Green Energy News | August 24, 1997

August 24, 1997 – Vol.2 No.21

ENERGIES... week of August 24, 1997

COULD CO2 CUTS STIFLE U.S. ECONOMY? Yes, according to a study by Resource Data International. The study, “The Economic Risks of Reducing the U.S. Electricity Supply, CO2 Control and the U.S. Electricity Sector,” sponsored by the Peabody Holding Group, aims to show that electricity supply is directly linked to economic growth and that no other fuel to generate electricity can replace cheap coal. Peabody is the world’s largest private coal producer.

The study cites the need for cheap electricity in the nation’s interior, where most of the energy-sensitive manufacturing industries are rooted. The coasts are generally home to service industries, which use less energy, and have easier access to CO2-neutral energy technologies. Interior regions rely on coal for 72% of their electricity, the coasts 35%.

Further, the study claims that the proposed treaty for binding commitments on CO2 reductions, to be hashed out in Kyoto in December, throws the weight of the cuts onto the industrialized world. Today the U.S. alone emits 23% of the world’s CO2. That number could drop to 19% by 2015. On the other hand, developing nations combined could emit 58% by that date. Developing nations would not be bound by the treaty. The numbers are from U.S. Department of Energy current conditions projections.

While this study looks at coal relative to electricity production, other factors in reducing CO2 should be included in the big picture. Energy efficiencies and emerging energy technologies, along with their market potential, could change the “current conditions” business as usual projections.

COULD CO2 CUTS CREATE NEW OPPORTUNITIES? Yes, according to Foresight Energy Company of California. According to the company, pilot programs have shown that 20 -30 % of residential customers would pay extra for clean energy. An increase of a mere $5-$7 per month would reduce their contribution to air pollution by over 60% - enough to eliminate their consumption of coal and nuclear supplied electricity.

Foresight would like to capitalize on the environmentally concerned market and sell green energy through its ecopower (tm) program. Deregulation of the power industry will allow ecopower to be sold in Oregon, California, Massachusetts and Rhode Island as early as 1998.

Northwest Environmental Advocates (NWEA) of Oregon helped Foresight develop the ecopower environmentally-preferred electricity service.