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Red, White, Blue & Green...the U.S. Renewable Power Market Grows 

Stimulus Bill Also Provides
for Green Energy Initiatives

This month, Congress passed a $787 billion tax relief and spending bill designed to stimulate the faltering U.S. economy. The provisions in the bill give a major boost to renewable energy and energy efficiency ($18.5 billion), as well as electricity transmission and reliability ($4.5 billion). The bill also provides money for pilot carbon dioxide storage projects and grants for advanced battery technologies. The portions of the bill designed to increase the energy efficiency measures and shift the country away from reliance on fossil fuels will also help lower greenhouse gases that contribute to global warming, according to lawmakers.

In early February, Reps. Edward J. Markey (D- Mass.) and Todd Platts (R-Pa.) introduced a renewable electricity standard, the American Renewable Energy Act, that would ensure that America is generating a quarter (25 percent) of its electricity from clean energy sources by 2025 (one of President Obama’s goals).  At the same time, Congress addressed a more immediate concern by passing a federal stimulus package—which also contains budget dollars for renewable energy, electricity transmission and energy efficiency measures.

But, even before any federal renewable energy policy becomes law or any federal stimulus dollars are disbursed, the green power market is already exhibiting strong growth. Twenty-seven states and the District of Columbia have passed renewable portfolio standards (compliance markets) of their own that require utilities and load-serving entities to include a certain percentage of renewable energy (“green power”) in their power generation mix. And, purchases of electricity supplied from renewable sources in voluntary markets—those markets not requiring any renewable energy purchases—are even higher than those in compliance markets, according to the National Renewable Energy Laboratory’s (NREL’s) 2008 Green Power Marketing in the United States report, released late last year.

The growth of the renewable power market provides a stimulus for additional renewable energy development and a revenue stream for renewable energy projects. In fact, according to the bill’s authors, the American Renewable Energy Act is expected to create 350,000 green jobs over the next decade, in addition to saving consumers money on electric bills and reducing the nation’s carbon footprint.  
 
According to the NREL’s report, in 2007, total renewable market sales grew by more than 50 percent, dominated by renewable energy certificate (REC) sales to nonresidential consumers. Commercial and institutional REC markets now comprise more than half of the total green power market sales. In addition, green power sales in competitive energy markets grew substantially in 2007 with major gains occurring in Texas and the Northeast.
 
To read the NREL’s full report, click here.

 

In early February, Reps. Edward J. Markey (D- Mass.) and Todd Platts (R-Pa.) introduced a renewable electricity standard, the American Renewable Energy Act, that would ensure that America is generating a quarter (25 percent) of its electricity from clean energy sources by 2025 (one of President Obama’s goals).  At the same time, Congress addressed a more immediate concern by passing a federal stimulus package—which also contains budget dollars for renewable energy, electricity transmission and energy efficiency measures.

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