TODAY’S STUDY: SCIENTISTS ON THE POSSIBILITY OF NEW ENERGY

Renewables: Energy You Can Count On

April 2013 (Union of Concerned Scientists)

Ramping Up Renewables

Renewable energy is providing reliable electricity today in the United States and around the world. From 2007 to 2012, electricity from renewable sources such as wind and solar nearly quadrupled nationally.

This growth is part of a transition away from dirty, coal-burning power plants—which harm public health and destabilize our climate—toward cleaner, more sustainable sources of electricity. Using existing technologies and smart policy decisions, the United States can continue this clean energy transformation while maintaining a reliable and affordable electricity system.

Transitioning to a system that relies heavily on wind and solar facilities—which provide variable amounts of power—does pose challenges to managing the electricity grid. After all, the wind doesn’t always blow and the sun doesn’t always shine, and grid operators must match electricity demand with supply each and every moment of the day (see Box 1, p. 2). However, meeting electricity demand in the face of variability and uncertainty is not a new concept for grid operators. They already make adjustments for constantly changing demand, planned power plant outages for maintenance, and outages stemming from severe weather, equipment failure, and other unexpected events. Adding variable energy sources to the system may increase the complexity of the challenge, but does not pose insurmountable technical problems or significant costs.

We know this because the U.S. grid and electricity grids throughout the world have already reliably integrated variable energy sources such as wind and solar power. We have the tools to significantly ramp up renewable energy use and keep the lights on. With ingenuity, innovation, and smart policies, we can fully transition to a clean, renewable electricity system.

Recent Growth in Wind and Solar Power

A number of utilities, states, and countries already have much higher percentages of renewable energy than many people thought possible just a few years ago (Figure 1). Wind power is growing rapidly in the United States—more than tripling from 2007 to 2012.

The nation broke a record in 2012, installing more than 13,000 megawatts (MW) of wind power capacity and investing $25 billion in the U.S. economy (AWEA 2013a). This made wind power the leading source of new capacity in the United States, representing 42 percent of the total, and surpassing new natural gas capacity.

While wind provided only 3.5 percent of the country’s electricity in 2012, several states and regions have reached much higher levels. For example:

• In 2012, wind power provided 24 percent of the electricity generated in Iowa and South Dakota, and more than 10 percent in seven other states (EIA 2013).

• On October 23, 2012, the Pacific Northwest set a new record as electricity from wind power exceeded that from hydropower for the first time ever (Sickinger 2012).

• On November 23, 2012, the Midwest set a record when more than 10,000 MW of wind power supplied 25 percent of the region’s electricity (Reuters 2012).

• On December 5, 2012, the Southwest Power Pool—which includes Kansas, Oklahoma, and the Texas panhandle—set a record as wind power supplied more than 30 percent of the region’s electricity (AWEA 2012b).

• On January 29, 2013, the main grid operator in Texas set a record when wind power produced 32 percent of total supply—enough to power 4.3 million average homes (AWEA 2013b; ERCOT 2013). Texas leads the nation in installed wind power capacity, with more than 12,200 MW at the end of 2012 (AWEA 2013a).

Solar power is also growing rapidly and supplying reliable electricity for U.S. consumers. The capacity of solar photovoltaics (PV) expanded by a factor of five from 2009 to 2012 (SEIA 2013). California leads the nation, with 35 percent of all U.S. PV capacity in 2012. New Jersey, Arizona, Hawaii, New Mexico, and New York have also seen significant investments in solar power during the past few years (Sherwood 2012). Some of the nation’s largest utilities are relying on significant levels of renewable energy. For example, renewables supplied 21 percent of the electricity Southern California Edison (SCE) sold to its 14 million customers in 2011, which included 7.5 percent from wind and solar (Karlstad 2012). SCE was the secondlargest retail supplier of solar power in 2011, and the third-largest supplier of wind power (AWEA 2012a; Campbell and Taylor 2012). SCE projects that wind and solar will supply 18 percent of its retail electricity sales by 2017, as the utility works to meet California’s renewable electricity standard of 33 percent by 2020 (Karlstad 2012).

Xcel Energy, a Minneapolis-based utility serving customers in eight states, was the largest retail provider of wind power in the United States in 2011, and the fifth-largest solar provider (AWEA 2012a; SEPA 2012). On April 15, 2012—a night when the winds were strong and electricity demand was low—Xcel set a new U.S. record by relying on wind to produce more than 57 percent of its customers’ power in Colorado (Laughlin 2012). Xcel is pursuing several approaches to integrating high levels of wind power into its system efficiently and affordably while maintaining reliability (see Box 2).

Globally, renewable energy accounted for almost half of the generating capacity added in 2011, with wind and solar PV accounting for 70 percent of that amount (REN21 2012). In the European Union, renewable sources supplied nearly 20 percent of all electricity consumed in 2010 and more than two-thirds of the total installed capacity in 2012 (EWEA 2013; REN21 2012). Wind supplied 30 percent of electricity in Denmark in 2012 (EWEA 2013). In Germany, renewable energy provided about 25 percent of electricity used in 2012, with more than half coming from wind and solar PV (Figure 2) (Böhme 2012).

On May 8, 2012, wind and solar reached a record 60 percent of total electricity use in Germany (NREL 2012). On April 19, 2012, wind power set a new record in Spain, generating 61 percent of the nation’s electricity (Casey 2012).

Replacing Conventional Power Plants with Renewable Energy Can Enhance Reliability

While integrating large amounts of variable renewable energy into the grid poses challenges to grid operators, conventional power plants present their own reliability challenges. The potential for a sudden outage at large coal and nuclear plants and transmission facilities means that grid operators must always have generation and transmission reserves on hand to immediately replace them.

Because of their size, those facilities also make the grid less flexible and more vulnerable to blackouts when they go offline. Severe weather events can also affect power plant reliability. For example, freezing temperatures during a cold snap in Texas in February 2011 disabled 152 power plants—mostly coal and natural gas—leading to rolling blackouts across the state (AWEA 2011). Local wind power facilities kept operating and provided enough electricity for hundreds of thousands of homes, reducing the severity of the blackouts. According to Trip Doggett, CEO of the Electric Reliability Council of Texas, “We put out a special word of thanks to the wind community because they did contribute significantly through this timeframe. Wind was blowing, and we had often 3,500 megawatts of wind generation during that morning peak” (Galbraith 2011).

During extremely hot weather, especially droughts, lakes and rivers may be too warm or lack enough water to cool large thermal power plants. For example, in 2007 and again in 2010 and 2011, the temperature of the Tennessee River rose above 90°F. That ensured the temperature of water discharged from the Tennessee Valley Authority’s Browns Ferry nuclear power station would exceed permitted limits, and forced extended reductions in output from the plant (NRC 2011). These cutbacks compelled the authority to purchase electricity at high prices, and cost ratepayers more than $50 million in higher electricity bills in 2010 (Kenward 2011; Amons 2007; Associated Press 2007).

Extreme weather events are expected to become more frequent and more severe because of climate change, which will further strain our reliance on such conventional generating sources. That means events such as Hurricane Sandy—which caused $70 billion to $80 billion in damage and widespread power outages for 8 million people from Virginia to Maine—will become more common (Lee 2012; Webb 2012). Yet renewable energy facilities in the Northeast appear to have weathered the hurricane much better than their fossil and nuclear counterparts (Wood 2012).

Just as diversifying investments strengthens a financial portfolio, adding new energy sources and technologies to the electricity grid can fortify its portfolio—improving its reliability in the process. Renewable resources are less vulnerable to prolonged interruptions in fuel supplies stemming from weather, transportation problems, safety concerns, terrorist threats, and embargoes.

And because renewable energy technologies are more modular than conventional power plants, the impact on the grid is usually insignificant when weather damages individual facilities. Because they do not rely on fuels that are subject to price spikes or long-term price increases, renewables also add price stability for consumers.

While we urgently need to transition to a cleaner, low-carbon energy system to reduce the impact and cost of climate change, this transition could take decades because of the enormous scale of the U.S. energy infrastructure, and the complexity of planning, building, and operating electricity grids. We may need to rely on some existing power plants to ensure a reliable electricity supply in some locations, at least in the near term. However, with enough lead time, we can replace such plants with renewable energy, more efficient technologies in homes and businesses, natural gas plants, transmission upgrades, energy storage, and other cleaner approaches.

Many Tools Are Available To Ramp Up Renewable Energy And Maintain Reliability…

…storage technologies include:

• Pumped hydroelectric. These plants store energy by pumping water to a higher elevation when electricity supply exceeds demand, and then allowing that water to run downhill through a turbine to produce electricity when demand exceeds supply. With 22 gigawatts (GW) of installed capacity in the United States—much of it built a generation ago to help accommodate inflexible nuclear power plants—pumped hydro is the largest source of storage in the power system today. However, the potential for more pumped hydroelectric storage is limited, as the long permitting process and high costs make financing new hydro facilities difficult.

• Thermal storage. Heat from the sun captured by concentrating solar plants can be stored in water, molten salts, or other fluids, and used to generate electricity for hours after sunset. Several such plants are operating or proposed in California, Arizona, and Nevada. The Bonneville Power Administration is also conducting a pilot program in the Northwest to store excess power from wind facilities in residential water heaters (Mason County PUD 2012).

• Compressed air energy storage. These systems use excess electricity to compress air and store it in underground caverns, like those used to store natural gas. The compressed air is then heated and used to generate electricity in a natural gas combustion turbine. Such facilities have been operating in Alabama and Europe for many years, and developers have proposed several new projects in Texas and California (Copelin 2012; Kessler 2012).

• Batteries. Batteries can also store renewable electricity, adding flexibility to the grid. AES Corp. is using 1.3 million batteries to store power at a wind project in West Virginia (Wald 2011). Batteries in plug-in electric vehicles can also store wind and solar energy, and then power the vehicles or provide electricity and stability to the grid when the vehicles are idle. A pilot project with the University of Delaware and utilities in the mid-Atlantic region showed that such vehicles could provide significant payoffs to both the grid and owners of electric vehicles, who would be paid for the use of their batteries (Tomic and Kempton 2007).

• Hydrogen. Excess electricity can also be used to split water molecules to produce hydrogen, which would be stored for later use. The hydrogen can then be used in a fuel cell, engine, or gas turbine to produce electricity without emissions. The National Renewable Energy Laboratory (NREL) has also researched the possibility of storing hydrogen produced from wind power in wind towers, for use in generating electricity when demand is high and the wind is not blowing (Kottenstette and Cottrell 2003).

Powering the Future with Renewable Energy

With these tools in hand, we can ramp up renewable energy to much higher levels. Leading countries and states have set strong targets for renewable energy to realize this future. At least 18 countries have binding renewable electricity standards (REN21 2012).

Denmark is aiming to produce 50 percent of its electricity from wind by 2025—and 100 percent of its electricity from renewable energy by 2050. Germany has a binding target to produce at least 35 percent of its electricity from renewable sources by 2020—with the target rising to 50 percent by 2030, and 80 percent by 2050. China also has a near-term target of producing 100 GW annually from wind, and is considering doubling its solar target to 40 GW by 2015. These targets are 40 percent higher than installed U.S. wind capacity, and more than five times U.S. solar capacity, as of the end of 2012.

The United States does not have a national target or other long-term policy to expand the use of renewable energy. However, 29 states and the District of Columbia (DC) have adopted renewable electricity standards, which require utilities to supply a growing share of power from renewable sources. DC and 17 states require at least 20 percent renewables by 2025. Hawaii and Maine have the highest renewable standards in percentage terms (40 percent by 2030), followed by California (33 percent by 2020), Colorado (30 percent by 2020), and Minnesota (27.5 percent by 2025) (UCS 2011).

Numerous studies show that we could transition to a low-carbon electricity system based on large shares of renewables within two decades, given the right policies and infrastructure. For example, detailed simulations by U.S. grid operators, utilities, and other experts have found that electricity systems in the eastern and western halves of the country could work by sourcing at least 30 percent of total electricity from wind—and that the West could work with another 5 percent from solar (EnerNex 2010; GE Energy 2010). Using energy storage technologies to balance out fluctuations in these resources would be helpful but not necessary, and not always economical, according to these analysts.

These simulations did show that such gains would require significant investments in new transmission capacity, along with changes in how the grid is operated (as noted above). Expanding transmission lines to allow wind power to supply 20 percent to 30 percent of the electricity used in the eastern United States in 2024 would require just 2 to 5 percent of the system’s total costs (EnerNex 2010). However, as noted, reductions in the cost of operating coal and natural gas plants would offset most or all of these new costs.

Other studies have shown that the United States can achieve even higher levels of renewable power while significantly reducing reliance on coal plants and maintaining a reliable, affordable, and much cleaner electricity system. For example, NREL has found that renewable energy technologies available now could supply 80 percent of U.S. electricity in 2050, while meeting demand every hour of the year in every region of the country (Figure 4) (NREL 2012). Under this scenario, wind and solar facilities provide nearly half of U.S. electricity in 2050. NREL also found that an electricity future based on high shares of renewables would deeply cut carbon emissions and water use.

Needed investments in new transmission infrastructure would average $6.5 billion per year, according to NREL—within the recent range of such costs for investor-owned utilities.

In Climate 2030, the Union of Concerned Scientists analyzed a scenario consistent with targets set by states that are leaders in clean energy investments (Cleetus et al. 2009). The analysis set a national target to cut U.S. carbon emissions 57 percent by 2030, and at least 80 percent by 2050. When combined with improvements in energy efficiency, renewable energy could reliably supply at least half of U.S. electricity needs by 2030, according to this analysis.

To achieve these targets, more than half of the renewable power would come from bioenergy, geothermal, hydro, and concentrating solar plants with thermal storage—technologies that can produce electricity around the clock, and during periods of high demand.

Variable power from wind and solar PV would provide 22 percent of total U.S. electricity by 2030. Another study found that investing in energy efficiency and renewable energy could allow the nation to phase out coal entirely, and significantly reduce reliance on nuclear power (Synapse 2011). A 2011 study by the Intergovernmental Panel on Climate Change concluded that renewable energy could reliably supply up to 77 percent of world energy needs by 2050 (IPCC 2011). And several studies have found that renewables could provide 100 percent of the world’s energy needs by 2050 (DeLuchhi and Jacobson 2011; WWF 2011; Jacobson and Delucchi 2010).

Accelerating the Transition to Renewable Energy

Achieving high levels of renewable energy will require a major transformation of the U.S. electricity system, as NREL’s analysis of attaining 80 percent of electricity from renewables by 2050 suggests:

This transformation, involving every element of the grid, from system planning through operation, would need to ensure adequate planning and operating reserves, increased flexibility of the electric system, and expanded multi-state transmission infrastructure, and would likely rely on the development and adoption of technology advances, new operating procedures, evolved business models, and new market rules (NREL 2012).

Both NREL and MIT’s Future of the Electric Grid show that a more flexible and smarter grid can overcome challenges to integrating renewables into the grid. However, these changes alone will not be enough to achieve a meaningful transition to renewable electricity. Strong state and national policies are needed to overcome market barriers to developing clean energy and the supporting technologies, and to more fully realize the economic and environmental benefits of transitioning away from coal. Policy support is essential to ensure continued growth of the renewable energy industry, and the cost reductions that come from learning, innovation, and economies of scale.

Expanding on the success of the 29 states with a renewable electricity standard by adopting a strong national standard of at least 25 percent renewables by 2025 can accelerate the transition to clean energy.

Targeted incentives—such as tax credits, direct payments, grants, and low-interest loans—and more funding for research and development are also important for lowering the costs of emerging renewable energy and integration technologies. Strong pollution control standards for coal power plants are also essential to protect public health and the environment.

A national commitment to renewable energy will deliver deep cuts in carbon and other heat-trapping emissions swiftly and efficiently, enabling us to avoid the worst impacts of climate change and help level the playing field between fossil fuels and cleaner, lowcarbon energy sources. As Climate 2030 showed, combining these policies with standards and incentives to invest in more energy-efficient appliances, buildings, and industries can curb energy use, reducing the need to build new power plants and significantly lowering the cost of reducing carbon emissions.

Other low-carbon technologies for producing electricity—such as advanced nuclear plants and fossil fuel plants with carbon capture and storage—may also become available to compete with advanced renewables. If they do, we will have even more opportunities to create a low-carbon energy system. Meanwhile, renewable energy technologies available now—along with investments in energy efficiency and the appropriate use of natural gas—can affordably get us most of the way there.

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SOLAR STILL GROWING FAST

U.S. Solar Market Insight: Solar accounts for 48% of new electric capacity in Q1 2013

June 11, 2013 (Solar Energy Industries Association)

“The U.S. installed 723 megawatts (MW) of solar energy in Q1 2013, which accounted for over 48 percent of all new electric capacity installed in the U.S. last quarter. Overall, these installations represent the best first quarter of any given year for the industry…’ click here for more

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WIND COMING BACK

Port Operator: U.S. Wind Market Beginning To Resurrect Following PTC Extension

Mark Del Franco, June 20, 2013 (North American Windpower)

“The late extension of the production tax credit (PTC) has certainly crimped wind development activity this year. However, Washington-based Port of Vancouver USA says it is beginning to see some rumblings of activity regarding turbine component shipments slated for U.S. projects…”

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THE NAT GAS VEHICLE MARKET

Market Data: Natural Gas Vehicles;Global Natural Gas Vehicle Sales and Refueling Infrastructure Forecasts: 2013-2020

2Q 2013 (Navigant Research)

“…While the price of natural gas is contributing to growth in many different vehicle segments, from passenger cars to heavy duty over-the-road trucks, other factors, such as increased vehicle availability, a shortage of oil refining capabilities, tightening emissions restrictions, and increased energy security, are also fueling growth within specific countries. Navigant Research forecasts that the number of NGVs on roadways worldwide will reach nearly 35 million by 2020…” click here for more

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GLOBAL NEW ENERGY TO $244 BIL IN 2012

Renewable Energy: World Invests $244 billion in 2012, Geographic Shift to Developing Countries

June 2013 (Renewable Energy Policy Network for the 21st Century)

“…19% of global final energy consumption in 2011 (the latest year for which data are available), with a little less than half from traditional biomass. For only the second time since 2006, global investments in renewable energy in 2012 failed to top the year before, falling 12% mainly due to dramatically lower solar prices and weakened US and EU markets, says the Frankfurt School – UNEP/BNEF report, Global Trends in Renewable Energy Investment 2013. However, with $244 billion (including small hydro-electric projects) 2012 was the second highest year ever for renewable energy investments. There was a continuing upward trend in developing countries, with investments in the South topping $112 billion versus $132 billon in developed countries—a dramatic change from 2007, when developed economies invested 2.5 times more in renewables (excluding large hydro) than developing countries. The gap has now closed to just 18%...” click here for more

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NEW PV TEST CENTER

Fraunhofer CSE and Fraunhofer ISE joint testing venture ranks performance of PV modules

June 18, 2013 (Fraunhofer ISE)

“The Fraunhofer Center for Sustainable Energy Systems CSE in Boston and the Fraunhofer Institute for Solar Energy Systems ISE in Freiburg announce the release of the first report from their PV Durability Initiative (PVDI). PVDI’s robust testing protocol generates scores that enable the credible rating of PV modules based on their likelihood to perform reliably under different kinds of stress. The report provides solar PV financiers, developers, and other industry players with the first widely available quantitative dataset to assess long-term durability…” click here for more

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A LAB FOR MATCHING NEW ENERGY AND THE GRID

Energy Department, NREL Announce New Research Center to Boost Clean Energy Technologies on a Smarter Grid

June 20, 2013 (U.S. Department of Energy)

“The Energy Department and the National Renewable Energy Laboratory (NREL) today announced the Energy Systems Integration Facility (ESIF) in Golden, Colorado, as the latest Energy Department user facility and the only one in the nation focused on utility-scale clean energy grid integration. The facility’s first industry partner – Colorado-based Advanced Energy Industries – has already signed on to start work at ESIF, developing lower cost, better performing solar power inverters…” click here for more

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PRESIDENT COMING AFTER CLIMATE CHANGE

Obama to address climate change in speech Tuesday

David Jackson, June 23, 2013 (USA Today)

“Environmentalists who have been prodding President Obama to address climate change get their answer this week...” click here for more

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GLOBAL NEW ENERGY ADDED 115GW IN 2012

Renewable Energy: World Invests $244 billion in 2012, Geographic Shift to Developing Countries

June 2013 (Renewable Energy Policy Network for the 21st Century)

“…In terms of power generation capacity, 2012 was another record year with 115 GW of new renewables installed worldwide, equivalent to just over half of total net additions. REN21’s Renewables 2013 Global Status Report demonstrates that the right policies can drive the successful integration of larger shares of renewables in the energy mix. Of the 138 countries with renewables targets or policies in place, two-thirds are in the developing world. The geographical distribution of renewables deployment is also widening, particularly in the developing countries…” click here for more

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U.S. OFFSHORE WIND GETS $200 MIL BOOST

PensionDenmark Invests in Wind Farm Offshore Nantucket

Peter Levring, June 18, 2013 (Bloomberg News)

“PensionDanmark has pledged $200 million in funding for a wind farm in Nantucket Sound, in the first committed investment in Cape Wind Associates LLC’s proposed 468-megawatt park offshore Cape Cod…” click here for more

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CHINA BUYING INTO NEW ENERGY WORLDWIDE

China's Overseas Investments in the Wind and Solar Industries: Trends and Drivers

June 2013 (World Resources Institute)

“Shifting to a low-carbon economy will require current emitting countries and projected future emitters to rapidly scale up their investments in renewable energy. In recent years, major emerging economies like China, India, and Brazil have been catching up with leading developed country investors in Europe and the United States. By some estimates, China is already the leading global investor in renewable energy infrastructure, and is increasing its overseas investments in renewable energy, particularly solar and wind…

“…If China achieves its goal of sourcing 15 percent of its energy mix from renewables by 2020 and 30–45 percent by 2050, renewable energy will become closer to a mainstream energy resource within the country. Cost reduction incurred in this process would benefit not only China, but also the rest of the world…China has made at least 124 investments in solar and wind industries in 33 countries over the past decade. Of the investments for which data were available, the cumulative value amounted to nearly US$40 billion in 54 investments, and the cumulative installed capacity added was nearly 6,000 MW in 53 investments…”

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“…Of the 124 investments, 41 were in the wind industry, 81 in the solar industry, and 2 in both the wind and solar industries…The majority of investments were in electricity generation. Twenty-seven of the wind investments were in wind farms predominantly carried out through joint ventures, as were most of the 41 solar investments. Several investments were made in manufacturing facilities and to establish sales and marketing offices…

“…Most of the investments were concentrated in a few developed countries: the United States, Germany, Italy, and Australia. A handful of developing countries, including South Africa, Pakistan, and Ethiopia, also attracted investments…China’s investments in the wind and solar industries are driven by…macroeconomic conditions; industry conditions; policies (both general and specific to the wind and solar industries) that “push” Chinese companies to invest overseas; policy incentives in host countries that “pull” Chinese investors; and financial support from Chinese banks…China is driven to seek solar and wind markets overseas largely because its manufacturing capacity exceeds domestic demand…”

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THE LOCAL HUNDREDS OF MILLIONS FROM WIND

…[W]ind farm expected to contribute millions to local economy

Scott Cloud, June 11, 2013 (Newkirk Herald Journal via Winfield Daily Courier)

“…[An Oklahoma wind farm] set to begin construction by the end of the year, will provide $480 million to the local economy over the next 25 years…The project will include approximately 130 wind turbines that will produce 130 megawatts of power. The wind farm area encompasses more than 12,000 total acres…

“…[T]he Kay Wind Farm Project will bring a significant new source of revenue and jobs to the county and local school districts…[according] to an economic impact analysis conducted by the Economic Impact Group (EIG), an independent consulting firm associated with the Meinders School of Business at Oklahoma City University…”

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“…[It] is expected to contribute a total of $480 million to the local economy over a 25-year period when accounting for direct and multiplier economic effects…[and] bring long-term economic impact to the [school districts]…

“In September 2009, Apex began its partnership with GGW Renewable Resources, LLC (GGW) and opened its Tulsa office…Within the first three years, the GGW team initiated development of six of the best wind farm sites in Oklahoma…Since its founding in 2009, Apex has completed 15 acquisitions and become one of the fastest-growing companies in the industry…In December 2012, Apex completed the development and construction of the 300-megawatt Canadian Hills Wind project…”

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THE 2012 TOP GREEN UTILITIES

NREL Highlights 2012 Utility Green Power Leaders; Top 10 programs support more than 4.2 million MWh of voluntary green power

June 5, 2013 (National Renewable Energy Laboratory)

“The Energy Department’s National Renewable Energy Laboratory (NREL)… released its assessment of leading utility green power programs. Under these voluntary programs, residential and commercial consumers can choose to help support additional electricity production from renewable resources – such as wind and solar – that diversify our nation’s energy portfolio and protect our air and water…

“Using information provided by utilities, NREL has developed ‘Top 10’ rankings of utility green power programs for 2012 in…total sales of renewable energy to program participants…total number of customer participants…the percentage of customer participation…green power sales as a percentage of total utility retail electricity sales…and the lowest price premium charged for a green power program using new renewable resources.”

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“Ranked by renewable energy sales (megawatt hours /year), Portland General Electric (Oregon) overtook Austin Energy in Austin, Texas, in 2012…Dominion Virginia Power and Oklahoma Gas & Electric are new to the [list]…Ranked by the percentage of customer participation, the top utilities are City of Palo Alto Utilities (California), followed by Portland General Electric…[S]ix utilities provided green power supply that included at least 2% solar…Green power sales of the top 10 utility programs by sales exceeded 4.2 million MWh in 2012, up from 3.9 million MWh in 2010. Wind energy represents approximately 85% of electricity generated for green energy programs…

“Utility green pricing programs are one segment of a larger green power marketing industry that counts more than 1.8 million customers, including Fortune 500 companies, government agencies and colleges and universities among its customers, and helps support more than 11,200 megawatts of renewable electricity generation capacity…”

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THE MLP, A NEW WAY TO FINANCE RENEWABLES

MLP Parity Act: Disrupting Distributed Energy

William Pentland, June 10, 2013 (Forbes)

“…Senator Chris Coons (D-DE) and Congressman Ted Poe (R-TX) introduced the Master Limited Partnership Parity Act, which would allow renewable energy power generators to take advantage of the tax benefits of master limited partnerships…MLP boosters believe that passage of the legislation would likely be a game-changer for the renewable energy industry, attracting additional capital to the sector and enhancing the sector’s access to equity, which is typically reserved for corporations…MLP skeptics say that the proposed legislation would have at most a modest impact on investments in renewable energy…[and] renewable energy is poorly suited for the MLP structure compared to fossil fuels…

“…[Investing Daily’s Robert Rapier] makes a compelling point. MLPs have typically been used to finance proven technologies with predictable cash flows and limited exposure to commodity risk. These specific attributes are commonly cited as the reason why MLPs have been so successful in the midstream energy sector, which are de facto “toll collectors” charging other energy companies fees for transporting and storing oil and gas. Energy technologies that have not yet been deployed at scale may not be well suited to take advantage of the MLP structure.”

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“…[B]oth the boosters and the skeptics miss the mark…The proposed legislation would significantly alter the structure of the fledgling distributed energy industry….[As] a limited liability company (LLC) treated as a partnership for taxation purposes and traded on a public exchange…MLPs pass 100% of their taxable income through to their investors who pay income taxes…By avoiding double taxation, MLPs have access to lower cost of capital, which allows them to build and operate low-return assets to provide a sufficient rate of return to attract investors.

“Currently, there are more than 100 MLPs trading on major exchanges with a total market capital of about $400 billion. The majority of these MLPs are in midstream…A smaller but still significant share…are focused on upstream…In recent years, MLPs have moved into “downstream” activities…Downstream is ultimately where the most disruptive change may take place if Congress passes the MLP Parity Act by allowing variable-distribution MLPs with access to lower-cost capital to roll up local energy integrators and solutions providers…[It] may accelerate the emergence of unregulated entities of scale capable of competing with regulated utilities…”

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NUMBERS SAY UTILITIES WANT WIND

The Numbers Don't Lie: U.S. Utilities Continue To Embrace Wind Energy

Jeff Anthony, 6 June 2013 (North American Windpower)

“Evidence that utilities are increasingly turning to wind energy is well documented, and recent announcements show this trend accelerating…Utilities are increasingly recognizing the hedge value against fossil fuel price volatility and the zero fuel risk premium that wind energy brings to a generation portfolio.

“By the end of 2012, the top five electric utilities with wind power capacity on their systems were Xcel Energy, MidAmerican Energy (including PacifiCorp), Southern California Edison, Pacific Gas & Electric and American Electric Power. Eight utilities currently purchase or own more than 1 GW of wind power each…[M]ore than 1,400 utilities purchase or own wind power directly or through wholesale electric power providers, including joint action agencies, generation and transmission cooperatives and other authorities. This means that over 43% of the 3,250 electricity providers in the U.S. have wind energy in their generation mix…”

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“…[A] number of recent announcements continued to underscore the trends of utilities doing even more with wind power…MidAmerican Energy announced plans to add up to 1,050 MW of wind generation…in Iowa by year-end 2015…Xcel Energy, also in May, announced that it would sign new power purchase agreements in Colorado for an additional 550 MW of new wind projects…[increasing] the amount of wind generation in its Colorado system by 25%...The Michigan Public Service Commission approved two power purchase agreements for wind projects in that state to supply wind energy to DTE Energy, the state’s largest utility…[allowing] DTE Energy to reduce a renewable energy surcharge for their residential customers from three dollars to 43 cents…

“…[T]wo trends emerged: utility growth in operations and maintenance of wind turbines and the impact of large, corporate purchasers of wind energy…Companies such as Google, Facebook and Apple have all made announcements recently…and utilities are increasingly receiving more inquiries and requests from their large corporate and industrial customers…Utilities agree that this trend will only increase, and AWEA will be working with them to devise common and practical business models and solutions…”

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CALIFORNIA SOLAR MATCHES POWER LOST BY NUKE SHUTDOWN

Solar power breaks through 2,000 megawatt threshold

June 7, 2013 (California ISO)

“Solar power shines, setting a new all-time high output of 2,071 megawatts (MW) at 12:59 p.m. today, June 07, 2013. This [amount more than doubled since last September when solar peaked at 1,000 megawatts] of energy…[and] is enough to power more than 1.5 million homes across sunny California.”

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“California is the largest producer of solar power in the nation…[On the record-setting day, peak] demand was about 36,000 megawatts…[S]olar power supplied more than five percent of demand for electricity…[and the grid operator said the state is expected to continue comparable levels of solar production]…”

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U.S.-CHINA DEAL ON CLIMATE CHANGE

U.S., China agree to reduce use of hydrofluorocarbons

Steve Holland, Paul Eckert, Peter Cooney and Paul Simao, June 8, 2013 (Reuters)

“…[U.S. President Barack Obama and Chinese counterpart Xi Jinping agreed] to cooperate in fighting climate change by cutting the use of hydrofluorocarbons, or HFCs…

“…[They will work] together and with other countries to use the expertise and institutions of the Montreal Protocol to phase down the consumption and production of hydrofluorocarbons…”

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“...[Obama and Xi agreed] the two countries have strong joint interests in addressing the climate issue…from a lot of perspectives including sustainable economic growth…

“HFCs are used in refrigerators and air conditioners. They came into wide commercial use to replace ozone-depleting chemicals that are being phased out under the 1987 Montreal Protocol, but they are a big source of greenhouse gases that contribute to climate change…[The United States and China responsible for 43 percent of global carbon dioxide emissions]…”

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GOOGLE BUYS MORE WIND

Google Does It Again: Buys Wind To Power European Data Center

4 June 2013 (North American Windpower)

“Continuing its plan to purchase the output from wind farms to provide energy for its data centers…Calif.-based Google is applying a similar strategy in Sweden…[It] plans to buy all of the wind power from a 72 MW (using 3 MW turbines) wind farm in northern Sweden that will be built and operated by Swedish developer O2.

“Google says it has committed to buying the entire output of the wind farm for 10 years so that it can power its Finnish data center with renewable energy. That agreement has helped O2 secure 100% financing for the construction of the wind farm from the investment arm of German insurance company Allianz, which will assume ownership when the wind farm becomes operational in early 2015.”

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“Google’s initial foray into wind energy procurement dates back to 2010, when the company worked directly with NextEra Energy Resources to purchase 114 MW of wind power from NextEra’s Story County II wind farm, located in Iowa. Two years later, Google signed another power purchase agremeent with NextEra for 100.8 MW of wind energy generation from the company's Minco II wind farm, located in Oklahoma.

“In September 2012, Google signed an agreement with the Grand River Dam Authority to supply Google’s Mayes County, Okla., data center with 48 MW of wind energy from the Canadian Hills Wind project, located in west-central Oklahoma.”

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NUMBER ONE IN SUN HARDWARE

Would the leading PV equipment supplier please stand up?

Finlay Colville, 4 June 2013 (PV Tech)

“…PV capital equipment spending and technology adoption is barely capturing an afterthought today…[T]he dearth of action could lead to the conclusion that technology innovation and the PV industry are mutually exclusive (aside from the R&D efforts of a small handful of historic technology innovators)…[But that] is just a symptom of a reset phase for technology and manufacturing within the PV industry…[and an] indication of the difficulties any technology segment is confronted with when there are diverse and competing voices advocating different technology and process flows…

“…[R]eminding suppliers that equipment spending is at a seven or eight- year low in 2013 is barely news…[E]veryone knew this fact over 12-18 months ago when orders dried up…[O]rder books are depleted…[But analyses that show future equipment spending could remain at 2013 levels are] somewhat naïve and short-sighted…[They are] likely more an indication of the errors in analysis that come from doing simplistic top-down nameplate-capacity/end-market-demand comparisons to generate CapEx activity.”

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“There is only one way to forecast CapEx, and that is bottom-up from the production line level, with segmentation by process flow variant and tool alternative. And comparing this directly to equipment supplier tool type shipments and market-share analyses. Any top-down analysis misses this activity completely, and generates misleading data…Centrotherm was the leading PV equipment supplier during 2006 and 2007. Applied Materials then dominated PV tool revenues for four years from 2008 to 2011. In 2012, Meyer Burger recognised the most PV specific revenues for the first time. In 2013, leading revenues are likely to be assigned to one of GT Advanced Technologies, Hanergy Solar (formerly known as Apollo Solar) or Meyer Burger.

“…[R]ankings should be done purely on revenue recognition, not on tool shipment…[O]f the three prospective leaders for 2013, only GT Advanced Technologies is currently shipping based on a low-risk backlog and firm delivery dates from customers. Hanergy’s revenues are exclusively linked to financial transactions between Hanergy Solar (as the parent company) and the former Apollo Solar (as the in-house turnkey line supplier for the multiple Chinese a-Si based fabs of Apollo)…Claiming the number one PV equipment supplier position when revenues…[and] new order intake has been so low for over 12 months - may come over as somewhat misplaced euphoria…[But it] is only a matter of time until technology spending tops the rankings again for the entire manufacturing segment.”

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NEW JERSEY UTILITY IN HUGE RE-INVESTMENT IN SUN

It's Official: PSE&G Spending Half A Billion On Solar

Joseph Bebon, May 30, 2013 (Renew Grid)

“…[T]he New Jersey Board of Public Utilities (BPU) officially signed off on Public Service Electric and Gas Co.'s (PSE&G) proposal to invest up to $446 million in new solar installations throughout the state…

“PSE&G plans to lend customers about $200 million over three years to support 97.5 MW of new solar installations under the Solar Loan III program. In addition, the utility will spend $247 million over five years to build 42 MW of solar on brownfields and landfills, as well as 3 MW in pilot projects, under its Solar 4 All program.”

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“According to the BPU, the current Solar 4 All program is in line with Gov. Chris Christie's Energy Master Plan and has already helped build a large amount of New Jersey's 33 MW of solar on underutilized land…

“To help pay for the Solar 4 All extension, the average PSE&G customer will experience a $0.28 rise in his or her annual bill in the next year, with a maximum increase to $4.44 between Oct. 1, 2015, and Sept. 30, 2016. The BPU says rate impacts will lower in the years after…Both local and national solar stakeholders have praised the approval…”

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BIG MONEY IN MEASURING THE WIND

Wind Forecasting and Data Analytics; Sodar and Lidar Remote Sensing Devices, Site Assessment and Permanent Met Towers, and Meteorological Software for Wind Forecasting: Global Market Analysis and Forecasts

2Q 2013 (Navigant Research)

“…[W]ind is now a mature source of commercial power generation…Wind forecasting practices and technologies are a key element of [the] rapid deployment of wind plants, and also help provide a solution to the increasing need for variable wind generation to integrate effectively on the larger power grid.

“Revolutionary changes are underway within the wind forecasting market, with the growing adoption of remote sensing technologies – including sound detection and ranging (sodar) and light detection and ranging (lidar) – that augment traditional meteorological (met) towers and anemometry. As turbine hub heights rise to 100 meters, standard met towers alone will not suffice for the rigorous early stage site assessment campaigns that are the catalyst for eventual construction of a wind plant…”

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“Navigant Research forecasts [the global combined market for met towers and remote sensing devices is expected to average $225 million per year [from 2012 through 2020]. Revenue will grow from $198 million in 2012 to approximately $301 million in 2020.

“Annual growth rates are projected to be highest in the developing markets of Asia Pacific and Latin America and top dollar amounts will be highest in Europe, where the most hardware will likely be installed]…”

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MAKING SOLAR PANELS BETTER

Solar Industry Anxious Over Defective Panels

Todd Woody, may 28, 2013 (NY Times)

“…Worldwide, testing labs, developers, financiers and insurers are reporting…[solar panel failures a short time into their expected 25-year life span] and say the $77 billion solar industry is facing a quality crisis…[But there] are no industry wide figures…And when defects are discovered, confidentiality agreements often keep the manufacturer’s identity secret, making accountability in the industry all the more difficult…[B]illions of dollars that have financed solar installations, from desert power plants to suburban rooftops [are at stake], on the premise that solar panels will more than pay for themselves over a quarter century…

“The quality concerns have emerged just after a surge in solar…[C]apacity exploded from 83 megawatts in 2003 to 7,266 megawatts in 2012…Most of the concerns over quality center on China, home to the majority of the world’s solar panel manufacturing capacity…After incurring billions of dollars in debt to accelerate production that has sent solar panel prices plunging since 2009, Chinese solar companies are under extreme pressure to cut costs…Other brand-name manufacturers, they said, have shut down production lines and subcontracted the assembly of modules to smaller makers…”

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“…[SolarBuyer] discovered defect rates of 5.5 percent to 22 percent during audits of 50 Chinese factories over the last 18 months…Some Chinese manufacturers acknowledge that quality has become a problem [and Non-Chinese manufacturers have had quality problems as well]…[A] review of 30,000 installations in Europe by the German solar monitoring firm Meteocontrol found 80 percent were underperforming. Testing of six manufacturers’ solar panels at two Spanish power plants by Enertis Solar in 2010 found defect rates as high as 34.5 percent…

“…First Solar, one of the United States’ biggest manufacturers, has set aside $271.2 million to cover the costs of replacing defective modules it made in 2008 and 2009…[China’s] Yingli, the world’s largest solar panel maker since 2012…now offers a comprehensive insurance policy to customers and has established its own testing laboratory in the San Francisco area…”

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THE BEST COUNTRIES FOR NEW ENERGY

A 'New Era' For Global Renewable Energy Industry

31 May 2013 (Solar Industry)

“A new era is dawning in the renewable energy industry….According to the Ernst & Young 10th anniversary edition of the Renewable Energy Country Attractiveness Index (RECAI), global annual clean energy investment totaled $269 billion in 2012, representing a five-fold increase on 2004…The sector now competes for investment with more traditional energy sources, and new technologies - such as solar panels, biomass boilers and mini wind turbines - are enabling energy users to run their own small power plants, changing the way businesses and consumers think about energy…

“…South America [especially Chile, Peru, and Brazil] and the Asia Pacific region [especially Japan, Australia, and Thailand] continue to rise as Europe and the Middle East stall…The index sees the U.S. regain the top spot, as high barriers to entry for external investors realign China into second place. However, the report says growth prospects for the sector in China remain strong with continued gross domestic product growth, increasing energy demand and the ongoing strategic importance of the sector to the local economy…”

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“In Europe, the report says Romania became the latest to slash its subsidies, reinforcing the relatively somber mood in Eastern Europe as policymakers try to find the balance between growth and sustainability…[A] number of Middle Eastern and North African countries, including Egypt, Tunisia and the United Arab Emirates (UAE), have fallen out of the top 40 due to a slow recovery from the Arab Spring and an absence of clear policy frameworks…

“…[Recent deal activity] has been characterized by incumbents and new entrants driving industry consolidation. There is also a strong appetite from Far East construction groups and original equipment manufacturers (OEMs) seeking development pipelines of solar and wind assets to provide a distribution channel…The mismatch between project sponsors’ capital expenditure plans and the corporate capacity to finance this investment will continue to drive more asset disposals, Ernst & Young adds. Both financial investors and OEMs under pressure from overcapacity are likely to remain the most active …”

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NEW 900MW WIND PROJECT FOR WYOMING

Wyoming company plans 300-turbine wind farm...

AdamVoge, May 29, 2013 (Casper Star-Tribune)

“…Wyoming Wind and Power, based in Cheyenne, will build a 300-turbine, 900-megawatt wind farm on private land in eastern Platte County and western Goshen County. The facility — moving forward under the name Wyoming Wind Farm — will begin first production in 2016 with full operations scheduled by December 2019…Company officials and associated contractors used [the company’s first open house] to show why Wyoming Wind Farm is suitable to the area…

“The wind farm is split into two main parcels — Antelope Gap and Chugwater…[T]he sites were chosen for…contiguity of land owned by more than 75 cooperating landowners, proven wind resources in the area and access to transportation infrastructure needed to receive parts for the project’s turbines…Power generated at the farm will be transported via the planned Wyoming-Colorado Intertie…The line is a joint venture between the Wyoming Infrastructure Authority and LS Power and could be operable by 2017…”

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“…Wyoming Wind and Power is licensed to access all 900 megawatts of the line’s capacity…When completely built, Wyoming Wind Farm will use that transmission capacity to become one of the state’s largest projects…No single Wyoming wind project operating in 2012 included more than 125 towers, but…The 1,000-turbine, 2,500-megawatt Chokecherry and Sierra Madre project south of Rawlins and the 2,000-megawatt Pathfinder-Zephyr project near Chugwater both could begin operations late this decade or early next.

“Wyoming Wind and Power plans to file for a series of state and local applications this summer and fall and begin construction in November. About 140 workers will be needed to build the facility during normal work, with about 360 needed at peak construction…The facility will also generate about 30 full-time positions during normal operations…Platte County’s economic development director said the positions won’t make a huge impact, but will still benefit the county…”

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U.S. SUN DEMAND TO JUMP 20% THIS YEAR

Solar Photovoltaic Demand in the US to Grow by 20% in 2013 to 4.3 Gigawatts…Strong Contributions from Utility-Based Projects and Renewable Portfolio Standards to Drive 2014 US Solar PV Above 5 GW

June 3, 2013 (SolarBuzz)

“Demand for solar photovoltaic (PV) panels in the US is forecast to grow significantly during 2013 and post another record high of 4.3 gigawatts (GW), an increase of almost 20% compared to 2012…Solar PV demand from the US market now contributes over 12% of annual global demand, compared to just 5% three years ago.

“Demand in Q2’13 is forecast to reach 1 GW, with over 70% coming from California, Arizona, New Jersey, and North Carolina. Residential and small commercial rooftop PV installations will account for 18% of this demand, with another 14% from large commercial rooftops. The utility-dominated ground-mount segment will account for the remaining 68% of new PV demand this quarter.”

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“Large utility-based solar PV projects in Arizona, California, New Mexico, and Texas will drive US demand above 2.5 GW during the second half of 2013. Strong year-end contributions will also come from Hawaii, Massachusetts, Nevada, New York, North Carolina, and Ohio. PV demand from the US is forecast to exceed 5 GW in 2014, representing a 70% compound annual growth rate since 2009…

“New solar PV incentive policies and additional utility-scale projects are also starting to diversify PV demand across a greater number of states within the US…Six of the ten fastest-growing US states for solar PV demand in 2013 are located in the South or the Midwest, providing annual growth rates averaging above 180%...[But sustaining the growth] remains heavily dependent on…nine states [which] will account for more than 85% of all US solar PV demand in 2013. As a result, the US solar PV market remains highly vulnerable to any abrupt policy changes in the leading US PV states…”

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TALKING PLUG-IN CARS WITH THE PRESIDENT

EV Advocate Goes the Extra Mile to Talk Electric Cars with President Obama; Paul Scott spent his own savings to get the president’s attention on EVs.

Paul Scott, May 31, 2013 (Greentech Media)

Editor’s note: Electric vehicle advocate Paul Scott just spent $32,400, a chunk of his retirement savings, for a ticket to President Obama's June 7 Santa Monica fundraiser. A co-founder of Plug-In America who has been instrumental in the movement that inspired theWho Killed the Electric Car? movie, Scott explains below what he wants to say to the president about electric vehicles in the two or three minutes his money will buy.

If you had something important to say to the president, how much would you spend to get his ear?

On June 7th, I'll be spending $32,400 to eat lunch with President Obama. Two dozen other high-dollar donors will be there, but I'll be the only one in the room who does his own laundry. I'm not wealthy -- at age 60, I'm spending a large percentage of my retirement savings to sit at the table.

Why? Because it's a deeply troubling time in our country and in our world. Whether you choose to believe it or not, climate change is a greater threat to life on Earth than at any time in modern history. Our economic recovery remains shaky at best, and millions remain unemployed. Say what you will about dubious fracking practices that may result in more U.S. oil exports -- we'll be treacherously dependent upon hostile nations for much of our petroleum for a long, long time.

But I, and thousands of other Americans, have been practicing solutions to these seemingly intractable problems by driving electric vehicles (EVs) that run on renewable energy. I want to tell Obama about the economic benefits of this transition away from oil during his visit to Santa Monica to raise money for the Democratic Party.

As we all know, money drives the political game. Those with a lot of money are given access to politicians, Democrats and Republicans alike, and those of modest means are only heard at the ballot box. Adding to the problem is the use of vast sums of money spent to pollute the democratic process with massive slur campaigns filled with misinformation and outright lies. The truth rarely gets heard.

What I want Obama to hear is that for over a decade, I've been driving a zero-emission electric car powered by sunlight. It runs on solar electricity generated by the solar panels I purchased over ten years ago. This is, in fact, the reason I can afford to speak to the president. By powering my home and car with clean energy, I'm no longer forking over thousands to the oil, coal and natural gas companies. I recently calculated how much I've saved by paying only a small utility bill for these basic needs since 2002: roughly $16,000.

This is about half what it is costing me to meet with Obama.

What would our planet and political process look like if millions of Americans stopped giving hundreds of billions to polluting industries and instead spent their savings on locally generated renewable electricity and local goods and services? It's reasonable to assume that the inexorable march toward climate calamity would slow and that millions of jobs would be generated. And if people contributed even a small portion of this savings to causes they believed in -- school fundraisers, healthcare for a relative, animal rescue, and, especially, political causes -- the playing field would begin to level.

They tell me I'll have two to three minutes with the president. I will represent the average American who wants a clean environment, a fair political process and a livable society. Switching from oil to renewable electricity will clean the air, diminish the power of the fossil fuel industry, and strengthen the economic vitality of our communities by stopping the flow of the $700 billion spent on oil every year, much of it leaving the country. We must redirect that wealth toward making life better for everyone. It can be done. This is what I will tell Barack Obama.

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THE TRUTH ABOUT WIND

Judge wind energy honestly

Jeanie Kaidy, May 30, 2013 (Rochester Democrat and Chronicle)

“Every energy source, traditional or alternative, comes with economic and environmental drawbacks…Considering the cutting-edge technology that is currently emerging, a more honest cost benefit analysis should not be restricted solely to wind power, but to wind power versus all other traditional fuels…

“…There are several ways to overcome [wind’s variability]…State-of-the-art grid-connected systems developed at MIT store excess power generated by turbines…[for] when wind is not blowing…Turbines require oil and lubricating fluid [that could leak but]... Each fracking [natural gas] well requires 350 barrels of toxic chemicals that can permanently poison aquifers. Last month, 210,000 gallons of crude spilled from the Exxon pipeline into the backyards of Mayflower, Ark…”

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“…[Old turbines require decommissioning but there is] nuclear waste still on site at every reactor in this country…[with] no safe means of disposal. According to Bloomberg Business News, the two-year wait for new turbines has created a thriving market for refurbished turbines…[Wind gets a federal tax credit but taxpayers] hand over huge subsidies to the fossil fuel industry while energy companies make record profits…

“…[Birds are killed by wind turbines but they can be positioned so that they do not interfere with major migration routes or breeding grounds. The American Bird Conservancy supports wind power as a strategy to mitigate climate change which will ultimately cause far more bird deaths than wind turbines…If we are going to have a meaningful discussion about the pros and cons of this low-impact, economically viable energy source, then let’s make it an honest one.”

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THE WORLD WANTS BETTER ECONOMICS

Public Backing for Going Beyond GDP Remains Strong: Global Poll

29 May 2013 (Ethical Markets)

“The public around the world remains strongly in favour of replacing GDP with a broader way of reporting national progress, according to a new global poll…conducted by GlobeScan on behalf of Ethical Markets, business think tank Tomorrow’s Company and the ICAEW…It shows that…68 percent of citizens on average - in the countries surveyed favour replacing GDP with a broader indicator embracing health, social and environmental statistics as well as economic ones. Twenty-three per cent would rather retain a focus on money-based economic statistics.

“The survey was previously conducted in 2010 and 2007. This year’s results show that while globally the proportion favouring going ‘beyond GDP’ has not changed since 2010, there were some significant shifts in individual countries…The proportion of the public favouring measuring national progress using non-economic factors grew significantly in China (up by 12 points to 80%), the UK (up 11 points to 81%) and Australia (up 10 points to 81%)…”

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“…India (where 44% want to see a new system), Kenya (43%) and Germany (57%) are the most sceptical of change…In 2010 Germany and Brazil were with the countries with the largest margins favouring a new system of measuring national progress. But this year public opinion there has swung significantly in favour of a traditional money-based approach. Thirty-four percent in Germany and 32 percent in Brazil now prefer keeping a focus on money-based statistics…”

[Tony Manwaring, Chief Executive, Tomorrow’s Company:] “Value creation has changed fundamentally in the Age of Sustainability, it must now integrate economic, social and environmental factors in order to deliver in the long-term. If this is true for companies and investors, then it is even truer for countries…As Bobby Kennedy put it many years ago, GDP 'measures everything, in short, except that which makes life worthwhile'. We welcome these findings as big step taken on the road for measuring what matters for the sake of people, planet and profit.”

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