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Don't Miss The Great Solar Debate: Where Does the Global Solar Industry Stand? ×

Claiming the Future: A Seven-Point Action Plan for Repowering America

Ron Pernick, Managing Director, Clean Edge
September 06, 2012  |  12 Comments

Mitt Romney's acceptance speech at the Republican National Convention last week ought to serve as an urgent wake-up call to anyone that cares about America's energy, environmental, and economic future. At the podium, Romney chided President Obama on global warming, and his hoped-for GOP administration is advancing an "energy independence" plan built much more on the polluting industries of the past than the innovative clean technologies of the present and future. Somehow, global warming, renewables, and other clean-tech pursuits have become some of his favorite punch lines.

But clean tech is far from a laughing matter. Instead it’s the stuff of major multinationals such as GE, Toyota, and Siemens who are investing and making billions of dollars annually from their clean-tech initiatives; of startups including Tesla, SolarCity, and Agilyx who are respectively working to innovate electric vehicles, solar power finance, and plastics recycling; and of young Americans across our nation working to advance clean technologies, address climate change, and build thriving for-profit and non-profit ventures.

And contrary to what some would like you to believe, renewables energy production isn’t a marginal industry; it’s expanding rapidly in importance and penetration. In 2010 three states got more than 10 percent of their electricity generation from wind, solar, and geothermal. One year later, the number had doubled to six states including South Dakota and Iowa, which now generate approximately 20 percent of their total electricity from the wind alone. Clean tech isn’t shrinking; it’s starting to scale up to significant percentages for utilities, cities, states, and nations.

Perhaps this growth is exactly why some entrenched interests — and the politicians they fund — are working so hard to demonize clean tech, spread misinformation, and demoralize its supporters. But this partisan behavior overshadows a critical point: clean tech has historically been a bipartisan endeavor, and even to this day is supported by governors, mayors, and others on both sides of the political aisle. Even more important, renewables are overwhelmingly supported by citizens of all stripes and affiliations in poll after poll. 

Three Energy Pillars: Renewables, Natural Gas, and Efficiency 

In our just-released book, Clean Tech Nation, which looks broadly at the entire clean-tech industry, Clean Edge senior editor Clint Wilder and I make the case for a U.S. energy future built on renewables, responsible natural gas, and efficiency. Our research shows that most of the developed world simply doesn’t need new coal or nuclear to meet their energy objectives. Instead, the world’s industrialized nations could pursue:

  • Large-scale deployment of both centralized and distributed renewables, including solar, wind, and geothermal. Most of the 34 industrialized nations in the Organization for Economic Cooperation and Development (OECD) can reach 30 percent or more renewables by 2030. This includes Japan, Germany, and the U.S.
  • The targeted use of current and next-generation natural gas power plants. A number of manufacturers, including GE, have launched advanced natural-gas-fired power plants that can be powered up and down quickly and efficiently. This means that next-generation gas-fired plants can act as perfect partners with intermittent renewables, offering an easy on-and-off backup to wind and solar power sources. Rather than pitting natural gas against renewables, states, utilities, and regulatory bodies can use these new plants, along with current low-emissions gas plants, in their arsenal of technologies to reduce emissions and reliance on more carbon-intensive fossil fuels, especially coal.
  • Aggressive investments in a smart, two-way grid. The electrification of automotive transportation and the growing requirements for reliable energy storage and backup for a data-driven economy will be the underpinning of a new smart grid. Nations that invest in smart meters, reliable networks that can accommodate the two-way flow of electrons, and resilient networks that do not result in cascading blackouts will be in a better position to accommodate the advanced generation technologies of the future.
  • The cost-effective and low-hanging fruit of energy efficiency. Light bulbs that use significantly less electricity, windows that insulate much better than their predecessors, and data centers optimized for squeezing the most out of every watt provide great hoards of untapped “negawatt” power, reducing the need for new generation plants and enabling renewables to increase their overall share of the energy pie.

But what steps can enable such an advanced energy future, and how can the U.S. lead the way? 

In Clean Tech Nation we offer a Seven-Point Action Plan for Repowering America that is bipartisan, grounded, and most importantly, we believe, achievable. Our plan’s supporters to date include a former oilman, a past president, current bank executives, nonprofit leaders, CEOs, and many others. It includes key action items that we believe can renew American leadership, and ensure the nation’s future economic competitiveness across the industrial spectrum, from energy and transportation to waste and water. 

Our recommended actions are:

There are no silver bullets, no single actions that can guarantee success. It will take a diversified portfolio approach. But we believe that the U.S., perhaps more than any other nation, is in a unique position to lead in everything from new financial models for renewables and efficiency deployment to open standards for the smart grid and green buildings. We’ve done it before in the computer and Internet revolutions, and in rail, air, and space transportation. We can do it again if we have the leadership and the will. 

At the national level, clean tech has become highly polarized during this election cycle. But, as noted earlier, multinational corporations, investors, and a crop of motivated innovators are aggressively exploiting the opportunities of cleaner, greener, smarter processes. At the local and regional level, mayors and governors, both Democrats and Republicans, are supporting the growth of clean-tech industries. And the majority of U.S. citizens believe that our nation’s future should be firmly planted in advanced energy technologies, not the polluting fossil fuels that powered the last century. For the sake of our nation, let’s hope that whoever is sitting in the White House in January 2013 will support the efforts of Americans across the country in moving forward, not backwards, and in emboldening America’s technology-driven, problem-solving culture. Nothing less than our nation’s economic competitiveness and the health of future generations relies on it.

Lead image: Take action sign via Shutterstock

12 Comments

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lawrence elliott
lawrence elliott
September 8, 2012
AS someone who has designed and installed close to 6 megawatts of grid -tied PV solar projects of all sizes over that last 25 years I should be really supportive of this statement...Number 9: Enact a National Interconnect Standard for Renewable Energy.




My reluctance hinges on the Interconnect part

More and more I'm becoming an advocate of stand alone systems using the grid only as backup

Equipment to accomplish this is getting more and more sophisticated and costs are coming down

I have seen single to three phase rotary converters installed in the 50-60HP (35-50kw) range that required only a single line and a check for permit with the AHJ and in many cases no permit pulled at all.

On a single phase drop the reactive and harmonic disturbance to the grid can be quite high.

Just try and install a tiny 1kw grid tied system that operates at unity with very low harmonics and watch as the paper and dollar trail gets longer and longer and more expensive

Why?

You are making an interconnect and not just a connection

The standard grid tied systems we are installing now are looking less and less attractive.

And as for grid tied PV systems of any size not being able to operate in daylight without the grid?


Only if they don't have my AC Coupling system that installs in an hour on most systems,is inverter 'agnostic' and on larger systems costs under 2 tenths of a cent per watt.
ANONYMOUS
September 7, 2012
A couple of these ideas have merit, but most of them are just feel-good boilerplate nonsense. Number 4 and number 7 are worthwhile. The federal government should phase out all energy production subsidies, and providing cash prizes to private companies for meeting certain goals is a far more efficient use of taxpayer money than the current approach for R&D.
ANONYMOUS
September 7, 2012
Number 9: Enact a National Interconnect Standard for Renewable Energy DG projects. There are way too many utilities and AHJ's setting different rules often because they don't really understand what DG is and isn't. This drives up cost,complexity and, worst of all, delays our ability to execute faster and get off fossil fuels.
Phil Manke
Phil Manke
September 7, 2012
Well, I've found it is better to change ones own view and actions than to try to change anothers. Have you done the things you advocate? That is the best teacher. We need incentives, yes. "Petition, Petition, petition." The world is an ego projection of what is not real, but imagined. We support it with our beliefs, of course. Powerful they are. People who refuse to change usually have reasons they will not discuss openly or may not be aware of. Even highly educated people deceive themselves with basic emotions and grievances all the time. The belief in educational and economic superiority is a prison of beliefs and self expectations. One cannot teach this, but for the truly willing, it can be remembered.
Erik Kiehle
Erik Kiehle
September 7, 2012
I should point out to you all that we who read this and similar sites are probably more adept at math than our friends and neighbors. We were recently visiting friends in South Carolina and they are concerned about extended power outages in the event of severe weather (hurricanes). Since the family bread-winner is a surgeon they're likely to shelter in place during and after a severe weather event since the bread-winner will have to work at the hospital.

S. Carolina has a 25% state tax credit on top of the 30% federal tax credit for RE projects. Their utility will finance RE projects for 10y term at 1.25%, paid for on their monthly utility bill. You can even wrap energy efficiency things like HVAC into the loan at that rate/term.

This high-income household still can't figure out the math of why it'd make more sense to go for a grid-tie battery-backup PV solution to cover their needs with low-interest, long-term financing and 55% of system cost PAID BY TAX CREDITS with NO OUT OF POCKET EXPENSE.

Instead they're fixated on going for a backup generator with the expectation that they'll be able to have sufficient fuel available for an extended outage. Obviously, this solution requires cash up-front to implement with no ROI such as reduced electricity costs, no tax credits, and no favorable financing.

Sheesh. If we had those state and local incentives here in Abilene, TX I'd do a deep-refit on my home's electrical, water, and HVAC systems.

I encourage all of us to think of a way to better communicate with our friends and neighbors who are otherwise blind to math or common sense. Maybe it's just changing the concept of "conventional wisdom" to include RE, but right now I can't seem to alter my friend's viewpoint.

Any suggestions or stories of what's worked for you are appreciated!
Phil Manke
Phil Manke
September 7, 2012
Along with R & D, we need much more incentivizing of established technology like distributed solar energy which will spread the energy production and profit among the homeowner and small business. Why is there only promotion for centralized power development? Could it be that wall streeter types have the time on their hands to write articles to pad their accounts these days? It is harder to skim off the proffits of distributed power production, and that is just one reason why I am in favor of it, and why it is better for the USA and the world.. Using SRECs to shift power production is a great way to get this shift on the way with many benefits to the whole country, not the least of which is a more peaceful, less extractive and conflicting energy production paradigm. The states that have done it have moved ahead in solar energy adoption! Why is this not being addressed???
Gerry Wootton
Gerry Wootton
September 7, 2012
According to various studies, dirty energy kills 17,000 to 28,000 Americans each year. The VSL (value of a statistical life) for Americans is variously estimated but assumed to be at least $5M. That puts the low ball cost of this one externality at $85B per year. Of course, there are other estimators, for example those that consider only the pure economic value / productivity of a human and/or quality of life which could provide a low ball estimator: in one study, persons living near fossil fuel facilities were substantially marked down due to their depressed quality of life and reduced life expectancy (interesting feedback mechanism). Or one could apply an experience number, e.g. $2.1M being the average payout for 9/11 victims - that puts the bill at at least $50B/a based on 24,000 deaths/a. (that too includes a steep gradient from $0.8M for the poor to $9.1M for the very wealthy). After that, one could add the tab for those merely injured - there are statistical values for quality of life as well which, though lower, apply to a much larger population; of course, this value is diminished by those who move from this grouping into the previously mentioned one.

The US Fed spends more than $40B per year on medical research of a >$70B total. One analysis says every $100M can be justified on the basis of a 20% chance of preventing 25,000 deaths per year.

Now, let's talk cheap energy ...
Mike Holly
Mike Holly
September 7, 2012
@ Gary McCallum. I'm not talking about home-made solutions built on the backs of homeowners' labor. I'm talking about industrial projects. The US electricity industry invests less on R&D than the dog food industry.
Gary McCallum
Gary McCallum
September 7, 2012
Mike Holly
"there is little incentive to develop new low-cost technologies"
It is more a case of there is little will
Read going green for less it is only 18 pages
http://www.cdhowe.org/going-green-for-less-cost-effective-alternative-energy-sources/4508
The modern version of Passive solar has been around for more than 30 years
Christina Nelson
Christina Nelson
September 7, 2012
Number 8. Let the oil companies pay for their own security instead of using taxpayer money and killing our kids in unnecessary wars.
rolf westgard
rolf westgard
September 6, 2012
Implementing large scale solar and wind projects is a rate payer and tax payer funded disaster. Projects like Cape Wind and Ivanpah are multi billion fiascos.
Mike Holly
Mike Holly
September 6, 2012
This country just doesn't understand the financing of new technologies. We can't raise private R&D money without offering investors a fair chance at future markets. The US offers no free markets or even feed-in tariffs (like the EU).

Markets are dominated by electric utility monopolies in the 35 regulated states and their monopolistic spin-offs in the deregulated states.

In our Midwest region, the states of ND, SD, NE, KS, MO, IA, and MN allow utility monopolies to meet renewable energy mandates by building their own generation or holding rigged competitive bidding. Because these monopolies could block or take any technology they want (like Warren Buffet's Mid American Energy is doing with wind in Iowa), there is little incentive to develop new low-cost technologies.

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Ron Pernick

Ron Pernick

Ron Pernick, co-founder and principal of Clean Edge and co-author of The Clean Tech Revolution, is an accomplished market research, publishing, and business development entrepreneur with two decades of high-tech experience. At Clean Edge...
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