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COLUMNISTS
TODAY'S STORIES
08.12.2008
Are Renewable-Energy Targets Unrealistic?

I missed this when it first came out, but Matthew Wald and Kate Galbraith had a very sharp piece in The New York Times about how utilities around the country are struggling to meet state laws that require them to get a certain portion of their power from renewable sources by such-and-such a date. California's big utilities, for instance, are likely to miss their targets entirely. The main obstacles: Congress keeps bobbing and weaving on tax incentives for solar and wind (the production tax credit was only renewed this year at the 11th hour, and probably would've expired entirely had Wall Street not demanded a bailout package); utilities have had trouble obtaining financing for and overcoming local opposition to new projects; and, oh yes, transmission lines in this country are woefully inadequate, rarely extending to the plum wind and solar spots.

There's a decent chance taht Congress will quickly pass a national renewable portfolio standard next year—requiring, say, utilities to get 15-25 percent of their energy from renewable sources by 2020 (a version of this bill sailed through the House and just fell short in the Senate last year). But it looks like the only way these targets will be reachable is for the federal government to take the lead—and spend a bunch of money upfront—expanding and strengthening the national grid. So it's nice to see that Harry Reid, among others, is talking seriously about making "green transmission" a central component of any economic stimulus package.

--Bradford Plumer

Posted: Monday, December 08, 2008 11:16 PM with 1 comment(s)

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pgutermann said:

The state RPS's may be the major driving force behind continued renewable energy devleopment given both the economic crisis and the continuing drop in oil prices.  A federal RPS, especially one that preempts state standards, may give the self-styled progressive states like California a face-saving means of avoiding the consequences of missing the deadlines.

The RPS is a useful "stick," but the renewable industry also needs some carrots.  We have a post today on the development of a government "bank" designed along the lines of OPIC, but directed to renewables in which you may be interested.  

climateintel.com/.../a-renewable-energy-private-investment-corporation

December 9, 2008 10:06 AM