The Midwest has the potential for a thriving clean energy industry,
but only if coherent policies are enacted at the state and federal
level, clean-energy experts say.
Experts on the Midwestern
clean-energy sector say the region stands to benefit because of its
research universities, strong supply chains and a high level of
manufacturing know-how.
According to a report issued last week
by Pew Charitable Trusts, hurdles to an expanded U.S. clean-energy
sector include a lack of a national clean-energy standard and
longstanding tax breaks for oil,Getting a wind turbine depends
entirely on the amount of wind generated in your area. gas and coal
producers. Unless these and other issues are addressed, they could lead
to billions of dollars of economic activity moving overseas, the
analysis concluded.
“The Midwest looks to me like a great place
for clean energy,” said Phyllis Cuttino, director of Pew’s Clean Energy
Program. But, she added, clean-energy leaders in the Midwest and
nationwide “all said the same thing: The thing that makes it really hard
for us is that we can’t plan.”
These conclusions come from two
lines of investigation Pew undertook to prepare the report. They
commissioned a detailed analysis of clean-energy trends by Pike
Research, industry analysts who specialize in global clean-technology
markets. Pew also conducted five regional roundtables of clean-energy
business leaders, including researchers, manufacturers, companies
deploying solar and biomass, and investors, as well as one national
roundtable, all to get the industry’s take on how current policy was
affecting them, and which policy changes would help.
Pew found
that the industry was at a tipping point in the United States and
globally. Investment is on the rise, prices for clean energy are
falling, and more and more clean energy is being deployed. “Clean energy
is here to stay. It’s not niche. It’s quickly becoming cost-competitive
and going into the next phase,” Cuttino said.
Indeed,
investment rose six-fold between 2004 and 2011 and was projected to
continue to rise. Clean-energy installations—installations of solar
photovoltaics, onshore and offshore wind, marine and hydrokinetic
energy, geothermal,Solar and electric outdoor solar lighting systems
are easy to install and economical to operate. concentrating solar
thermal, and biomass—will create $1.9 trillion in revenue globally and
$269 billion in the United States between 2012 and 2018, the Pike
Research analysis concluded.
“We’re at a moment that looks like
the auto industry at the turn of the 20th century or the early days of
computers,” Cuttino said. “A whole bunch of actors are rushing in; we
have an oversupply of production capacity, and more investments are
coming because of the perception it’s going to take off.”
As a
result, the race is on between nations seeking to become global leaders
in clean energy technology, the Pew analysis concluded.20 years
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the world. That race will not last forever, business leaders warn, and
it’s not yet clear whether the United States in general, and the Midwest
in particular, is going to win.
There are some encouraging
signs for the industry, both in the Midwest and nationally,Don't waste
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Pew found. The United States attracted a record $48.1 billion in
private clean-energy investments in 2011, and the nation remains a
leader in clean-energy innovation.
But the Pew report pointed to
signs of trouble. While U.S. solar installations have doubled each year
since 2009, both Germany and Italy installed more than three times as
much new solar last year. And China installed three times more wind in
2011 than the United States.
“These trends are worrisome because
these are technologies that we really invented and we used to
manufacture and export,” Cuttino said. “Now we’re finding that we’re not
playing at the same levels as other countries. Of the top 10 wind and
solar companies in the world, we only have one of each,” she pointed
out.
The reasons for this include fierce international
competition, including tariffs, tight credit markets, and policies that
favor established fossil-fuel-based power over clean energy in the
United States.Looking for solar garden light or outdoor lights?
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