Fueling a Green Energy Quest
Not so long ago, natural gas was the darling fuel of California’s electric power industry. There was lots of it. It was cheap. And much cleaner to burn than the fuel oil that then powered most generating plants. Older plants switched to it.
Now California needs to begin weaning itself from its heavy reliance on natural gas, which fires roughly half the electric power generated in the state. The state needs to diversify by developing more renewable energy sources.
A temporary shortage of natural gas coupled with huge price spikes was a major cause of the state’s energy crisis of 2000-01. Supplies have rebounded and the price has dropped. But shortages and soaring prices are certain to return. Energy companies could again hold California hostage.
The state was once a leader in the renewable energy field, experimenting with everything from geothermal plants to wind generators, solar panels to turning organic “biomass” waste into power. But the energy crisis disrupted California’s drive toward increased use of such alternatives. When the state took over the purchase of power, what it bought for years to come would be generated almost exclusively by conventional gas-fired plants.
During 2000 about 8% of all power used in the state--and 10% of all power produced in the state--came from renewable sources, not counting hydro power. Twelve percent of what Southern California Edison distributed here was renewable. But with new technology coming on line at competitive costs, the potential for renewable energy is virtually unlimited. Fourteen states already have set goals for increasing its use, and the U.S. Senate last week took a first step toward national goals.
California needs to approve state Senate Bill 532, by Byron Sher (D-Stanford), to set a firm target: that renewable sources supply 20% of the state’s power by 2010.
Sher’s bill passed the Senate last year but got bogged down in an Assembly committee, in part because of opposition from municipal utilities such as the Los Angeles Department of Water and Power, which jealously guard their freedom from state regulation. The municipals probably will be dropped from the bill, but they should adopt their own 20% goals as a matter of good policy.
A portion of utility rates is already set aside to purchase renewable power. The new California Power Authority is considering a $2- billion plan to finance renewable projects that would produce the equivalent of three large gas-fired power plants. And the Energy Commission will help. Making a good deal even better is the fact that renewable sources are virtually pollution-free. In other words, California could again take the lead in a high-tech industry that would create thousands of jobs without making the air dirtier. Encouraging news for a state more accustomed to energy embarrassment.
