Can Renewable Energy Energize Local Economies?

By Melissa Levy, Contributing Writer

Rural areas are constantly searching for economic development options that bring in jobs and revenues and minimize the strain on the environment. Renewable energy technologies can be an option.

In 1973, the US imported 34 percent of its oil. In 2000, America imported more than half of its oil costing $109 billion, according to the US Department of Energy’s (DOE) Energy Information Administration (EIA). This could increase to 75 percent by 2010. Reliance on foreign oil has implications for the US economy as well as national security and stability. The interconnectedness of current energy generation means that a terrorist attack can ripple quickly through the entire system. In addition, relying on any one energy source, whether it is domestic or foreign, can leave the US vulnerable to interruptions.

Some believe that renewable energy is one answer to decreasing US dependence on imported oil. Renewable energy can be solar, wind, hydrogen, geothermal, ethanol or biomass. These alternative fuels are readily available and can be homegrown. North Dakota has enough wind to supply 35 percent of the total US electricity demand. The sunlight falling on the United States in one day contains more than twice the energy consumed in an entire year.

Additionally, new renewable energy technologies based on domestic, renewable resources can keep US dollars at home to strengthen the economy and create new jobs. According to a 2001 World Wildlife Fund study, energy efficiency policies and renewable energy resource development could result in 1.3 million new jobs by 2020. The ability to create new jobs while providing a commodity that is in high demand, energy, has implications for improving rural economies.

Environmental Benefits

The EIA estimates that in 2000, 81 percent of all US greenhouse gases were carbon dioxide emissions from energy-related sources. Renewable energy sources and technologies, harnessing the energy of the sun and wind produce little, if any, pollution.

The DOE’s National Renewable Energy Laboratory (NREL) conducts renewable energy and energy efficiency research, working on basic energy research, photovoltaics, wind energy, building technologies, advanced vehicle technologies, solar thermal electric, hydrogen, superconductivity, geothermal power and distributed energy resources.

According to NREL, their research is helping to benefit the environment and economy. The cost of wind energy has declined from 40 cents per kilowatt-hour to less than five cents. The cost of electricity from photovoltaics has dropped from more than one dollar per kilowatt-hour in 1980 to nearly 20 cents today. And ethanol costs have plummeted from four dollars per gallon in the early 1980s to $1.20 today.

NREL develops the technologies and then helps to transfer their knowledge to others in order to address the nation’s energy and environmental goals. In any given year, approximately half of NREL’s funding returns directly to the private sector through subcontracts, cost-shared research agreements and procurements. Research partners include more than 70 universities, 250 companies, 25 state energy offices and 80 not-for- profit organizations.

The US Department of Agriculture (USDA) Rural Utilities Service (RUS) is also encouraging the development of renewable energy businesses. RUS, under the Rural Electrification Act of 1936, finances projects developed by eligible nonprofit utility organizations, such as electric cooperatives and public utility districts. USDA is pursuing options for eligible organizations to develop renewable energy, and has financed both photovoltaic and wind powered renewable energy projects developed by current borrowers.

The US Environmental Protection Agency’s (EPA) Landfill Methane Outreach Program (LMOP), is a voluntary assistance and partnership program that promotes the use of landfill gas as a renewable energy source. As of June 2002, more than 325 landfill gas use projects were operational in the United States. EPA estimates that more than 500 other landfill sites present attractive opportunities for project development.

For More Information, Contact: EIA at eia.doe.gov; NREL at 303/275-3000 or www.nrel.gov; USDA RUS Renewable Energy Program at 202/720-9547 or visit www.usda.gov/rus/electric/renewables.htm; and EPA LMOP Program at 888/782-7937 or visit www.epa.gov/lmop; or the American Wind Energy Association at www.awea.org

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