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Executive Summary

As the new home of RIPIRG's environmental work, Environment Rhode Island can be contacted regarding this report.

Introduction 

In recent years dozens of studies have examined the benefits that increased use of renewable energy would have on prices, jobs and economic development. This white paper seeks to summarize and highlight the reports most relevant to Rhode Island and New England.

While the reports cited in this white paper examine a range of issues involving renewable energy, one conclusion is crystal clear: renewable energy is good for our economy.

In order to move Rhode Island away from rising natural gas costs, increased energy price volatility, and the public health and environmental costs associated with fossil fuels, we must move towards a cleaner energy future and adopt a Renewable Energy Standard.

Heading in the Wrong Direction
The increasing reliance on natural gas for electricity generation, particularly in New England, is receiving increasingly urgent attention from a variety of economic and energy sector policy makers and observers. Indeed, Alan Greenspan, Chair of the Federal Reserve, recently highlighted this issue as being crucial to our economic security and growth. Rhode Island's electric energy costs have increased as much as 18 percent in the last year. Clearly a long-term policy to diversify our regions energy sources away from fossil fuels, with their ever increasing costs, is sorely needed.

Untapped Potential
Better energy options are available today for Rhode Island and New England. Currently, only about two percent of Rhode Island's energy comes from clean, renewable sources such as solar, wind, and biomass. New England has a large resource of renewable energy that is currently untapped:
· The region's mountaintops and coasts have enormous potential for wind energy.
· Our forests, if properly managed, can provide energy and natural habitat for generations to come.
· And at the University of Rhode Island, research is underway to harvest the awesome energy of our oceans.

Economic Benefits
Developing renewable energy in New England also has the potential for tremendous economic benefits. Dollars spent on developing New England renewable energy sources means dollars kept in our economy to create construction jobs and further our region's world-renowned intellectual capital. These energy sources have no fuel costs, and so provide a hedge against ever increasing fossil fuel costs that are dictated by a global market. Obtaining more of our energy from regional sources can also help insulate us from the damaging impacts international politics can have on our economy. And renewable energy sources have the additional benefit of being emission free, and can help mitigate the enormous public health and environmental costs of our current energy sources.

Given the many benefits of renewable energy for Rhode Island, a state policy is needed to encourage the orderly development of these sources. At least thirteen states, including Massachusetts and Connecticut, currently have such policies known as a Renewable Energy Standard, or Renewable Portfolio Standard. The policies require that electricity suppliers obtain a small but growing percentage of their electricity from renewable energy sources. These polices give renewable energy developers the ability to compete in the energy market place. These policies have proven to be highly effective in other states and do not require State expenditure.

Rhode Island should adopt a similar Renewable Energy Standard that would increase the percentage of our energy that comes from renewable sources each year, ultimately reaching 20 percent by 2020. A renewable energy standard has the potential to lower and stabilize prices, increase jobs, and clean our environment.

Not surprisingly, considerable public support for greater renewable energy exists. In a national study conducted in 2001, 91 percent of Americans favored greater investment in renewable energy sources.[1] In a survey of Rhode Islanders conducted during February of 2004, 80 percent of those surveyed would prefer that their electric company choose clean and renewable sources, and indeed 76 percent of those people were even willing to pay $10 more per month to receive electricity that came primarily from renewable sources.[2]

The choice seems clear. A Renewable Energy Standard for Rhode Island brings positive economic and environmental benefits, is proven to work in many other states, and has public support. This white paper highlights the potential and benefits that a Renewable Energy Standard would offer to Rhode Island. Moving us in the direction towards more renewable energy and tapping into renewable energy potential throughout the region will bring us economic benefits such as job creation, price stability, price relief and natural resource protection.

Notes

[1] Poll Analysis, November 21, 2001, "Americans Favor Alternative Energy Methods to Solve Shortages," Mark Gillespie

[2] "Public Attitudes about Clean Energy: A Survey of Rhode Islanders" Impact Strategies, February 2004