Report Describes How U.S. Utilities Need Clean Energy to Remain Competitive
One of the biggest components of reducing America's dependence on fossil fuels is utility companies’ adoption and promotion of renewable energy.
At times it seems that many utilities are moving very slowly to implement the usage of clean energy sources. Navigant Consulting (NYSE: NCI) has recently released a report, "The 21st Century Electric Utility: Positioning for a Low-Carbon Future," [pdf] which identifies essential trends that are making it necessary for U.S. utilities to provide cleaner energy. The report highlights four key industry trends:
- Growing imperatives to reduce greenhouse gas emissions
- Increasing regulations that make coal-based generation less competitive
- Greater use of and policy support for renewable energy
- Reduced renewable energy costs
The report also identifies obstacles that prevent utilities from greater investment in renewable energy:
- Uncertainty about the future energy policies
- Utility rates based on electricity sales (which reduce utilities’ incentives to promote efficiency)
- A power grid that is not ready to integrate large amounts of renewable energy
The report, however, suggests that utility companies need to integrate renewable for their own continued health. The researchers conclude that utilities should manage their carbon emissions based on existing and foreseeable carbon-reduction requirements; pursue all cost-effective energy efficiency measures; integrate cost-effective renewable energy resources into the generation mix; incorporate smart grid technologies; and conduct robust and transparent resource planning. Utilities that implement these practices with support from legislators and regulators will be more likely to attract low-cost capital.
Learn more about Energy Efficiency on eBoom's Emerging Energy Learning Page.
Image credit: Exelon Corporation
Alison Pruitt is a freelance writer/editor living near Washington DC. She has written about a variety of issues, including education, healthcare, IT, the arts, and energy/environment -- and has worked with the U.S. Department of Energy. She has a B.A. from Oberlin College and a Ph.D. in English Literature from Rutgers University.
Any opinion contained in this article is solely that of the writers, and does not necessarily shapes or reflect the editorial opinions of Energy Boom.
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