A federal standard requiring all utilities to obtain 25% of their electricity from renewable energy sources by 2025 would create 297,000 new domestic renewable energy jobs and save consumers $64.3 billion in lower electricity and natural gas bills, according to a new analysis released this week by the Union of Concerned Scientists (UCS).
The analysis also found that this renewable electricity standard (RES) would generate $13.5 billion in new income for farmers, ranchers and rural landowners, and reduce global warming pollution by 277 million metric tons a year by 2025, the equivalent of the current annual output of 70 average-size coal-fired power plants.
"A strong renewable electricity standard would help pull our economy out of the ditch by creating nearly 300,000 new jobs," said Jeff Deyette, an analyst with the UCS Clean Energy Program and co-author of the study. "Our study found that, kilowatt-hour for kilowatt-hour, renewable energy generates more than three times as many jobs than fossil fuels, leading to a net job gain of 202,000. More renewable energy would mean more workers building wind turbines and installing solar panels here in the United States."
The Obama administration supports a 25 by 25 standard, but there are two proposals in play in Congress. A bill targeting 25% by 2025 for most utilities has been introduced in the House by Ed Markey (D-Mass.) and Todd Platts (R-Pa.) and in the Senate by Mark Udall (D-Colo.) and Tom Udall (D-N.M.). Meanwhile, Jeff Bingaman (D-N.M.), chairman of the Senate Energy and Natural Resources Committee, has introduced a bill calling for a 20%-by-2021 standard.
The UCS analysis, which used a modified version of the Department of Energy’s National Electricity Modeling System (NEMS), found that the standard would cut electricity bills for consumers across the country—including the Southeast, where utilities have opposed a national standard. Increasing utilities’ reliance on renewable energy sources would diversify the electricity mix and increase competition in the energy market, reducing the demand for—and the cost of—fossil fuels.
Under a 25% standard, electricity prices would be as much as 7.6% lower than business as usual between 2010 and 2030, the UCS analysis found. Ratepayers would save $95.5 billion by 2030.
"Americans are looking for ways to stretch their paychecks to make ends meet, and a 25% standard would certainly help," said Alan Nogee, the UCS Clean Energy Program director. "A typical household would save nearly $70 in annual gas and electricity costs by 2025. Every little bit helps."
Nogee stressed that a national standard would not create regional winners and losers. "Our analysis shows that all consumers would save, including those in the Southeast, where utilities have been misleading the public about the potential for renewables," he said. "Ratepayers in the region collectively would save more than $13 billion by 2030. Instead of spending $1 billion each year to import coal from Colombia, Indonesia and Venezuela, the Southeast could keep those energy dollars in the regional economy by generating electricity with crop and forest residues and animal waste supplied by local landowners."
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A recent public opinion survey found that 84% of Americans support a national RES. Read Washington Post coverage at the link below.
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