US Senate Panel To Review Draft Renewable Energy Bill-Sources
03 Febbraio 2009 - 8:50PM
Dow Jones News
Sen. Jeff Bingaman, D-N.M., whose committee is responsible for
writing energy legislation, will next week review a draft bill that
could require that 20% to 25% of the nation's electricity comes
from renewable energy sources, according to aides and people close
to the matter.
Analysts say an increased Democrat majority means Congress
stands an excellent chance of passing such a renewable mandate,
which would give the wind, solar and other alternative industries a
major financial boost.
President Barack Obama has already pledged to push for a 25%
mandate, with a 10% standard achieved early in the next decade, and
enacting such a standard would help Democrats accelerate their
clean energy program they say is essential not only for cutting
greenhouse gases and reducing the nation's dependence on oil
imports, but also to stimulating an ailing economy.
Senate officials and lobbyists close to the matter say the
Senate Energy and Natural Resources Committee will review next
Tuesday draft legislation to create a standard.
Although the House of Representatives has passed a renewable
portfolio standard, or RPS, the Senate failed to by a small number
of votes. Many of those "no" votes have been replaced, however, by
Democrats who support the measure.
"In the coming Congress, I think we finally have the opportunity
to see such a policy adopted and implemented," Bingaman said late
last year. "It will start preparing our electricity sector for the
inevitable requirements to reduce greenhouse gas emissions."
With strong support from Senate Majority Leader Harry Reid,
D-Nev., Bingaman's also drafting measures that would reform the
nation's transmission infrastructure.
The Energy Policy Act Congress passed in 2005 authorized the
Department of Energy to designate national power corridors that
would relieve power-transmission bottlenecks and prepare for new
high-voltage lines across the country to connect new generations to
demand centers. However, a host of planning and siting obstacles
have prevented much progress.
That's why momentum is growing on Capitol Hill to establish
federal planning and siting authority, and develop cost-allocation
strategies to encourage transmission for renewables.
The current high-voltage power grid simply transmits electrons
from generation to demand. Alternative sources of power like wind
and solar don't produce steady streams of electricity like nuclear
or coal plants. A "smart" grid, using advanced technology to
balance the load from such intermittent power sources, would manage
transmission much more efficiently.
Southern utility companies, including Duke Energy Corp. (DUK)
and Southern Co. (SO), have lobbied against a federal renewable
portfolio standard, though some encourage state mandates, saying it
would put an unfair burden on states and consumers that aren't
endowed with the same renewable energy resource bases others
are.
Wind turbine manufacturers such as GE Energy, a unit of the
General Electric Co. (GE), India's Suzlon Energy (532667.BY) and
Denmark's Vestas Wind Systems (VWS.OS), as well as solar firms such
as Norway's Renewable Energy Corp. ASA (REC.OS), and
U.S.-headquartered First Solar Inc. (FSLR) and Evergreen Solar Inc.
(ESLR) would benefit under a renewable portfolio standard.
Many lawmakers are likely to try to include provisions that
would allow utilities to supplant a certain percentage of the
mandate with projects that increase energy efficiency.
The industry is already likely to get a major fiscal boost from
a stimulus bill lawmakers are seeking to pass, providing at least
$13 billion in extended production tax credits, tens of billions of
dollars in loan guarantees and grants, and more than $30 billion
for a 30% tax credit for domestic manufacturing of renewable energy
projects.
-By Ian Talley, Dow Jones Newswires; 202-862-9285;
ian.talley@dowjones.com
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