Making renewable energy a reality

BYLINE: Craig Cox Executive director, Interwest Energy Alliance

Wind turbines and solar panels played starring roles in this fall's campaign ads for Gov.-elect Bill Ritter and Congressman-elect Ed Perlmutter, among others. We know that renewable energy projects make for good visuals, but the election is over. What can increased use of renewable energy and Ritter's proposed "new energy economy" do for Colorado?

Renewable energy saves money: Xcel Energy reported that wind energy saved consumers $9.75 million in 2005 alone. By the end of 2007, Xcel expects to more than triple its wind energy capacity. This means the long-term cost stability of wind energy will continue to pay more and more benefits to consumers.

Renewable energy enhances utility system stability. Utility studies show that electric system reliability will not be affected adversely with significant levels of renewable energy penetration. In fact, the nation's three leading utility trade associations recently conducted a study showing that 20 percent wind energy penetration can enhance system reliability. The utilities reported that "here is evidence that with new equipment designs and proper plant engineering, system stability in response to a major plant or line outage can actually be improved by the addition of wind generation."

Renewable energy creates new economic opportunities and jobs. In 2004, when Colorado's voters endorsed Amendment 37 to increase the use of renewable energy to generate electricity, they understood the many benefits the law would bring to the state. Not only has wind energy brought much-needed new economic development to rural areas, but the law's solar energy requirement has spawned many new jobs throughout the state. Next year, Xcel plans to open the nation's largest solar photovoltaic central station solar plant --a $60 million investment in the San Luis Valley near Alamosa.

So far, so good. But how can Ritter build on this activity and turn the "new energy economy" into reality?

First, we must enhance transmission capacity. Colorado's inadequate electricity transmission infrastructure must be upgraded to allow more rural areas to benefit from new wind energy development. Transmission constraints have already caused a number of windfarms in Colorado to be cancelled or cut back dramatically.

Under Colorado's current regulatory regime, new transmission lines can take up to five years to build, yet large new windfarms can be built in less than two years. Without sufficient transmission capacity, it is difficult to finance new windfarms. However, without windfarms, it is almost impossible to build new transmission lines. Wind energy development in Colorado is caught in a classic "chicken and egg" transmission problem.

To address this problem, Colorado should follow the example of Texas, which passed a law last year identifying areas with the greatest renewable energy potential and streamlining the regulatory approval and utility cost recovery process for new transmission lines to those areas. Perhaps not coincidentally, Texas surpassed California this year as the nation's leader in wind energy generation. Transmission is the fundamental building block of a vibrant market for wind energy.

The benefits accruing from greater amounts of wind energy generation in Colorado would create new benefit streams for ratepayers, local communities, other clean energy technologies and the environment.

Finally, Colorado must play a more active role on the regional and national levels. In our region, we must work cooperatively with neighboring states to develop robust interstate transmission capacity.

At the national level, we must advance supportive federal policies, such as renewable energy production tax credits that provide a rough approximation of the subsidies that fossil fuels have long enjoyed. We must look at a national carbon policy that would begin mitigating the ever-increasing risk of global warming from fossil fuels, while providing valuable new economic development opportunities and additional consumer benefits through nationwide adoption of new, clean energy technologies.

Colorado's business community has expertise and experience creating and implementing renewable energy technologies. From ski areas that use wind, solar and small hydropower, to entrepreneurs manufacturing clean transportation biofuels, Colorado's business community is rising to the challenge. With proper policy signals from state and federal leaders, Colorado can quickly leverage these companies and assert national leadership.

Recently, U.S. Senator Ken Salazar and key state legislators have begun fostering public-private partnerships between the federal government and state universities in Colorado in renewable energy research and development. These officials are enabling the National Renewable Energy Laboratory in Golden to play a productive, cooperative role in the state's academic and business communities. Ritter can build on their successes as he works to make Colorado the national leader in all renewable energy endeavors.

From new transmission development to federal-state cooperation, it's time to put all the pieces together. Ritter's proposed ``new energy economy'' will become reality when he joins with legislative leaders, Colorado's business community, academic institutions and local governments to fulfill the clean energy portion of his ``Colorado Promise.'' Craig Cox Executive director, Interwest Energy Alliance