![Photo of a news conference.](/peth04/20041101151839im_/http://www.eere.energy.gov/news/images/hp_news_photo.jpg) EERE's newsletter, the EERE Network News, covers national and international energy efficiency and renewable energy news and events, as well as new EERE Web sites and energy facts. If you would like this newsletter emailed to you weekly, subscribe here.
October 27, 2004
News and Events
Site News
- EPA Launches Heat Island Effect Web Site
- IEA: World Energy Demand May Increase 59 Percent by 2030
President Bush signed H.R. 4520, the "American Jobs Creation Act of
2004," into law on October 22nd. The new law creates and extends a number of
energy-related tax credits, including an expansion of the renewable
energy production tax credit. This credit formerly applied only to
wind energy and some biomass energy projects, but Section 710 of the
law now expands the credit to a wide range of biomass, geothermal, and
solar energy projects, as well as hydropower produced from small
irrigation projects. The tax credit applies to facilities placed in
service before the end of next year.
The bill's Title III also extends the tax credit for ethanol through
2010 and creates a new tax credit for biodiesel, effective through
2006. It also removes a disincentive for ethanol and biodiesel
production by eliminating any impact on the Highway Trust Fund caused
by the tax credits.
Section 701 of the law places the U.S. Environmental Protection Agency
(EPA) in charge of a demonstration program to provide up to
$2 billion in tax-exempt financing to green building and sustainable
design projects on so-called "brownfields"—abandoned industrial
sites. The EPA's aggregate goal for the program will be to reduce
electric consumption from traditional sources by 150 megawatts, reduce
daily U.S. sulfur dioxide emissions by 10 tons, expand the domestic
solar photovoltaic market by 75 percent (compared to the market growth
from 2001 to 2002), and generate at least 25 megawatts of power from
fuel cells. The projects must be partly supported by state or local
governments and must be nominated by state or local governments within
the next six months.
See the White House announcement on the bill signing, or go directly to the full text of the law. The new law was greeted with enthusiasm by the National Ethanol Vehicle Coalition; the Renewable Fuels Association, which issued press releases on October 10th and October 22; and the National
Biodiesel Board, which issued press releases on October 11th (PDF 35 KB) and October 22nd (PDF 35 KB). Download Acrobat Reader.
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New wind energy projects will soon be sprouting up across the country. Credit: D.A. Black |
GE Energy is experiencing a surge in U.S. wind turbine sales, having
secured contracts to supply more than 750 megawatts of wind turbine
capacity while receiving commitments to order another 750 megawatts.
The total value of these orders and commitments is $1.3 billion,
according to the company. GE Energy credits the recent extension of
the renewable energy production tax credit (PTC), which provides a
credit of 1.8 cents per kilowatt-hour of wind power, adjusted annually
for inflation. GE Energy will supply its 1.5-megawatt wind turbines to
new projects in California, Idaho, Iowa, Minnesota, Oklahoma, Oregon, and Texas. See the GE Energy press release.
Among the many new wind energy projects now under development is a
114-megawatt wind power project in Texas. FPL Energy announced on October 19th that it will build the Callahan Divide Wind Energy Center in
Taylor County, about 12 miles southwest of Abilene. The company
will erect 76 1.5-megawatt wind turbines at the site by early next
year. See the FPL Energy press release.
A recent study by the Renewable Energy Policy Project (REPP) found
that wind power has economic benefits for much of the country.
According to REPP, some 90 companies in 25 states currently
manufacture wind turbine components, and more than 16,000 companies in
all 50 states have the technical potential to enter the wind turbine
market. Examining the potential impacts of expanding the U.S. wind
power capacity to 50,000 megawatts—a roughly eight-fold expansion—the REPP study found it could create 150,000 manufacturing jobs
nationwide. See the press release from the American Wind Energy
Association (AWEA), or go directly to the REPP report (PDF 1.7 MB). Download Acrobat Reader.
The Connecticut Clean Energy Fund (CCEF) is seeking expressions of
interest from renewable energy developers for up to 100 megawatts of
new renewable energy capacity. Called the "Project 100" initiative,
the goal is to support state legislation that requires the state's
electric distribution companies—Connecticut Light and Power and
United Illuminating—to buy power from renewable energy projects
totaling 100 megawatts in capacity by July 1, 2007. Since that
legislation also requires the projects to be funded by the CCEF, the
fund needs to work quickly to get projects underway. CCEF will release
a draft request for proposals at its first "Project 100" forum,
currently planned for mid-November. See the CCEF press release, and
see further details on the CCEF home page.
DOE's Lawrence Berkeley National Laboratory (LBNL) has been producing
a series of case studies on the impact of such state clean energy
funds on renewable energy development. A study released in mid-October
examined utility-scale projects supported by the Clean Energy States
Alliance and found that these state funds have thus far obligated $345
million in support of 2,288 megawatts of new renewable energy
capacity, with 707 megawatts already on-line. See the full series of LBNL case studies, as well as the Clean Energy States Alliance Web site.
BP Solar announced on October 20th that it will more than double its
capability to produce solar cells and modules at its Frederick,
Maryland, facility. The company will invest $25 million in the plant
expansion, which will begin before year-end and be completed by the
end of 2005. BP Solar will also increase employment at the plant by
28 percent. The expansion is part of BP Solar's plan to increase its
global production capacity from 90 megawatts of solar cells per year
to 200 megawatts per year by the end of 2006.
BP Solar will also grow the U.S. market for solar energy systems by
expanding its efforts to offer solar power through The Home Depot. The
two companies are currently offering complete solar power systems for
homes at selected Home Depot stores in southern California, but plan
to expand the program to another 40 stores in that region in November.
In 2005, the companies will expand the program to stores in places
such as northern California, New Jersey, New York, and Hawaii.
BP has also become a major sponsor of DOE's 2005 Solar Decathlon, in
which teams of students from 19 colleges and universities will
construct solar-powered homes on the National Mall in Washington,
D.C., and compete in 10 contests over the course of 10 days. In
addition to BP, the Solar Decathlon is sponsored by DOE in partnership
with its National Renewable Energy Laboratory, The Home Depot, the
National Association of Home Builders, and the American Institute of
Architects. See the BP Solar press release and the Solar Decathlon Web site.
The Bureau of Land Management (BLM) announced on October 21st a new land-management policy to encourage the development of solar energy
resources on public lands. The new Solar Energy Development Policy
establishes a framework for land managers to use in processing right-of-way applications for solar energy development projects on public
lands administered by the BLM. The policy builds on a 2003 report
prepared by DOE and BLM, which identified the top 25 BLM areas with
high solar energy development potential. The policy also encourages
the installation of renewable energy systems at BLM facilities. See
the BLM press release and the Solar Energy Development Policy.
California Governor Arnold Schwarzenegger unveiled on October 22nd the
state's first hydrogen fueling station designed for retail sales.
Located at the Los Angeles International Airport, the BP station was
developed in partnership with Praxair, South Coast Air Quality
Management District, and Los Angeles World Airport as part of DOE's
fuel cell vehicle and infrastructure validation effort. According to
BP, the new station has been designed to run like a public retail
station in order to help BP develop such stations in the future.
See the BP press release.
The new station will normally provide hydrogen for five fuel cell cars
provided by DaimlerChrysler, but at its opening, the station fueled up
a one-of-a-kind vehicle, the governor's hydrogen-fueled Hummer.
General Motors Corporation (GM) built the vehicle, dubbed the H2H, and
GM is sharing the vehicle with the governor's office. The H2H burns
hydrogen in an internal combustion engine, drawing on three high-pressure carbon fiber tanks that carry a total of 5.5 kilograms
(12 pounds) of hydrogen. According to the GM press release, the H2H
is expected to travel 60 miles between fill-ups, or about 11 miles per
kilogram of hydrogen—the energy equivalent to a
fuel economy of 11 miles per gallon of gasoline. See the governor's press release and the GM press releases on the H2H and its design and technology highlights.
The Environmental Protection Agency (EPA) recently launched a Heat
Island Effect Web site that explains the phenomenon of heat islands,
in which urban and suburban areas experience higher temperatures than
surrounding rural areas. The site also provides energy-efficient
measures to lessen heat island effects. See the Heat
Island Effect Web site.
IEA: World Energy Demand May Increase 59 Percent by 2030
The world may consume 59 percent more energy in 2030 than it does now,
with fossil fuels providing 85 percent of the increase, according to
the "World Energy Outlook 2004," released on October 26th by the
International Energy Agency (IEA). Under the IEA's "Reference
Scenario," two-thirds of the new energy demand will be in the
developing world, with China and India dominating the growth in
demand. As a result, oil production will increase by 48 percent, coal
production will increase by 59 percent, and natural gas production
will double. Meanwhile, electricity generated from renewable energy
will increase by a factor of six, mostly due to increases in wind and
biomass power. Since the world's electrical demand will double in that
timeframe, the percentage of power generated from renewable energy
will increase from 2 percent today to 6 percent in 2030.
However, the IEA also sees an alternate possibility in which countries
around the world pursue a more sustainable energy path. In the IEA's
"World Alternative Policy Scenario," investment capital is shifted
more toward demand-side measures, causing world energy use to increase
only 43 percent by 2030. As a result, oil production increases by
32 percent, coal production only increases by 20 percent, and natural
gas production increases by 80 percent. The alternative scenario
yields energy-related carbon dioxide emissions that are 16 percent
lower than in the reference scenario. Energy-efficient vehicles,
appliances, lighting, and industries account for half of the savings,
with the other half provided by a greater use of both renewable energy
and nuclear power. See the IEA press release and executive summary (PDF 94 KB). Download Acrobat Reader.
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