Matt McInnis for The New York Times
The United States has relied on a combination of state renewable energy mandates and federal tax credits to encourage greater reliance on energy from renewable sources. Legislation that would have set a price on carbon-dioxide emissions and included a standard for increasing the share of clean energy in the nation’s electricity portfolio failed in Congress this year.
“Our investors tell us they’re nervous about all the uncertainty,” said John Cusack, the president of Gifford Park Associates, a sustainability management and investment consulting firm in Eastchester, N.Y. “They don’t know what’s going to happen.”
To be sure, a lot of renewable power development is still going forward. The American Wind Energy Association estimates that wind farms capable of producing 6,300 megawatts of wind power are under construction, and that a busy second half of 2010 would leave installations about 50 percent behind last year. Solar power is becoming less expensive, and its use is expanding rapidly. But it still accounts for less than 1 percent of the nation’s electricity needs, providing enough to serve about 350,000 homes.
Renewable energy supporters argue that higher fossil fuel prices will eventually make renewable energy more competitive — and at times over the last two decades, when the price for natural gas has spiked, wind power in particular has been a relative bargain. Advocates also argue that while the costs might be higher now, as the technology matures and supply chains and manufacturing bases take root, clean sources of power will become more attractive.
Fold in the higher costs of extracting and burning fossil fuels on human health, the climate and the environment, many advocates argue, and renewable technologies like wind power are already cheaper.
“One of the problems in the United States is that we haven’t been willing to confront the tough questions,” said Paul Gipe, who sits on the steering committee of the Alliance for Renewable Energy, a group advocating energy policy reform.
“We have to ask ourselves, ‘Do we really want renewables?’ ” he said. “And if the answer to that is yes, then we’re going to have to pay for them.”
To be sure, a lot of renewable power development is still going forward. The American Wind Energy Association estimates that wind farms capable of producing 6,300 megawatts of wind power are under construction, and that a busy second half of 2010 would leave installations about 50 percent behind last year. Solar power is becoming less expensive, and its use is expanding rapidly. But it still accounts for less than 1 percent of the nation’s electricity needs, providing enough to serve about 350,000 homes.
Renewable energy supporters argue that higher fossil fuel prices will eventually make renewable energy more competitive — and at times over the last two decades, when the price for natural gas has spiked, wind power in particular has been a relative bargain. Advocates also argue that while the costs might be higher now, as the technology matures and supply chains and manufacturing bases take root, clean sources of power will become more attractive.
Fold in the higher costs of extracting and burning fossil fuels on human health, the climate and the environment, many advocates argue, and renewable technologies like wind power are already cheaper.
“One of the problems in the United States is that we haven’t been willing to confront the tough questions,” said Paul Gipe, who sits on the steering committee of the Alliance for Renewable Energy, a group advocating energy policy reform.
“We have to ask ourselves, ‘Do we really want renewables?’ ” he said. “And if the answer to that is yes, then we’re going to have to pay for them.”
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