This commentary originally appeared on our EDF Voices blog.
If renewable energy is a good thing, then a lot of renewable energy is a very good thing, right? Not exactly, according to recent articles in the L.A. Times and Forbes about challenges posed by the growth of renewables. But, as we’ve pointed out, the issue here is not too much renewable energy, but rather a vulnerable U.S. electric grid built for the last century.
It’s essential to remember the bigger picture in order to arrive at the truth of the matter: If we are to avoid catastrophic climate change, renewable energy is a vital part of the solution. And while an unprecedented abundance of renewable power may raise complex questions about how to integrate these resources, it also underscores the need – and vast opportunity – for critical energy infrastructure improvements. Our response as a nation should not be to shrink from the challenges of renewables, but rather to keep working toward a smarter, more resilient energy system to meet the needs of the 21st century and beyond. Read More
Last month, the Wall Street Journal reported on an initiative at an increasing number of companies nationwide: on-site, or distributed, power generation. There are many reasons for this growing trend in corporate sustainability, along with many ramifications for the prevailing utility model in the United States – all of which highlight the importance of employing market-based solutions to create a cleaner, smarter, more resilient electric system.
Why Do Companies Unplug?
For companies such as Walmart, increasing the use of distributed, renewable generation is a vital part of larger sustainability goals, including increased use of clean energy and a call for safer ingredients used in the products the company sells. To be sure, however, even the most altruistic companies would be hard pressed to shift off the power grid without sound economic reasons.
A confluence of market factors, including tax incentives that spur attractive returns on investment, advances in solar and wind technologies and policies that encourage greater use of and investments in clean energy (like net metering and time-of-use pricing), has created an economic environment that makes distributed generation not just a viable option, but often a very attractive one. Further, off-grid power can be an effective way for companies to hedge against outages due to storms or unforeseeable catastrophes, a key idea included in the Hurricane Sandy Rebuilding Strategy.