Part 9: One of the main reasons to update the grid is to integrate more renewable energy. However, some wonder if the investment in clean energy will lead to a “green bubble” like the housing and internet bubbles. Eric Janszen, founder of the financial advisory company iTulip, says that “bubbles start with a kernel of something good — say, home ownership or the development of the Internet or, in this case, energy that causes less pollution. But then . . . outside forces come in and create a sort of mania.” Oil tycoon T. Boone Pickens, who is attempting to finance a 1,000 megawatt wind project in Texas, says he is not worried about a bubble. According to Mr. Pickens, low natural gas prices do not make wind generated electricity economically viable at this juncture. As Congress works on “legislation that would limit greenhouse gas emissions and then turn them into a commodity that can be traded . . .such a cap-and-trade system might be the seed for creating the credit necessary to get a renewable energy bubble going.” One major factor inhibiting the bubble at this point is the need for upgrades to the country’s electric grid. As part of the stimulus bill, “The Electric Power Research Institute was given $1.3 million . . . to develop a framework for grid developers to follow.” Before any bubble – real or imagined – can materialize, the grid first must be updated to allow for renewable energy supplies to come on line.

Part 10: Power companies and conservationists may stand at odds as to what will happen with the future of electricity in the United States. The former want to improve the electric grid, while the latter look to reducing consumption as the answer to the energy demands of the future. The US Green Building Council’s (USGBC) headquarters in Washington D.C. aims to set a new paradigm in energy efficiency. Instead of power hungry desktop computers, the building has laptops that are hooked up to a sensor that will put the computer on standby when people leave the area. Air conditioners are set up similarly so that they do not cool spaces that are uninhabitable. White carpet along the floor near windows helps reflects lights deep into the building to reduce the need for artificial lighting. USGBC’s offices will consume roughly half the energy of a typical office building and will apply for the council’s own Leadership in Energy and Environmental Design (LEED) Platinum certification, the highest level attainable.

Some claim that these types of super efficient buildings will reduce the need for constructing more power plants and transmission lines. Revis James of the Electric Power Research Institute argues that the demand for electricity will rise over the next half century due to population and economic growth. Mr. James believes that population increases (projected at nearly 100 million people over the next 50 years) may outstrip the savings from increased efficiencies. If the population does indeed soar, more energy will be needed. While electricity from carbon free energy may very well replace today’s dirtier fuels, increased overall energy demand (and need to distribute the renewable energy) could lead to an expansion of transmission lines.

For a recap of Parts 7 and 8 of the series click here.

- Eric Wilson

[image source: Environmental Design + Construction Magazine]