In This Heatwave There's Renewed Interest In Renewable Energy
Thursday, August 03, 2006SUSIE GHARIB: The record-breaking heat wave is gripping much of the nation and electricity suppliers are struggling to meet demand. While most utility companies are fueled by coal, natural gas and nuclear power, renewable energy promises to soon make up a greater portion of power production. Stephanie Dhue reports.
STEPHANIE DHUE, NIGHTLY BUSINESS REPORT CORRESPONDENT: Rhone Resch isn`t sweating high energy bills during the heat wave. In fact, today the president of the Solar Energy Industries Association is personally generating more energy than he`s using.
RHONE RESCH, PRESIDENT, SOLAR ENERGY INDUSTRIES ASSOCIATION: What normally occurs is that the meter spins this direction, registering how much electricity you`re consuming. But as you can see here, the meter is actually running the opposite direction. It`s running backwards because we`re generating extra electricity.
DHUE: With a $2,000 tax credit and a grant from the District of Columbia, Resch installed a solar system that cost him $17,000. With it he can generate enough electricity for his own consumption and sell excess power back to the grid. He expects the system to pay for itself over 30 years.
RESCH: By putting a solar system on our house, we were able to take our $100 electricity bill, bring it down to zero. And we built it into our mortgage, so we have a positive cash flow from day one.
DHUE: With new tax incentives, more homes and businesses are testing the economics of renewable energy. Big box retail stores like Wal-Mart, Staples and Whole Foods are outfitting some stores with solar panels and purchasing wind power. Even though wind and solar energy make up less than a 0.5 percent of total U.S. electricity production, during a heat wave like this, every megawatt matters. For example, when the temperature topped 100 degrees in Minnesota this week, Excel (ph) energy tapped into 400 megawatts of wind power to supplement its 9,000 megawatt system.
RANDALL SWISHER, EXECUTIVE DIRECTOR, AMERICAN WIND POWER ASSOCIATION: A lot of people have the impression that in the midst of a heat wave like this, you don`t get much production from wind turbines. And that can be true, but we`ve got a lot of evidence that shows that in fact wind can contribute significantly even during the hottest weather.
DHUE: Analysts say while renewable energy can help increase the energy supply, conservation will be a critical part of keeping the electricity grid from overload.
PETER FOX PENNER, PRINCIPAL, THE BRATTLE GROUP: Generally, American cities use much more electricity than sunlight falls on them or wind blows through them in any kind of useable way.
DHUE: Still, analysts say wind and solar power could account for 20 percent of the nation`s electricity within 20 years at the same time, reducing the pollution that makes the dogs days of summer even more miserable. Stephanie Dhue, NIGHTLY BUSINESS REPORT, Washington.
