Basic Facts about Clean Energy Generation
- Clean energy generation comprises 11% of the electricity generated in the US in 2010 (Energy Information Administration)
- Hydroelectric generation makes up 65% of clean electricity generation in the US (Energy Information Administration)
- The U.S. (481 MW) ranked fourth in new solar electric capacity in 2009, behind Germany (3,000 MW), Italy (700 MW), and Japan (484 MW). The U.S. (2,108 MW) also ranked in fourth place in cumulative solar electric capacity behind Germany (8,877 MW), Spain (3,595 MW), and Japan (2,628 MW). The U.S. ranked in tenth place in new solar electric capacity per capita (1.6 W per capita) and ninth place in cumulative solar electric capacity per capita (6.9 W per capita) (Solar Energy Industries Association)
- The American wind industry installed 10,000MW of generation capacity in 2009 (American Wind Energy Association)
- Biomass power is an expanding $1 billion industry with 80 facilities in 20 states that supplies over half of America’s renewable electricity. Nationwide, the biomass industry accounts for over 18,000 jobs, many of which are in small rural communities (Biomass Power Association)
- Hydroelectric generation makes up 65% of clean electricity generation in the US (Energy Information Administration)
- The U.S. (481 MW) ranked fourth in new solar electric capacity in 2009, behind Germany (3,000 MW), Italy (700 MW), and Japan (484 MW). The U.S. (2,108 MW) also ranked in fourth place in cumulative solar electric capacity behind Germany (8,877 MW), Spain (3,595 MW), and Japan (2,628 MW). The U.S. ranked in tenth place in new solar electric capacity per capita (1.6 W per capita) and ninth place in cumulative solar electric capacity per capita (6.9 W per capita) (Solar Energy Industries Association)
- The American wind industry installed 10,000MW of generation capacity in 2009 (American Wind Energy Association)
- Biomass power is an expanding $1 billion industry with 80 facilities in 20 states that supplies over half of America’s renewable electricity. Nationwide, the biomass industry accounts for over 18,000 jobs, many of which are in small rural communities (Biomass Power Association)
Clean Energy Investment Overview (Source: PA Consulting)
• Based on current total US supply and total US demand, there is no new capacity needed by 2015 and approximately 63 GW by 2020. Although we should note that locally/regionally there will be some areas of the country that need some new capacity (approx 10 -20 GW).
• Based on current state RES, 25 GW of renewable capacity are needed by 2015 and 64 GW by 2020. It should be noted that RES is usually a generation (MWh) target as opposed to capacity and capacity figures are based on PA's estimate of the type of units that would be built (ie wind, solar, etc.) Capital cost would be estimated to be $60B by 2015 and $150B by 2020.
• By requiring annual stepwise progress toward a national RES of 20% by 2020, Congress could create demand for both replacement and efficiency gains amounting to an investment requirement of an incremental $60 billion a year, which would create 600,000 new jobs a year. This investment would produce flat or lower electricity bills for all affected consumers if and only if about half the investment were from low cost, long term debt.
• In different states and in the areas of different utilities, investment will vary as to efficiency, generation or transmission.
• Based on current state RES, 25 GW of renewable capacity are needed by 2015 and 64 GW by 2020. It should be noted that RES is usually a generation (MWh) target as opposed to capacity and capacity figures are based on PA's estimate of the type of units that would be built (ie wind, solar, etc.) Capital cost would be estimated to be $60B by 2015 and $150B by 2020.
• By requiring annual stepwise progress toward a national RES of 20% by 2020, Congress could create demand for both replacement and efficiency gains amounting to an investment requirement of an incremental $60 billion a year, which would create 600,000 new jobs a year. This investment would produce flat or lower electricity bills for all affected consumers if and only if about half the investment were from low cost, long term debt.
• In different states and in the areas of different utilities, investment will vary as to efficiency, generation or transmission.
Clean Energy Lending and the Environment
To achieve a one-third reduction in carbon emissions relative to today, we need to:
Reduce electricity generation emissions from carbon intensive plants (reducing by half equals 17% of total abatement of CO2 emissions).
Make all buildings 20% more energy efficient, resulting in a 13% decrease in total CO2 emissions.
Additionally, reduce CO2 emissions through higher mileage standards and sale of hybrid and all-electric vehicles.
Reduce electricity generation emissions from carbon intensive plants (reducing by half equals 17% of total abatement of CO2 emissions).
Make all buildings 20% more energy efficient, resulting in a 13% decrease in total CO2 emissions.
Additionally, reduce CO2 emissions through higher mileage standards and sale of hybrid and all-electric vehicles.
Clean Energy Lending and Jobs
• E dollars of investment in efficiency measures or G dollars in generation replacement equals J new jobs: E plus G = J.
• If J must be 50,000/month, then E + G must be $5 billion per month.
• E can be no greater than the sum of approximately $2k/household and small business, or approximately $200 billion for approximately 100 million households/small businesses.
• G can be no greater than approximately $400 billion, the cost of replacing about one half of all base load carbon-intensive generation capability, or about 200 gigawatts.
• Therefore, if the target is 50,000 jobs/month for three years, for a total of 1.8m, then the total investment must be approximately $180 billion over three years. Estimates concur that total ready-to-deploy “cleaner” energy (including wind, sun, biomass, and natural gas) amounts to about 50 Gigawatts or $100 billion over next three years. To create $80 billion more in job-creating investment requires reaching as many as 40 million households, which in turn cannot be done except by mobilizing utilities, small business groups, communities, and energy service companies (ESCOs) to work for incremental profit.
• If J must be 50,000/month, then E + G must be $5 billion per month.
• E can be no greater than the sum of approximately $2k/household and small business, or approximately $200 billion for approximately 100 million households/small businesses.
• G can be no greater than approximately $400 billion, the cost of replacing about one half of all base load carbon-intensive generation capability, or about 200 gigawatts.
• Therefore, if the target is 50,000 jobs/month for three years, for a total of 1.8m, then the total investment must be approximately $180 billion over three years. Estimates concur that total ready-to-deploy “cleaner” energy (including wind, sun, biomass, and natural gas) amounts to about 50 Gigawatts or $100 billion over next three years. To create $80 billion more in job-creating investment requires reaching as many as 40 million households, which in turn cannot be done except by mobilizing utilities, small business groups, communities, and energy service companies (ESCOs) to work for incremental profit.