CQ TODAY ONLINE NEWS
April 19, 2009 – 10:40 p.m.
Can Technology Provide A Greener Path To Prosperity?
By Elizabeth Wasserman, CQ Staff
Ask Washington politicians what they’re doing about climate change or America’s dependence on foreign oil, and the talk pretty quickly zeros in on “green technologies.”
The Obama administration and its allies in Congress are going to great lengths to identify innovations that could be commercialized with sufficient government funding to create a more self-sustaining, cleaner energy future.
It’s a future that at times sounds like a cross between the Jetsons and the back-to-nature Swiss Family Robinson.
Consider that residents of Boulder, Colo., are already using advanced electric meters to calculate exactly how much energy individual appliances consume, so they can decide whether to unplug a spare freezer in the garage.
Drivers around Palo Alto, Calif., are embracing plug-in hybrid cars that promoters say are capable of operating for the equivalent of less than $1 per gallon.
Elsewhere, companies are studying how to harness the power of ocean currents and wind to generate power for the nation’s manufacturing base and how to sequester carbon emissions from coal-fired power plants in underground reservoirs.
Much of the development work is inspired by federal research incentives born out of fears about global warming and recent memories of $4-a-gallon gasoline. Last October, Congress rolled production tax breaks for wind and solar energy into a financial industry rescue package. And approximately 10 percent of the spending in the $787 billion stimulus law President Obama signed in February is devoted to green initiatives, including “smart grid” projects allowing two-way communications between utilities and power users, efforts to make public buildings more energy efficient, and loan guarantees and other funding for advanced battery research and renewable-energy projects.
“We see this as changing the face of the economy,” says Betsy Mullins, vice president for government and political affairs of TechNet, a Washington trade group. “It is something that, cost-wise, is going to be extremely expensive to do, but it is something that will shift the entire national economy and be significantly important for our nation’s future.”
Obama made green technology a cornerstone of his initial budget proposal, which he unveiled at the end of February, noting that other countries are in a high-tech race to reshape power generation and create new modes for transportation. “If we lead the world in the research and development of clean energy technology, we can create a whole new industry with high-paying jobs that cannot be shipped overseas,” he said in the fiscal 2010 budget message he sent to Capitol Hill.
The new president notably wants to work with lawmakers to institute a cap-and-trade program to reduce greenhouse gas emissions 14 percent below 2005 levels by 2020 and about 83 percent below 2005 levels by 2050. This has spawned a flurry of legislative activity that goes beyond merely designing a market-based system to trade pollution credits. Both the House and Senate are expected to consider proposals to develop a new generation of coal-fired electric plants that capture and store carbon emissions. They are weighing how much to fund the Energy Department’s research into geologic storage of carbon dioxide and other greenhouse gases, and whether to modernize the power grid by building new transmission lines or deploy meters like the ones in use in Boulder.
“One thing that’s clear to me both from the Obama proposals and those in Congress is that technology and innovation are the only viable long-term solutions to America’s energy challenge,” said Bruce Mehlman, executive director of the Technology CEO Council, an industry group that’s promoting green technologies.
An analysis of clean technology options in the United States by the business consultancy McKinsey & Company concluded that by 2030, greenhouse gas emissions could be reduced by 3 billion to 4.5 billion tons of carbon dioxide — and at a cost below $50 a ton. The savings would be even greater if the nation embraced more conservation efforts, the report said.
Initial Focus
Environmentalists say the primary areas for green technology investment are electric power generation and transportation — currently the biggest sources of greenhouse gas emissions.
“The big-ticket items, if you start with transportation, are trying to make our vehicles more efficient, assuming we still use fossil fuels, and also to ultimately try to replace fossil fuels,” said Judith Greenwald, vice president of innovative solutions for the Pew Center on Global Climate Change in Washington.
The efforts to clean up electric power generation, which now accounts for one-third of carbon emissions, focus on conservation and on developing alternative sources, such as wind, sun, geothermal and hydroelectric power.
Some experts are comparing the high-tech green movement to the information technology revolution that swept the country beginning in the 1990s. Clean technology accounted for more than $4 billion in new venture capital investment in 2007 — a 54 percent increase over 2006 figures that made it the fastest-growing segment tracked by the National Venture Capital Association.
But the economic crisis is threatening the industry’s growth curve: Not a single U.S. green-tech company has gone public in the past two financial quarters, according to the venture capital trade group.
That is prompting technology executives to intensify their pleas for federal help. Environmental and technology lobbyists say it’s essential for the administration and Congress to put a price on carbon pollution, whether via a cap-and-trade system or some other means, to justify new investments. Green groups also are pressing for national energy efficiency standards to replace the patchwork of state rules that currently require a percentage of energy needs to be met through conservation. Also high on the agenda is federal funding for a nationwide smart grid — a Web-enabled digital system capable of delivering power generated from remote sources to consumers and businesses all over the country.
Officials say policy makers need to embrace change, even if it involves heavy, up-front spending. Even though domestic oil consumption is forecast to remain stable in the next two decades, residential electricity usage is predicted to surge 24 percent by 2030 as a result of increased use of air conditioning and other appliances, according to the Energy Information Administration.
“We’re going to have to spend money anyway, either upgrading and replacing aging infrastructure or power plants or providing other ways to meet new demands for electricity and energy,” said John A. “Skip” Laitner, director of economic analysis for the American Council for an Energy-Efficient Economy, a nonprofit energy policy organization. “We can choose smarter ways to do it by making investment in consumer electronics and smart-grid technologies to save money in the long run.”




Comments
Consider the Connection to: Green Energy Green energy is needed at all levels of the Economic Pyramid. Where is the Economic Pyramid? Please Google Search: CTC123GREEN
Bad title. There isn't a technology limit in wind power transmission, there are political constraints and some challenges in robust design of an interconnected system. We know how to transfer electrical power 100s of miles (16GW from James Bay supply Quebec, New York, and New England with high voltage transmission lines extending up to 1000 miles). The political problem (NIMBY) is a bigger issue.
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