Environmental Engineering Reference
In-Depth Information
investors are uncertain of the effectiveness of the revised regulations. Recently,
the Massachusetts Institute of Technology (MIT) and the University of Chicago
issued studies comparing nuclear power's costs with other forms of generating
electricity.
4
Both studies concluded that, assuming no unexpected costs or delays
in licensing and construction, nuclear power is only marginally competitive with
conventional coal and natural gas and, even then, only if the nuclear power
industry significantly reduces anticipated construction times. MIT also reported,
however, that if carbon were to be regulated, nuclear energy would be much more
competitive with coal and natural gas.
T
HE
S
TATES AND
C
OUNTRIES
W
E
R
EVIEWED
H
AVE
I
MPLEMENTED A
V
ARIETY OF
I
NITIATIVES TO
E
NCOURAGE
THE
D
EVELOPMENT AND
D
EPLOYMENT OF
A
DVANCED
E
NERGY
T
ECHNOLOGIES
While federal R and D has declined in recent years, the states have enacted
legislation or developed initiatives to stimulate the deployment of renewable
energy technologies, primarily to address their growing energy demands, adverse
environmental impacts, and their concern for a reliable, diversified energy
portfolio. As of 2006, (1) 39 states have established interconnection and net
metering rules that require electric power companies to connect renewable energy
sources to the power transmission grid and credit, for example, the monthly
electricity bill of residents with solar-electric systems when they generate more
power than they use; (2) 22 states have established renewable portfolio standards
requiring or encouraging that a fixed percentage of the state's electricity be
generated from renewable energy sources; and (3) 45 states offer various tax
credits, grants, or loans. For example, renewable energy accounts for 3 percent of
Texas' electricity consumption because Texas enacted legislation in 1999 and
2005 that created a renewable portfolio standard requiring electric utilities to meet
renewable energy capacity standards.
We identified six countries—Brazil, Denmark, Germany, Japan, Spain, and
France—that illustrate a range of financial initiatives and mandates to stimulate
the development and deployment of advanced renewable, fossil, and nuclear
energy technologies. Through mandates and incentives, Brazil initiated an ethanol
program in 1975 that eventually led to an end to Brazil's dependence on imported
oil. Denmark focused on wind energy and, in 2005, derived 19 percent of its
electricity from wind energy. Germany began a more diversified renewable
energy approach in 2000 and has a goal to increase the share of renewable energy
