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Benefiting Renewable Energy Standard

A renewable energy standard, requiring that a larger portion of the nation’s electricity is to be generated from renewable sources, such as wind energy, went before congress. Already, 20 states have enacted successful renewable electricity standards. The amendment will require electrical utility companies to obtain a minimum of 20 percent of the electricity that they sell from a renewable energy source by 2020, or to purchase renewable energy credits from others to meet the requirement.

Research has determined that the renewable energy standard, if passed, will lower the demand and prices of natural gas and other fuels used to generate electricity, as well as lower wholesale electricity prices. It is estimated that a 15 percent standard would create a net savings of $100 billion from U.S. consumers over the next 20 years. In addition, wholesale power prices would decrease by 7 to 11 percent, compared to current practices.

Studies show that a renewable energy standard would:

• Slow global warming: By decreasing the use of fossil fuels to generate electricity, the amount of pollutants and greenhouse gases would decrease. At 20 percent, carbon dioxide (CO2) emissions would be decreased by 15 percent.
• Reduce energy bills: Natural gas and electricity prices would be decreased, saving American consumers over $100 billion.
• Create jobs: Wind and solar energy are likely to be among the largest sources of new manufacturing jobs worldwide during the 21st Century. A recent Union of Concerned Scientists (UCS) study found that a 20 percent renewable energy standard by 2020 would create over 350,000 new American jobs.
• Strengthen energy security: Domestic renewable energy can reduce projected imports of liquid natural gas (LNG) from such unstable regions as Qatar, Russia and Iran and reduce U.S. energy payments to these nations.