Articles

Green Power Utilities

August 02, 2007

INTRODUCTION

High gasoline prices may soon be the least of your worries. Electricity is expected to cost more thanks to increases in natural gas prices, raising heating and air conditioning prices. The single most polluting industry in the United States, electricity generation has environmental and public health costs as well resulting from burning fossil fuels such as coal, oil, and natural gas. Coal plants, for example, emit 48 million tons of mercury annually, contaminating many of the fish we eat and presenting a risk to brain and nervous system development of infants and young children.

Even with the advent of energy efficient appliances and other products, we are not likely to use less energy anytime soon, although we did consume less in the decade following the 1974 oil crisis. Worldwide electricity use is projected to double over the next twenty years, according to the International Energy Outlook 2004 (IEO2004) reference case forecast, with on average increase of 2.3 percent per year, from 13,290 billion kilowatthours in 2001 to 23,072 billion kilowatthours in 2025. That's hardly surprising given our increasing reliance on computers and other electricity powered communication tools. What's more, fossil fuel supplies are dwindling as electricity needs increase. China may take the lead if their government follows through on a recent declaration that by 2010 10 percent of the country's power would be generated from renewable sources.

Increasing the use of renewable energy—power from the sun, wind, plants, water and other natural sources—is one way to cut down on pollution and not run out of power. Renewables produce far less pollution, although there are some minor environmental concerns associated with their use, and they are virtually inexhaustible. The utilities have long had monopolies in the United States so consumers have had no choices when it comes to buying electricity. That is slowly changing as states begin to deregulate the industry and as utilities start offering consumers the opportunity to purchase "Green Power" or energy from cleaner, healthier power supplies. So far, though, only about 1% of eligible customers are participating in green energy programs. On average Europe has the same market penetration rate; however, the most successful markets have achieved penetration rates between 5% and 15%. In the Netherlands about 13% of residential customers use green power and in Sweden about 6% use it.

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