Changing the Energy Landscape

The Impacts of a National Renewable Electricity Standard

Caitlin Augustin

C.Augustin@umiami.edu

Summer 2009  

 

 

 

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Executive Summary

This paper seeks to analyze the impacts of a proposed national Renewable Electricity Standard

on the United States in the general areas of environment, economics, and efficiency. A national

Renewable Electricity Standard will have an indelible impact on energy landscape.

A national Renewable Electricity Standard would be designed as a flexible, market driven policy

mandating a specific percentage of electricity generation come from renewable sources and from

increased energy efficiency.

A national Renewable Electricity Standard is vital to the United States—currently thirty states

have adopted independent, incompatible renewable electricity standards. Each state has a different

implementation standard, percentage, deadline and funding. Such a byzantine system is crippling for

regional utilities, businesses that participate in interstate commerce, and international corporations

because standards differ and renewable sources are not uniformly applicable.

The goal of sustainability differentiates and defines industry. To be ‘sustainable’ has become an

industry mandate, tied hand in hand with objectives such as lowering carbon emission levels, reducing

total impact on the environment and creating a reliable ‘green’ option for consumers. There are key

stakeholders for and against the national Renewable Electricity Standard. Major detractors of the

proposal are rural, less populated states; regions with inexpensive non-renewable energies; and small

businesses that feel they could not bear the additional costs of renewable fuel sources. Their key

concerns are the fear that existing renewable sources are not populous enough to meet the mandate; the

belief that renewable sources are not the solution; and that transmission and distribution lines cannot

sustain an influx of renewable sources. Proponents, including President Obama, nearly 80% of the

American public, several industries, and numerous states answer these concerns in several ways. Firstly,

the recommendation to expand an national Renewable Electricity Standard to include all forms of solar

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energy generation—particularly solar thermal and solar water systems; secondly, complementary

legislation that provides funding for fossil fuel research and generation, so there will be market

advancement of traditional fuel sources. Lastly, the Department of Energy is leading a coalition of

federal agencies in developing a ‘smart grid’ transmission system, which not only enhances energy

transmission capability, but seamlessly blends with wireless technology to give the customer full control

of their energy consumption.

A national Renewable Electricity Standard will reduce fine particle emissions from the burning

of fossil fuels, which is a health risk accounting for numerous cases of asthma and heart disease

nationally. It will also pave the way for total energy independence, by forcing a shift toward domestic

production of electricity.

Policy has the ability to create an instant market in the exchange of Renewable Electricity

Credits. Recommendations discussed in this paper include developing a central exchange, defined

commodity, and banking system for the Renewable Electricity Credits.

The Solar Industry is important to the achievement of a national Renewable Electricity Standard,

but as legislation is currently written, and exemplified in HR 2454, the industry is disadvantaged by a

focus on utility scale generation. Through several policy provisions, a national Renewable Electricity

Standard can act as a tool for effective market propulsion in the United States. These recommendations

include a solar carve-out, credit multipliers, and net metering. By setting aside funding specifically for

the advancement of solar projects, a national Renewable Electricity Standard evens the playing field for

industries and becomes palatable across businesses.

To successfully implement solar energy to scale, consensus-based, international industry

standards must be developed to provide superior test quality, uniform industry codes and scalability

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across the industry. The development of standards will mitigate the risks and liabilities of new

technology investment and allow the industry to continuously adapt to the needs of the consumers.

A national Renewable Electricity Standard will serve as a benchmark for state objectives, and a

framework for continued renewable advancement. It will spur the creation of green jobs, increased

research and development, and a new wave of environmental responsibility.

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Acknowledgements

This paper was written for the Washington Internships for Students of Engineering (WISE)

program in summer 2009. The author would like to thank ASTM International for providing her the

opportunity to participate in the WISE program, as it has been a wonderful summer in Washington DC.

With sincere gratitude, the author must thank those from ASTM International, especially Jim Olshefsky,

Anthony Quinn and Jeff Grove who have been invaluable with their patience, guidance, and

recommendations. WISE is a summer internship in which participating engineers meet with influential

leaders in Washington, D.C., to understand science policy. More information on the WISE program can

be found at www.wise‐intern.org.

With Many Thanks:

Maria-Elena Augustin, for proofreading this work

John Buydos, for sharing his wealth of knowledge at the Library of Congress

Dan Deckler, for guidance and leadership throughout the DC Experience

Christine DeJong, for all the ASTM Committee E44 information before the WISE experience started

George Kelly, for patiently answering all questions and for providing a tour of the BP Solar facilities

National Academies of Science Symposium on Photovoltaic Manufacturing, July 29th, 2009

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Table of Contents

Executive Summary ................................................................................................................................................... 2 

Acknowledgements ................................................................................................................................................... 5 

Table of Contents ..................................................................................................................................................... 6 

1.0 Introduction ......................................................................................................................................................... 8 

1.1 Key Stakeholders ............................................................................................................................................. 9 

1.1.1 Population ................................................................................................................................................. 9 

1.1.2 Business and Industry ............................................................................................................................. 10 

1.2 Key Concerns ................................................................................................................................................. 11 

1.3 Legislation Relating to a National Renewable Electricity Standard ............................................................... 12 

1.4 The Need for a National Renewable Electricity Standard ............................................................................. 13 

2.0 Impacts of a National Renewable Electricity Standard ..................................................................................... 15 

2.1 Environmental Impacts of a National Renewable Electricity Standard ......................................................... 16 

2.2 Societal Impacts ............................................................................................................................................. 18 

2.2.1 Health Impacts of an National Renewable Electricity Standard ............................................................. 18 

2.2.2 Energy Security Impacts of a National Renewable Electricity Standard ................................................ 19 

2.3 Economic Effects of a Renewable Electricity Standard ................................................................................. 22 

2.4 Employment Effects of a National Renewable Electricity Standard .............................................................. 23 

3.0 Overview of the Solar Industry .......................................................................................................................... 25 

3.0.1 Solar and the Need for a Renewable Electricity Standard ...................................................................... 26 

3.1 Solar Photovoltaic Manufacturing ................................................................................................................. 27 

3.2 Sustained Growth of the Industry ................................................................................................................. 29 

4.0 Industry Recommendation: Development of Renewable Energy Standards as a Basis for Regulation ............ 30 

4.1 Standards Under Development ..................................................................................................................... 32 

4.2. Standards Used for Training and Certification ............................................................................................. 34 

4.3 Impact of Government Use of Standards as Basis for Regulation ................................................................. 34 

5.0 Policy Recommendations: Advancing Solar Technologies ................................................................................ 35 

5.1 Provide a Solar Energy Carve-Out ................................................................................................................ 36 

5.2 Include Other Forms of Solar Technology ..................................................................................................... 37 

5.3 Introduce Net Metering ................................................................................................................................. 38 

5.4 Utilize Credit Multipliers for Solar ................................................................................................................. 38 

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6.0 Recommendations for the Management of a National Renewable Electricity Standard ................................. 39 

6.1 Renewable Energy Credits ............................................................................................................................. 39 

6.2 Single Source of Information and Regulatory Industry ................................................................................. 39 

7.0 Conclusion ......................................................................................................................................................... 40 

Works Cited ............................................................................................................................................................. 42 

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1.0 Introduction

There will be a time when motivation and opportunity coincide to mitigate the threats caused by

our relationship with energy. This could occur when business and government develop a plan to

compensate for the shortages, risks, and increasing costs of our existing system, or it might come when

U.S. citizens are faced with an energy crisis like that of the 1970s. In whichever form the catalyst

comes, nations of the world must address the issues of a changing energy economy by producing energy

more efficiently and by developing and deploying local renewable energy sources. There is a need for a

national Renewable Electricity Standard to provide a uniform benchmark across the United States. It

will diversify our fuel mix and enhance the reliability of fuel supplies, increase economic development,

improve our national security, protect our environment and public health and build a strong domestic

renewable energy industry, which can serve growing international and domestic markets.

The concept of a national Renewable Electricity Standard is straight-forward. Through requiring

states to generate a minimum percentage of their electricity consumption from clean, renewable

resources, a national Renewable Electricity Standard can bring renewable electricity to scale, resulting

in important economic, national security, and environmental benefits. The key to making a national

Renewable Electricity Standard viable is offering a tradable renewable energy credit (REC) program to

better facilitate compliance by each state and strong penalties for enforcement.

The support of a national Renewable Electricity Standard will strengthen investment in the

research and development of new technologies, which increases green jobs and domestic manufacturing

while decreasing the United States dependence on fossil fuels.

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1.1 Key Stakeholders

There are key stakeholders on both sides of the proposed national Renewable Electricity

Standard. The most vocal supporters and opponents are representatives of states across the country.

The second key group of stakeholders is those representing industry and business; and the last major

group of stakeholders is the American public.

1.1.1 Population

The United States are keenly divided on the issue of the national Renewable Electricity

Standard—the divide occurs between the naturally renewable fuel rich states, and those without a robust

renewable energy policy. For example, California, the national leader in renewable energy, strongly

supports this legislation, while the state of Georgia has voiced concern over the limited selection of

renewable technologies available, and the concern of compliance penalties.

Vocal opponents included Senator Evan Bayh of Indiana, who stated that Indiana would be

among the states that would bear a disproportionate share of the cost of meeting the requirement; as an

alternative he offered that a fairer system would be offering tax credits for producing power from

renewable sources1. Another opponent, Senator Jeff Sessions attempted to remove the national

Renewable Electricity Standard from the 2009 Senate Energy bill, stating that the bill would harm

certain regions of the country where significantly increasing the use of resources like solar and wind

power may not be feasible. "I don't think this makes sense. In the Southeast, this will be a

disproportionate cost to us," said Sessions, who is from Alabama.2

Additional opponents include many Alaskans, and states who are high producers of nuclear

energy. "I believe very strongly that emission-free nuclear power has simply got to be part of the

equation," ranking House member Lisa Murkowski (R-Alaska) said. "If the goal is to reduce emissions,

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why we would not include nuclear, why we would not count that ... is just beyond me," she said3. The

widely held belief by these states is that there is no clear ‘one size fits all’ standard and that the key to a

successful energy standard is flexibility.

Overwhelmingly, the public supports a national Renewable Electricity Standard by 75%;

compared to 16% who are opposed to the proposal4.

1.1.2 Business and Industry

Small businesses feel that they will be exponentially hit with the consequences of a national

Renewable Electricity Standard, and Karen Kerrigan, the President of the Small Business &

Entrepreneurship Council stated that “it is wholly inappropriate for the U.S. House to be moving

forward with legislation that imposes massive new energy costs on small business owners and the

economy. Thousands upon thousands of small firms are barely surviving. The consequences of

restricting energy use and driving energy costs higher will be disproportionately more painful for small

businesses.1”

Additional supporters of the proposal include members of the American Public Power

Association’s who support the passage of a federal standard that is workable and allows a significant

proportion of the standard to be met through energy efficiency measures3. Additionally, many medical

doctors have come out in support of a renewable electricity standard, such as Dr. Stephen Jay of Indiana,

who stated “I strongly support the adoption of a renewable electricity standard…as a means of reducing

the substantial health effects our citizens suffer from fine particle pollution.3”

A national Renewable Electricity Standard is widely supported across the renewable energy

industry—from the fabricators of wind turbines to those who develop the inverters for solar panels. It is

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widely acknowledged that a national Renewable Electricity Standard is necessary as a tool to help

renewable technologies achieve grid parity in the United States.

1.2 Key Concerns

There are several key concerns of a national Renewable Electricity Standard. The first argument

is that renewable energy sources are the only answer--Lester Lave, a professor of economics at Carnegie

Mellon University said that there are “significant savings from letting all technologies compete in

satisfying the goals of lowering greenhouse gas emissions, increasing environmental quality more

generally, increasing energy security and improving sustainability.1” A second concern is the technical

difficulties of connecting large amounts of wind and solar energy into the national grid. Lastly,

lawmakers also complained that proposed legislation, HR 2454, did not allow states to count nuclear

power and some hydropower as renewable energy, thus limiting the pool of available resources.

There are concerns regarding the costs of a renewable electricity standard. There are

inconsistencies across states that leave consumers frustrated with inconsistent interconnection, net

metering, and utility rate structures and practice for solar systems. Other issues include insufficient

local financial incentives and financing mechanisms; limited education for and insufficient numbers of

trained and experienced personnel and services. There is also a concern that the economic impact will be

minimal, and in fact there will be a negative outfall from a national Renewable Electricity Standard.

Lastly, there is a concern that the list of eligible renewable energy sources is too limiting, and

restricts the growth of other technologies that would have a positive economic and environmental

impact. Currently accepted sources are wind, solar, ocean, geothermal, biomass, landfill gas,

incremental hydropower, hydrokinetic, and new hydropower at existing dams with no generation.

Comment [maugusti1]: This is not phrased as a concern. 

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A Renewable Electricity Standard will have far reaching effects on the United States. There are

acknowledged challenges to embarking on a project of this magnitude, and through the discussion of

recommendations, these issues will beaddressed.

These concerns are valid, and with appropriate policy steps, the effects can be mitigated and a

national Renewable Electricity Standard will be a success. Many concerns stem from a shortage of

information on solar technologies and minimal consumer awareness. Proponents of a national

Renewable Electricity Standard can answer these concerns with information from existing components

of the Waxman-Markey Bill, which provides funding for fossil fuel expansion and increased research

into clean coal and other new technologies. Secondly, included in this paper is a policy recommendation

to expand a national Renewable Electricity Standard to include all forms of solar energy generation—

particularly solar thermal and solar water systems. Lastly, the Department of Energy is leading a

coalition of federal agencies in developing a ‘smart grid’ transmission system, which not only enhances

transmission capability, but seamlessly blends with wireless technology to give the customer full control

of their energy consumption.

1.3 Legislation Relating to a National Renewable Electricity Standard

The proposed implementation of a national Renewable Electricity Standard is a project that has

been in the works for a nearly a decade. In 2005, when the standard was not passed; Senator Harry Reid

said “I believe we have missed an incredible opportunity to establish a renewable electricity standard,

provide help to consumers facing record prices at the gas pump, and most importantly, to reduce our

dependence on foreign oil.1”

In the current national policy arena the House of Representatives passed HR 2454, the Waxman-

Markey Bill, on June 26, 2009. This bill passed with a provision for a 20% national Renewable

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Electricity Standard. The standard of 20% of electricity produced from renewable energy would grow

incrementally from 2012 to 2039, to a minimum of 15% renewable generation and 5% greater energy

efficiency. The standard allows for increases in energy efficiency to count for 5% of the Renewable

Electricity Standard; however, the governor of an individual state can request that up to 8% of the

electricity standard can be achieved through efficiency.

“If the bill makes it to the President's desk,” said Rep. Edward J. Markey of Massachusetts, the

bill’s co-author, "we will have fundamentally changed our relationship with energy and how it's

generated in this country."

The bill successfully passed the House of Representatives, and as of late June 2009, the Senate

had begun marking up its own version of the bill. Key differences are that the Senate bill, sponsored by

Senator Bingaman of New Mexico, includes a Renewable Electricity Standard target of 15% by 2020;

and utilities could meet 25% of the demand with energy efficiency.

1.4 The Need for a National Renewable Electricity Standard

There is a clear, present need for a national, not state, Renewable Electricity Standard. A

national standard would streamline business practices, provide a national benchmark and assessment

mechanism, and reduce greenhouse gas emissions substantially.

By the end of 2008, 30 states and the District of Columbia had enacted renewable electricity

standard policies to voluntary and nonbinding goals, ranging from 2% of the electricity supply in Iowa

to 40% in Maine. Each of these states had a different timeline for achievement, different

implementation policy, and different renewable allowances. Issues across states have arisen from

different allowances for technologies, resource availability, and carve-outs for specific technologies.

Additional pitfalls arise from a lack of political and regulatory consistency as well as the ability of a

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state to finance the new projects. Policy issues arise from the differences in methods that can be used to

achieve compliance and implementation specifics.1.

These 30 different policies pose great challenges to utilities that serve several states due to the

differences in allowed renewable sources. It is also a challenge for companies that operate in several

states—for a company desiring to purchase renewable electricity or a renewable electricity credit, the

policies differ across state lines, the credits are defined differently, and there is no centralized resource

keeping track of national renewable generation and the value of a renewable credit.

A successful renewable electricity standard policy must balance a state’s goals for fuel diversity,

economic development, price effects, and environmental benefits. Due to the disparities between state

programs and the difficulty of regulating and enforcing state activity, there is a clear need for a national

renewable electricity standard that provides a benchmark and regulation for renewable generation.

Additionally, a national Renewable Electricity Standard would reduce carbon dioxide emissions by up to

12% below the emissions projected from the existing ‘business-as-usual’ scenario2.

A national Renewable Electricity Standard will prevent utilities from profiting off of

inconsistencies between state mandates. For example, Washington’s renewable electricity standard

excludes hydropower, so Washington’s low cost hydropower is sold to consumers in neighboring states

while Washington ratepayers pay additional fees for renewable energy credits generated outside state

lines. A national renewable electricity standard would create a uniform definition of eligible renewable

fuels and prevent this type of rapacious trade-off.

Though some states have a fear of increasing electricity costs, the Energy Information

Administration predicts that by 2030, the national energy costs with a national Renewable Electricity

Standard will differ by less than 1% from a ‘business-as-usual’ reference scenario2. Additionally, there

is concern regarding the impacts on traditional fossil fuel sources such as coal and natural gas. Though

Comment [maugusti2]: 31 with DC 

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a national Renewable Electricity Standard is designed to decrease consumption of these fuels, there are

provisions in the Waxman-Markey Bill that would provide specific funding for these sources and

additional funding for research into ‘clean coal’ and other fuel alternative.The net impact encourages

responsible growth and research.

A Renewable Electricity Standard works by allowing energy efficiency and new technologies to

combine in the most market effective manner possible. A national Renewable Electricity Standard

would reduce greenhouse gas emissions, increase energy security, and help stabilize electricity prices by

creating more homegrown renewable energy.

Source: Pew Center

 

 

 

2.0 Impacts of a National Renewable Electricity Standard

Comment [maugusti3]: Add date 

Comment [maugusti4]: Take a look at this formatting before you PDF – you should probably move this  title to the next page.  

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The impacts of a national Renewable Electricity Standard will be wide and far reaching. The

positive effects spread across disciplines and sectors of the nation and effect people from all walks of

life.

2.1 Environmental Impacts of a National Renewable Electricity Standard

In the United States, energy production and use currently account for nearly 80% of air pollution,

more than 88% of greenhouse gas emissions, and more environmental damage than any other human

activity. 1 Nationally, coal power plants are responsible for 40% of carbon dioxide, 76% of sulfur

dioxide, 59% of nitrogen oxides and 37% of mercury emissions annually. These four pollutants are the

major cause of some of the most serious environmental problems the nation faces, including acid rain,

smog, mercury contamination, and global warming2. These statistics prove a need for strong, decisive

action by the United States to mitigate environmental pollution and curb future emissions. A national

Renewable Electricity Standard provides the metrics for reducing fossil fuel use, increasing consumer

efficiency to limit overall use, and an economically viable option for reducing emissions.

Since 2000, numerous national labs, private labs, and universities have worked to assess national

Renewable Electricity Standard proposals for the United States. These labs provided feasibility studies,

economic assessments and future projections of renewable energy in the United States.

The Energy Future Coalition established a goal of achieving 25% of the nation’s energy by

renewable sources by 2025 (25x’25); by 2007 it was endorsed by more than 400 organizations, 22 state

governors, and resolutions in the U.S. Senate and House of Representatives. In 2006, the University of

Tennessee completed a feasibility study on the 25x’25goals. This study was designed to determine the

feasibility of America’s farms, forests and ranches providing 25 percent of U.S. total energy needs while

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continuing to produce safe, abundant and affordable food supplies and the impact on the agricultural

sector of the united states and the national economy.

This analysis found the ‘25x’25 goal is achievable, and that the farmlands, forests and ranches of

America play a key role in meeting the nation’s renewable energy goals. This benchmark of ‘25x’25

could be met in the United States with sustained yield increases in major crops, utilization of food

processing wastes and the use of over one hundred million acres of dedicated energy crops, such as

switchgrass, rather than simply corn-based ethanol; effectively becoming feedstock neutral.

The 25x’25 mandate could be met while allowing the agricultural sector to consistently produce

at competitive prices; in fact, reaching this goal would have an incredibly positive impact on rural

America and the nation as a whole. Including multiplier effects through the economy, the projected

annual impact on the nation from producing and converting feedstocks into energy would be in excess of

$700 billion in economic activity and 5.1 million green jobs in 2025, most of that in rural areas3.

“Some of the most promising new markets for American agriculture involve a greater role in

providing clean, secure, domestically-produced forms of energy,” former Senators Bob Dole and Tom

Daschle declare in a May 2007 report on 21st

century farm sector opportunities4.

Since taking office, President Obama has stated that energy is one of his two major priorities,

along with healthcare reform, and that he expects energy legislation on his desk to sign by the end of

2009. When the House passed HR 2454, President Obama called the energy bill "an extraordinary first

step" toward mitigating global warming and reducing fossil fuels. In fact, not only does a renewable

electricity standard help to mitigate existing pollution, as the University of Tennessee proved, it can

succeed while still feeding the nation and turning a profit.

Though climate change may not be the prime motivation behind some of these standards, the use

of renewable energy does deliver significant green house gas reductions and agricultural diversity.

Comment [maugusti5]: Looks like different spacing above this line but I can’t figure it out. 

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2.2 Societal Impacts

Numerous indirect social benefits to a transition to a solar economy are worth mentioning, even

though they are not used in the traditional analysis of renewable-energy economics. There is an implicit

value of renewable energy to consumers, the ‘feel good’ factor, of being an early adopter of technologies

and demonstrating environmental friendliness. There is a value to utilities in the forms of public

relations and compliance to state standards already in place. The two greatest impacts on society of a

national Renewable Electricity Standard are in the forms of a positive health impact and enhanced

energy security.

A customer investing in a green lease, a photovoltaic system, or a wind turbine understands the

nonmonetary effects of purchasing a new system, so despite the fact that an economic analysis might

ignore enhanced energy security, robust health benefits, and the growing infrastructure that renewable

energy creates, they are vital to convincing customers to accept renewable electricity.

2.2.1 Health Impacts of an National Renewable Electricity Standard

The increasing usage of clean, renewable energy will yield substantial benefits to the public in

terms of improved health outcomes, economic benefits, and decreased health expenditures. As part of

his testimony on a renewable electricity standard, Dr. Stephen Jay of Indiana stated that, “Fossil fuels

are the primary emitters of fine particle emissions; fine particle emissions are a problem due to their

small size. Because of their size, fine particles can be inhaled deeply into the lungs, and may enter the

bloodstream. There is broad scientific consensus that fine particle pollution endangers our health. These

health effects range in severity from minor symptoms to chronic, serious and fatal outcomes.1”

A few examples of the health effects of fine particle emissions are that it causes premature death

in people with heart and lung disease, accounting for more deaths in the U.S. each year than either drunk

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driving or homicide; triggers thousands of heart attacks each year, increases hospital admissions,

emergency room visits and clinic visits for respiratory diseases and cardiovascular diseases and causes

lung function changes, especially in children and people with lung diseases such as asthma.1”

Based off of this evidence, it is clear that reducing emissions from energy consumption and

replacing that electricity with energy derived from solar—an emission free source—would improve the

public health.

2.2.2 Energy Security Impacts of a National Renewable Electricity Standard

A report released by energy analysts and led by Ian Fells, emeritus professor at the University of

Newcastle, stated that “energy security is more important than climate change.” One of the leading

threats to energy security is the significant increase in energy prices due to world market volatility.

Energy plays an important role in the national security of any given country as a fuel to power the

economic engine1.

In recent years, new threats to energy security have emerged in the form of the increased world

competition for energy resources due to the increased pace of industrialization in countries such as India

and China. The United States has recognized concern of compromised energy security, and a means of

alleviating the concern is through a diversified energy portfolio.

T. Boone Pickens, author of the ‘Pickens Plan,” had a stated goal of reducing America's

dependence on foreign oil by one-third over a ten-year period. "At current oil prices, we will send $700

billion out of this country this year alone - that's four times the annual cost of the Iraq war." As an

oilman, Pickens touted his plan as patriotism and economic good sense; rather than send money to

volatile countries in the Middle East, invest in the untapped resources of renewable energy in the United

States2.

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The impact of a national Renewable Electricity Standard is overwhelmingly positive—by

generating at least 20% more energy from localized renewable energy sources, we are securing an

energy future and paving the way for energy independence.

2.3 Efficiency Effects of a Renewable Electricity Standard

A key component of a national Renewable Electricity Standard is increasing the efficiency of

buildings, electronics, and transmission lines to consume less energy throughout the manufacturing

process. Increased efficiency can account for up to 8% of a renewable electricity standard.

The United States Department of Energy has an annual budget of nearly $4 billion provided for

Energy Efficiency, Renewable Energy (EERE). The key programs under the EERE are energy

efficiency, building technologies, and the Solar Energy Technologies Program.

Buildings, particularly office buildings, consume nearly 70% of the electricity in the United

States. The Department of Energy has recognized a need for developing greater energy efficiency in the

workplace, and promotes industry efficiency tactics such as lean manufacturing and green building, and

efficiency analysis such as Six Sigma, for industry. In addition to providing support and transition to

these energy and cost saving measures, the Office of Industrial Technology, under the EERE, funds the

Industrial Assessment Centers (IAC) programwhich offers assistance to small and medium-sized

companies across the United States. The IAC program has been in existence for over twenty-one years

and is nationally recognized for its economic assistance to small and medium-sized industrial

manufacturers. Assessments are performed entirely at the expense of the U.S. Department of Energy.

The IAC have been instrumental in assisting companies in conserving energy, reducing pollution,

increasing productivity, and lowering operating costs. Over 2,200 Assessment Recommendation

measures have been identified with an average annual recommended cost savings of $56,000 per year

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and an average simple payback of 1 year for each company. This savings amounts to approximately

18.5% of a given company’s electricity costs.

Revitalizing the transmission and distribution grid is a key component to increasing energy

efficiency. There are provisions in the Waxman-Markey Bill (HR 2454) that stated that the Federal

Energy Regulatory Commission must develop a plan for the new national distribution grid for national

electricity transmission. In an interview, Jon Wellinghoff, Chair of the Federal Energy Regulatory

Commission, stated that “[a] job I actually would lobby for is for our agency to oversee, monitor, and

enforce the renewable [electricity] portfolio standard. If [Congress establishes] a federal renewable

portfolio standard, I think FERC would be the appropriate agency for that.3”

The creation of a transmission grid known as ‘smartgrid’ would seamlessly combine wireless

technology and electricity transmission and distribution. The Department of Energy is charged with

creating this smartgrid. The smartgrid directly impacts efficiency because it allows the consumer to

wirelessly control the amount of electricity consumed by appliances, industry, or household at any given

point. The customer will have the capability to turn off the coffee maker while driving out the door, or

to turn off an office light while sitting at home.

In the end, however, efficiency can be only a portion of a new energy solution because efficiency

alone cannot solve the problems of both keeping the price of declining energy stocks in check while also

providing opportunities for growth in wealth and prosperity for the billions of people beyond the

industrialized countries.

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This chart demonstrates the differences between several different deployments of a renewable electricity standard2.

2.3 Economic Effects of a Renewable Electricity Standard

The story of T. Boone Pickens' ambitious plan to privately build the world's largest wind farm in

the Texas panhandle is a prime example of the need for government support of renewable energy. After

pulling the funding of the project due to the collapse of the capital markets and the steep downturn of

natural gas prices, Pickens cited a lack of transmission lines as a secondary concern. There is need for a

sustained government push and incentive to provide a guaranteed market for renewable energy and

incorporate investors1.

An initial concern of a national Renewable Electricity Standard is that large-scale capital projects

cannot be brought on quickly, and that it will take years to build new production infrastructure. By

creating a huge requirement for minority energy providers, there might be drastic supply disruptions and

the demand growth will have dramatic effects on prices. A second concern is that renewable energies

typically have high upfront capital costs; however they can stabilize and even reduce long-term energy

costs despite generally higher upfront capital costs and longer payback periods. To combat these

concerns the Department of Energy's National Renewable Energy Laboratory (NREL) released an

23 Augustin  

analysis at the end of May 2009 indicating that three leading proposalsto increase national reliance on

renewable energy, currently in Congress, are affordable and achievable.

A national Renewable Electricity Standard would help to stabilize electricity rates because

renewable sources are not subject to the violent fluctuations in supply that impact other electricity

generating fuels such as petroleum, natural gas, or coal. The positive result of this is that corporate and

residential rates could be more predictable, stable and less expensive. A national Renewable Electricity

Standard would strengthen the U.S. economically by providing new opportunities for businesses and a

diversification of the national energy supply. In particular, the Renewable Electricity Standard would

stimulate domestic job growth and investment in rural communities.

Businesses reap a direct benefit from a national Renewable Electricity Standard. With the

complexity of state renewable electricity standards comparable to the intricacy of the national tax code,

the advantages of a single regulatory agency and implementation system will allow business to function

more effectively and achieve greater clarity in the renewable electricity credits used in interstate

commerce.

2.4 Employment Effects of a National Renewable Electricity Standard

A 20% national Renewable Electricity Standard which calls for 20% of electricity to be supplied

from renewable sources could generate 185,000 new and high-paying U.S. jobs in equipment

manufacturing, installation, and maintenance—120,000 more than would be created by fossil fuel

projects as renewable energy projects are typically more labor intensive1.

A recent release by the Middle Class Task Force stated that green jobs pay more, by 10 to 20%

depending on the definition, than other jobs, and the Council of Economic Advisors’ analysis shows that

compared to the average American job, occupations likely to be green tend to be better paid2. Green

Comment [maugusti6]: Is there return on this investment? 

24 Augustin  

jobs have been broadly defined as jobs, both white and blue collar, that help to improve the environment

in some way. That includes blue collar workers building out the smart grid to efficiently move the wind

power from the mid-west to major urban centers on both coasts. It includes weatherizers for existing

homes and green manufacturers of large facilities for residential and commercial uses.

Dean Allen, CEO of Seattle-based McKinstry Company noted “our ability to succeed in the

green economy is directly related to the number of skilled, competent individuals who are available to

perform this groundbreaking work.3” U.S. Secretary of Labor Hilda Solis announced five grant

competitions in July 2009, totaling US $500 million, to fund projects that prepare workers for green jobs

in the energy efficiency and renewable energy industries2.

There is a concern that the renewable energy sector will expand before technicians and

employees are properly trained to adapt to the changes. To combat this, the Office of Energy Efficiency

and Renewable Energy is beginning to partner with federal and state programs as well as clean energy

companies to help build a talented and knowledgeable workforce. "Emerging green jobs are creating

opportunities for workers to enter careers that offer good wages and pathways to long term job growth

and prosperity," Secretary Solis said. "Workers receiving training through projects funded by these

competitions will be at the forefront as our nation transforms the way we generate electricity,

manufacture products and do business across a wide range of industries.4" Many of the new green jobs

would be located in rural areas where renewable electricity generating facilities would be sited.

However, a national Renewable Electricity Standard can also benefit other states that manufacture and

assemble components for wind turbines, solar photovoltaic panels and films, and biomass facilities.

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3.0 Overview of the Solar Industry

A national Renewable Electricity Standard will greatly change the national electricity landscape.

It is widely acknowledged that solar energy will play a large role in implementing a national Renewable

Electricity Standard. What follows is an analysis of trends in the industry and recommendations to the

public and private sectors for the continued growth of the industry.

One of the most effective ways of opening the energy marketplace is enactment of a national

Renewable Electricity Standard, by which, the United States is ensuring the creation of predictable,

steadily growing market for investors. Given the high capital costs of renewable power plants, reducing

investor risk is even more critical for power markets. The national Renewable Electricity Standard gives

investors greater assurance to finance new technologies, especially those that are still emerging in the

market.

One of the key issues for photovoltaic market is to reduce the ratio of manufacturing cost to

power output and, more specifically for solar modules, the manufacturing cost per kWh. With the latest

growth data, provided by SEIA, the Solar Energy Industry Association, the solar industry seems well on

its way to achieve this and advance along its experience curve. Government support and intervention is

key, and similar to the current industrial policy to spur more domestic production of batteries for hybrid

cars. Funds were allocated in February 2009 with the objective of helping domestic battery

manufacturers produce economic savings that often come with large-scale production and which are

needed to make electric cars affordable. "This investment will not only reduce our dependence on

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foreign oil, it will put Americans back to work," President Obama said in March 2009. "It positions

American manufacturers on the cutting edge of innovation and solving our energy challenges.1"

The Energy Information Agency recently published a report on the total revenue of the solar industry

in the United States. The total revenue of photovoltaic cell and module shipments grew 49% from $1.16

billion in 2006 to $1.72 billion in 2007 domestically. Employment in the PV-related activities totaled

4,028 person-years in 2006, an increase of about 26 percent from 20052. This is proof that the solar

industry is robust, growing, and a key player in a national Renewable Electricity Standard.

3.0.1 Solar and the Need for a Renewable Electricity Standard

The solar industry could benefit drastically from the support of a national Renewable Electricity

Standard. One of the world’s leading scientists, Jack Steinberger, Nobel prize-winning physicist stated,

“I am certain that the energy of the future is going to be solar,” he told The UK Times. “There is nothing

comparable. The sooner we focus on it the better.1”

Market mechanisms such as a national Renewable Electricity Standard could induce rapid

market growth in solar and grid-connected applications. If such a support mechanism was adopted, the

market would be sufficiently large enough that manufacturers could profitably build and operate

additional module factories and electricity costs for photovoltaic would become cost competitive with

traditional options. With public policies that can sustain domestic photovoltaic market demand growth

at three times the historical growth rate for a period of the order of two decades—photovoltaic could

provide 3% of total U.S. electricity supply by 20252.

There is a need for a national Renewable Electricity Standard to prove that the United States can

compete in renewable energy development and domestic production. The world growth of photovoltaic

has outstripped the United States’ capability. For example, in the U.S., the total cumulative installed

27 Augustin  

photovoltaics capacity amounted to 624 MW through the end of 2006. This U.S. total is less than 25%

of Germany’s installed capacity, despite the U.S. having much more available sunlight and more than

365% of Germany’s population3.

Without a carefully crafted national Renewable Electricity standard, the United States could see

a mere 35% increase in solar compared to a 678% increase in wind4; a decision that would close crucial

players out of the market and limit the economic profitability of the photovoltaic sector. This would

occur because renewable energy sources such as wind are ideally suited to utility-scale generation and

can be cost competitive at utility level. Most versions of a Renewable Electricity Standard are crafted to

favor utility scale installations rather than distributed generation, which limits the solar industry. Solar

energy is incredibly versatile—it can be generated from solar utility plants, but it is uniquely suited to

urban living and distributed generation, where each building houses a several kilowatt system on their

roof. Additionally, solar panels generate electricity in the slightest glimmer of sunlight, while a wind

turbine needs wind to be a minimum velocity in order to begin moving.

The advantages of solar are numerous, and must be recognized in a national Renewable

Electricity Standard; through distributed generation, each roof of a city could be converted to a micro-

generation plant, and towns could provide their own energy for consumption, rather than relying on

electricity transmission from a plant hundreds of miles away. Both wind energy and solar energy are

vital contributors to the national Renewable Electricity Standard, and it is imperative to craft policy to

support the growth of both industries.

3.1 Solar Photovoltaic Manufacturing

The solar industry in the United States demonstrated its ability to grow in 2008 despite the

general economic downturn. Grid-tied photovoltaics (PV) capacity increased 58% in 2008 and solar

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water heating capacity increased 40%4. 2008 was a year for major solar industry deals from coast to

coast in the United States. The nation’s second largest PV installation, First Solar’s 10-MW El Dorado

Project, went online in Nevada. Pacific Gas and Electric announced plans to build two massive PV

installations in 2010, that, when constructed, will be the largest photovoltaic systems in the world. In

Florida, two major plants are established to come online in 2009. There are several more successive

projects planned, proof that the United States is naturally headed toward a renewable energy economy,

and further strengthening the argument that there is a necessity to adopt a national Renewable Electricity

Standard so as to grow the industry across the states in a sustainable fashion.

Solar module costs per installed watt have been declining for the last decade at 5 to 6% per year

because of technological advances, scale of production, and experiential learning.5 The transition in solar

economics is happening first in applications and in places where three factors combine—ample sun,

expensive grid-based electricity, and available government incentives, such as the Southwestern United

States. United States manufacturing of PV modules increased dramatically in 2008 and the United

States remains a net exporter of its product. In the United States, the number of active photovoltaic

manufacturers and/or importers that ship photovoltaic cells and modules increased from 41 companies in

2006 to 46 companies in 2007, based on a report released by the Energy Information Administration3.

Manufactures that responded to SEIA’s 2008 Survey reported a 60% increase in production over 2007

levels4. In addition, several photovoltaic companies began expanding their domestic operations,

including First Solar, Hemlock Semiconductor, Schott Solar, SolarWorld AG, and United Solar Ovonic,

in response to the United States demand. This will increase significantly with a national renewable

electricity standard. Together, these expansions will directly and indirectly support thousands of new

permanent jobs in the United States. As the industry grows, new jobs at all stages of the photovoltaic

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supply chain will need to be filled in proportion to the overall industry growth rate, with many of these

at the local design and installation levels.

A conservative assumption of the photovoltaic impact on renewable energy is that PV’s

contribution to U.S. electricity supply will reach a maximum of 10% by 20501. One researcher has

suggested that for solar energy, the impact may be upwards of 20%3. These statistics, coupled with the

continued growth of the industry, prove that solar is a viable component of the renewable energy mix.

The most probing question is how the global energy industry and its economic agents will

behave in the face of a mandated Renewable Electricity Standard. Global Sources LLC conducted a

survey of China’s solar photovoltaic manufacturers and found that of the surveyed manufacturers, in the

next year, 22% plan to increase capacity by more than 50%; and all but 8% expect to increase capacity

by at least 20%. Of the surveyed manufacturers, 20% plan to target exports in the United States, a

significant increase over the previous data.

Similar to digital cameras or other commoditized consumer goods, solar panels and remaining

system components such as inverters and wiring can be made economically in many locations. To

paraphrase Senator Mark Udall’s July 29, 2009 speech, “Nothing is more patriotic than driving

manufacturing of the Clean Energy Industry in the United States.”

3.2 Sustained Growth of the Industry

One of the most vital steps in continuing the growth of the solar industry is creating appropriate

settings, via public or private partnerships, to allow existing technologies to move forward into the

market using these partnerships. In a presentation to the National Academy of Sciences on July 29,

2009 , First Solar illustrated the steps to continue moving the solar market towards economic

sustainability. Their emphasis is on the pivotal role the government will play in moving the market

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forward, through policy directives such as a national Renewable Electricity Standard, (identified below

as an RPS.)1

4.0 Industry Recommendation: Development of Renewable Energy Standards as a Basis for

Regulation

As Congress debates climate and energy legislation, Asian countries are moving rapidly toward

their clean energy future. China is investing $440 billion to $660 billion in its clean-energy industries

over 10 years and South Korea is investing a full 2 percent of its gross domestic product in a “Green

New Deal.” Lastly, Japan is redoubling incentives for solar, aiming for a 20-fold expansion in installed

solar energy by 20201. These countries have generated a home market for solar technology, and

increased supplies to match national demand. Of the world’s top ten solar-cell producers, only one

company is United States based. The Solar American Board for Codes and Standards is an oversight

organization that has membership from each standards making body—ASTM International, the Institute

of Electrical and Electronic Engineers (IEEE) and the American Society of Mechanical Engineers

(ASME) are three key players. Each organization works to develop a roadmap for standards innovation,

so as to continuously provide stakeholders in the industry critical materials to advance their own growth.

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As exhibited, the solar electricity industry is incredibly dynamic and international—with a

majority of the major players as internationally-based companies. So as to achieve regulation and

continue to encourage foreign-based companies to invest in manufacturing facilities and industry in the

United States, it is vital to develop consensus-based standards. ASTM International, with representation

and membership across the world, is an ideal candidate for development of standards to regulate and

guide the development of the solar industry.

ASTM Committee E44 on Renewable Energy has developed 23 standards pertaining directly to

solar energy. The stated scope of E44 is “The promotion of knowledge, stimulation of research and the

development of standard test methods, specifications, guides, practices and terminology concerned with

the technology for conversion of solar and geothermal renewable energy to directly usable energy forms

and the application of such technology for the public benefit.2”

Committee E44 has far reaching and comprehensive areas of interest, which encompass

standards relating to the methods of fabrication and use of solar and geothermal energy conversion.

ASTM International stakeholders can develop standards in as short as six months, and have been the

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premier standards leader for several other developing technologies. For example, ASTM Committee

F37 on Light Sport Aircraft stepped in and developed consensus standards for the design, operation, and

maintenance of light-sport aircraft in response to a call from the FAA for a new set of rules for aircraft

of this type. Even more laudable than the fact that Committee F37 has completed 29 standards since

2003 for six types of aircraft and maintained and revised these standards to keep them current, is the fact

that they were able to create the consensus despite an incredibly diverse and polarized group of

stakeholders. The work of this committee is an excellent prototype to follow to create the industry

standards for solar energy today3.

ASTM has six different types of standards; test methods, specifications, classifications,

practices, guides, and terminology. One such standard, developed to support the needs in the solar

industry, is ASTM E1036 Standard Test Methods for Electrical Performance of Nonconcentrator

Terrestrial Photovoltaic Modules and Arrays Using Reference Cells. This standard is important because

it provides recognized methods for testing and reporting the electrical performance of photovoltaic

modules and arrays4. Standards can greatly impact the success of the solar industry by limiting producer

liability, increasing consumer confidence, and ensuring that the best products are on the market.

4.1 Standards Under Development

One of the primary concerns of the Office of Energy Efficiency and Renewable Energy (EERE)

is to standardize the dimensions and manufacturing of solar cells so that the cells are interchangeable

across modules. Current product standards are insufficient, and cited by the EERE as preventing growth

of the photovoltaic industry. Several individual groups, such as the United States Air Force, have been

increasing efforts to evaluate and to accomplish solar cell and array standardization. The benefits of

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standardization are both cost savings and increased solar array reliability. An attempt is being made to

standardize hardware at the solar cell level.

A process for validating photovoltaic models is also needed, leading to a possible standard. The

Solar American Board for Codes and Standards will develop and validate the procedure for an accurate,

effective PV System Energy Rating. A number of performance simulation programs are available for

predicting the output of a PV system, but there is currently no standard method or sets of data for use in

evaluating and comparing the accuracy of these models. Finally, a procedure for determining the annual

energy output of flat-plate grid-connected residential PV systems and possibly small commercial PV

systems under “optimal” conditions will be developed and validated. This would provide an estimate of

PV system performance to homeowners, businesses, government and other renewable energy rebate

granting agencies. The objective of these standards is similar to the Environmental Protection Agency’s

“Energy Star” rating, to enhance consumer awareness. Industry wide product-performance standards and

rating scales must be agreed on. These performance standards are vital to giving consumers a clear

indication of photovoltaic products and services.

ASTM International Committee E44 on Solar, Geothermal and other Renewable Energy Sources

has several different consumer protection standards currently under development. The first standard,

practice for grounding a photovoltaic module, ensures the safety of the customer by providing a standard

for securing the module on ground, roof, or mounted on a pole. The second standard under

consideration is a test standard for Wind Load Testing, Analysis, and Design Code Development so as to

determine how a photovoltaic roof-mounted panel will behave in different scenarios and what the

baseline design load needs to be.

The Solar American Board for Codes and Standards has identified several areas where standards

need to be developed for consumer safety. The first concern is developing effective module power

Comment [maugusti7]: What does this mean?

34 Augustin  

rating standards to address current market and deployment concerns. Currently, Solar ABCs has the

Product Safety Panel to identify national requirements and differences between U.S. standards and

several international standards, including inverters, and charge controllers, which helps toward

standardizing connection of photovoltaic systems to the grid at the state or national level. This will allow

potential users to know that they can easily grid-tie their systems at a nominal cost or risk2.

4.2. Standards Used for Training and Certification

Senator Patty Murray of Washington stated “Going green will mean getting serious about worker

training…From solar panel installation, to green building, to retrofitting our homes and offices, many of

the jobs of tomorrow will require increased training efforts today.1”

National certification for PV installers is also critical because the workers who perform

installations must be technically competent and must be regarded as providing reliable service. The

buyer needs to be able to trust both what comes in the box and who wires the connection. The North

American Board of Certified Energy Practitioners has instituted a standards and training program for PV

installers and hopes to set the standard for qualified installers in the years ahead, but more must be done

to create national or international standards and a curriculum based around them.

4.3 Impact of Government Use of Standards as Basis for Regulation

The most important role of the federal government in standards regulation is to remove barriers

to permitting and implementation through a uniform code. These codes will be based on standards

previously discussed and created by industry consensus through organizations such as ASTM

International, IEEE, or ASME.

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As illustrated below, the project development timeline for a solar utility plant is excruciatingly

slow, with approximately five years passing between initial permits and construction. Government

support in the streamlining process it would allow implementation to move forward at a faster rate and

afford states quicker compliance with a national Renewable Electricity Standard. The first step toward

government support is the development of consensus based industry standards, which can then be

written into federal building codes and utilized by companies across the board.

Source: First Solar

When evaluating a potential switch to this new technology, the adoption of photovoltaics can be

either enhanced or inhibited by the information available to customers. The incentives provided by

national renewable electricity technologies, combined with our spirit of innovation and

entrepreneurship, could allow America to lead the world in renewable energy technologies while taking

a significant step towards tackling the critical threat of global climate change.

5.0 Policy Recommendations: Advancing Solar Technologies

Society adopts those technologies that operate and perform faster, better, and cheaper. With this

in mind, there are several adaptations to be made to a national Renewable Electricity Standard so as to

36 Augustin  

maximize the benefit for the solar industry. Two nations, Germany and Japan, have become global

leaders in the production and installation of photovoltaic technology. These countries were motivated

by different factors: healthcare, rising energy costs, and security, to name a few. Germany adopted a

path that lead to a dependence on subsidies for power production costs; while Japan has managed

investment to drive down costs so dramatically, that they have created a domestic industry that has been

independent of national subsidies since 2005. Using such policy tools over the last decade was vital to

the photovoltaic industry’s growth and market opportunities. Additionally, government subsidies in

countries such as China, Japan, Germany, and Spain have created a strong domestic market for

manufacturing.

By following policy recommendations directly aimed at advancing the solar industry, the United

States will develop a national Renewable Electricity Standard that is palatable to a wide audience and

that achieves equality between renewable energy industries.

5.1 Provide a Solar Energy Carve-Out

There are numerous influential factors that are not directly factored into the market price, to

include the facts that distributed solar installations do not require additional investment in transmission

systems, it replaces peak generation and complements additional renewable generation, such as wind

energy. By focusing only on the direct input costs Congress risks discriminating against technologies

such as solar and the indirect benefits of them. The solar carve-out is an augmentation necessary to a

national Renewable Electricity Standard for the success of the solar industry. It is currently used today

in fifteen states and has been particularly effective in developing new solar markets. By setting aside a

specific amount of funds particularly for solar installations, the industry is allowed to flourish and

develop cost competitiveness with less expensive renewable alternatives.

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If a solar carve-out is not instituted, there will be a missed opportunity for renewable energy

generation in cities, with the advantage of installation close to the consumer and installation sized to

match the load consumed. While wind is as important in the arsenal as solar, it is important to

encourage the growth of solar as it is a more versatile and more effective means of renewable energy

generation. With any amount of sunlight, a solar panel will be working to generate electricity; however,

a wind turbine must have a minimum wind velocity in order to begin generation.

5.2 Include Other Forms of Solar Technology

One potential problem of a national renewable electricity standard is that it often overlooks one

of the greatest benefits of solar technology, which is decentralized energy—energy generated in smaller

units, rather than from centrally generated electricity. Ensuring specific notation for decentralized

energy would simultaneously contribute to the electricity standard and national energy security.

Expanding the Renewable Electricity Standard to include all forms of solar generation would

expand the range of energy efficiency and retail values. This would include built-in photovoltaic

(BIPV), solar water heating, and solar heating and cooling.

Solar thermal has historically been one of the easy methods of solar to adopt. According to

SEIA, in 2008 there was a 50% increase in solar thermal installations over the previous year. Solar

water heating continued to grow in 2008 as well, with an estimated 20,500 systems installed. With more

than 80 million detached single-family homes in the U.S., the market for solar water heating is

incredible, and achievable, given the affordability of the systems1.

 

 

 

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5.3 Introduce Net Metering

Access to net metering and standardized and streamlined interconnection standards are critical to

the widespread deployment of customer sited solar and other renewable energy generators. While a total

of 42 states have net metering and every state has some form of interconnection rules, the rules vary

widely1.

For renewable generators such as solar, the renewable generator operates when the resource is

available and cannot be throttled up or down to match the load at the customer’s home or business. What

this means is that any particular instance, the generator is producing more or less than the customer

needs. Net metering would allow utility customers to be credited for the power imputed back to the grid

and use those credits later to offset future costs and lower their electric bill. Net metering is a necessity

because it is the lowest cost option for the customer and in the case of solar generators the best option

for the utility grid. A standard net metering tariff allows the power producer to obtain full value for all of

their power produced without the excess cost of installing batteries or other storage devices.

5.4 Utilize Credit Multipliers for Solar

So as to ensure the increase in solar technology deployment, the national Renewable Electricity

Standard must include a credit multiplier for Solar Energy. A credit multiplier provides solar electricity

more credit towards an RPS than other forms of generation. For example, an MWh of solar generation

might count as 3 MWh towards the Renewable Electricity Standard1. The issue with a traditional

national Renewable Electricity Standard is that without credit multipliers traditional incentives such as

grants or tax credit do not do enough to spur large-scale sales increases. States that only have credit

multipliers for solar, but no solar share requirement, have not yet seen significant solar additions,

Comment [maugusti8]: Explain? 

39 Augustin  

especially customer-sited solar. This reflects the fact that customer-sited solar projects face solicitation

barriers due to their small individual size.

6.0 Recommendations for the Management of a National Renewable Electricity Standard

A myriad of recommendations must be deployed to ensure maximum efficiency of the renewable

electricity standard. These recommendations address the concerns of economic impact, information

availability, and assessment of the effects.

6.1 Renewable Energy Credits

Renewable Energy Credits (REC) can generate instant capital. A Renewable Energy Credit is the

tradable commodity associated with a national Renewable Electricity Standard. There are several issues

with the Credits, beginning with a need for a clear definition of Renewable Energy Credit. Defined

here, a Renewable Energy Credit is tradable environmental commodity in the United States which

represent proof that 1 megawatt-hour (MWh) of electricity was generated from an eligible renewable

resource.

The secondary concern for renewable energy credits occurs with the ownership, tracking

systems, and uniformity of renewable energy credits. The United States must develop an exchange, or

centralized market for the trading of RECs and a public record of all RECs on file to ensure that no

credit is double-counted or sold.

6.2 Single Source of Information and Regulatory Industry

There should be one single entity administering to the national Renewable Electricity Standard.

By having one regulatory agency, such as FERC, discussed earlier in this paper, consumers would

40 Augustin  

understand who, when, and how assessments would occur. Additionally, this one agency would be able

to provide a centralized source of information for all utilities, customers, and states. This centralized

organization would ensure compliance with one set of uniform rules, facilitate information flow, greatly

reduce administrative costs, and ultimately create a more efficient market.

7.0 Conclusion

The Annual Energy Outlook, published by the Department of Energy, provided these words, "It

is not an exaggeration to claim that the future of human prosperity depends on how successfully we

tackle the two central energy challenges facing us today: securing the supply of reliable and affordable

energy; and effecting a rapid transformation to low-carbon, efficient and environmentally benign system

of energy supply.1"

A national Renewable Electricity Standard could be a successful and vital tool to ensure the

United States’ energy future. Without a cohesive and strong national push toward renewable

technologies, the success of these emerging electricity arenas will be hampered by lack of consumer

interest and lack of channeled and focused research.

The success of a national Renewable Electricity Standard is dependent on reliable transmission

capacity and continued research into energy storage. The energy standards set from this national target

must be viewed as a minimum requirement for retail electricity suppliers across the country, and

individual states should be encouraged to establish or retain state Renewable Electricity Standards

targets—provided these state targets exceed the federal requirements. A national Renewable Electricity

Standard is advantageous because it can ensure a known quantity of renewable energy while allowing

the private market to be flexible, thus ensuring a lower cost of the target.

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Executive departments such as the Department of Energy must have sustained research in the

areas of grid parity, Smart Grid, and nationalized transmission so as to ensure the benefits of increased

technology and cost reduction are felt nationally. It is also important for the Department of Energy to

participate with other industry stakeholders in the development of technical standards to insure efficient

integration of each of the components. Industry and government must work together and develop a

robust, domestic energy policy for the United States, beginning with a national Renewable Electricity

Standard.

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Works Cited

1.1.1

1. "Sen. Evan Bayh (D-IN) voted to completely eliminate RES." Journal and Courier Online 29

005 2009 Web.31 Jul 2009. <http://www.jconline.com/article/20090521/NEWS09/90521017>.

2. Rascoe, Ayesha. "Renewable power mandate overcomes hurdle in Senate." Reuters/CNN Money

21 005 2009 Web.31 Jul 2009.

<http://www.reuters.com/article/environmentNews/idUSTRE54K4NV20090521>.

3. Ling, Katherine. "Senate committee repels effort to strike renewable provision ." New York

Times 21 005 2009 Web.2 Aug 2009. <http://www.nytimes.com/gwire/2009/05/21/21greenwire-

senate-committee-repels-effort-to-strike-renew-12208.html>.

4. Hart Research Associates, "Key Findings From Recent National Survey On Renewable Energy

Issues." 04 005 2009 Web.31 Jul 2009.

<http://www.awea.org/newsroom/pdf/Natl_RES_Poll_Memo_050409.pdf>.

1.1.2

1. Kerrigan, Karen. "Driving the Conversation: The American Clean Energy and Security Act."

Politico.com (2009) Web.31 Jul 2009.

<http://www.politico.com/arena/perm/Karen_Kerrigan_E9DD832A-D8C3-4F49-957A-

3581929B7B7A.html>.

2. American Public Power Association’s (APPA) Legislative & Resolutions Committee l, "APPA

Urges Congress and FERC to Improve Bulk Electric System." Transmission and Distribution

World 00 004 2009 Web.31 Jul 2009. <http://tdworld.com/overhead_transmission/appa-urges-

congress-0309/>.

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3. Jay, MD, Stephen. "The Public Health Impact of a Renewable Electricity Standard (RES) in

Indiana." Indiana Regulatory Flexibility Committee (2006): Print.

1.2

1. Lave, Lester. "Senate Testimony of Dr. Lester B. Lave." U.S. Senate Committee on Energy and

Natural Resources 10 002 2009 Web.31 Jul 2009.

<http://wpweb2.tepper.cmu.edu/ceic/pdfs_other/Senate_testimony_Lave.pdf>.

1.3

1. "Bush Signs Energy Bill Into Law to Mixed Reviews." Environment News Service 08 008

2005 Web.31 Jul 2009. <http://www.ens-newswire.com/ens/aug2005/2005-08-08-01.asp>.

1.4

1. "States With Renewable Portfolio Standards." Pew Center Trust on Climate Change 29 007

2009 Web.31 Jul 2009.

<https://govconnect.alachuacounty.us/committees/ECSC/Strategies/laaeo/Shared%20Docum

ents/States%20with%20Renewable%20Portfolio%20Standards%20The%20Pew%20Center

%20on%20Global%20Climate%20Change.doc.>.

2. "Impacts of a 25-Percent Renewable Electricity Standard as Proposed in the American Clean

Energy and Security Act Discussion Draft." Energy Information Association Web.4 Aug

2009. <http://www.eia.doe.gov/oiaf/servicerpt/acesa/execsummary.html>.

3. Table: Summary of State Renewable Portfolio Standard

2.1

1. “What’s Energy?” Alliance to Save Energy. 29 September 2004

<http://www.ase.org/uploaded_files/powersmart/whtsenrgy.html>.

44 Augustin  

2. Sanders, Bernie, Independent Representative, Vermont. “Closing the Dirty Old Powerplant

Loophole.” Statement of Congressman Sanders on July 20, 2001. 29 September 2004

<http://bernie.house.gov/statements/2001-08-27-clean_air_act-ditry_power_plants.asp>.

http://www.serconline.org/RPS/fact.html

3. English, et al., Burton. "25% Renewable Energy for the United States by 2025: Agricultural

and Economic Impacts." University of Tennessee Agricultural Economics 00 011 2006

Web.31 Jul 2009. <http://www.25x25.org/storage/25x25/documents/RANDandUT/UT-

EXECsummary25X25FINALFF.pdf>.

4. Bob Dole and Tom Daschle, Competing and Succeeding in the 21st

Century: New Markets for

American Agriculture, 21st

Century Agriculture Policy Project, May 2007, p.12

2.2.1

1. 1. Jay, MD, Stephen. "The Public Health Impact of a Renewable Electricity Standard (RES) in

Indiana." Indiana Regulatory Flexibility Committee (2006):

http://www.citact.org/dukeigcc/pdfs/ThePublicHealthImpactofaRESinIndiana.pdf

2.2.2

1. Jha, Alok. "Energy security 'more important than climate change'." The Guardian, UK 17 009

2008 Web.31 Jul 2009.

<http://www.guardian.co.uk/environment/2008/sep/17/renewableenergy.fossilfuels>.

2. Gray, Peter. "Pickens' Pullout Underscores the Need for Renewable Electricity Standard."

Climate Change Insights 13 007 2009 Web.31 Jul 2009.

<http://www.climatechangeinsights.com/tags/renewable-electricity-standard/>.

2.3

45 Augustin  

1. Kriz, Margeret. "Administration: A Greener FERC." National Journal 04 004 2009 Web.31 Jul

2009. <http://www.ferc.gov/news/statements-speeches/wellinghoff/2009/04-03-09-wellinghoff-

nationaljournalinterview.pdf>.

2. "Share of Renewables Required." Energy Information Association Web.2 Aug 2009.

2.4

1. Gray, Peter. "Pickens' Pullout Underscores the Need for Renewable Electricity Standard."

Climate Change Insights 13 007 2009 Web.31 Jul 2009.

<http://www.climatechangeinsights.com/tags/renewable-electricity-standard/>.

2.5

1. Albinger, Don. "Page 1 Accelerating Sustainability: Combining On-site Renewables and Energy

Efficiency to Fuel Economic, Environmental and Social Progress." Web.31 Jul 2009.

<http://www.johnsoncontrols.com/publish/etc/medialib/jci/be/white_papers.Par.22786.File.dat/A

cceleratingSustainability.pdf>.

2. "Middle Class Task Force: Green Jobs Update." Middle Class Task Force; the Vice President of

the United States 00 004 2009 Web.31 Jul 2009.

<http://www.whitehouse.gov/assets/documents/Middle_Class_Task_Force_Green_Jobs_Update.

pdf>.

3. "GREEN JOBS: On the Eve of Earth Day, Murray Explores Plans to Get Workers Green Job

Skills." U.S. Senator Patty Murray/Senate Testimony 21 004 2009 Web.4 Aug 2009.

<http://murray.senate.gov/news.cfm?id=311765>.

4. Volpe, Mark. "U.S. Department of Labor announces $500 million for 5 grant solicitations to

train workers for green jobs ." Release Number: 09-0725-NAT 24 06 2009 Web.31 Jul 2009.

<http://www.house.gov/list/press/ar01_berry/SolisDelegationRelease09.html>.

46 Augustin  

5. Chart: REEP.org

3.0

1. Mufson, Steven. "A Jump-Start for New Battery Plants." Washington Post 25 010 2009 Web.4

Aug 2009. <http://www.washingtonpost.com/wp-

dyn/content/article/2009/07/24/AR2009072403163.html?referrer=emailarticle>.

2. "Solar Photovoltaic Cell/Module Manufacturing Activities, 2007." Energy Information

Association 012 2009 Web.2 Aug 2009.

<http://www.eia.doe.gov/cneaf/solar.renewables/page/solarreport/solarpv.html>.

3.0.1

1. Pagnamenta, Robin. "Solar power should replace wind energy, says Jack Steinberger." The

Times 27 005 2009 Web.2 Aug 2009.

<http://www.timesonline.co.uk/tol/news/environment/article6368156.ece>.

2. Payne, Adam. "Accelerating Residential PV Expansion: Supply Analysis for Competitive

Electricity Markets." http://www.princeton.edu/~cmi/research/Capture/Papers/accelerating.pdf

787-800(2001) Web.2 Aug 2009.

<http://www.princeton.edu/~cmi/research/Capture/Papers/accelerating.pdf>.

3. TRENDSINPHOTOVOLTAICAPPLICATIONSSurvey report of select IEAcountries between

1992 and 2006, Report IEA-PVPS T1-16:2007.

4. Carmichael, Annie. "Solar takes a backseat in national climate and energy bill." The Phoenix Sun

21 05 2009 Web.2 Aug 2009. <http://thephoenixsun.com/archives/2765>.

3.1

1. Byrne, John. "The potential of solar electric power for meeting future US energy needs: a

comparison of projections of solar electric energy generation and Arctic National Wildlife

47 Augustin  

Refuge oil production." Energy Policy (2004) Web.2 Aug 2009.

<http://ceep.udel.edu/publications/energy/publications/2004_energy_pv_oil_energypolicy.pdf>.

2. Kelly, H., Weinberg, C.J., 1993. Utility strategies for using renewables. In: Johansson, T.B.,

Kelly, H., Reddy, A.K.N., Williams, R.H.,Burnham, L. (Eds.), Renewable Energy. Island Press,

Washington DC.

3. Perez, R., Seals, R., Stewart, R., 1993. Assigning the load matching capability of photovoltaics

for US utilities based upon satellite derived isolation data. Proceedings of the 23rd IEEE

Photovoltaic Specialists Conference, pp. 1146–1151.

4. "US Solar Industry in Review." Solar Energy Industry Association 19 003 2009 Web.2 Aug

2009. <http://www.seia.org/galleries/pdf/2008_Year_in_Review-small.pdf>.

5. Maycock, Paul, “Market Update: Global PV Production Continues to Increase,” Renewable

Energy World 8(4) (July-August 2005): 86-99.

3.2

1. Polizzotto, Larry. "Analyst/Investor Relations." First Solar 24 006 2009 Web.2 Aug 2009.

<http://phx.corporate-

ir.net/External.File?item=UGFyZW50SUQ9OTE1OHxDaGlsZElEPS0xfFR5cGU9Mw==&t

4.0

1. Norris, Teryn. "Will America lose the clean-energy race?." San Francisco Chronicle 27 007

2009 Web.2 Aug 2009. <http://www.sfgate.com/cgi-

bin/article.cgi?f=/c/a/2009/07/26/EDKH18UBUP.DTL>.

2. "ASTM International Technical Committee E44 on Solar, Geothermal and Other Alternative

Energy." ASTM International Web.2 Aug 2009.

http://www.astm.org/COMMIT/E44_FactSheet_Eng.pdf

48 Augustin  

3. Stephenson, James. "Light Sport Aircraft Industry Takes Flight on ASTM International

Standards." ASTM Standardization News 012 2008 Web.2 Aug 2009.

<http://www.astm.org/SNEWS/ND_2008/stephensons_nd08.html>.

4. "ASTM E1036 - 08." ASTM International Web.2 Aug 2009.

<http://www.astm.org/Standards/E1036.htm>.

4.1

1. Killian,H. J, "Solar Cell and Array Standardization for Air Force Spacecraft." AEROSPACE

CORP EL SEGUNDO CALIF Web.2 Aug 2009.

<http://oai.dtic.mil/oai/oai?verb=getRecord&metadataPrefix=html&identifier=ADA004544>.

4.2

1. "GREEN JOBS: On the Eve of Earth Day, Murray Explores Plans to Get Workers Green Job

Skills." U.S. Senator Patty Murray/Senate Testimony 21 004 2009 Web.4 Aug 2009.

<http://murray.senate.gov/news.cfm?id=311765>.

4.3

1. Polizzotto, Larry. "Analyst/Investor Relations." First Solar 24 006 2009 Web.2 Aug 2009.

<http://phx.corporate-

ir.net/External.File?item=UGFyZW50SUQ9OTE1OHxDaGlsZElEPS0xfFR5cGU9Mw==&t=1>

.

2. "Multi Year Program Plan 2008-2012." U.S. Department of Energy Solar Energy Technologies

Program 05 004 2008 Web.2 Aug 2009.

<http://www1.eere.energy.gov/solar/pdfs/solar_program_mypp_2008-2012.pdf>.

5.2

49 Augustin  

1. 1. "US Solar Industry in Review." Solar Energy Industry Association 19 003 2009 Web.2 Aug

2009. <http://www.seia.org/galleries/pdf/2008_Year_in_Review-small.pdf>.

5.3

1. Testimony of Mr. Christopher Cook,Managing Director, Sunworks, LLCBefore the U.S. Senate

Subcommittee on Energy “Net Metering and Interconnection Standards”Thursday May 7, 2009

2:30pm < http://www.seia.org/galleries/pdf/Chris%20Cook%20Testimony.pdf>

5.4

1. Wiser, Ryan. "The Treatment of Solar Electricity in Renewables Portfolio Standards." Lawrence

Berkeley National Laborator (2007) Web.2 Aug 2009. <http://eetd.lbl.gov/EA/EMS/reports/pv-

rps-set-asides-2007.pdf>.

Conclusion

1. Department of Energy. Annual Energy Outlook 2009 Print. 2 Aug 2009.