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Director Ronen discusses the role government can play in promoting renewable energy at the RealClearPolitics Energy Summit on May 21, 2013.
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Energy and Government: Renewables
Amit RonenDirector, GW Solar Institute
Professor, Trachtenberg School of Public Policy, George Washington University
Renewables are still less than 10% of
America’s energy mix
But Renewables Are Growing Fast
Renewables capacity virtually doubled to 85.7 gigawatts(not including large hydro)
In the last three years:
Renewable Costs Have Plummeted
In the last three years:
Levelized cost for large-scale solar went from $0.31 to $0.14/kWh
Renewable Costs Have Plummeted
In the last three years:
Levelized cost for large-scale wind went from $0.09 to $0.08/kWh
Future Growth Potential is Significant
Future Growth Potential is Significant
Future Growth Potential is Significant
No major energy technology has achieved the necessary cost reductions and scale without sustained government support
But Sustained and Predictable Public Investment is Still Needed
No major energy technology has achieved the necessary cost reductions and scale without sustained government support
But Sustained and Predictable Public Investment is Still Needed
Empower Ratepayers
So What Can Government Be Doing?
First should it be doing anything?National SecurityNational Security
Declining, Predictable Costs
Protect the EnvironmentMitigate Climate Change
So What Should Government Be Doing?
R&D to Spur Innovation
DOE’s FY 2014 budget request for the Office of Energy Efficiency and Renewable Energy (EERE) is $2.8 billion, an increase of over 50% from the previous two years.
FY 2014 budget request includes $379 million for the Advanced Research Projects Agency–Energy (ARPA-E), an increase of about 35%.
So What Should Government Be Doing?
R&D to Spur Innovation
So What Should Government Be Doing?
R&D to Spur Innovation
• Create centers of excellence in energy innovation
• Increase annual investments in clean energy RD&D to $16 billion per year
• Call for complementary energy policies to drive market adoption of new technologies
So What Should Government Be Doing?
Provide Incentives to Nascent Technologies
• Clean energy tax incentives
• Loan guarantees
So What Should Government Be Doing?
Provide Incentives to Nascent Technologies
• Clean energy tax incentives
• Loan guarantees
• Standards
So What Should Government Be Doing?
Provide Incentives to Nascent Technologies
• Clean energy tax incentives
• Loan guarantees
• Standards
Need to reform energy tax incentive programs to make them:• More predictable• More technology neutral• More level playing field
So What Should Government Be Doing?
Provide Competitive MarketplaceEnergy markets will only be competitive if
prices reflect all costs
National Academies of Science estimated damages from non-climate air pollution from coal-fired power plants to be 3.2 cents per kWh
Need to reform energy tax incentive programs to make them:
• More predictable• More technology neutral• More level playing field
So What Should Government Be Doing?
Provide Competitive MarketplaceEnergy markets will only be competitive if
prices reflect all costs
Thank you
Amit RonenDirector, GW Solar Institute
Professor, Trachtenberg School of Public Policy, George Washington University