Report: Clean Energy Future Still Possible Without Legislation

A new report from the nonprofit and nonpartisan Civil Society Institute think tank outlines what will happen if Congress does not pass an energy bill this year. The report, prepared by Synapse Energy Economic, outlines a "Transition Scenario" that would step up energy efficiency and the use of renewable energy, allowing the country to retire all coal-fired power plants and over a quarter of existing nuclear reactors. The overall cost of the plan would involve modest near-term costs over a business-as-usual (BAU) scenario, but result in savings by 2040.

In addition, many environmental and health impacts of the electric power industry would be dramatically reduced, including carbon dioxide (CO2) emissions - the primary cause of global warming - as well as emissions of from mercury, nitrogen oxides and sulfur dioxide, according to the report.

"This study investigates a long-term, national strategy to transition away from coal and nuclear electricity and toward increased efficiency and renewable energy," says Bruce Biewald, president of Synapse Energy Economics. "The study finds that a future built on more efficient use of electricity and development of the nation's renewable resources would pose modest near-term costs but would cost less than 'business as usual' over the long term."

Using only existing technology and making no assumption or adjustment for the passage of federal carbon legislation and related price setting, the Synapse report for the Civil Society Institute develops a scenario for 2010-2050 that would provide the following benefits:

• Aggressive investments in more efficient technologies in every sector could reduce electricity use by 15% from today's requirements, or over 40% from a BAU scenario;
• The U.S. could feasibly retire the entire fleet of coal-fired plants and build no new coal-fired generation, rather than burning more coal; and
• Electric sector emissions of CO2 could fall by 82% relative to predicted 2010 levels.

According to the report, the scenario would cost an estimated $10 billion per year more than the BAU in 2020, but it would save $5 billion annually by 2040 and $13 billion annually by 2050. These are direct costs only; they do not include savings resulting from reduced CO2 emissions or public health costs.

Read the report online at civilsocietyinstitute.org.

(Source: The Civil Society Institute)

AWEA Statement on Kerry-Lieberman Climate Bill

The American Wind Energy Association (AWEA) today issued the following statement from AWEA CEO Denise Bode on the bill outlined by Senators Kerry and Lieberman:

"The wind energy industry appreciates the efforts of Senators Kerry and Lieberman to address climate change in their proposal. We look forward to seeing provisions on renewable energy like a strong Renewable Electricity Standard as well as energy efficiency to create new clean energy jobs and avoid carbon in the near term in any package considered by the Senate. We urge Senate Leadership to move quickly on strong legislation."

Statement of AWEA CEO Denise Bode on Proposal to Expand Advanced Energy Manufacturing Tax Credit

The American Wind Energy Association (AWEA) today issued the following statement by AWEA CEO Denise Bode on legislation introduced by U.S. Senator Sherrod Brown to expand the Advanced Energy Manufacturing Tax Credit (48C) program for renewable energy:

"The American wind energy industry welcomes Senator Brown’s commitment to creating American jobs and shares the conviction that a clean energy economy will drive such job creation. The time for action is now. The rate of wind turbine manufacturing investment in the U.S. has slowed, and at the end of the year our industry could be hiring or firing depending on the policies we put in place. We look forward to working with Senator Brown and with Congress on enacting the most effective measures to boost wind turbine manufacturing investment in our country."

U.S. WIND ENERGY INDUSTRY INSTALLS 539 MW IN FIRST QUARTER
Industry Calls for Strong Renewable Electricity Standard to
Create Jobs, Retain America’s Competitiveness

Washington, D.C. – The American Wind Energy Association today announced that the U.S. wind industry installed 539 megawatts (MW) in the first quarter of 2010, the lowest first quarter figure since 2007. While the industry worked diligently to accelerate shovel-ready projects in 2009 and installed over 10,000 MW, continued lack of long-term market signals, combined with low power demand and price, has allowed the pipeline for advanced projects to slow over the past 18 months. AWEA has called on Congress to put in place a strong national renewable electricity standard (RES) as part of comprehensive climate and energy legislation to provide the hard targets needed to stabilize the industry.

"Financing wind projects is an 18 month process and the struggles in 2009 to raise new capital, combined with lack of new demand from utilities, are now surfacing in the market and reflected in project installations, said Denise Bode, AWEA CEO. "Minimal new installations and current announcements for project delays or downgrades in 2010 are the consequences of inaction to provide a serious market signal. With swift action today, wind project development can be nimble and ramp up quickly, creating new domestic manufacturing orders."

The U.S. wind energy industry is calling on Congress to enact a national RES to send the long-term signal the industry needs to invest and grow in a steady, sustained fashion, and to attract wind turbine manufacturing investment on a large scale. According to a recent national poll conducted by Public Opinion Strategies and Bennett, Petts & Normington, a bipartisan team of pollsters, an RES is also politically popular among American voters with support seen across party lines with 65% of Republican voters, 69% of Independents and 92% of Democrats favoring the legislation.

"Wind works for America. That is why voters want Congress to pass a strong national RES" added Bode. "Americans understand that an RES will mean new manufacturing jobs, less dependence on imported energy, and more pure, clean, affordable energy for our country. Wind energy is readily available today to revitalize our economy and yet Congress, by not acting, is allowing this bright spot in our economy to dim. The American people agree that Congress must act. As evidenced by the bipartisan poll mentioned above, 67% of Americans believe Congress is focusing too little on increasing renewable energy sources such as wind."

"Policy drives young energy industries as well as established ones, and depending on the policies put in place now we could be hiring or firing by the end of the year and in the years to come," said Bode. "Stimulus funding successfully saved thousands of megawatts of shovel ready wind projects and over 40,000 jobs in 2009, but we are setting up a vacuum if we don’t drive stable demand with a national renewable electricity standard."

The cycle of wind capacity installations over the past few years, illustrated by the figure below, has created a poor environment for long-term investment decisions, particularly in wind manufacturing. Dozens of manufacturing companies have already made commitments to build and upgrade U.S. facilities, despite the market’s booms and busts. These companies have created the foundation for renewing the American manufacturing sector and the U.S. could see explosive growth the instant there is a sign of market stability and U.S. commitment to long term policy.

(Article Courtesy of North American Windpower)

American Wind Energy Association (AWEA) Statement on Administration's Manufacturing Tax Credits Announcement

Washington, DC – The American Wind Energy Association (AWEA) today released the following statement from AWEA CEO Denise Bode following the announcement by the Administration of the awarding of $2.3 billion in clean energy manufacturing tax credits and the President’s call for an additional $5 billion:

"AWEA welcomes the Administration's announcement of $2.3 billion in tax credits for clean energy manufacturing and President Obama's call to Congress to provide an additional $5 billion in such credits. The U.S. wind energy industry appreciates the speed with which the Administration is providing this support. These tax credits will be critical in sustaining manufacturing activity in the current economic downturn. However, in order to maximize the renewable energy jobs expected as a result of these tax incentives, and to build up a strong renewable energy manufacturing base in the U.S., these companies need a more certain market to sell into. The industry is still vulnerable to the impacts of on-again off-again tax credit policies. A Renewable Electricity Standard (RES) with strong, aggressive near-term targets is the best way to provide the certainty needed for companies to expand domestic wind manufacturing."

(Article Courtesy of AWEA.org)

American Wind Energy Association (AWEA)
Wind power trends to watch for in 2010

Washington, DC – As the nation looks ahead to 2010, renewable energy will be central to the economic and energy issues that dominate the political agenda. The American Wind Energy Association (AWEA) has identified some trends and indicators to watch:

Wind Power: Second-largest Source of New U.S. Power Generating Capacity for Sixth Year in a Row?
While wind makes up only about 2% of total electricity supply, it is one of the largest sources of new power generation in the country, second only to natural gas generation in terms of new capacity built each year since 2005. Look for wind to continue to be a leading source of new power generation in 2010.

Renewable Electricity Standard (RES) In Jobs Legislation?
The most important job creation policy that Congress can enact is a national RES which provides the long-term certainty that companies need to invest in new facilities and train workers to make the 8,000 components that go into a modern wind turbine. The U.S. wind energy industry has seen furloughs and layoffs and the short-term American Recovery and Reinvestment Act (ARRA) has provided a lifeline. Whether it is in job legislation or in comprehensive energy and climate legislation, however, a strong RES is urgently needed to create hard targets that will fortify our manufacturing base and create tens of thousands of jobs.

U.S. Wind Turbine Manufacturing and Supply Chain: Lagging or Roaring Ahead?
With shop floors working single shifts or sometimes idling altogether for lack of contracts, U.S. wind turbine component manufacturing lagged in 2009. If an RES is passed early on in the year, however, it will work in synergy with the short-term ARRA incentives and provide the long-term signal that companies are waiting for in order to invest in new and expanded facilities in the U.S.

Energy Wars Flare Up:
With climate and energy legislation or regulation looming, the stakes are higher than ever for the energy sector. Tighter limits on emissions reveal true cost, so efforts to pad climate and energy legislation with subsidies to ensure the survival of the more polluting technologies will continue. Lobbying efforts and spending could surpass the record levels reached in 2009, and we could see anti-renewable energy communications campaigns try again to use bogus studies funded by fossil fuel-backed groups, as well as other tactics.

Wind Turbines Get Even More Powerful:
Over 1,000 wind turbines larger than 2 megawatts (MW) are already in commercial operation in the U.S, and the year-end order for 338 GE 2.5-MW wind turbines for the Shepherd’s Flat wind project in Oregon is the harbinger of a shift in orders toward such larger turbines. This forecast assumes that inventory will have been exhausted and that there will be a growing market for wind turbine orders in 2010 and beyond, spurred by a national RES. The trend toward larger turbines is driven by economics: taller turbines with larger swept areas produce more power at a lower cost per kilowatt-hour.

States and Regional Operators Work Through Transmission Issues:
While federal transmission policy is under heated discussion as part of pending energy legislation, states and regions are where key decisions are made in terms of transmission investment. Texas and the Southwest Power Pool are beginning to see investment in new transmission lines and infrastructure as the fruit of favorable transmission cost allocation policies. The wind industry will be closely watching the Midwest Independent System Operator to see if it adopts a similarly favorable cost allocation policy.

Integrating Wind Power:
As wind penetrations grow higher in the U.S. and Europe in 2010, utilities and grid operators should become more comfortable with this new source of power. Several major wind integration studies slated for release in 2010 are expected to add further evidence that wind can be reliably integrated with the grid at low cost. As wind continues to become a larger part of our electric power system, however, the wind industry will be keeping its eye on nascent efforts by some fossil fuel competitors to impose new and unfair costs on wind plants.

Bigger Market for Small Wind Systems:
Another year of record growth is expected for the small wind market in 2010 due to a federal Investment Tax Credit that has been expanded to provide an 8-year, uncapped 30% tax credit for small wind systems for homeowners and small businesses. The introduction of an industry safety and performance standard will also shape the industry and provide a new way to help consumers compare turbines.

More Clarity on Siting Process for Wind Projects:
The wind energy industry is looking forward to the completion of the Wind Turbine Guidelines Advisory Committee process (discussions on wind turbine siting held under the Federal Advisory Committee Act with the U.S. Fish and Wildlife Service and a broad range of stakeholders) to provide the industry with greater clarity on wildlife surveys and considerations that are expected to be part of the siting process for wind farms. To ensure the best science is available for decision-making, the industry continues cooperative research programs with the Bats & Wind Energy Cooperative, the American Wind Wildlife Institute, and other organizations.

Operational and Safety Guidelines:
As an industry becomes mainstream it needs to put in place a variety of standards and guidelines, and AWEA is doing so on a number of fronts, including workplace safety. AWEA and the wind power industry are working with the Occupational Safety and Health Administration (OSHA) toward an OSHA Alliance to promote safety and health within the wind industry. AWEA will also develop best practices and safety awareness training programs that will be available to member companies.

Nation's Fastest Growing Trade Show – WINDPOWER—Gets Even Bigger as it Heads to Texas:
AWEA's WINDPOWER Conference & Exhibition, which in 2009 was named the fastest-growing trade show in the country by Tradeshow Week, will be even larger in 2010. As of December 2009, the number of exhibit booths sold was 25% ahead of a year earlier, and many companies are greatly increasing booth sizes. In all, the total exhibit floor space sold already exceeds the total Chicago WINDPOWER 2009 show. The WINDPOWER 2010 Conference & Exhibition will take place May 23 – 26, 2010, in Dallas, Texas. Attendance growth has also been an important trend seen at AWEA’s other workshops and conferences which focus on specific facets of the industry. For more details, visit www.awea.org/events.

(Article Courtesy of AWEA.org)