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As Featured in the Wenatchee
World 08/25/2004
Renewable
energy will pay dividends, on the farm and off
by Randy Smith
Recently, an editorial by Tracy Warner bemoaning the high price of renewable
energy and the subsidies it receives appeared on this page. As an electricity
consumer, a farmer, and a lifelong resident of Eastern Washington, I must disagree
with Mr. Warner's conclusions. The facts reveal renewable energy to be a net
positive for our state, and our nation, both today and in the future.
Renewable energy
is cost-competitive. The cost of wind
energy has decreased over 80 percent in the last
20 years, and it continues to decline. The Northwest
enjoys relatively cheap power thanks to our remarkable
hydroelectric system. In many areas of the country,
however, wind power is cost-competitive with fossil
fuel sources, as are other renewable technologies,
particularly biomass.
All energy technologies
have benefited from a myriad of government incentives. Over
the past 60 years the nuclear industry has received
$145.5 billion, solar $4.4 billion, and wind $1.3
billion in federal subsidies. This trend is not
merely historical -- the Energy Bill of 2001 developed
by the U.S. House of Representatives included over
$33 billion in taxpayer-financed subsidies, over
75 percent of which were directed toward fossil
fuel and nuclear energy.
Renewables save
consumers money. The U.S. Energy Information
Agency has found that increasing renewables to
10 percent of our national portfolio by the year
2020 would cause at most a miniscule increase in
consumer electricity prices compared with business
as usual. The EIA also predicts, however, that
overall consumer energy bills would decrease because
this action would reduce natural gas prices, more
than offsetting the small increases in electricity
costs. Even using conservative assumptions of $3
to $4 per million Btu for natural gas (today's
costs are nearer $6 per million Btu), total consumer
savings could total $13.2 billion between 2002
and 2020.
Investing in renewable
energy creates jobs for Americans. This
spring, researchers from the University of California
at Berkeley concluded that "across a broad
range of scenarios, the renewable energy sector
generates more jobs than the fossil fuel-based
energy sector per unit of energy delivered." These
jobs in the renewable energy industry needn't be
created in places like Denmark and Germany, current
wind equipment market leaders. Instead, urges the
National Renewable Energy Lab, "As one of
the world's leading manufacturers of renewable
energy systems, we can bring in more money with
the increased use of renewable energy sources around
the world. ... The United States manufactures about
two-thirds of the world's photovoltaic systems
... (and) exports about 70 percent of these ...
resulting in annual sales of more than $300 million."
Economic benefits
from renewables are concentrated in rural, agricultural
areas. Tracy seems displeased that "(wind
turbines) would be located in places where there
is much wind and few people ... in windy, relatively
poor places." I agree that renewable energy
development will occur mainly in rural America,
but to me, this is a glass half full. Renewable
energy development is an economic boon for the
local areas in which projects are built and where
renewable fuels are abundant. The Department of
Energy estimates that tripling our nation's use
of biomass energy could create as much as $20 billion
in new revenues for farmers and rural communities.
In our state, farmers leasing land to wind energy
developers are typically paid $2,000 or more annually
per turbine, each of which takes up only around
a quarter acre of land. Few other legal crops come
close to matching the profitability of wind power
for Washington's farmers and ranchers. It's time
we started reaping these benefits as our counterparts
in the Midwest and Texas have for years.
Renewables help
stabilize electricity supply and hedge against
supply disruptions. Just as your banker
will advise you to diversify your investments,
it makes good sense not to put all our eggs in
one basket when it comes to our energy supply.
A dry winter brings a summer of tough decisions:
Will scarce water be used to irrigate fields, flush
fish downriver, or produce hydropower? Adding other
sources to our energy supply means less pressure
on the hydro system, and less reliance on fossil
fuel markets over which we have little to no control.
Energy independence
means increased security. In 2001, the
United States spent about $103 billion to import
oil. The more we rely on homegrown resources for
both electricity and transportation (e.g. biofuels),
the less vulnerable our nation will be to fluctuating
global fuel markets and political instability in
oil-producing regions.
As a lifelong citizen
of this special part of the world, I take pride in
our agricultural heritage, our unique scenic landscape,
and our strong tradition of self-sufficiency. No
one would be more dismayed than I at an ill-considered
scheme to exploit our community's environment, economy
or viewshed. But as a farmer, I know that we must
look to innovation and stewardship to keep our land
and communities vital. It's time to embrace renewable
energy as a new source of regional pride, as an investment
in the economic future of our community and in a
bright future for our children.
 Randy
Smith of Cashmere, Washington is Director of Rural
Affairs for Northwest SEED (Sustainable Energy for
Economic Development).
Related Links
Northwest Sustainable Energy for Economic
Development (NWSEED) works to mobilize consumers
and maximize the benefits of “home-grown” renewable
resources. For more on Northwest SEED, visit www.nwseed.org
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