Energy Reports
Search
•
RSS Feed
Executive Summary
Developing California's
renewable energy industry will provide a job boost for the state. Effective
implementation of the recently-adopted Renewables Portfolio Standard (RPS) would
create greatly increased demand for renewable energy equipment and services,
which may encourage California renewable energy companies to expand their operations.
The booming worldwide market for renewable energy creates further opportunities
for these companies.
Full realization of the
RPS targets would greatly boost renewable energy production in California.
• Considering current proposals
and remaining resource potential, utilities could be expected to satisfy the
RPS renewable energy requirements with 35% wind,50% geothermal, and 15% biomass.
• This would result in the
development of 3,000 MW of wind power peak capacity, 1,700 MW of geothermal
power, and 800 MW of biomass power through 2017.
• This is a tripling of
wind power, a 120% increase in geothermal power, and a doubling of biomass power
over 14 years.
The worldwide market
for renewable energy is exploding.
• The wind power industry
has been growing worldwide at the rate of 40% annually from 1995-2002. Wind
power is expected to more than double within five years and grow to a $60 billion
industry by 2020.
• Geothermal power is projected
to grow by 50% by 2010 and 230% by 2020 to a $35 billion industry.
• Production of solar panels
is still small, but is growing at nearly the same rate as wind power. Manufacturing
capacity of solar photovoltaics (PV) is expected to more than double by 2010
and become a $30-$40 billion industry by 2025.
• Sales of fuel cells for
the large power generation sector are expected to reach $25 billion by 2020,
and sales of small and portable fuel cells could reach $6 billion. In addition,
sales of fuel cells for vehicles are projected at $75 billion by 2020.
California wind power
and geothermal power companies are well positioned to control significant market
share in their industries.
•Three globally competitive
wind power companies are located in California,although they have greatly reduced
their instate manufacturing capacity.
•Three of the world ’s
biggest geothermal power companies are located in California.
California has good potential
to lead in the widespread commercialization of two key emerging technologies—solar
photovoltaics (PV) and fuel cells.
• Two of the largest PV
plants in the world are in California.
• The two U.S. cities most
aggressively pursuing PV growth—Sacramento and San Francisco—are in
California. Los Angeles has also initiated an aggressive solar rebate program
that has attracted manufacturing capacity to the city.
• California is home to
the world's premier R&D consortium for fuel cells for vehicles, the California
Fuel Cell Partnership. This expertise will be directly useful to the budding
market for fuel cells for electricity generation.
• Many of the first fuel
cell demonstration projects were located in California, and direct sales of
commercial fuel cells have now begun.
Developing California's
capacity to capitalize on the expanding markets for renewable energy would have
tremendous benefits for the state economy.
• Full realization of the
RPS goals would create an estimated 119,000 person-years of employment for Californians
over the lifetimes of the plants built through 2017.
• Jobs from steady growth
in the use of solar panels would add 2,700 person-years of employment.
• Overseas renewable energy
markets would create an estimated 4,300 jobs for Californians by 2010 and 9,700
by 2017. From 2003-2017, this would total 78,000 person-years of employment.
• Together this totals 201,000
person-years of employment. At an average salary of $40,000 per year, this job
growth would have payroll benefits of $8 billion.
Policy Findings
California took a large
step forward in developing the instate market for renewable energy with passage
of the Renewables Portfolio Standard. However, the RPS target of 20% renewable
energy by 2017 is not certain. The California Public Utilities Commission must
set a benchmark price for renewable energy, above which contracts will be subsidized
by the Renewable Resource Trust Fund. If this benchmark price is too low, the
fund will be depleted quickly and utilities will not have to meet their percentage
requirements. It is in California's best interests to do what it takes to reach
20% renewable energy as soon as possible.
In addition, California
should continue to promote an increased use of ultra-clean micropower such as
solar photovoltaics and fuel cells through state and local incentive programs,
building codes and requirements for existing and new buildings, and technology-forcing
emission standards for dirty energy sources. It is also in the state's best
interest to remove barriers to ultra-clean micropower such as interconnection
rules and fees and standby charges.
Full realization of the
RPS goals and a large increase in the use of ultra-clean micropower would result
in a significant boost to California renewable energy companies, which would
more effectively springboard the industry into global market dominance.
Other programs to promote
research in renewable energy and commercialization of renewable energy technologies,
and to reduce subsidies and tighten regulations on fossil fuel and nuclear energy
sources, are also effective in leveling the playing field and thereby promoting
a strong renewables industry. Maintaining and expanding these programs could
have significant long-term economic benefits for California.
|
