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Friday, October 7, 2005 Renewable Energy
WCPN
After living with widely fluctuating and generally skyrocketing energy prices for months, Americans are showing more interest these days in alternatives to fossil fuels. But for some, the desire to increase the country's use of renewable energy like solar or wind power is nothing new. As part of Making Change; Building the Region's Future, ideastream's Cindi Deutschman-Ruiz reports on such efforts underway in Ohio.
Amy Hanauer: Ohio is very
well-positioned to fuel the national commitment to alternative energy.
Amy Hanauer is executive director of Policy
Matters Ohio, a nonprofit research organization focused on economic
policy. Hanauer says Ohio's history as a manufacturing powerhouse makes it
an appropriate place to produce alternative energy, like solar and wind
power.
Amy Hanauer: Ohio already has some of
the best component manufacturing in the nation and indeed in the world.
Instead of just creating component parts for automobiles or other
machinery that currently exists, we could be creating component parts that
go into windmills that create energy for the entire nation. Policy Matters Ohio is working in partnership with the Apollo Alliance, a national coalition of environmental, labor, and other groups interested in increasing renewable energy production and encouraging energy conservation. Such efforts, according to proponents, not only protect the environment, but boost the economy.
Jeff Rickert is acting executive director of
the Apollo Alliance.
Jeff Rickert: The Apollo plan, over
10 years, would create $6 billion in new revenue for the federal
government, on top of the trillion dollars in new economic activity and
the 3 million we're talking about, that are good jobs in the manufacturing
and construction sectors.
An economic analysis of a region-wide plan
predicts similar results for the Midwest the potential for as many as
200-thousand new jobs and 20 billion dollars in increased economic
activity over a 20-year period. Geoffrey Hewings is director of the
Regional Economics Applications Laboratory at the University of Illinois
and co-author of the 2002 report. He says when Ohioans pay for fossil
fuels like oil, much of their money leaks out to other regions, and other
countries. Increasing renewable energy production, Hewings says, would
keep more money here.
Geoffrey Hewings: A lot of these new
energy sources are locally available, they're gonna be locally installed,
using local labor, and basically a lot more of that income is going to
circulate and re-circulate within the region.
And then there's price stability. Some say
diversifying energy production would help keep prices stable. That's one
motivation driving Democratic state legislator Michael Skindell, who
represents Lakewood and parts of Cleveland. He's sponsoring a bill that
would require utilities across Ohio to boost their use of renewable energy
sources to 20 percent by 2020.
Michael Skindell: If you just invest
in coal and natural gas to produce electricity, you're gonna have spikes
in prices and unreliability. But if you increase the mix of energy
generation with other sources, such as renewables, you'll get more
stabilized prices and more reliability.
Some 18 states have passed similar laws.
Proponents of renewable energy concede it
can be prohibitively expensive at least at the beginning. Glenn Hamer is
director of governmental affairs at First Solar, a manufacturer of solar
panels with a growing production presence in Ohio. He says the up-front
capital costs of transitioning to solar power are enormous.
Glenn Hamer: Buying a solar
electricity system is like buying a car with all the gas you would ever
need included in the sticker price.
Despite this, Hamer says, the market for
solar energy has grown 30 to 35 percent in just the last five years. Much
of that market is foreign, he says, because of government subsidies for
solar power in places like Germany. Still, with the market continuing to
increase, First Solar is anticipating tripling its output over the next
few years. And as production increases, Hamer says, solar power will
become more affordable.
Glenn Hamer: Prices have been coming
down steadily for the past 25 years. The easy rule of thumb is that for
every doubling of manufacturing capacity, about an 18 percent decline in
cost of producing modules has occurred.
But prices would go up slightly with passage
of Representative Skindell's legislation. He says it would add about 3
cents to each consumer s monthly bill for the next five years or so. After
that, he says, prices would begin coming down. And he contends if a
similar bill brought to the legislature in 1999 had passed, Ohioans
wouldn't currently be experiencing such high and widely fluctuating energy
prices.
John Byrne: We go up to this
individual in a genuine and caring way, and we say to them, 'you look a
little scattered today; tell me about it.' and you shut up. you allow this
person to begin to defuse because what this investment of your time,
talent, and effort may be doing is defusing what otherwise could turn into
an incident. Cindi Deutschman-Ruiz, 90.3.
WCPN 10/07/2005
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Policy Matters Ohio 2912 Euclid Avenue Cleveland, OH 44115
ph: 216/931-9922 fax: 216/931-9924
http://www.policymattersohio.org
Policy Matters Ohio is a non-profit policy research organization founded in January 2000 to broaden the debate about economic policy in Ohio. Our mission is to conduct high-quality research promoting decisions which benefit our whole community. Given the challenges of a rapidly-changing economic system, rising wage inequality, new issues in education and changes in the way work is organized, it is imperative that Ohio workers have a voice in the economic debate.
Policy Matters provides real-world analysis focused on issues that matter to low- and middle-income workers in Ohio. Our findings are accessible to the public, the media, and policy makers. We hope to strengthen democracy by providing Ohio's citizens with the essential tools to participate in the public discussion on the economy. We believe this will result in economic policies that better reflect the public interest.