ED Report Demonstrates Renewables Can be Viable Energy Alternatives

Environment California believes the goals of California’s long-term energy policy should be to secure reliable electricity sources at stable prices produced with tolerable impacts. The best options for all of these goals are wind, solar, and geothermal energy.

The state could reasonably expect to generate a quarter of its electricity from these sources by 2010, given appropriate incentives. 8,300 megawatts (MW) of new renewable energy capacity added to 4,100 MW current capacity would generate 75,000 gigawatthours per year (GWh/yr) of electricity out of a total projected demand of 296,000 GWh/yr.

• There is 10,000 MW of wind potential in the state. 4,200 MW of this could come online by 2010. Combined with current capacity, this would make up 14% of total supply.

• There is 4,000 MW of untapped geothermal potential in the state. 2,500 MW could be expected by 2010. Geothermal energy would then constitute 10% of total supply.

• Solar potential is tremendous, but will come online more slowly. California could produce 600 MW from photovoltaics and 1,000 MW from solar thermal power plants by 2010 – 1.5% of total supply, including current capacity.

Diversifying the state’s energy sources would increase the overall reliability of electricity supply.

Many potential renewable energy projects are affordable.

• Wind power offers the most potential at the lowest cost. By 2010, turbines with a combined average output of 2,600 MW could be operational at less cost than other energy resources. At an added cost of 0.1- 2 cents per kilowatt-hour (¢/kWh), an additional 1,600 MW of average capacity could be developed.

• The best geothermal plants produce power for one-third the generating cost of natural gas plants.

• Solar power is cost-competitive in the long term and will lead to a sustainable and affordable energy future.

• If we were able to accurately measure and account for the externalized costs of burning fossil fuels – costs of health damage, crop damage, global warming, and other effects – the competitive advantage of renewable energy would be even clearer. Conservative estimates put the externalized costs of California’s current natural gas power plants at $1.9 billion per year.

• Developing sustainable, in-state resources will keep the financial benefits of resource development in the state economy.

Most of these projects can be brought online quickly.

Fossil fuels are a limited resource. Nuclear waste is a massive problem with no good solution. Clearly we cannot continue to rely on these sources forever. Deepening our reliance on them would result in escalating environmental costs and wasted time and effort. The question is not whether to develop renewable energy. The only question is when. California should begin now to take advantage of good opportunities to build the sustainable energy future.