Invest in the Future:
Accelerate the Development and Deployment of Renewables

Invest in the Future The electric power industry has significantly expanded the use of non-hydropower renewable energy resources for generating electricity during the last decade. Renewable energy sources—such as solar power, wind, geothermal, and biomass—produce minimal environmental impact and generally have low or no fuel costs.

The accelerated development and deployment of renewable energy resources and technologies will be one key element to addressing climate change. However, many renewable sources are not available at all times or are not readily available when electricity is required immediately. As a result, intermittent renewable resources must be backed up by generating facilities that can be better controlled, such as natural gas plants. The availability of renewable resources also varies among regions, which means that not all areas of the country are suited to particular renewable technologies.

Renewable technologies generally are more expensive to build than fossil fuel-based generation (on an installed $/kilowatt basis), although wind power has become more competitive in this area. Renewable sources also face their own environmental and siting concerns.

Promoting renewable energy resources, through tax credits1 and increased funding for research and development, in addition to renewable energy programs in the states, will help expand the use of renewables as part of our nation’s diverse fuel mix and reliable electricity supply. 

1A long-term extension of the Production Tax Credit (PTC) could be the single most effective thing Congress could do to promote renewables. The PTC is a proven means of actually getting renewable generation built and brought online.  The current PTC is due to expire on December 31, 2008. Extending the credit for at least five years will give the private sector the stability necessary to plan and finance renewable energy projects.