Showing posts with label growth of renewables. Show all posts
Showing posts with label growth of renewables. Show all posts

Obama 2013 Budget Seeks to Make Renewable Tax Credits Permanent

President Obama's 2013 budget has proposed business-tax reform including support for renewable energy. His reforms would make the temporary tax credits for renewable energy production permanent as well as making them refundable. The budget is part of the President's energy plan to double electricity output from clean sources by 2035.

As evidenced by his State of the Union addresses in 2009, 2010,, 2011, and 2012, the President has been a stalwart champion of renewable energy.

The Treasury Department has indicated that making renewable tax credits permanent will "provide a strong, consistent incentive to encourage investments in renewable energy technologies."
"This Framework recognizes that, as we expand manufacturing in the United States, the tax code should encourage doing so in way that is sustainable and that puts the United States in the lead in manufacturing the clean energy technologies of the future. This will create jobs here at home and can also have important spillover benefits. Moving toward a clean energy economy will reduce air and water pollution and enhance our national security by reducing dependence on oil. Cleaner energy will play a crucial role in slowing global climate change, meeting the President's goal of producing 80 percent of our nation's electricity from clean sources by 2035."
There are very real concerns that the expiration of the production tax credit (Section 1603 grant program) at the end of 2011 will have a profoundly negative impacts on the renewable energy sector and result in hundreds of job losses.

In addition to the proposal to make renewable energy tax credits permanent, the Obama administration is also seeking to lower the corporate tax rate from 35 percent to 28 percent, and to 25 percent for manufacturing. The President's proposed reforms would also make permanent a 17 percent tax credit rate for Research and Experimentation (R&D).

It is now up to Congress to decide whether the tax reforms proposed by the President become law.

Click here to see the press release or here for the full PDF of the budget.

For information on the environmental elements of the Obama budget click here.

© 2012, Richard Matthews. All rights reserved.

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Only Sustainable 2011: The Capital of Sustainable Energy for the Americas

Between November 7 and 9, Miami Dade College is hosting the Only Sustainable 2011 event. This is one of the most prestigious events on American sustainable energy. Over 40 expert speakers and senior representatives of the energy industry will discuss the latest sustainable energy trends. More than 400 professionals and companies are expected to attend from Spain, US and Latin America.

Sustainable energy is the industry with the most growth projection over the next decade. This conference is a vital meeting place for investors, banks, companies, scientists, governments and other actors within the renewable energy sector.

This is an effective channel to build alliances and relationships between industry leaders and learn about the latest developments in sustainable energy at the hands of more than 50 recognized leaders and energy experts.

For three consecutive days of lectures, 40 public and private sector speakers, public authorities, regulators, businessmen and academics in the industry will discuss the most important aspects about projects, the present conditions, strategies, regulations, tax issues and future prospects related to sustainable energy production in the region.

Among the top-level speakers are also important representatives of public organizations and institutions in the sector of renewable energies such as:
  • Adam Putnam, Florida Commissioner of Agriculture (Department of Agriculture and Biomass), Florida, United States
  • Barry Moline, Director of the Municipal Association in Florida, United States; F. Javier Salazar, President of the Energy Regulatory Commission, Mexico; Spain
  • Ronald A. Brisé, Commissioner Florida Public Service and Member of the National Association of Utility Commissioners (NARUC), Florida, United States
  • Margaret M. Cullen, Development Commissioner for Energy, Canada
  • Senior executives from leading international firms such as Bankia, Gamesa, NextEra / FPL, FCC Energy, Banco Sabadell and Baker & McKenzie
According to Vicente López-Ibor, President of the Advisory Council for Only Sustainable: “This conference provides a great opportunity to discuss current challenges in the energy sector - from an economic, regulatory, technical and environmental perspective.”

The International Conference has the support of recognized international institutions such as Miami Dade College, Madrid, Network, Energy Cluster, Greater Miami Chamber of Commerce and Bankia.

For more information click here.

© 2011, Richard Matthews. All rights reserved.

Even the Axis of Evil is Investing in Renewables

Every nation on earth is exploring green energy alternatives even pariah states. To prove the point, even North Korea and Iran, members of what former President Bush called the Axis of Evil are Developing Renewable Energy.

North Korea wants to increase their production of renewable energy. China has agreed to collaborate with North Korea in the sector of renewable energy. North Korean officials recently visited China to learn from China’s experience in the geothermal sector.
Although they steadily increased in the 90s, North Korea's combustible renewables and waste sectors have become stagnant. The country is rich in hydro power resources which constitutes approximately half of the nation's total generation capacity.

An increase in renewable energy would decrease North Korea's dependence on oil imports from Russia, China and Iran.

Opec member Iran plans to develop new renewable energy power plants over the next five years to produce 2,000 megawatts (MW) of capacity. Iran's deputy minister for electricity, Abbas Aliabadi said Iran already has 8500 MW hydro power plants in operation and has installed 130 MW of wind turbines.

"The government of Iran has paved the way for private sector participation in developing renewable energy systems," he said. The private sector has already signed contracts to install wind turbines as well as biomass systems with capacity of 600 MW and the ministry of energy is implementing 500 MW wind converters in the country.

"Iran, though an oil exporting country, is determined to be an important partner in global efforts of human societies to achieve sustainable energy systems," he told a preparatory meeting of the International Renewable Energy Agency (IRENA) where even Israel was participating.

If even rogue nations are integrating renewable energy projects into their national energy policies, it is harder to justify Canada's increased exploitation of the tar sands.

© 2011, Richard Matthews. All rights reserved.

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US Protests Against the Keystone XL Tar Sands Oil Pipeline

Canada wants to build a pipeline to transport tar sands oil from the province of Alberta all the way down to refineries in Texas. Earth friendly groups see the 1,700-mile long pipeline, known as the Keystone XL, as a disaster for the environment. According to Dr. Hansen who is one of America’s top climate scientists, the full exploitation of Canada’s tar sands would constitute a “game over” scenario for efforts to solve climate change.

Now that it has Canadian approval, the fate of the Keystone XL Pipeline is in the hands of President Obama. The President will decide on the fate of the pipeline as early as September. This decision will have dire implications for renewable energy production. The more access the US has to tar sands oil, the less it will turn to renewable sources of energy.


The pipeline negatively impacts wind power projects scheduled for Maryland, Virginia and DC and many other states that are developing their own renewable energy resources. In Maryland and Virginia alone there is enough offshore wind energy to power millions of electric cars indefinitely and without pollution.

From August 15th to September 5th, thousands of Americans – including Bill McKibben, Danny Glover, and NASA’s Dr. James Hansen – will be protesting at the White House, demanding that Obama reject the tar sands. To be part of this historic protest click here.

© 2011, Richard Matthews. All rights reserved.

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IPCC Report Indicates that Most of the World's Energy Needs Could be Met by Renewables

The United Nations’ Intergovernmental Panel on Climate Change (IPCC) has released a report which indicates that nearly 80 percent of global energy demand could be met by renewable sources of energy by 2050. On May 9, the IPCC released the Special Report on Renewable Energy Sources and Climate Change Mitigation. The report compares 164 different scenarios and most of these scenarios project a substantial increase in the deployment of renewable energy. The report predicts that by 2050 wind power could supply more than a fifth of our energy and with the right technical advances solar power could provide one-third of our energy.

The report indicates that renewable energy can reduce greenhouse gases by 33 percent, contribute to sustainable economic growth, create jobs, and provide cheaper electricity to poor rural areas. The report suggests that we can become so energy efficient that the predicted population of 9 billion by 2050 could use less energy than 7 billion people on the planet today.

The IPCC report was prepared by 120 scientists and it is the most comprehensive high level review of renewable energy to date. The report predicts that the costs will fall considerably in the coming years due to technological advances. The report also predicts that enewable energy options will surge and account for a much larger percentage of the total energy usage.

“Most of the 164 scenarios showed renewable energies would rise to supply above 100 exajoules (EJ) a year by 2050, reaching 200-400 EJ a year in many scenarios. In 2008-2009, 140 GW of the 300 GW of new global electricity generating capacity came from renewables.

According to the report the six of the most promising renewable energy technologies include solar, wind, bioenergy, geothermal, and ocean. The fastest-growing technology is grid-connected solar electric power, which saw a 53% increase in installed capacity during 2009. However, the report suggests that solar photovoltaics will continue to be among the more expensive options for some years.

The biggest single source, accounting for about half of the global total, is the burning of wood for heat and cooking in developing countries.This is not always truly renewable, as new trees to replace the burned wood are not always planted.

To make renewable energy more competitive we need to get the costs down. The report also indicates that renewable energy would be "economically attractive" if the environmental costs of fossil fuel emissions were included in prices.

Unlike fossil fuels, the expansion in renewable energy is not limited by any notion of a finite supply.The report concludes there is more than enough to meet the world's current and future energy needs. The report says that almost half of current investment in electricity generation is going into renewables, but growth will depend on having the right policies in place.

The report indicates that we could cut in global greenhouse gas emissions of about one-third compared with business-as-usual projections by 2050. Currently, renewables supply 12.9% of the global energy supply.

"With consistent climate and energy policy support, renewable energy sources can contribute substantially to human well-being by sustainably supplying energy and stabilising the climate," said Professor Ottmar Edenhofer, co-chair of the IPCC working group that produced the report."However, the substantial increase of renewables is technically and politically very challenging," he added.

The IPCC report indicates that, “The projected expansion is likely to continue even without new measures to promote a shift from fossil fuels as part of a U.N.-led fight against climate change.” Governments have agreed to limit the global average temperature rise to 2C at the most. To achieve the reductions agreed to at UN climate talks in Cancun, at the end of 2010 governments must make use of renewable energy sources on a very large scale. To meet international climate targets, governments will need to advance ambitious national policies and strong international cooperation to stimulate renewable investment.

To achieve even more growth in renewables requires ambitious national policies and strong international co-operation. According to UNFCCC Executive Secretary Christiana Figueres, "It is also clear that ambitious national policies and strong international cooperation are together the key to the swift and extensive deployment of renewable energies in all countries."

"While the report concludes that the proportion of renewable energy will likely increase even without policies," the reports authors said in a press release, “past experience has shown the largest increases come with concerted policy efforts.”

The IPCC brought together the most relevant and best available information to provide the world with this scientific assessment of the potential of renewable energy sources to mitigate climate change. It concludes that, “The technical potential of renewable energy technologies exceeds the current global energy demand by a consider amount, globally, and in respect of most regions of the world.”

The report indicated that renewable energy could provide up to 77% of the world's power by 2050, but this is less than 3% of total potential (under the 164 scenarios reviewed). The report indicates that wind power alone is capable of supplying more than 100% of future demand, and solar power many times more.

Although not included in the IPCC report, the WWF’s new Energy Report details a road map for achieving 100% renewable energy by 2050. Leading the WWF to say that the IPCC report, “underestimates the potential of deploying renewable energy even faster, especially when combined with top level energy efficiency."

The IPCC report demonstrates that with the right governmental backing we could get almost 80 per cent of our energy from renewable energy sources by 2050. If we do not see government support the IPCC report also lays out a bleaker vision for the future. Under this scenario we could consume more energy by 2050, and only 15 percent of the world's energy needs would be met by renewable energy.

© 2011, Richard Matthews. All rights reserved.

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High Oil Prices Stimulate Renewable Energy

Higher oil prices stimulate renewable energy. Renewable energy enables the world economies to grow sustainably, where our current reliance on fossil fuels is entirely unsustainable.

To stimulate renewable energy we must see what is known as supply shock. A supply shock is an event that suddenly changes the price of a commodity or service. In the case of oil this will be caused by a sudden decrease in the supply relative to demand. This sudden change affects the equilibrium price.

When oil approaches $200 per barrel we should get the shock and a stimulus effect on renewable energy. This will occur when the oil supply out paces demand by something like 10 percent.

Instability in the Middle East may very well be the catalyst that causes oil prices to go sharply higher, which in turn will create the shock that will stimulate renewable energy.

There are a great many unknowns, but renewable energy will be driven by how market demand reacts to higher oil prices.

© 2011, Richard Matthews. All rights reserved.

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Businesses Will Lead the Transition from Oil to Renewable Energy



In this video, Jonathan Koomey discusses the important role that business will play transitioning away from oil to renewable energy sources. While he sees a role for governments, he sees business and civil society as being crucial to this transition. He discusses the options available and concudes that there is a lot we can do. There will have to be big investments in new energy and new technologies. He concludes by saying, "if we are going to make this happen the transition will have to be led by business."

Koomey is co-author of "Winning the Oil Endgame" and author of many energy efficiency related books and articles. He led a group at Lawrence Berkeley National Laboratory (LBNL) that developed energy efficiency recommendations for EPA & DOE.

His cutting-edge research for the International Project for Sustainable Energy Paths, Rocky Mountain Institute, and LBNL helped establish the feasibility and desirability of using renewable energy to reduce carbon emissions, decrease dependence on oil, and boost jobs in the US & Europe.

© 2011, Richard Matthews. All rights reserved.

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Sustainable Growth Excludes Fossil Fuels

Sustainable economic growth is utterly impossible as long as oil, coal and natural gas provide nearly 88 percent of the world's energy needs. According to EIA (the US Energy Information Administration), total world consumption of marketed energy will increase by 49 percent between 2007 to 2035. The International Energy Agency predicted that Chinese energy demand would soar 75 percent by 2035, accounting for more than a third of the growth in global consumption.

The most egregious source of energy is coal, in India, more than 50% of commercial energy demand is met with coal and according to 2008 statistics, coal accounts for 71 percent of China's energy mix. The US is not much better with 23 percent of its total energy demand being met with coal.

We simply cannot afford economic growth that is so reliant on dirty energy like coal. Although growth is a serious environmental threat, it could also be a valuable opportunity to radically expand the clean energy economy. New innovative applications of sustainable technologies can significantly reduce emissions and old inefficient technologies can be replaced with cleaner greener technologies.

Renewable energy is the great hope for the planet because it is sustainable energy, but renewable energy is not cost competitive cheap and abundant coal. Therefore, cost considerations alone will not drive the move away from coal.

The increasing price of oil and the uncertainty of the fossil fuel markets is something that business are increasingly considering and it is only a matter of time before we remove oil subsidies. However, until we see climate change energy legislation and regulation, business have an opportunity to show leadership by voluntarily replacing coal with renewable energy.

Economic growth that includes fossil fuels precludes the possibility of a living planet.

© 2011, Richard Matthews. All rights reserved.

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New Types of Insurance Reduce Risk and Accelerate the Adoption of Green Energy

Insurance companies are finding that there is money to be made in green technology. In response to growing demand, new types of policies are emerging that provide protection for businesses involved in the green economy.

Some insurance companies are backstopping warranties on solar panels, or protecting against lulls in the wind needed to drive turbines. This is helpful to start-ups whose customers can rely on guaranteed performance. These types of policies can also help to make project financiers feel more secure. The number of companies offering warranty insurance policies is growing quickly, from only a few a year ago, to approximately 12 companies today.

Some property insurance rebuilds a structure in a more environmentally friendly and energy-efficient way in the event of loss. Other policies are geared to cover the activities of carbon traders.

Green policies support modernization by encouraging the development of new technology and enhancing innovation. The research conducted by the insurance companies who underwrite these policies helps the market to better understand itself. This information can prove helpful in very practical ways, for example some insurers are advising clients on issues like solar panel installation.

The green insurance industry can expect meteoric growth in the next five years, particularly as the government introduces green energy mandates.

These new policies respond to the needs of companies who are investing in green technology and looking for ways to shield themselves from risk. By assessing, quantifying and spreading risk, these policies have an important role to play accelerating the adoption of green energy.

© 2011, Richard Matthews. All rights reserved.

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