Renewable Energy Fact Sheet

It’s fairly easy to make renewable energy look like a pipe dream, and misguided attacks on clean energy is doing just that: making renewables look too costly, too sporadic; not merited because it’s not competitive with fossil fuels, or that it won’t create jobs.

These petty strikes against the renewable energy industry don’t even remotely mesh with what we know is true about clean energy, and Think Progress recently published an article pointing out what you really need to know about the value of renewable energy.

1. Clean energy is competitive with other types of energy: Renewable energy is affordable now. Not tomorrow, not next year. Now. Even with the price of natural gas being inordinately low, these cheap prices are unsustainable, like any nonrenewable resource,  supplies will dwindle, and prices will rise. But renewable is staying competitive: with the help of bigger turbines, and increased reliability, some wind developers are signing power-purchase agreements in the 3 cents a kilowatt-hour range, which is far cheaper than any other new power source. The same industry maturity is occurring in solar with California solar developers signing contracts for power costing less than that of a natural gas plant.

2. Clean energy creates more jobs than fossil fuels: Renewable energy job creation outstrips fossil fuels 3 to 1. Not only does the renewable energy sector create more jobs, they create better jobs: twice as many medium to high credentialed jobs are being created in the clean energy economy with wages being about 13% higher, and almost half of these jobs employ workers with less than a four year college degree. Aside from these facts, the clean energy industry is actually growing by a rate of 8.3% which is more than can be said about the overall economy.

3. Clean energy improves grid reliability: Yes, it’s true that if the wind isn’t blowing or the sun isn’t shining then power isn’t going to be generated. But, that doesn’t mean that renewable energy isn’t a viable option for large scale power production. For instance, predictability of wind power would be easier to manage if there was more of it and energy could be delivered without interruption to the grid. Any additional costs for backup generation would be small (less than 10%) and would have little to no effect on consumer power costs.

4. Fossil Fuels have gotten 75 times more subsidies than clean energy: From 1994-2009 the fossil fuel industry received $446.96 billion in subsidies where as in that same time frame renewable energy received $5.93 billion. A study showed that in the early years of the fossil fuel industry, oil and gas producers received federal subsidies making up one half of a percent of the budget. This amount may seem small, but compare that with the one tenth of a percent of federal spending that’s used for renewables. If more subsidies were dedicated to renewable energy instead of the fossil fuel industry, clean energy would become even more cost effective than it is now.

Renewable energy could be an engine for economic growth and a pathway into a sustainable future, but false information that undervalues its potential could really set up road blocks. It’s important to realize the merit behind renewable energy, not only is it affordable and cost effective, but we can make it reliable on a large scale while creating jobs and with more investments from the federal government, we can more forward into a clean energy future.

The Urgency For Innovation

Innovation is an interesting word. It means introducing something new or different. Depending on what side of the political line you live on, innovation will most likely mean something drastically different than on the other side of the line.

To some, innovation means unconventional gas, tar sands, oil shale. These people most likely believe global warming is a myth, and may even be under the impression that Obama is pushing a “phony theology” on the American people.

On the other hand, innovation means finding new sources of clean, sustainable forms of energy. This group is most likely concerned with maintaining finite resources and keeping atmospheric greenhouse gas levels at bay.

Of course, depending on what side you’re standing on, the other seems to be in the wrong, but in either case the word “innovation” is becoming a source of contention. At present one innovation Obama is being assaulted over is research on algae-based biofuels.

Algae-based biofuels are like any other biofuel whose energy is made from biological carbon fixation. Unlike some biofuels, like bioethanol, which needs a lot of prime land space, algal fuels grow quickly and thrive in any type of water from seawater to sewage. A recent study by the Pacific Northwest National Laboratory reports that the use of algal-biofuels could replace as much as 17% of U.S. oil imports. With exorbitantly high oil prices and energy security looming, it seems the natural progression of innovation is to invest money into researching the plausibility of algal fuels. Unfortunately, now Republican’s are launching an attack on this “goofy gas”, touting Obama’s $14 million offer towards “weird” algal fuel research.

While the cost of renewable energy (wind, solar, biofuels) is dropping, the technology to improve extraction of fossil fuels is improving. Now, instead of retiring oil fields or strip mined mountains, we’re able to suck every last drop of oil from the ground and dig for every last kernel of coal. Necessity fuels innovation. And right now the urgency to make a drastic shift to a non-fossil fuel based society doesn’t exist.

Even if there was urgency to switch from conventional sources of oil to renewables, supplies of tar sands still exist and are considered innovative enough to some, leaving clean energy pushed to the side once more. The fact the clean energy isn’t being associated with the need to deter the impacts of climate change–not to mention that climate change isn’t being mentioned at all–isn’t putting enough weight on how important clean, renewable energy is to our future.

In the past, necessity has spurred innovation. Right now we’re not forced to come up with an energy source on the fly, but at the same time that seems to be deminishing research of potential [innovative] fuel sources outside of fossil fuels. Somehow, we need to create an urgency to switch from fossil fuels to renewable resources, investing money into all sources, no matter how “weird” they may be.

Energy Efficiency, the Rebound Effect, and Climate Policy

You would think that if you needed less energy, you would use less energy. Oddly enough this isn’t the case. In a recent series of articles in Grist, author David delves into the idea of the rebound effect, how it effects energy efficiency, and the implications of these in terms of Climate policy.

It takes energy to make energy for the services we use. Energy efficiency refers to the use of technological innovations that give us the same level of energy service using less primary energy.

Energy efficiency is also less expensive–you can pocket the money saved from getting a more fuel efficient car, investing in solar–what have you. But what do you do with the money you save? If you buy an energy efficient car you may respond to the decreased costs by increasing your demand for that particular service; meaning, you might actually end up buying more  gas because you’re driving more. This is called the direct rebound effect.

On the other hand, you might choose to indulge yourself with the purchase of a new phone or a tablet or something you’ve always wanted but haven’t been able to get. But it takes energy to manufacture the item of your deepest desire, so though you might be driving less, your total energy use will increase–this is called indirect rebound effect.

If the economy as a whole is more energy efficient, it will decrease the cost of energy, which means faster growth. But growth is almost always accompanied by more energy use which overshadows the energy savings made by efficiency.

But we’re banking on energy efficiency.  Models to decrease climate pollution and greenhouse gas emissions 50% (and in some cases more) is due to energy efficiency–but these models are not factoring in the rebound effect. Policy projections could be anticipating energy efficiency savings at 30% by 2030, but including the rebound effect that number might be as low as 15% efficiency.

Unfortunately, the rebound effect is difficult to quantify and based on a variety of factors (the type of energy, socioeconomic statuses, time, location…other economist metrics I don’t understand), which makes it hard to predict how much the rebound effect will actually be. But it’s important to acknowledge the fact we’re overestimating the amount of efficiency that can be achieved.

Does the rebound effect in any way diminish the validity of energy efficiency? Absolutely not. Energy efficiency stimulates productivity, creates jobs, and decrease pollutants. It just means it is more important than ever to take into account the rebound effect–even if it is just anticipating it and having a backup plan, or “wedge“, that will close the gap.

Even if we found a carbon neutral way to generate energy, it would still take years to implement on a world wide scale. We need to decrease energy consumption to stay within our carbon budget–whether you think that’s 450 ppm or 350 ppm–and we need to do it quickly. Grist reports 6 tactics that need to be implemented to stay in the climate safety zone:

1. Aggressive innovation and deployment of clean energy sources, storage, and smart grids.
2. Aggressive innovation and deployment of energy efficient solutions.
3. Aggressive pricing of climate emissions–increasing the price of dirty energy (coal) to keep energy demand from spiking.
4. Behavioral and economic alterations, especially in developing countries, to increase conservation and stave off materialistic driven growth.
5. Behavioral and economic alterations in developing countries to skip the carbon intensive technologies that are usually found in the beginning stages of development.
6. (My personal favorite) “Any f*ckingthing else we can think of.”

In terms of climate policy, the rebound effect is definitely not good news. It means we’re overestimating the amount of efficiency we can achieve compared to what we’re actually going to get. In reality though, it doesn’t discount the importance of energy efficiency and how large a role it will have in decreasing greenhouse gas emissions and shaping climate policy. It does however, show how daunting our task is–even more so than perhaps previously thought–and that we need to stop the masochistic behavior of denying and delaying change.