Earth Day Economics: A Green and Prosperous Future

From an article in the Shepherd Express by Doug Booth, a retired Marquette University economics professor, a founder of the Driftless Area Land Conservancy, and author of The Coming Good Boom: Creating Prosperity for All and Saving the Environment Through Compact Living:

The astounding success of the first Earth Day on April 22, 1970, under the tutelage of a true Wisconsin hero, Sen. Gaylord Nelson, marked the coming of age of the environmental movement in this country. Environmental victories in the 1970s included the passage of such landmark legislation as the Clean Air, Clean Water and Endangered Species acts. Earth Day ushered in a new environmental era, and today the quality of our lives is much improved for it.

Unfortunately, our work remains unfinished.

Our single greatest environmental threat today is global warming brought to us by the burning of fossil fuels to power our cars, heat our homes, grow our food and fabricate and operate all our wonderful consumer gadgets. Scientists tell us that greenhouse gases from fossil fuels act like a “tea cozy” around the Earth, bringing forth dangerous environmental harms reported in the news on a daily basis—a shrinking polar ice cap, rising sea levels, more powerful storms, droughts and wildfires.

Reducing Fossil Fuel Consumption
Bringing global warming to a halt can be accomplished with a simple act—freeing ourselves from the environmental tyranny of fossil fuels. Some will say this is easier said than done, but doing so will bring on what I call a “good boom” that will lift all our boats. The “good boom” will be an economic expansion created through compact urban living, clean energy, more grassland and less corn, green cuisine, letting forests grow old and more. It will also help us address global warming. . . .

Wind and Solar Are the Future’s Power Sources
Necessary to moving beyond fossil fuels is a switch to truly clean sources of renewable energy. Notwithstanding Gov. Scott Walker’s attempt to bring wind energy to a screeching halt with onerous regulations, both wind and sun are the primary energy sources of the future. For example, California lawmakers recently approved a rule requiring utilities to derive one-third of their power from renewable energy sources within 10 years. As we do more of anything in our economy, its cost inevitably falls. This is happening already for both wind and solar energy. The Great Plains is on track to becoming the Saudi Arabia of wind energy, and throughout the Midwest industrial belt, old factories are quickly being refitted to produce wind generators and solar panels. Despite the naysayers, the wind and solar energy revolution is under way, bringing forth an abundance of new jobs—windsmiths, solar panel installers, weatherization specialists, solar engineers, wind and solar equipment fabricators and, here in Milwaukee, urban farmers.

To be sure, the fossil fuel industry will resist going quietly and will defend to the death its right to pollute the atmosphere without cost. Eventually, the industry will lose this battle and will pay the public piper through some form of a tax on greenhouse gas emissions.

Iowa grants West Branch wind facility $3 million

Unlike Wisconsin, Iowa welcomes companies in the wind energy industry, according to this article by Dan Piller in the the Des Moises (Iowa) Register:

State grants West Branch wind facility $3 million

The Iowa Power Fund on Thursday awarded Acciona Wind Energy a $3 million grant to help finance a $19.9 million demonstration project near Mechanicsville that will show off Acciona’s new three-megawatt wind energy system.

“One tower will be steel and the other concrete. We’ve had requests for both,” said Joe Baker, president of Acciona’s plant at West Branch.

The four-year-old West Branch operation makes the nacelles, or the box behind the blade that houses the gears and generation capacity.

Acciona has focused on building 1.5-megawatt wind systems, but the larger units are becoming more standard in the industry, Baker said.

MidAmerican Energy’s wind farms in west-central Iowa have three-megawatt turbines.

“Within seven to 10 years most of the wind turbines will be three megawatts,” he said. A megawatt of electricity can power 200 to 500 standard-sized homes.

Iowa has 3,675 megawatts of wind generation capacity, ranking second behind Texas in total capacity and first as a percentage of its total electricity generation capacity

Acciona is a century-old Spanish company with roots in construction and water treatment. The West Branch facility, opened in 2007, is its only U.S. wind equipment factory, but Acciona operates five wind farms in Illinois, South Dakota, Oklahoma, Nevada and California.

Rising Diesel Prices Fuel Higher Electric Rates

For immediate release
April 15, 2011

More information
RENEW Wisconsin
Michael Vickerman
608.255.4044
mvickerman@renewwisconsin.org

We Energies Customers Will Pay the Higher Cost of Hauling Coal

We Energies’ electricity customers can look forward to coughing up an additional $25 million in 2011 due to the Public Service Commission’s approval yesterday [April14] of a rate increase to cover the escalating cost of transporting coal to Wisconsin power plants.

Milwaukee-based We Energies, Wisconsin’s largest electric utility, imports coal from such distant locations as Wyoming and Pennsylvania to generate electricity. Transportation now accounts for two-thirds of the delivered cost of coal to Wisconsin.

Diesel fuel costs have jumped to approximately $4.00 a gallon this year, propelled by political unrest in the Middle East, declining petroleum output from Mexico, a weakening dollar, and other factors. We Energies’ request predated the ongoing civil war in Libya.

“While we cannot control any of those price drivers, we can more effectively cushion their effects by diversifying our energy generation mix with locally produced wind, solar, small hydro, and biogas electricity,” said Michael Vickerman, executive director of RENEW Wisconsin, a statewide organization advocating for public policies and private initiatives that advance renewable energy.

“The coal mines aren’t getting any closer to Wisconsin. Therefore we have to be serious about reducing our dependence on fossil fuels that are tied to the global oil supply picture. Now is not the time to skimp on investments in conservation and renewable energy that will help stabilize the utility bills of businesses and residents,” Vickerman said.

“Do we have the will to pursue energy policies that take us off of the fossil fuel price escalator? Doing nothing will bake these rate increases into our future without any corresponding boost to Wisconsin’s job market and sustainable energy economy.”

–END–

The nuclear option: Safety concerns are only one big reason wind and solar better

From a commentary by Mark Z. Jacobson in the New York Daily News:

The powerful earthquake and tsunami that caused reactors at Japan’s Fukushima nuclear power plant to shut down – releasing radiation and endangering workers and evacuees – have many Americans asking whether nuclear energy is worth the investment and risk.

I say not. In fact, it should not have taken a disaster of this kind to move us decisively away from nuclear and toward safe, clean, renewable energy. . . .

If the world’s energy needs were converted to electricity for all purposes – and nuclear supplied such energy – 15,800 large nuclear reactors, one installed every day for the next 43 years, would be needed. The installation of even 5% of these would nearly double the current number of reactors, giving many more countries the potential to develop weapons. If only one weapon were used in a city, it could kill 1 to 16 million people.

***

Why do we need nuclear energy when we have safer, cleaner options that can provide greater power for a much longer period and at lower cost to society? These better options are called WWS, for “wind, water and sunlight.” The chance of catastrophe caused by nature or terrorists acting on wind or solar, in particular, is zero.

During their lifetimes, WWS technologies emit no pollution – whereas nuclear does, since continuous energy is needed to mine, transport and refine uranium and reactors require much longer to permit and install than do WWS technologies. Overall, nuclear emits 9 to 25 times more air pollution and carbon dioxide than does wind per unit energy generated.

***

Some argue that nuclear is more reliable than WWS systems. This is not true. A nuclear reactor affects a larger fraction of the grid when it fails than does a wind turbine. The average maintenance downtime of modern wind turbines on land is 2%. That of France’s 59 reactors is 21.5%, with about half due to scheduled maintenance.

Iowa leads all states in use of wind energy

While Wisconsin officials drive wind energy development out of the Badger state, next-door Iowa leads, according to anarticle by Dan Piller in the Des Moines Register:

About 15 percent of Iowa’s electricity generation capacity now comes from wind, maintaining the state’s national leadership in figures released Thursday by the American Wind Energy Association.

With a major expansion by MidAmerican Energy, Iowa stands to rise to 20 percent this year.

“That’s a percentage close to what we see in Europe, and it’s exciting,” said Jessica Isaacs, senior analyst with the wind association.

Iowa still ranks second nationally in wind capacity with 3,675 megawatts, behind Texas’ 10,085 megawatts but still ahead of California’s 3,177.

Because of Texas’ larger electricity grid, Iowa’s 15 percent of total capacity coming from wind exceeds Texas’ 7.8 percent percentage of wind to total electricity.

Iowa’s total will grow this year with the addition of 593 megawatts by MidAmerican in Calhoun, Cass, Adams, Adair and Marshall counties.

The expansions will bring Des Moines-based MidAmerican to 2,316 megawatts of capacity, the largest utility-owned and operated wind generation portfolio among investor-owned utilities.