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Growth in Alternative Energy

May 5

Written by:
5/5/2009 8:17 AM  RssIcon

Growth in Alternative Energy

 

Alternative energy is a term that refers to any source of usable energy intended to replace fuel sources without the undesired consequences of the replaced fuels. The term excludes fossil fuels (coal, natural gas) and nuclear energy whose undesired consequences are emissions (climate change) and radioactive waste production and disposal. 

In the United States, alternative energy production currently represents less than 10% of total energy production. The case to be made for their use cannot currently be made on the economics of plant cost nor cost of energy produced. As shown in the table below the cost of energy from coal-fired plants is predictably among the least expensive. 

Source of Electrical Energy

US Market Share %

Growth 2005-2009

¢ Cost per KWh

Environmental Friendliness

Biomass

0.3%

11.8%

4-10

Average

Coal

50%

0.7%

5-6

Worst

Geothermal

0.4%

5.0%

4-30

Best

Hydroelectric

6.1%

-0.0%

5-11

Better

Natural Gas

20.3%

21.9%

4-12

Worse

Nuclear

20.1%

2.5%

8-15

Average

Solar

0.0%

11.4%

12-55

Best

Wind

0.8%

71.0%

4-13

Better

 The growth in alternative energy is driven by public interest, government incentives, global awareness of the danger of carbon emissions, and economics. Some of the specific advantages and disadvantages are listed in the table below. 

Advantages

Disadvantages

Reliable

Site Location

Renewable

High Start-up Costs (esp. solar)

Low or No Emissions

Solid Waste Creation

Does Not Contribute to Global Warming

Land Impact (esp. geothermal)

Reduces Imported Fuel

Visual (esp. wind)

Provides Offsets (Carbon Credits)

 

Quiet

 

Conserves Water

 

 Under the new administration it is expected that incentives for the development and construction of alternative energy assets will increase. Coupled with the favorable public environment for non fossil fuel-based energy sources, and steadily improving economics of capital and production costs, the groundwork is set for substantial growth.

 

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