dollars from sense: the economic benefits of renewable energy

$Dollars from SenseThe Economic Benefits of Renewable Energy

What is Renewable Energy?

RR enewable energy sources areeither continuously resuppliedby the sun or tap inexhaustible

resources, such as geothermal energy.In contrast, fossil fuels Ñ oil, coal, and natural gas Ñ form so slowly incomparison to our rate of energy usethat we are essentially mining finite,nonrenewable resources and willeventually exhaust quality supplies.

The use of modern renewableenergy technologies produces lesspollution than burning fossil fuels Ñespecially with respect to net emissionsof greenhouse gases. Indigenous renew-able energy resources also represent asecure and stable source of energy forour country and a potential source ofjobs and economic development.

Renewable energy can be used in avariety of ways. This document focuseson the use of renewables (excepthydropower) to generate electricity.Renewable transportation fuels andÒdirect useÓ applications Ñ such aswater and space heating with biomass,solar, or geothermal energy; and themechanical pumping of water withwind energy Ñ are not addressed inthis document.

In some cases, the cost of electricityproduced from renewable sources isapproaching the cost of generatingpower from conventional sources, andeach renewable energy technology is economically feasible in certainapplications.

The Purpose of This Document

FF or decades, proponents ofrenewable energy technologieshave focused on their indirect

economic benefits, such as the reducedhealth and environmental restorationcosts stemming from their lowerenvironmental impact. These argu-ments have been acknowledged aslegitimate, but have had little realeffect on energy resource and policydecisions, partly because they aredifficult to quantify.

This document illustrates the directeconomic benefits, including jobcreation, of investing in renewableenergy technologies. Examples aredrawn from across the nation, showingthe value of generating electricity fromindigenous renewable resources inseveral regions. Each of the mostpromising renewable energy technolo-gies is examined in turn, emphasizingthe impact that individual projectshave had on the state and the localcommunity.

This document quotes actual employ-ment numbers at existing facilities.Where available, total national employ-ment for that sector of the renewablesindustry is also cited. There are fewestimates of the potential for future jobcreation within any particular sector,due to the difficulty in making accurateprojections.

Introduction

Dollars from Sense 1

Contents

ÒThe fate of people on Earth depends onwhether we can employ efficient andrenewable energies. We need to lay bigplans for small technologies.Ó

— David Freeman, former head of the New York Power Authority, Tennessee Valley Authority,Sacramento Municipal Utility District, and the Lower Colorado River Authority,

speaking at the World Renewable Energy Congress in June 1996

Importing Energy, Exporting Jobs . . . . . . . . . . . . . . .2

Electricity From Biomass . . . . . . . . . . . . . . . . . . . . .4

Wind Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

Photovoltaics: Electricity from Sunlight . . . . . . . . .12

Solar Thermal Electricity: Power from the Sun’s Heat . . . . . . . . . . . . . . . . . . .16

Geothermal Energy: Power from the Earth . . . . . . .18

For More Information . . . . . . . . . . . . . . . . . . . . . . .20

Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21

EE very year, Americans spendabout $1900 per person onenergy purchases, which is

about 8% of the average personÕs totalexpenditures on goods and services ina given year. Of this amount, approxi-mately 40% goes to pay for electricity.Energy purchases represent a signifi-cant cost to society Ñ nationally andlocally Ñ and it is important to spendenergy dollars in a way that strength-ens the economy rather than deple-ting it.

In many cases, energy dollars leavethe community, going to regionalutilities or suppliers of oil or naturalgas. Once those dollars have beenspent on importing energy into thecommunity or state, they are notavailable to foster additional economicactivity. Because every dollar spent on imports is a dollar lost from thelocal economy, these energy importsrepresent a substantial loss to localcompanies in terms of income and jobs.The challenge is to meet our insatiableappetite for energy while supportinglocal economic development.

A growing number of state andlocal governments are investigatingways to keep their energy dollars athome Ñ for many, the answer liesin renewable energy investments.

How Renewable EnergyInvestments Help the EconomyThere are two main reasons whyrenewable energy technologies offer aneconomic advantage: (1) they are labor-intensive, so they generally create morejobs per dollar invested than conven-tional electricity generation technolo-gies, and (2) they use primarilyindigenous resources, so most of theenergy dollars can be kept at home.

According to the Wisconsin EnergyBureau, ÒInvestment in locally avail-able renewable energy generates morejobs, greater earnings, and higheroutput ... than a continued reliance on imported fossil fuels. Economicimpacts are maximized when anindigenous resource or technology canreplace an imported fuel at a reason-able price and when a large percentageof inputs can be purchased in thestate.Ó The Bureau estimates that,overall, renewables create three timesas many jobs as the same level ofspending on fossil fuels.

For states and municipalities withinsufficient conventional energyreserves, there is a simple trade-off:import fossil fuels from out-of-areasuppliers, which means exportingenergy dollars ... or develop indigenousrenewable resources, which createsjobs for local workers in the construc-tion, operation, and maintenance ofnonfossil power plants and associatedindustries.

The advantages of renewable energyinvestments are becoming increasinglyclear, even in areas that have tradition-ally favored fossil fuels. ÒTexas is nowa net energy importer,Ó said TexasLand Commissioner Garry Mauro,speaking at the dedication of the state'sfirst commercial wind-power project in November 1995. ÒWe can accept ourstatus as a net energy importer ... or wecan face the challenge head on andserve as a model to others by embrac-ing new ideas such as wind power andsolar energy Ñ ideas that will makeTexas the leader in renewable energydevelopment, energy-efficient buildingtechniques, job creation, and environ-mental health.Ó

The renewable energy industryprovides a wide range of employmentopportunities, from high-tech manu-facturing of photovoltaic componentsto maintenance jobs at wind power

Dollars from Sense

Importing Energy, Exporting Jobs

2

The Multiplier Effect: A Little Goes a Long Way

The multiplier effect is sometimes calledthe ripple effect, because a single expendi-ture in an economy can have repercus-sions throughout the entire economy,much like ripples spreading across apond. The multiplier is a measure of howmuch additional economic activity is gen-erated from an initial expenditure.

In the town of Osage, Iowa, for example,$1.00 spent on consumer goods in a localstore generates $1.90 of economic activityin the local economy. This occurs as thedollar is respent; the store pays itsemployees, who purchase more goods, all with the same original dollar.

The multiplier effect causes different typesof economic benefits as a result of invest-ments in renewable energy technologies:

Direct effects — These are on-site jobsand income created as the result of theinitial investment; the people whoassemble wind turbines at a manufactur-ing plant, for example.

Indirect effects — These are additionaljobs and economic activity involved insupplying goods and services related tothe primary activity; people such as thebanker who provides loans to the plant’sowners, and the workers who supply partsand materials to the turbine assemblers.

Induced effects — This is employmentand other economic activity generated bythe respending of wages earned by thosedirectly and indirectly employed in theindustry; jobs created by the manufactur-ing plant workers spending their wages at the local grocery store, for example.

plants. Through the multiplier effect(see sidebar, left), the wages andsalaries earned by industry employeesgenerate additional income and jobs inthe local economy.

The taxes paid by renewable energycompanies also strengthen the areaÕseconomic base, ultimately reducing theburden on individual taxpayers in thecommunity; in fact, generating powerfrom renewable resources contributesmore tax revenue than generating thesame amount of power from conven-tional energy sources. As an example,the California Energy Commission hasfound that solar thermal power plantsyield twice as much tax revenue asconventional, gas-fired plants.

In some cases, renewable energyinvestments can enable individuals,companies, or communities to reducetheir utility bills. For example, schoolscan cut costs by using wind power (seepage 10), and electric cooperatives canprovide cheaper electricity to memberswith photovoltaics (see page 15).

Although the local economicbenefits associated with renewableenergy investments are evident, it isalso important to note that, in the shortterm, increased reliance on in-stateenergy resources could reduce theincome of energy-exporting states. Inthe long term, however, the advantagesof developing renewable energytechnologies go far beyond the localeconomy Ñ they benefit the country asa whole. The United States leads theworld in manufacturing renewableenergy power systems, most of which

are exported to industrializing nations.The lack of adequate fossil-fuelreserves in many of these countries,combined with their lack of extensiveelectricity grids, makes renewableenergy technologies an increasinglypopular choice for power generation.The growing demand for electricity indeveloping nations can continue tocreate jobs for U.S. workers Ñ as longas the United States maintains acompetitive position in foreign marketsby continuing to invest in renewableenergy technologies at home.

ÒEvery year, people, companies andgovernments in the [Midwest]region spend over $100 billion onenergy in all its forms Ñ electricity,fuel oil, gasoline, coal and others.This amounts to about $1900 forevery adult and child, or roughly10% of average personal income.Ó

— Powering the Midwest: Renewable Electricityfor the Economy and the Environment,

Union of Concerned Scientists, 1993


The Lost Potential of Energy Dollars

Several states have made efforts to quantify their electricity and total energy expenditures— a difficult task. Here are some examples of states that import energy.

• Massachusetts imports 97% of the energy it uses. In energy dollars this translated to $11 billion in 1992. The state imports 15% of the electricity it consumes.

• In 1990, Iowa imported nearly 97% of its energy at a cost of about $5 billion.

• Wisconsin imports 94% of its energy. In 1992, more than $6 billion of Wisconsin’s $8.1 billion total energy bill left the state — approximately $1200 per resident. In its1994 study, The Economic Impacts of Renewable Energy Use in Wisconsin, theWisconsin Energy Bureau reported that “The energy dollar drain from the state due tofossil fuel imports has hindered additional economic growth and job development.”

• New York depends on out-of-state sources for nearly 92% of its energy requirements.Each New Yorker sends an average of $1000 each year out of state to purchase energy.

• Rhode Island imports more than 90% of its electricity from other states.

• In 1990, Missouri spent $9.7 billion on energy, 70% of which left the state to pay for theenergy. This equates to $6.8 billion, or more than $1300 for each Missouri resident.

• In 1992, Maine residents and businesses spent approximately $2.8 billion on energy,$2200 for every person in the state. Maine imports about 25% of its electricity.

• Hawaii: 85% of the state’s electricity is generated from imported fuel oil, compared withonly 3% for the United States as a whole.

• In 1990, the 100,000 residents of the U.S. Virgin Islands spent about $40 million onelectricity, 65% of which left the Virgin Islands economy. More than $26 million drainedout of the territory’s economic bucket that year for energy purchases, equivalent to about $260 per resident.

• Minnesota imports 15% of the electricity it consumes.

• Oregon imports 11% of its electricity from other states.

• Despite extensive oil reserves, even Texas is now a net energy importer.

ÒA state that imports most of itsfossil fuel can receive a substantialemployment and earnings benefitfrom developing indigenousrenewable resources.Ó

— Powering the Midwest: Renewable Electricity forthe Economy and the Environment, a 1993 report

by the Union of Concerned Scientists

Overview

BB iomass is a general term for allof the EarthÕs plant and animalmatter. In the renewable energy

industry, however, biomass usuallyrefers to: (1) energy crops grownspecifically to be used as fuel, such as fast-growing trees; (2) agriculturalresidues and by-products, such asstraw, sugarcane fiber, and rice hulls;and (3) residues from forestry, con-struction, and other wood-processingindustries. (Note: As defined here,biomass does not include municipal solidwaste or landfill gas.)

Biomass currently accounts foraround 1% of total U.S. electric gener-ating capacity, or 8% of the countryÕsrenewable-source generating capacity.In 1995, there was approximately7700 MW of grid-connected biomasspower capacity in the United States.

According to a 1992 study byMeridian Corporation and AntaresGroup Inc., the biomass power gen-eration industry employs more than66,000 people nationwide. In 1992, theindustry created more than $1.8 billionin personal and corporate income, andgenerated more than $460 million infederal and state taxes.

Because biomass power activitiestend to be concentrated in rural areas,this technology offers a great opportu-nity for revitalizing rural America. The U.S. Department of Energy (DOE)estimates that a concerted effort todevelop dedicated energy crops forbiomass power plants could generate120,000 new jobs over the next 15 years.

Success Stories

Maine: Leading the NationMaine obtains a greater percentage ofits electricity from nonhydro renewablesources than any other state. Thebiomass power industry generates

25% of MaineÕs electricity and supports2780 jobs in wood harvesting andtransport, power plant constructionand operation, and associated retailand service sectors. The industry hasnearly 500 MW of installed capacity in 21 generating plants.

ÒSmall power producers ... havebeen one of MaineÕs largest sourcesof new employment andinvestment.Ó

— State Planning Office of Maine, quoted in EnergyChoices Revisited: An Examination of the Costs

and Benefits of Maine’s Energy Policy,Mainewatch Institute, 1994

In rural districts with limitedemployment opportunities, a singlepower plant can have a critical impacton the local economy. This is the casewith Fairfield Energy Venture, a 32-MWbiomass plant located in the town ofFort Fairfield in northeastern Maine.

Everyone’s a WinnerThe Fairfield Energy facility providesapproximately 140 jobs (38 at the plantand about 100 in wood harvesting) andmore than 30% of the townÕs propertytax base. With a population of 4000,and only about 1270 jobs available inthe area, the biomass plant is vital tothe health of the townÕs economy. ÒWeconsider ourselves lucky to have theenergy plant,Ó acknowledged a repre-sentative of the Fort Fairfield Chamberof Commerce.

The biomass plant has generatedsubstantial economic benefits for thelocal and state economies, both duringinitial construction and since. Thefacility was completed in 1988 after atwo-year construction period. Duringthis phase, the plantÕs developers spentmore than $8 million in the state ofMaine, including $5.3 million paid inwages to local workers for on-siteassembly and construction.

Dollars from Sense

Electricity from Biomass

4

The biomass power industry creates thousands of jobs in fuel production andharvesting for rural workers, such as this grapple operator on a tree farm inOregon.

Nor

ther

n S

tate

s P

ower

/PIX

0024

0

In 1992, Fairfield Energy Venturehad annual operating expenses of$12 million, $9.4 million of which wasspent in the stateÕs economy. Of the in-state expenditures, more than$7 million stayed in Fort Fairfield andthe surrounding area. This includes$1.7 million in wages and salaries paidto plant employees and more than$938,000 paid to the local and stategovernments in property taxes, fees,and licenses.

A 1994 Mainewatch Institute studyfound that, ÒFrom the start of theproject it appears the town and localarea have been winners. Local trades-people were employed in the on-siteconstruction; parts and supplies werepurchased from local outlets wheneverpossible; and the influx of engineers,consultants, and temporary out-of-town workers provided substantial

benefits to local restaurants, gasstations, motels, and food stores.Ó

Fairfield Energy Ventures is alsoexpanding the skill base of localworkers. Only one of the plantÕsemployees had any previous experi-ence working in a power plant. TheMainewatch Institute study quotesPeter Powers, the plantÕs generalmanager, as saying, ÒAll but one of ouremployees were Maine residents priorto being hired by the plant and all live in close proximity to the plant.ÓSeven of the employees (including the general manager) had previouslyworked in the navy, and were able tomake use of their training in steampropulsion. Many of the plant workerswere hired at entry-level positions, andthe company is committed to trainingthem to help ensure job advancementand employment stability.


How It Works

Because plants and trees use sunlight togrow, biomass energy is actually a formof stored solar energy. Biomass energycan be converted to electricity in twoways:

Direct combustion involves burning thebiomass in a boiler to heat water, thenrunning the resulting steam through aturbine — the same process used inconventional coal-fired plants. Virtually all biomass electric plants today useconventional steam turbines.

Gasification involves converting the solidbiomass to a gas that is then burned in acombustion turbine — potentially muchmore efficient, but still in the demonstra-tion stage of development.

Harvesting alfalfa in Minnesota. Damaged crops can still be used as a biomass feedstock.

War

ren

Gre

tz, N

RE

L/P

IX03

744

Income from Energy CropsTo expand power production frombiomass substantially beyond currentlevels will require the cultivation ofdedicated energy crops. New York hasbecome the focus for a new initiative to develop agricultural feedstocks forenergy production. This should help tostabilize the revenue stream for partici-pating farmers: 26 area farmers haveexpressed a desire to diversify theircrop production to include energyfeedstocks.

The Niagara Mohawk PowerCorporation and the State Universityof New York (SUNY) are members of aconsortium that is developing willowenergy crops on 1000 acres of farmlandaround Tully, New York. This is thefirst stage of a plan to convert over40,000 acres in central and westernNew York to growing willow trees forenergy by 2010. Once it is fully imple-mented, the plan is expected to create300 rural jobs and generate energy crop fuel sales of almost $20 millionannually.

Each New Yorker sends an averageof $1000 each year out of state topurchase energy. In 1992, only one halfof New YorkÕs farmers were able toearn a profit on farm operations. AÒhomegrownÓ willow crop bought by power companies will help keepenergy dollars in the state and generatenew income streams for farmers.

According to Dan Robison, aresearcher at SUNYÕs Syracuse Collegeof Forestry, ÒThere are a lot of farmersin New York who are struggling to stayin business. There are a lot of farmersthroughout the region who are essen-tially working for free, on a break-evenbasis, and any new opportunities ÑtheyÕre interested.Ó

Hybrid willow species are beingdeveloped by the project partners to befast-growing and resistant to droughtand disease. Male willow trees canthrive in soils and climates less suitablefor other crops. These trees requireminimal application of fertilizer andinsecticides and will assist in thecontrol of soil erosion. Because willowis planted once, then repeatedlyharvested from the same plant for upto 20 years, soil erosion is minimizedcompared to traditional row crops.

ÒThis is ... a very good alternativefarm crop ... a cash crop,Ó said LarryAbrahamson, another of SUNYÕsresearchers.

Bad Weather? Good News ...The agricultural community of GraniteFalls, Minnesota, will soon become the home for a new 75-MW biomassgasification power plant that will bebuilt just outside of town. The plantwill employ 100 full-time staff and willcreate an additional 60-80 part-timejobs for people handling the biomassfeedstock.

ÒItÕs going to generate jobs in thecommunity Ñ the plant itself Ñbut the other part of it is that itÕseconomic development with thefarmers.Ó

— Farmer Dick Jepson, in an interview for the 1996DOE video, Growing America’s Energy:

The Story of Biomass Power

A small group of area farmers andbusiness people are developing alfalfaas an energy crop for the power plant.Alfalfa is normally grown primarily foruse as cattle feed. When bad weatherdestroys the crop, it can no longer befed to cattle, but the damaged stemscan still be used as a feedstock forelectricity production.

ÒWeÕll have a ready market for thestems,Ó said John Moon, a local farmer.ÒA brown stem has just as muchquality for gasification as a nice stemthat hasnÕt been rained on.Ó

In good years, the alfalfa crop willbe separated into stems and leaves. Theleaves will be sold as cattle feed, andthe stems will be sold to the biomassplant. So in addition to producingclean energy for Minnesotans, the plantprovides a second source of income forarea farmers.

Because biomass plants can use awide range of organic material, thetechnology is suitable for generatingpower in virtually any agriculturalregion Ñ as far east as Maine, or as far west as Hawaii.

Dollars from Sense6

Most agricultural wastes can beused to generate electricity,including the mountains of fibrousmaterial left over from processingsugarcane crops such as this one inHawaii. Selling power to electricutilities helps to improve theeconomics of sugar production forlocal companies.

War

ren

Gre

tz, N

RE

L/P

IX00

308

Electricity from SugarcaneFor a state such as Hawaii, which iscurrently forced to generate most of itselectricity from expensive, importedfuel oil, renewable energy resources areparticularly valuable. Approximately8% of HawaiiÕs electrical power isalready being generated from biomass,the stateÕs largest source of renewableenergy, and research is under way tomake better use of this resource.

Most of HawaiiÕs biomass plants use bagasse, the fibrous waste fromsugarcane processing. Sugar isHawaiiÕs most important agriculturalexport, and local sugar mills burnbagasse to provide thermal power tothe mills and electricity for sale toutility grids. These mills use direct-fired steam-turbine generators.Because biomass gasifiers are moreefficient, they are potentially capable of producing 50% more electricity fromthe same amount of bagasse whencompared with systems that burn thebagasse directly. This has prompted theState of Hawaii to explore gasificationtechnology in partnership with DOEand an industry research group.

The government-industry jointventure has built an experimentalgasification facility at the HawaiianCommercial & Sugar Company mill in Paia, on the island of Maui. Thefacility currently processes almost100 tons of bagasse per day into biogas.Jerry Smith, the manager of the project,knows how important electricity pro-duced from biomass is to Hawaiians.

ÒIt keeps the people on the islandworking. Plus, with a plant this size,youÕre not dependent on importingoil. And thatÕs a big thing whenyouÕre sitting on an island.Ó

— Jerry Smith, Paia gasifier project manager, ina 1996 interview for Growing America’s

Energy: The Story of Biomass Power

The experiment shows how thesugar mills can generate more electric-ity with the same resources and makemore money from selling power to theutility; this benefits the local sugarindustry by helping to keep Hawaiiansugar competitive in worldwidemarkets.


Compared to conventional steam turbines, biomass gasifiers are capable ofgetting 50% more electricity from the same energy crop. HawaiiÕs firstgasification facility, at Paia on the island of Maui, is pictured receiving atraditional blessing on dedication day.

War

ren

Gre

tz, N

RE

L/P

IX03

810

Overview

WW ind energy currentlyaccounts for around 2% ofthe countryÕs renewable-

source generating capacity. In 1995,total wind generating capacity wasapproximately 1800 MW, most of it(1600 MW) installed in California.

The American Wind EnergyAssociation (AWEA) reports that, in1992, approximately 1260 people weredirectly employed in the more than 50firms that make up CaliforniaÕs windindustry. When indirect employment(about 4350 jobs) is added, the industrysupported around 5600 full-time jobsin the state that year. Nearly all windindustry jobs are related to operatingand maintaining existing wind powerplants. According to AWEA, the

California wind industry pays morethan $31 million each year in salaries to its employees, and also contributesto local economies by paying roughly$6.7 million in property taxes.

Like biomass, wind is a form ofrenewable energy that has specialimplications for farmers and ruralcommunities Ñ in this case, mainlybecause large wind farms have to besited in relatively open countryside.

ÒAlone among the alternativeenergy technologies, wind poweroffers utilities pollution-freeelectricity that is nearly cost-competitive with todayÕsconventional sources.Ó

— Electric Power Research Institute,quoted on the CREST internet site

Success Stories

Renewable Power for the MidwestUtility-scale generation of electricityfrom wind is particularly suited to the rural areas of the upper Midwestbecause of the regionÕs tremendouswind resources and wide-open spaces.

In 1994, Northern States Power,MinnesotaÕs largest investor-ownedutility, committed to developing atleast 425 MW of wind energy capacityby the year 2002. But commercial winddevelopment on any scale was new to this region, and there was someuncertainty about what farmers andother residents would think about this.

So, in 1995, The Minnesota Projectand the Clean Water Fund conducted a survey of area residents, primarilyrural landowners, including a group offarmers from the Buffalo Ridge area ofsouthwest Minnesota where develop-ment of a 25-MW wind power plantwas already under way. The responsewas overwhelmingly positive.

ÒWind development is almostunanimously supported by ruralresidents. They like the environ-mental benefits of wind energy, and they love the possibilities ofinjecting income and jobs into rural communities.Ó

— Harvesting the Wind, a 1995 survey by TheMinnesota Project and the Clean Water Fund

Of the 149 residents surveyed, 98%were in favor of developing windresources for electricity, and 92% feltthat renewable energy productioncould be a significant part of ruraleconomic development Ñ the reasonscited included income generation forlandowners and communities (87% ofrespondents) and job creation (71%).

Dollars from Sense

Wind Power

8

The wind industry pays more than $31 million each year in salaries to itsemployees. Most jobs in the industry are related to operating and maintainingexisting wind power plants.

War

ren

Gre

tz, N

RE

L/P

IX00

349

One of the respondents said that windenergy development would helpÒmake rural communities and farmsmore self-sufficient economically.ÓAnother said it would Òallow money to stay at home in the local economy.ÓStill another said it would Òraise thespirit of the community so peoplestay.Ó

Extra Income for LandownersAlthough utility-scale wind projectsappear to take up a great deal of land,the wind turbines themselves occupyonly about 5% to 15% of the land area.The remaining land can be used forother purposes, such as farming,ranching, forestry, or for open space.Farmers can graze cattle or plant theircrops right up to the base of the turbinetowers, making wind power an idealcomplement to agriculture.

ÒNot only do wind farms interferelittle with agricultural operations,the leasing of land for windturbines can be a major benefit for landowners.Ó

— Powering the Midwest, a 1993 reportby the Union of Concerned Scientists

Although one-time payments forwind rights have been made, winddevelopment companies typically offerlease arrangements under which thedollar amount of payments tolandowners varies in proportion to theoutput of the turbines. In 1993, theUnion of Concerned Scientists foundthat a Midwestern landowner hosting a wind farm under a variable-rate planÒcould expect payments of around $40 per acre per year on top of earningsfrom farming or grazing,Ó increasing


How It Works

The wind blows because of differences in atmospheric pressure created bygeography and the temperature differ-ences across the Earth’s surface; thesetemperature variations are caused byvariations in the amount of sunshinefalling on different areas — for thisreason, wind is considered an indirectform of solar energy.

Energy is captured from the wind withwind turbines. The turbines have rotorsthat usually consist of two or threepropeller-like blades mounted on a shaft.Wind turbines are mounted on tall towers,usually 100 feet or more above theground where the wind is faster and lessturbulent. When wind makes the bladesturn, the shaft spins a generator toproduce electricity.

Lloy

d H

erzi

ger/P

IX01

686

Utility-scale wind plants coexist very well with ranching and farming. Farmers can graze cattle rightup to the base of the turbine towers, as on this wind farm operated by Zond Systems at AltamontPass, California.

his return on the land Òanywhere from30% to over 100%.Ó

The leasing of land for wind powerplants pays well in other parts of thecountry, too. In California, for example,the City of Santa Clara leases 640 acresof land to Zond Systems, Inc., whichowns and operates a wind farm atAltamont Pass, one of the largestdeveloped wind sites in the UnitedStates. Zond sells the electricity to thelocal utility, Pacific Gas and ElectricCompany, and pays a royalty to thecity Ñ about $152,000 in 1994 alone.

The existing lease contains a buyoutoption for the city, and Santa Claramay purchase the wind power plantfrom Zond once the city has learnedenough to be comfortable managingthe project.

According to William Reichmann, asenior electric utility engineer in SantaClaraÕs Electric Department, ÒOur leaseagreement has been lucrative bothfinancially and in terms of informationwe gained from the site.Ó In fact, thecity has recently signed a lease agree-ment with Zond for another site thatshows promise for wind energydevelopment.

Wind Projects Bring Money to SchoolsThe Louisville Gas and ElectricCompany operates a 35-MW windfarm in Culberson County, Texas,about 100 miles east of El Paso. TheLower Colorado River Authority buysthe electricity generated at the windsite and distributes it to its customers.As a result of an innovative partner-ship with the Texas General LandOffice, lease revenues from the windproject go directly into the PermanentSchool Fund, which helps to financepublic schools and universities inTexas; in effect, school children arebenefiting financially from the windenergy harnessed in west Texas.

Revenues are expected to total approxi-mately $3 million over the 25-year lifeof the project, or about $120,000annually.

ÒPublic education in Texas willbenefit by receiving millions ofdollars in lease money from thisproject. ... I hope to see more windpower projects on state landsdedicated to the public schools.Ó— Texas Land Commissioner Garry Mauro, speaking

at the dedication of the Culberson Countywind project, November 1995

At the other end of the scale, a smallschool district in northwest Iowa ismaking money from the sale of elec-tricity generated by its very own windturbine. A project that started out as aresponse to environmental concernsturned out to have a substantial finan-cial benefit for the local community.

The project began in 1990, when agroup of high school biology studentschallenged Harold Overmann, superin-tendent of the Spirit Lake CommunitySchool District, to find a renewablesource of energy for the district.Instead of ignoring them, Overmanntook them up on their challenge.District staff began a dialog with thelocal utility company, Iowa Electric,and investigated various renewableenergy technologies before deciding on wind power. They then gathereddata on wind speeds at the proposedsite and worked hard to find a way tofinance the project.

Three years later, at a cost of$238,000, the district installed a windturbine at the local elementary school.A grant from DOE paid for half of thecost and a loan from the IowaDepartment of Natural Resourcescovered the rest. Since then, the turbinehas been generating 324,000 kWh ofelectricity annually, worth about

Dollars from Sense10

Farmers can earn extra income byleasing land for wind power plants,such as this one on Buffalo Ridge insouthwest Minnesota.

Jerr

y M

iller

, Nor

ther

n S

tate

s P

ower

Com

pany

/PIX

0149

0

$25,000. The elementary school,however, uses only $20,000 worth ofelectricity. Surplus power is sold toIowa Electric. With the $25,000 yearlysavings, the loan will be completelypaid back within a five-year period.

ÒIÕve never done anything thatÕsbeen so popular in the community.Ó

— Superintendent Harold Overmann, Spirit LakeSchool District, quoted on the Iowa Department

of Natural Resources internet site

Once the districtÕs loan is repaid, all of the electricity generated by theturbine will represent a direct saving tothe district and, therefore, local taxpay-ers. The money saved can be directedinto education. ÒWeÕre using our non-instructional costs for instructionalcosts,Ó said Overmann. ÒWith themoney we save we can fully equip a computer lab every year instead ofpaying for electricity.Ó

Not only is the district helping itself, it is also saving the environment,just as it set out to do. The electricitygenerated by the wind turbine replaces225 tons of coal and prevents 750,000pounds of carbon dioxide emissionsfrom polluting the air every year.ÒWeÕre proud that we are helping tosolve the pollution problem,Ó saidOvermann.


Lease revenues from this west Texas wind farm are used to finance publiceducation in Texas. The local electric utility leases the land from the state,paying an average of $120,000 annually.

Low

er C

olor

ado

Riv

er A

utho

rity/

PIX

0235

5

Overview

PP hotovoltaics is a technology intransition. Photovoltaic (PV)power has long been cost-

competitive in a variety of off-gridapplications; and as the cost of PVelectricity continues to fall, this envi-ronmentally benign technology isbecoming increasingly attractive toelectric utility companies. In the UnitedStates, photovoltaics is currently mak-ing the move from primarily remote,stand-alone applications to utility gridsupport.

Acording to the Solar EnergyIndustries Association (SEIA), totalgrid-connected photovoltaic generat-ing capacity in 1994 was about 18 MW,spread across 36 states. Althoughstand-alone applications are difficult to quantify because they are so widelydispersed, there are an estimated25,000 homes in the United Statespowered exclusively by photovoltaics.

More than 850 U.S. companies arecurrently involved in the manufactureand sale of photovoltaic modules andsystem components. The industrybrings in more than $300 million inrevenues annually and employs 15,000people Ñ most of them in high-qualityjobs, such as manufacturing, engineer-ing, sales, installation, servicing, andmaintenance.

International sales continue to drivethe PV industry. The largest market for photovoltaics is in the developingworld, where two billion people stilldo not have electricity in their homes.Photovoltaic systems are particularlywell suited to this market because oftheir high reliability, their suitabilityfor applications of almost any size, andthe fact that they do not need costlytransmission lines. Approximately 70%of U.S. photovoltaic manufacturingoutput is exported.

Success StoriesThe United States leads the world inphotovoltaic research and manufactur-ing, accounting for 43% of global PVmodule production in 1995. Thegrowing international popularity ofphotovoltaics is creating an increas-ingly buoyant domestic PV industry,and U.S. manufacturers are scaling up their production facilities to takeadvantage of emerging markets. Theseexpansions are creating skilled jobs inseveral states.

U.S. Manufacturers Lead the WaySiemens Solar Industries (SSI), based in Camarillo, California, is the worldÕslargest manufacturer of photovoltaiccells and modules. In 1995, the com-pany shipped 17 MW of photovoltaicmodules, representing half of U.S.

production and 21% of total worldproduction that year. To help meetgrowing worldwide demand, SSIcompleted a $3 million expansion of itsfacility in Vancouver, Washington, inFebruary 1996. The expansion created33 new jobs in the Vancouver area, andall work on the facility was awarded tolocal contractors, further contributingto the local economy. SSI employs atotal of approximately 350 people at itsfacilities in California and Washington.

Solarex, the second largest PVmanufacturer in the United States, hasbeen in business for over 20 years.During the late 1970s and early 1980s,as oil prices rose, major oil companiesbegan investing in renewable energy as a hedge against an uncertain futurein fossil fuels. Amoco Corporationbought Solarex in 1983. Most of the oil

Dollars from Sense

Photovoltaics: Electricity from Sunlight

12

Through its PV Pioneers program, the Sacramento Municipal Utility District(SMUD) installs and operates grid-connected, rooftop PV systems oncustomersÕ homes. The program creates jobs in the utilityÕs service area andreduces the need for SMUD to purchase electricity from other regions.

Sac

ram

ento

Mun

icip

al U

tility

Dis

trict

/PIX

0243

9

companies concentrated on developingtheir renewable energy for the long-term utility market; in other words,they were not very concerned withshort-term profitability. Amoco, on theother hand, treated Solarex as part ofthe business from the very beginning,producing revenues from existingproducts at the same time as investingin technology development.

Today this strategy is paying off. In1995, Solarex captured 27% of the U.S.market (12% of the global market),with total sales of $45 million. InJanuary 1996, the company brokeground on a new wing at its manufac-turing facility in Frederick, Maryland,which already employs 240 people.

ÒThis dynamic expansion project by Solarex will provide the kind ofhigh quality [jobs] that Marylandneeds to continue building aprosperous, vibrant economy.Ó

— James Brady, Secretary of the MarylandDepartment of Business and Economic Development

(Solar Industry Journal, First Quarter, 1996)

Solarex is also building a $25 millionmanufacturing plant in James City,Virginia. The company was lured there by state incentives specificallydesigned to create jobs and strengthenthe stateÕs economy by attracting PVmanufacturing companies to the area.The new plant will employ a total ofapproximately 80 people.


U.S. manufacturers are expanding their output to meet the growing demand forPV systems. This creates skilled jobs at production facilities in several states,such as this thin-film plant in Golden, Colorado.

Dav

id P

atry

as P

hoto

grap

hy/P

IX01

545

How It Works

Photovoltaics is the direct conversion of light (“photons”) into electricity(“voltage”).

The basic unit of a typical photovoltaicsystem is the PV cell, which is made oflayers of semiconducting materials similarto those used in computer chips. Whenincoming photons of light strike atoms in the semiconductor material, someelectrons are knocked loose, causingelectricity to flow. The greater the intensityof the light, the more power is generatedby the cell.

PV cells, which produce DC electricity, areusually connected together and enclosedin protective casings called modules.Photovoltaic systems can provide anindependent, stand-alone power supply or can be connected to the electrical grid.In stand-alone applications, modules canbe connected to inverters to supply ACelectricity and to batteries to storeelectrical power for periods when the sunis not shining. Grid-connected systemsboth feed power into the grid and use thegrid as a source of backup power.

Another PV manufacturer, AtlantisSolar Systems/Solar Building Systems,also took advantage of VirginiaÕsincentives; Atlantis is constructing aproduction facility in Cape Charles thatwill create 25 jobs.

According to an August 1995 articlein The Newport News Daily Press,ÒVirginia, whose economy once wasrooted in tobacco, is leaving its

plantation past behind and heraldingits future in high technology.Ó Virginia has increased its investments in science and math education at alllevels, and is looking to attract indus-tries that will provide high-paying jobs for its home-grown graduates inthe fields of engineering, chemistryand science. ÒPV is exactly the kind of industry that Virginia wants to

encourage,Ó said Ann Broadwater of the Virginia Department ofDevelopment.

Other U.S. manufacturing compa-nies have also been expanding theiroperations. Solec International, forexample, the countryÕs third largest PVmanufacturer, more than doubled itsworkforce between 1993 and 1996. Thecompany now employs 130 people.

Dollars from Sense14

The U.S. PV industry employs 15,000 people, most of them in high-quality jobs, including installation, servicing, andmaintenance. This 340-kW system was installed on the roof of the aquatic center for the 1996 Summer Games in Atlanta,Georgia. It is the worldÕs largest building-integrated, rooftop PV system.

Cra

ig M

iller

Pro

duct

ions

/PIX

0350

0

And AstroPower, Inc., a tiny start-upventure 10 years ago, now has 145employees and annual revenuesexceeding $10 million, 80% of whichare from exports.

Growing Utility InterestAccording to the Utility PhotoVoltaicGroup (UPVG), ÒUPVGÕs marketevaluation work has shown that PVcan make a contribution to every utilityin every part of the country.Ó UPVG is a group of more than 80 electricutilities formed in 1992 to investigateutility applications of photovoltaics.Today, 39 U.S. utilities are activelytesting grid-connected photovoltaicsystems, including CaliforniaÕsSacramento Municipal Utility District(SMUD), a UPVG member and, with480,000 customers, the nationÕs fifthlargest customer-owned utility.

More than half of SMUDÕs projectedload requirements have been met withrenewable-source electricity, such asthe utilityÕs PV Pioneers program, andenergy efficiency programs. SMUDalso operates the countryÕs largest PVpower plant, a 2-MW facility on thegrounds of the utilityÕs now-closedRancho Seco nuclear power plant.These programs have created jobswithin the utilityÕs service area andmean that SMUD has to purchase lesspower from other regions.

ÒOur customers want more from us than just a good price; they want long-term reliability, a cleanenvironment and local economicdevelopment. Solar can help usmeet these needs.Ó

— Don Osborn, SMUD solar program manager(Solar Industry Journal, Third Quarter, 1995)

A growing number of electricutilities are also becoming familiarwith the advantages of photovoltaicpower for remote applications. In 1994,Southern California Edison (SCE)started an off-grid PV program calledPartnership with the Sun. John Bryson,SCEÕs chairman, says it is a win-winprogram: ÒHomeowners and busi-nesses in remote locations get clean,quiet electricity. Independent contrac-tors get jobs and construction projects.And Edison is able to serve newcustomers who otherwise have nodependable source of power.Ó

Saving Money for RanchersPhotovoltaics can be a winner for rural electric cooperatives. KC ElectricAssociation, a rural electric cooperativein eastern Colorado, is saving itsmembers money by providing themwith photovoltaic power. The associa-tion serves 4000 square miles of prairiewith an average of only two customersper mile of distribution line. Everyyear, winter storms knock out as manyas 1000 utility poles and 38 miles oflines. With replacement costs of $10,000per mile of line, the association hasbeen spending up to $380,000 onmaintenance every year.

The lines provide little revenue.About half of the associationÕs cus-tomers use the electricity primarily topower small irrigation pumps. In 1990,KC Electric began using photovoltaicsas a more practical and affordablealternative to replacing damageddistribution lines serving remotelivestock wells or extending lines tonew well sites. The cooperative canprovide PV-powered water pumping at a cost of $1800 to $6000 per well Ñsaving its members thousands ofdollars when compared with the costof providing grid electricity.


Worker installing a grid-independent, PV-powered streetlight.

Rog

er T

aylo

r, N

RE

L/P

IX01

860

Overview

SS olar thermal electric systemsprovide utilities with a variety of modular power options, some

of which can be constructed in arelatively short period of time. There is currently about 365 MW of utility-connected solar thermal generatingcapacity, all of it installed in California.

More than 250 people are directlyemployed in the operation and mainte-nance of 354 MW of solar thermaltrough systems in California. A fossil-fuel-fired plant producing the sameamount of electricity would employonly about 100 people. A 1994 study by the California Energy Commissionalso revealed that solar thermal powerplants yield twice as much tax revenueas conventional, gas-fired plantsproducing the same amount of electricity.

Success StoriesThe three types of solar thermal electrictechnologies Ñ troughs, power towersand dish systems Ñ are in differentstages of development. Troughs have aproven track record, power towers arein the demonstration stage Ñ whichmeans that they are close to commer-cialization Ñ and dish/engine systemsare still under development.

Solar Troughs: Proven SuccessParabolic trough systems have alreadyproven themselves in the field. Ninesolar electric generating systems(SEGS) totaling 354 MW have beenoperating successfully in California,some for more than a decade. Theiravailability to produce power when the sun is shining is greater than 92%, a statistic that rivals utility-scale power plants of any type.

The SEGS systems were all built bya private company, Luz International,between 1984 and 1991. These systems

are still operating successfully, produc-ing more than 90% of the worldÕs solarthermal electricity and saving theenergy equivalent of 2.3 million barrelsof oil every year.

ÒThe SEGS provide employment to over 250 skilled operators, craftspersons, and professionals,and millions of dollars in contractsto local vendors.Ó

— KJC Operating Company, which manages five ofthe SEGS plants (Clean Power Day 1996 prospectus)

In 1991, Luz employed more than700 people. According to MichaelLotker, formerly LuzÕs vice president of business development, each of its80-MW SEGS plants required about1 million job hours (500 job years) toconstruct. Because maintenance of theSEGS solar field is more labor-intensivethan maintenance of a fossil-fuel powerplant, the solar plant pays higherpayroll taxes.

It has been estimated that, over their30-year life, the operation and mainte-nance of each of the 80-MW plants willcontribute $11.6 million in taxes to thelocal government, $65.8 million to thestate, and $228.9 million to the federalgovernment.

The Solar Two Power TowerSolar Two, in CaliforniaÕs MojaveDesert, is a 10-MW, second-generationdemonstration project to confirm thetechnical and economic viability ofpower towers. The plant uses a field of 1926 heliostats located around a 300-foot tower to focus solar radiationonto a central receiver. Molten salt isused as the heat exchange and storagemedium, providing up to three hoursof dispatchable power after the sungoes down.

The project has been financed by aconsortium of electric utilities andhigh-tech companies (led by Southern

Dollars from Sense

Solar Thermal Electricity: Power from the Sun’s Heat

16

The assembly system used by Luz International for its parabolic-troughgenerating plants.

San

dia

Nat

iona

l Lab

orat

orie

s/P

IX01

332

California Edison) and the U.S.Department of Energy. The industryconsortium is currently involved indiscussions about using the experiencegained from Solar Two to build acommercial 30-100 MW power tower in Nevada, a project that would createmany new jobs.

ÒSolar Two represents both a newsource of clean power for Californiaand neighboring states, and a newsource of export technology forAmerica and jobs for Americanworkers.Ó

— John Bryson, chairman of Southern CaliforniaEdison, at the Solar Two dedication in June 1996

Solar Two gives an indication of therange of jobs that would be required to operate and maintain power towersonce they are commercialized. Thedemonstration project employs ninefull-time staff: three people to operate

the plantÕs control systems plus amaintenance crew consisting of twofull-time mirror washers and theirtruck driver, an instrument technician,an electrician, and a mechanic.

Dish/Engine Systems: Future OpportunityAlthough dish/engine systems are still under development, the prospectsfor this technology look promising. The systems are transportable and are appropriate for both on-grid and remote applications. ScienceApplications International Corporation(SAIC), a solar dish developer, plans to produce five precommercial, 25-kWsystems by 1999. SAIC also expects to be producing 1000 commercialdish/engine systems per year by 2002,creating 500 high-tech jobs at a manu-facturing facility in the Southwest andan additional 1000 jobs at supplierfacilities throughout the United States.


How It Works

Unlike photovoltaic systems, whichgenerate electricity directly from light,solar thermal power systems use the heatfrom the sun’s rays to generate power.Reflective surfaces concentrate the sun’srays to heat a receiver filled with oil oranother heat-exchange fluid. The heatedfluid is then used in some form of heatengine to generate electricity. Mechanicaldrives slowly turn the reflective surfacesduring the day to keep the solar radiationfocused on the receiver. There are threemain types of solar concentrators used in solar thermal electric systems:

Parabolic trough systems concentratesolar rays onto a receiver pipe locatedalong the focal line of a curved, trough-shaped reflector. The synthetic oil flowingthrough the pipe is heated to as much as750°F. The hot oil is used to boil water tomake steam, which runs a conventionalsteam turbine to generate electricity.

Power towers, also called centralreceivers, use a field of sun-trackingmirrors (heliostats) to reflect solarradiation onto a receiver that sits on top of a tall tower. The fluid in the receiver is heated to as much as 1050°F beforebeing passed through a heat exchanger to produce the steam used to generateelectricity.

Parabolic dish systems are similar totrough systems except that they use adish-shaped reflector. The dish concen-trates solar radiation onto a receivermounted at the focal point of the dish,heating the receiver fluid to as much as1500°F. Instead of boiling water to run asteam turbine, most dish systems todaygenerate electricity by using the hot fluidto run a Stirling engine mounted at thedish’s focal point.Solar Two technician Hugh Reilly inspecting one of the 1926 heliostats

(mirrors) that track the sun during the day. Power towers provide a variety ofjobs in systems operation and maintenance.

War

ren

Gre

tz, N

RE

L/P

IX02

407

Overview

GG eothermal power is a com-mercially proven renewableresource. Geothermal generat-

ing capacity in the United States iscurrently about 2300 MW, distributedamong baseload power plants locatedin four states Ñ California, Nevada,Utah, and Hawaii. Geothermal energyaccounts for around 2% of the coun-tryÕs renewable-source electric generat-ing capacity.

In 1996, the U.S. geothermal energyindustry as a whole provided about12,300 direct domestic jobs, and anadditional 27,700 indirect domesticjobs. The electric generation part of the industry employed about 10,000people to install and operate geother-mal power plants in the United Statesand abroad, including power plantconstruction and related activities suchas exploration and drilling; indirectemployment was about 20,000.

Success Stories

Providing Jobs and Tax RevenueNevadaÕs geothermal plants produceabout 210 MW of electricity, savingenergy imports equivalent to 800,000tons of coal or three million barrels ofoil each year. Although California hasmuch greater installed capacity,Nevada, with just over a millionresidents, uses more geothermalenergy per capita than anywhere else in the country.

Taxes received from geothermaloperations are a significant source of revenue for NevadaÕs local and state governments. In 1993, NevadaÕsgeothermal power plants paid $800,000in county taxes and $1.7 million inproperty taxes. In addition, the U.S.Bureau of Land Management collectsnearly $20 million each year in rentand royalties from geothermal plants

Dollars from Sense

Geothermal Energy: Power from the Earth

18

The drilling of production wells, such as these at The Geysers (above) andImperial Valley (opposite) in California, accounts for a third to a half of thecost of a geothermal project. About 10,000 people are directly employed in thegeothermal electric industry.

Jeff

Hul

en/P

IX04

133

producing power on federal lands inNevada Ñ half of these revenues arereturned to the state.

ÒNet proceeds tax, property tax andcounty tax payables have increasedfor geothermal plants throughoutthe state, especially in rural areas.Ó

— Thomas Flynn, University of Nevada(Geo-Heat Center Bulletin, May 1996)

The California Energy Company(CalEnergy) operates geothermalpower plants in California, Nevadaand Utah. In California, the companyemploys 226 people at its Salton Seageothermal field in the Imperial Valleyand 121 people at the Coso geothermalfield. In 1995, CalEnergy contributedmore than $45 million to CaliforniaÕstax base through income taxes, payrolltaxes, local (county) taxes and unem-ployment taxes.

Most of the electricity producedfrom the Coso geothermal field comesfrom power plants located on U.S.Navy land near China Lake in InyoCounty. Tax revenues paid to InyoCounty by CalEnergy amount to morethan 20% of the countyÕs annualincome. In addition, the Navy getsroyalties and cheaper electricity fromthe plants; in one year alone (1993), theNavy saved $4.2 million in electricitycosts, which equates to a one-thirdreduction in the total electricity bill forthe China Lake Naval Air WeaponsStation.

Displacing Imported Fuel Oil in HawaiiHawaii has no conventional energyresources and is forced to importvirtually all of its energy, includingevery drop of oil. Fully 85% of thestateÕs electricity is generated frompetroleum products, primarily fuel oil,compared with only 3% for the UnitedStates as a whole. Importing oil repre-sents a significant drain on the stateÕseconomy, and creates a strong incen-tive to develop domestically availablerenewable energy resources.

Geothermal energy has been identi-fied as perhaps the best near-termindigenous resource to meet the energyneeds of the Òbig islandÓ of Hawaii. Asingle 25-MW geothermal plant on theisland produces 19% of the baseloadneeds of the Hawaiian Electric LightCompany, replacing 1000 barrels ofimported fuel oil per day.

ÒThe [Salton Sea Geothermal]Project will provide economicbenefits to the State of California in the form of additional jobs and an expanded tax base.Ó

— David Sokol, CalEnergy chairman(CalEnergy press release, April 1995)


Geothermal production well atImperial Valley, California.

War

ren

Gre

tz, N

RE

L/P

IX00

45

How It Works

Geothermal (“Earth-heat”) energy comesfrom the residual heat from the Earth’sformation and from the radioactive decayof atoms deep inside the Earth. This heatis brought up to the Earth’s crust bymolten rock (magma) and by conductionthrough solid rock. There it raises thetemperature of groundwater trapped in the fissures and pores of undergroundrock, forming zones called hydrothermalreservoirs. Geothermal power plants aredriven by hot water and steam producedfrom wells drilled into these hydrothermalresources.

In most geothermal power plants, thesteam from hydrothermal reservoirs isused to generate electricity by spinning aturbine generator directly; in others, thegeothermal hot water is used to vaporize a working fluid that boils at a low temp-erature. This vapor is then piped to aturbine to generate electricity.

Potential geothermal energy reserves areso large that they are considered inex-haustible. Nevertheless, the fluid inindividual hydrothermal reservoirs can bedepleted to the point where the reservoirbecomes economically unproductive. Forthis reason, sustainable use of specifichydrothermal resources always requiresthe reinjection of water into the under-ground reservoir to maintain pressure.Injection of fluids from the Earth’s surfacecan also help to increase output fromreservoirs after they have becomedepleted, a strategy that is being pursuedat The Geysers field in California.

General ContactsCenter for Renewable Energy andSustainable Technology (CREST)1200 18th Street NW, #900Washington, DC 20036 Tel: (202) 530-2202Web: http://www.crest.org

CRESTÕs Web site has information on documents, databases, discussiongroups, and organizations in thesustainable energy field.

Energy Efficiency and RenewableEnergy Clearinghouse (EREC)PO Box 3048 Merrifield, VA 22116Tel: (800) DOE-EREC (363-3732)Fax: (703) 893-0400E-Mail: [email protected]

This free service has information onrenewable energy and saving energy. It is funded by the U.S. Department of Energy.

Energy Efficiency and RenewableEnergy Network (EREN)Web: http://www.eren.doe.gov

The on-line version of EREC. Anexcellent resource, with links tohundreds of related sites.

National Association of RegulatoryUtility CommissionersSubcommittee on Renewable Energy PO Box 684Washington, DC 20044Tel: (202) 898-2200Web: http://www.erols.com/naruc

BiomassNational BioEnergy IndustriesAssociation122 C Street NW, Fourth FloorWashington, DC 20001-2109Tel: (202) 383-2540Web: http://solstice.crest.org/

renewables/nbia

Publishes the quarterly magazine,Biologue, which includes informationabout regional biomass energyprograms.

WindAmerican Wind Energy Association122 C Street NW, Fourth FloorWashington, DC 20002-2109Tel: (202) 383-2500Web: http://www.igc.apc.org/awea

AWEA can provide information on the use of wind energy for utilityapplications across the country.

Solar (Photovoltaics and SolarThermal Electric)Solar Energy Industries Association122 C Street NW, Fourth floorWashington, DC 20002Tel: (202) 383-2600Web: http://solstice.crest.org/

renewables/seia

GeothermalGeothermal Resources Council2001 Second Street, Suite 5PO Box 1350Davis, CA 95617-1350Tel: 916/758-2360Web: http://www.geothermal.org

Dollars from Sense

For More Information

20

Text in italics refers to other glossaryentries.

Biomass Ñ All of the EarthÕs plant and animal matter. In the renewableenergy industry, biomass usually refers to the wood, wood-processingresidues, agricultural residues, andenergy crops that are used to createelectricity, generate heat, or produceliquid transportation fuels.

Energy crops Ñ Crops grown specifi-cally for their fuel value, includingfood crops such as corn and sugarcane,and nonfood crops such as willow treesand switchgrass.

Fossil fuels Ñ Energy sources formedby the decay of plants, dinosaurs, andother animals over millions of years;coal, oil, and natural gas are fossilfuels. These energy reserves form soslowly in comparison to our rate ofenergy use that they are regarded as afinite resource.

Geothermal energy Ñ Heat energystored in the EarthÕs crust, which canbe harnessed to produce electricity orto heat water and living spaces.

Gigawatt (GW) Ñ 1,000,000,000 watts(see Watt)

Hydropower Ñ The energy of flowingwater, which can be harnessed to makeelectricity or to do mechanical work.

Kilowatt (kW) Ñ 1000 watts (see Watt)

Kilowatt-hour (kWh) Ñ A unit ofelectrical energy, equal to 1000 watts ofpower delivered for a period of onehour (see Watt)

Megawatt (MW) Ñ 1,000,000 watts (see Watt)

Multiplier effect Ñ Additional jobs and income created in the economy as a result of an initial expenditure. See page 2 for a detailed explanation.

Municipal solid waste Ñ Trash orgarbage; it can be used to produce heat or electricity by burning it or bycapturing the gases it gives off andusing them as fuel.

Nonrenewable fuels Ñ Fuels that arenot naturally replaced as we use them.This includes fossil fuels, nuclear fuels,and municipal solid waste.

Photovoltaics Ñ A technology forusing semiconductors to directlyconvert light into electricity.

Renewable energy Ñ Sources ofenergy that are either continuouslyresupplied by the sun or tap inex-haustible resources, such as wind,solar, biomass, hydropower, and geothermal energy.

Solar heating Ñ Various technologiesfor using the sunÕs energy to heatwater and living spaces.

Solar thermal electric Ñ A technologyfor generating electricity from the sunÕsheat.

Watt Ñ Watts are used to measure thetotal quantity of electricity. One watt is the power developed by an electriccurrent of 1 ampere across a potentialof 1 volt.

1 kilowatt (kW) = 1000 watts

1 megawatt (MW) = 1000 kilowatts =1 million watts

1 gigawatt (GW) = 1000 megawatts =1 billion watts

Both kW and MW are used to describethe maximum output of an electricgenerator at a particular moment.Power plant capacities are usuallyquoted as Òrated capacity,Ó measuredin kW or MW, which is the greatestamount of power that the plant candeliver at a given instant. The amountof electricity generated or used duringa period of time is typically expressedin kilowatt-hours (kWh).

Wind farm Ñ Another name for a wind power plant, so-called because theturbines are usually spread out over a relatively large area of land.

Wind power plant Ñ A group of wind turbines connected to a commonelectricity grid.


Glossary

Produced for theU.S. Department of Energy

1000 Independence Avenue, SWWashington, DC 20585

by theNational Renewable Energy Laboratorya DOE national laboratory

DOE/GO-10097-261DE96000543September 1997

Printed with renewable-source ink on paper containing at least 50% wastepaper, including 20% postconsumer waste

NOTICE: This report was prepared as an accountof work sponsored by an agency of the UnitedStates government. Neither the United Statesgovernment nor any agency thereof, nor any oftheir employees, makes any warranty, express orimplied, or assumes any legal liability or responsi-bility for the accuracy, completeness, or usefulnessof any information, apparatus, product, or processdisclosed, or represents that its use would notinfringe privately owned rights. Reference herein to any specific commercial product, process, orservice by trade name, trademark, manufacturer, or otherwise does not necessarily constitute orimply its endorsement, recommendation, orfavoring by the United States government or anyagency thereof. The views and opinions of authorsexpressed herein do not necessarily state or reflectthose of the United States government or anyagency thereof.

Printed in the United States of America

Available to DOE and DOE contractors from: Office of Scientific and Technical Information (OSTI)P.O. Box 62, Oak Ridge, TN 37831(615) 576-8401

Available to the public from: National Technical Information Service (NTIS)U.S. Department of Commerce5285 Port Royal Road, Springfield, VA 22161 (703) 487-4650

Information pertaining to the pricing codes can be found in the current issue of the followingpublications which are generally available in mostlibraries: Government Reports Announcements andIndex (GRA and I); Scientific and Technical AbstractReports (STAR); and publication NTIS-PR-360available from NTIS at the above address.

T OF ENERGYD

EPA

RTMEN

U

E

NIT

ED

STAT S OFA

ER

ICA

M

dollars from sense: the economic benefits of renewable energy

Documents