published by the Brookings Institution showing the U.S. “clean economy” as one of the labor market’s few

bright spots during the recession, growing by 8.3 percent from 2008 to 2009 — almost double the rate of the overall economy during the same time period. 

Clean tech in the U.S. obviously faces huge challenges: low-cost natural gas, unprecedented global competition in virtually every industry sector, and government budget constraints, just to name a few. But as if those very real challenges weren’t enough, the industry now has to deal with something perhaps even more daunting: being used as a political cudgel in a presidential election year. 

To hear some tell it, clean energy, with Solyndra as its poster child, is nothing more than a federal tax dollar-wasting boondoggle, lining the pockets of a few well-connected executives and creating few American jobs. The Chevy Volt is derided as the “Obamacar” (they don’t call an election year “The Silly Season” for nothing) while TV and web ads, blogs, and commentators charge that tax credits and grants “were given to foreign companies” ­— conveniently ignoring the fact that these incentives went to global wind and solar firms to build projects and employ workers in America.

Distortions in attack ads are one thing, but the anti-clean tech brigades are now having a serious impact not just on politics, but policy. Legislation has advanced in both the House and Senate that would cut the U.S. military’s research and use of biofuels, and extension of the production tax credit (PTC) for wind power, truly a make-or-break incentive for the U.S. wind industry, continues to be held hostage in the political wars. But here’s a fact: the PTC extension (hopefully before the Congressional recess in August) is supported by such tree-hugging, left-leaning organizations as the U.S. Chamber of Commerce, the American Farm Bureau Federation, and the National Association of Manufacturers ­— as well as Republican senators and members of Congress from states such as Arkansas, Iowa, Kansas, and North and South Dakota. Oh, but that’s just because it’s in their economic self-interest, right? You better believe it! I wonder what all these folks think about the ads attacking the clean-tech industry. 

When this column appears, I will be in Japan on a week-long, four-city speaking tour organized by the U.S. Embassy. I’ve been invited to speak about clean-tech success stories at the state and local levels in the U.S. — and what lessons the Japanese can learn in growing their own clean-energy economy after shutting down all of their nuclear plants in the wake of last year’s Fukushima disaster. Much of the rest of the world still looks to the U.S., where most of today’s clean-tech industry was born, for guidance in the way clean energy should be developed and deployed. As we anticipate the next five months of political ugliness before the November election, it’s imperative that we stand firm against partisan attacks that could damage our industry for a long time.

Image: Election sign via Shutterstock

5 Comments

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Gerry Wootton
Gerry Wootton
June 12, 2012
Anonymous 1 basically drove around in circles until arriving at the main point which is that wasting energy is okay as long as it doesn't cost too much - living in an uninsulated house and proud of it. A corollary seems to be that Californians as a class are spoiled poofters who can't be compared to real men: Priuses versus hemi-powered half-ton truck. Apparently, the economically disadvantaged agriculturalists of the midwest can afford a $5000 per year get-around gas budget. The fact is that energy efficient states can be found in the south west and the northeast - climate does not correlate in any way. When you factor in residential consumption with price versus GDP, these guys a) spend less of their income on energy and b) have higher earnings per dollar of industrial and commercial energy purchase. Based on the numbers, it appears that efficiency is profitable. The good news for America is that state-of-the-art energy conservation has the potential to reduce energy consumption by two thirds. If nothing else, this would drive energy prices down and leave something for future generations. Anonymous 1's assumption that renewable energy generation is the only benchmark assumes that it's all about profligate energy consumption. But the main topic is keeping clean and renewable energy production on the political agenda as a positive thing as well as energy efficiency. Consider some of the more anti talking points uttered by actual politicians: - too many wind turbines will slow down the earth's rotation - too many solar panels will cause global warming - energy efficient light bulbs are a socialist conspiracy Well ... somebody elected them!
JSM @AltWatt
JSM @AltWatt
June 11, 2012
What is your point? Why are you assuming hybrid cars are being "driven around in circles?" Would it be better if Californians did not choose to spend more of their disposable income towards hybrids and other fuel efficient vehicles? With the highest RPS achievement of any state how can you say that California is not a leader in RE? Is TX really a leader in RE policy, or does it just happen to have a lot of wind which investors have made a lot of money on (as they also have a lot of fossil fuels)? How can VC money plus patents not indicate a state/regions efforts towards developing a clean energy future? Didn't the next poster use your "consumption vs GDP" but then you object to that based on climate? If it's all about climate, shouldn't the lack of increases in energy consumption be a legitimate metric (unless you assert that climate changes have caused the increases in other states)? Lots of facts. Little cohesion in your arguments.
ANONYMOUS
June 10, 2012
anonymous- Appreciate the thoughtful response. Just a few comments about your points though. California does have a low statistical per capita consumption rate of electrical power, but that number is a bit distorted by factors such as California's mild climate, the relatively high cost of electrical power and widespread use of cheaper natural gas for residential utilities, and very little remaining industrial manufacturing capacity. Take my personal situation for example. I currently reside in coastal southern California (Orange County) and I live in a small 1400 sq ft, 60-year-old tract house with absolutely no insulation. I never need A/C in the summer and I never use heating in the winter. I have a gas water heater, stove/oven, and clothes dryer, and my current gas bill is about $18/mo. I have an electric dishwasher, clothes washer, refrigerator, electric lights, computer, TV, etc. and my electric bill is about $50/mo, but my average daily electric usage is less than 6 kW-hrs, which is also below the state median. In comparison, a few years back I resided in South Carolina. I lived in a 2500 sq ft house with all electric utilities. I ran the A/C all summer long and I ran the heating in the winter months. Yet even during the hot, humid summers my electric bill was only about $60/mo. Naturally, my total daily electric usage in SC was probably 2 or 3 times that which I now have in So Cal. The point of my story is that using simple per capita/household electricity consumption rate metrics to evaluate states is a bit dishonest. Lastly, I would disagree with your dismissal of the relationship between household incomes and hybrid vehicle ownership. The average annual household income of hybrid auto (Prius or Volt) buyers is over twice the national median. That is not just "yipping and yammering", it's a real economic consideration for middle America.
ANONYMOUS
June 9, 2012
The reality for California energy use can be ascertained by numbers from the U.S. Energy Information Administration and many other sources. Since California accelerated its energy efficiency and clean energy programs in 1973, the residential electricity consumption per household has remained almost flat at about 7,000 kilowatt hours/household/year. This number mocks the USA national average household electricity consumption that has grown from 8,000 to almost 13,000 kwh/household/year over the same period. Meanwhile, Californians have been saving an adjusted $1,000 per household per year for one-half century. For energy consumption including transportation energy, California ranks 47th among the 50 states in per capita energy consumption. If the rest of the USA outside California had adopted California's leading energy policies over the past five decades, our national energy demands would be about 60 percent of what they are today, and we would be using 240 fewer coal- and natural gas-fired power plants, 40 fewer nuclear power plants, and about 30 percent less imported oil. As of the first quarter 2012, Texas had an installed wind power capacity of 10,377 megawatts and California had an installed wind power capacity of 3,927 megawatts. These two states together represent 30 percent of total USA installed wind power capacity of 46,919 megawatts. For reference, 46,919 MW represents about 0.1 % (zero-point-one percent) of total USA energy use (2011 data). All renewables (hydro, biofuels, solar, wind, and geothermal) accounted for about 12% (twelve percent) of USA electrical power supply in 2010-2012. I don't understand all the yipping and yammering about the vehicle choices of a small family in Iowa or the buyer of a hybrid gasoline-electric vehicle elsewhere. The issue for the USA is multi-millions of gasoline powered automobiles idling wastefully in traffic jams in all our major cities where the average driver travels less than 40 miles per day.
ANONYMOUS
June 8, 2012
I didn't purchase the report so I was not able to see what actual criteria was used to produce the rankings. However, based simply on the article I might question some of the results. While I appreciate that this is an opinion piece, the title indicates a concern about political posturing. But based on some of the state rankings for the various categories the report seems to be just as guilty of political posturing. Most of the criteria used are nonsense, such as "number of registered hybrid cars" or "number of clean energy patents". Using these metrics a state like California scores high. But the reality is that California uses huge amounts of energy, little of which comes from renewable sources. California also imports huge amounts of gasoline and NG. A state like Texas on the other hand should score very high due to the massive amounts of wind energy it produces. Rather than selective use of statistics to produce a politically biased "report", it would have been more honest to use metrics such as energy consumption vs. state GDP. This type of metric would give a better representation of true energy efficiency. Using statistics like "number of hybrid cars registered" means nothing other than some people have lots of disposable income. Of what real benefit is it if those hybrid cars are just being driven around in circles? How about a small farm family in Iowa that can only afford 1 vehicle? Should they choose a useful farm vehicle like a 1/2 ton pickup truck? Or a "clean" vehicle like a Volt or Prius, which they have little real use for? And if they choose the truck, does that make them part of the "anti-clean tech brigade"? I am a firm supporter of advancing RE technology, but I also would like to see a bit more objectivity (from both sides) in the discussions about RE.

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Clint Wilder

Clint Wilder

Clint Wilder is contributing editor at Clean Edge, a research and strategy firm in the San Francisco Bay Area and Portland, Oregon, focused on the business of renewable energy and other clean technologies. He is the co-author of The Clean...
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