The Smart Grid and Renewable Energy
Did you know: One kWh is equivalent to approximately 1.4 pounds of greenhouse gases, most of which is carbon dioxide. The average household consumes 10,000 kWh of electricity per year and generates over 11,200 lbs. of air pollutants each year.
CO2 is Increasing and Earth’s Temperature is Rising
As the human species increases its energy consumption, the effect on the environment is intensifying. The amount of carbon dioxide (CO2) released into the atmosphere has climbed by 30 percent over the last 100 years, the largest increase occurring in the last three decades.
The Sources of Emissions
The largest source of carbon dioxide emissions results from the combustion of fossil fuels such as coal, oil and natural gas in power plants, automobiles, industrial facilities and other sources. These emissions have slowly grown by 1.2 percent per year from 1990 to 2007, according to the U.S. Environmental Protection Agency’s 2009 Inventory Emission’s Report, p. 7.
The four U.S. sectors that contribute most heavily to CO2 emissions are transportation (33 percent), industrial (27 percent), residential (21 percent) and commercial (18 percent). The cars we drive, the industries that sustain us, the places we work, and the homes we live in all have a significant impact on greenhouse gas emissions. The most important action we can take to curb global warming is to consume energy more efficiently, according to the U.S. Energy Information Administration.
Rising Temperatures Have Consequences
As a result, the world is getting warmer. Average global temperatures have risen by more than 1 degree Fahrenheit over the last century, with average warming of as much as 4 degrees Fahrenheit in some regions according to a PEW Center Report on Climate Change, p. 10. Unless we begin to reverse this trend, we can expect to experience rising sea levels, radical changes in weather patterns, and threats to human health in the next few decades to come.
The Case for Renewable Energy
Coal-burning power plants are the largest source of carbon dioxide emissions in the United States. About 90 percent of our electricity comes from polluting and otherwise problematic sources of energy such as coal, natural gas, petroleum and nuclear power, while renewable electricity, excluding hydropower, represents only 3 percent of overall installed capacity and 2.5 percent of generation in the United States, according to a 2008 U.S. Department of Energy report.
Renewable Investments Are Up
In recent years, investments in renewable energy have started to rise rapidly, with more investments being proposed for the future. Globally, we spent $70.9 billion on renewable energy in 2006, and total investments increased from $33 billion to $148 billion between 2004 and 2007, and now accounts for around 10% of global energy infrastructure spend, according to this New Energy Finance Report p. 9.
On top of private investment, the Obama administration has also proposed spending $15 billion per year on renewable energy starting in 2012 using revenues generated from a proposed carbon based cap-and-trade program.
Grid Parity
Renewable energy from sources that are naturally replenished such as the sun, wind, water and earth can transform how we produce electricity. As research and investment has taken off, the cost of technologies needed to produce renewable energy has begun to drop precipitously. For example, the industrial cost of solar power has dropped about 30% from 2000 to early 2009, according to Solarbuzz Price index.
Furthermore, in the U.S. Department of Energy’s 2008 Renewable Energy Data Book, the cost of geothermal power ranges between 5.5 cents to 10 cents per kilowatt hour, and the levelized cost of wind power, excluding the Production Tax Credit, was 6 cents per kilowatt hour in 2007-a price that competes with fossil fuel-generated electricity.
Some Renewables Will Do Better Than Others
While hydropower is currently the largest producer of electricity from a renewable energy source, it is unlikely to increase as much as other renewable sources of generation over the coming decades, according to some experts, because of the environmental concerns associated with dams.
In the meantime, the markets for solar, wind and geothermal power have been steadily expanding. Growth in the solar equipment industry is expected to more than quadruple from $20 billion in the four years from 2006 to $90 billion in 2010. In 2007 alone, 134 solar energy systems were connected to the public power grid – compared to 2006 this represents a growth of 163%, according to Conenergy.
Similarly, global wind power capacity has been increasing by roughly 25 percent per year. The market for geothermal energy, which derives energy from heat within the earth, is also starting to take off, with the number of new geothermal projects in the U.S. increasing by 25 percent from August 2008 to March 2009, according to the Geothermal Energy Association.
While changing our energy policy on a worldwide basis would require a huge political and financial commitment, the International Energy Agency says it’s possible for renewable energy sources to reduce CO2 emissions by 50 percent by 2050.
Modernizing Energy Using a Smart Grid
One of the challenges created by renewable energy is that our existing electricity networks are outdated and haven’t fully been able to harness these new energy sources. In an effort to modernize our electricity infrastructure, the Obama administration has asked the U.S. Congress to pass legislation requiring the development of a “smart grid.”
Smart Meters Help Consumers Reduce Energy Consumption
A smart grid delivers energy from suppliers to consumers using digital technology to save energy, reduce costs, and increase reliability. Unlike our current electricity networks, a smart grid offers decentralized power generation, providing homeowners with “smart meters” that help them reduce energy consumption by showing them the energy and costs of using various household appliances at different times during the day.
Selling Your Energy Back to The Utility or Going Off The Grid
Decentralization also makes it possible to more easily coordinate the production of energy from smaller power producers such as the owners of rooftop power panels, opening up new markets for alternative energy production. If we made our energy grid just 5 percent more efficient, it would be the equivalent of eliminating the greenhouse gas emissions from 53 million cars (p. 7), according to the U.S. Department of Energy.
Carbon Based Cap-and-trade System
Today, manufacturing industries account for nearly a third of the world’s energy consumption and 36 percent of CO2 emissions (p. 1). Large materials industries – chemicals, petrochemicals, iron and steel, cement, paper and pulp, and other minerals and metals – account for more than two-thirds of these industry emissions. Industry’s use of energy has grown by 62 percent between 1971 and 2004, mainly due to rapidly growing energy demand in developing countries.
To encourage industries to lower their pollution levels, some governments are creating “cap-and-trade” systems in which companies are issued emission permits with credits that permit them to emit pollutants up to a specific amount. Companies that need to increase their emission allowance must buy credits from those who pollute less – providing economic incentives for them to limit their overall emissions.
The European Union was the first government to implement a carbon based cap-and-trade system in 2005. That same year, U.S. Senators John McCain and Joseph Lieberman introduced the “The Climate Stewardship and Innovation Act,” which included a carbon based cap-and-trade system as part of the bill’s effort to reduce 2010 greenhouse gas emissions to year 2000 levels. While the bill has yet to pass, President Obama has been fighting to revive the issue, asking Congress to pass cap-and-trade legislation as a way to encourage U.S. companies to produce and use alternative forms of energy.
Greener Buildings
Both we as homeowners and the companies we work for have the opportunity to reduce greenhouse gas emissions by paying more attention to how we use energy. Over the last several years, a variety of programs have emerged to encourage organizations to incorporate energy-related business principles and products into the design, construction and operations of their buildings.
For example, manufacturers have begun developing higher-efficiency appliances, office equipment, lighting and home electronics, while homebuilders have started to build higher-efficiency homes under the government-sponsored ENERGY STAR program. In addition, the U.S. Green Building Council has established stringent standards for “green building” based on building designs that incorporate sustainable materials and energy efficiency.
Tax credits have also sprung up to encourage energy efficiency at various levels. The U.S. Congress has passed legislation granting tax credits to designers of energy-efficient commercial buildings. At the same time, it has extended tax credits to homeowners who make energy-efficient upgrades to their homes, and install solar plans and small wind-powered systems. Tax credits are also available to individuals who drive plug-in, electric hybrid vehicles.
More Efficient Transportation
Our transportation system has a huge impact on global warming. Cars and light trucks account for 40 percent of fuel consumption in the U.S., with each gallon of gas pumping 28 pounds of CO2 into the atmosphere, according to a Sierra Club finding.
By incorporating advanced technology such as hybrid engines, smarter transmissions, and aerodynamic designs into our vehicles, we can cut automobile CO2 emissions in half. Biofuels also hold some promise. But while replacing gasoline with renewable fuels such as ethanol and biodiesel reduces CO2 emissions, some experts believe that certain ethanols are not a realistic alternative because the amount of fuel required to produce ethanol exceeds the amount saved when it’s used. Moreover, widespread adoption would require the conversion of nearly all the world’s remaining forests and open space over to agricultural land.
Because of such considerations, we must have a plan to integrate other methods to reduce emissions. Perhaps we could use a supplemental approach to reduce our emissions through the use and development of alternative modes of transportation. Forty percent of all auto trips are less than two miles in length, according to the 1 World 2 Wheels Effort. At the same time, 60 percent of the pollution created by cars happens in the first few minutes of operation, says the League of American Bicyclists. Leaving our cars at home on short trips and walking or riding our bikes instead gets us exercise while cutting back on CO2 emissions. In addition, light rail, commuter rail, and other public transit can save billions of gallons of gas each year.
The Need to Act Now
By changing our energy-use habits and becoming more energy-conscious in our daily lives, we can all reduce our impact on the planet. Please read more within the “Understanding the Issues” and “Get Involved” sections of this site for specific suggestions about what you can do to make a difference.