Renewable Energy Payments in the US: Prospects and Perspectives

Representative Jay Inslee (D-WA) began the event by discussing his forthcoming bill, The Renewable Energy Jobs and Security Act, which incorporates the renewable energy payment for these industries that enter the US electricity market. The briefing gave an overview about first experiences with such legislation on the US state level, as well as experiences in Europe. Renewable energy payment legislation in Germany has created rapid growth in the renewable energy industries since 1990, causing the nation to become the world’s largest market for photovoltaic systems and wind energy. By the end of 2007, 46 countries and federal states, including 18 of the 27 EU member-states, had introduced renewable energy payment legislation as a major incentive to deploy renewable energy.

The Energy Policy Act of 2005 (P.L. 109-58) requires the Department of Energy (DOE) to complete a study of the nation’s electric transmission congestion every three years. On May 28, DOE announced that it will work with the Western Governors' Association (WGA) to identify areas in the West with substantial renewable energy resources and to expedite the development and delivery of that energy to meet regional energy needs. On September 20, 2007, Senate Majority Leader Harry Reid (D-NV) introduced the Clean Renewable Energy and Economic Development Act (S. 2076/H.R. 4059) which would provide additional financing options for building new transmission lines and interconnections to areas rich with renewable energy resources. By designating renewable energy zones, where natural clean resources could generate at least 1,000 megawatts of power, the bill would establish a framework for developing new renewable energy–dedicated transmission. The Senate Committee on Energy and Natural Resources is holding a hearing on renewable energy and transmission on June 17 at 10:00 am.

On June 18, the Heinrich Böll Foundation and the Environmental and Energy Study Institute hosted a lunch briefing that explored the potential for renewable energy payment legislation within the US electricity sector. Renewable energy payments (also known as feed-in tariffs in Europe and elsewhere) guarantee smaller renewable energy technologies a connection to the electricity grid, and provide a premium rate to these investors designed to generate a reasonable profit over a long term.