Renewable Portfolio Standards engender massive investment in America
A new report by Energy Security Analysis Inc (ESAI) is projecting $38 billion in wind generation investment in the US over the next decade. This investment will be driven by renewable portfolio standards (RPS) that have passed into law in 19 states. The RPS require utilities to purchase a designated percentage of their energy from renewable energy resources.
“By 2010 we expect the amount of energy from non-hydro renewable energy sources to increase to 4.5% of US energy production and account for 200 TWh of energy production per year,” said a senior market analyst with ESAI. “That doubles the current percentage of 2.25%,” he added.
Most of the new non-hydro renewable energy capacity will be from wind generation, which is also supported by federal tax credits. “Areas with the highest wind production are often remotely located from areas with high-energy demand. Therefore, new transmission lines need to be constructed to bring the energy to where it is needed,” the spokesman continued.
The current PTC expires at the end of the year.