Commitment to a Clean Energy Future

Paul Gipe has studied the success of EEG (Erneuerbare Energien Gesetz), the revised German feed-in tariff. In a recent article for Renewable Energy Access, Gipe reported that renewable energy sources supply nearly 12% of electricity generated in Germany.

Under the German program, renewable energy producers are paid a fixed-price for feeding their electricity into the grid. This has led to a boom in the construction of wind turbines, rooftop solar systems and on-farm bio-gas plants.

In 2006 alone, German farmers installed 300 MW of solar photo voltaics on barn roofs. German homeowners installed an equal amount. Altogether, Germans installed 4,000 MW of new renewables last year.

S.David Freeman
“The current energy industry has quite masterfully succeeded in lulling many Americans to sleep on the dangers of the poisons they sell, while portraying renewables as a distant dream.” S. David Freeman

A feed-in tariff is a long-term, fixed rate for renewable energy, not pegged to the retail price of energy. The rate provide sufficient incentive, i.e., the price is fair, yet there is no undue profit. (Obscene profit is the gated province of Big Oil.)

In a presentation for the Oregon Department of Renewable Energy, Gipe recommends that a feed-in tariff, a.k.a., Advanced Renewable Tariff, should be sufficiently differentiated. The incentive should differ for differing technologies and for differing sizes & regions, which is a lot to ask of an Oregon legislator.

Governor Kulongoski signs SB 838 flanked by state legislators
Flanked by state legislators, Governor Kulongoski signed SB 838, which requires 25% renewables by 2025 and a 50% tax credit for solar installations and manufacturing facilities. In absence of federal initiative, states are leading the way in solar energy development.

The United States needs to greatly improve combined heat and power from solar, wind, geothermal and bio-energy. Short of impeachment, this probably cannot happen until this time next year.

Meanwhile, what advocates in California, Minnesota, New Mexico, New York, Oregon and Wisconsin — states leading the Nation in renewable energy development — are saying is that RPS (Renewable energy Portfolio Standards) alone are insufficient to stimulate enough growth in geothermal, solar, wind and other alternatives to offset critical diminution of nuclear and coal-fired electric power generation.

Dr. Ulf Bossell has written:

The reserves of coal, oil, natural gas and uranium are limited. In our time scale, they do not regenerate. Hence we can use them only as long as they last. In addition, their emissions — carbon dioxide and radioactive waste — cannot be absorbed by nature. Consequently, none of these energy sources can satisfy both sustainability criteria.

And, from Bali, relayed by Climate Progress, a delcaration by more than 200 of the world’s leading climate scientists:

The 2007 IPCC report, compiled by several hundred climate scientists, has unequivocally concluded that our climate is warming rapidly, and that we are now at least 90% certain that this is mostly due to human activities. The amount of carbon dioxide in our atmosphere now far exceeds the natural range of the past 650,000 years, and it is rising very quickly due to human activity. If this trend is not halted soon, many millions of people will be at risk from extreme events such as heat waves, drought, floods and storms, our coasts and cities will be threatened by rising sea levels, and many ecosystems, plants and animal species will be in serious danger of extinction.

The next round of focused negotiations for a new global climate treaty (within the 1992 UNFCCC process) needs to begin in December 2007 and be completed by 2009. The prime goal of this new regime must be to limit global warming to no more than 2 ºC above the pre-industrial temperature, a limit that has already been formally adopted by the European Union and a number of other countries.

Based on current scientific understanding, this requires that global greenhouse gas emissions need to be reduced by at least 50% below their 1990 levels by the year 2050. In the long run, greenhouse gas concentrations need to be stabilised at a level well below 450 ppm (parts per million; measured in CO2-equivalent concentration). In order to stay below 2 ºC, global emissions must peak and decline in the next 10 to 15 years, so there is no time to lose.

As scientists, we urge the negotiators to reach an agreement that takes these targets as a minimum requirement for a fair and effective global climate agreement.

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7 Comments

  1. jcwinnie
    Posted 2007-12-7 at 3:31 pm | Permalink

    Tim Hurst reports:

    Not too much has been heard about Michigan’s HB 5218 since it was introduced by Rep. Kathleen Law earlier in this legislative session. HB 5218 was the first proposed legislation containing a ‘feed-in tariff’ for renewable energy in the U.S.

    If you don’t know, a feed-in tariff or ‘fee-schedule’ is a policy mechanism which guarantees a premium rate payed to any entity that adds renewable energy to the power grid. Feed-in tariffs have been wildly successful at building the distributed generation of renewable resources very quickly in Germany and Spain — but not without substantial cost and commitment.

    But, the latest out of MI is that the proposed tariff because it has not gained the same amount of support as a different bill that would require Michigan get 10 percent of its electricity from renewable sources by 2015.

    I think nearly any move toward promoting renewable energy is a move in the right direction – and it is also quite possible that Michigan just wasn’t ready for the economic commitment to such an aggressive policy as a feed-in tariff. The point will be moot if the U.S. Senate includes a 15 percent RPS possibly in their version of the bill which may be voted on as early as Saturday. Then again, if President Bush follows through on his veto promise, then Michigan might have something after all.

    So, what’s the deal with feed-in tariffs, and why haven’t they caught on in the U.S.? I will suggest that there are two very formidable structural impediments standing in their way:

    1. The modern grid was not built with distributed generation in mind. Distributed generation brings fluctuations in generating capacity that would need to be addressed by making substantial investments in infrastructure.
    2. There are corporate interests and labor interests heavily invested in keeping things pretty much as they are. Power providers and utilities are trying to solidify the futures of their enormous corporations by institutionalizing the process by which power is generated, bought, and sold.

    Basically what it will take in this country to move to a more decentralized grid is a whole new politics. We need to reassess how to think about electricity generation and distribution in this country. Decentralization of the power grid will be the future of electricity in the United States, the only question is how long it’ll take to get us there.

  2. country mouse
    Posted 2007-12-8 at 7:51 am | Permalink

    Distributed grids are hard to design and build. One interesting example of what it takes can be found at NREL: http://www.nrel.gov/eis/

    and, more specifically: http://www.nrel.gov/docs/fy06osti/38982.pdf

    With regards to the comment about obscene oil company profits, they may seem large in absolute terms but in terms of a percentage of revenue, they are really quite modest. Most medium to large companies have larger profits as a percentage of revenue.

    Which raises an interesting question. If one is going to punish the oil companies for its percentage profits, should we punish companies with larger percentage profits?

  3. jcwinnie
    Posted 2007-12-8 at 9:16 am | Permalink

    Thanks for da links.

    “Punish” is such a nasty word, mouse… How about “De-subsidize”? “De-Corporate-Welfare-tize?” “De-Cheney-fy?”

  4. jcwinnie
    Posted 2007-12-11 at 10:11 am | Permalink

    Not to beat a dead horse to water, CM, BUT Ross Gelbspan, who had a 30-year career as an editor and reporter at The Philadelphia Bulletin, The Washington Post, and The Boston Globe, and is author of The Heat Is On and Boiling Point, observed in a guest post for Gristmill that, for some years, he has promoted three specific clean energy strategies:

    1. Redirecting more than $250 billion in subsidies in industrial countries away from coal and oil and putting them behind carbon-free technologies;
    2. Creating a fund of about $300 billion a year for a decade, to transfer clean energy to poor countries; and
    3. Adopting within the Kyoto framework a mandatory progressive fossil-fuel efficiency standard that would go up by 5 percent a year until the 80 percent global reduction is attained.

    So, don’t take my word for it; check it out for yourself. I do think that Gelbspan is “nailing it to the door”, Lex Luther.

    Gelbspan concludes his Gristmill post, entitled “Beyond the Point of No Return”, with the following observation:

    We are crossing a threshold into uncharted territory. And since there is no precedent to guide us, we are left with only our own hearts to consult, whatever courage we can muster, our instinctive dedication to a human future — and the intellectual integrity to look reality in the eye.

    And, as the former Argentine climate negotiator, Raul Estrada-Oyuela, said, “We are all adrift in the same boat — and there’s no way half the boat is going to sink.”

  5. jcwinnie
    Posted 2007-12-12 at 8:12 am | Permalink

    The IREC (Interstate Renewable Energy Council) was established to support market-oriented services targeted at education, coordination, procurement, the adoption and implementation of uniform guidelines and standards, workforce development, and consumer protection. The mission of this RenewableEnergyAccess.com Marketing Partner is “to accelerate the sustainable utilization of renewable energy sources and technologies in and through state and local government and community activities.”

  6. jcwinnie
    Posted 2007-12-21 at 12:11 pm | Permalink

    Via Stephen Lacey, Renewable Energy Access, we learn that “European Union officials are currently debating the need for a voluntary renewable energy certificate trading scheme.”

    Some countries that can’t meet their renewable energy targets — namely the UK — are in favor of such a system, as it would allow them to purchase credits from countries that have excess generation capacity.

    However, many people are worried that a certificate trading scheme will undermine the feed-in tariffs already in place around Europe, hurting the distributed renewable energy market that is flourishing around the region.

    » Listen To Podcast

  7. jcwinnie
    Posted 2009-3-25 at 11:00 am | Permalink

    Cleantech.com reports that the Irish government has introduced feed-in tariffs to boost its rural economies.

    With a new long-term feed-in tariff program the Irish government hopes to encourage “consumers to install renewables energy generation projects on homes and farms.”

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