Diversification Plus

Diversification

The U.S. electric power industry now relies on large, central power stations, including coal, natural gas, nuclear, and hydropower plants that together generate more than 95% of the nation’s electricity. Over the next few decades uses of renewable energy could help to diversify the nation’s bulk power supply. Already, appropriate renewable resources (which excludes large hydropower) produce 12% of northern California’s electricity.

Although most of today’s electricity comes from large, central-station power plants, new technologies offer a range of options for generating electricity nearer to where it is needed, saving on the cost of transmitting and distributing power and improving the overall efficiency and reliability of the system.

Improving energy efficiency represents the most immediate and often the most cost-effective way to reduce oil dependence, improve energy security, and reduce the health and environmental impact of the energy system. By reducing the total energy requirements of the economy, improved energy efficiency could make increased reliance on renewable energy sources more practical and affordable.

Other issues - Sustainability

Renewable energy sources are considered sustainable in the sense that they cannot "run out" as well as in the sense that their environmental and social impacts are generally more benign than those of fossil fuels. However, both biomass and geothermal energy require wise management if they are to be used in a sustainable manner. For all of the other renewables, almost any realistic rate of use would be unlikely to approach their rate of replenishment by nature.

Transmission

If renewable and distributed generation were to become widespread, electric power transmission and electricity distribution systems might no longer be the main distributors of electrical energy but would operate to balance the electricity needs of local communities. Those with surplus energy would sell to areas needing "top-ups". That is, network operation would require a shift from 'passive management' - where generators are hooked up and the system is operated to get electricity 'downstream' to the consumer - to 'active management', wherein generators are spread across a network and inputs and outputs need to be constantly monitored to ensure proper balancing occurs within the system. Some governments and regulators are moving to address this, though much remains to be done. One potential solution is the increased use of active management of electricity transmission and distribution networks. This will require significant changes in the way that such networks are operated.

However, on a smaller scale, use of renewable energy produced on site reduces burdens on electricity distribution systems. Current systems, while rarely economically efficient, have shown that an average household with an appropriately-sized solar panel array and energy storage system needs electricity from outside sources for only a few hours per week. By matching electricity supply to end-use needs, advocates of renewable energy and the soft energy path believe electricity systems will become smaller and easier to manage, rather than the opposite.

Market Development of Renewable Heat Energy

Renewable heat is the generation of heat from renewable sources. Much current discussion on renewable energy focuses on the generation of electrical energy, despite the fact that many colder countries consume more energy for heating than as electricity. In 2005 the United Kingdom consumed 354 TWh of electric power, but had a heat requirement of 907 TWh, the majority of which (81%) was met using gas. The residential sector alone consumed a massive 550 TWh of energy for heating, mainly in the form of gas. Almost half of the final energy consumed in the UK (49%) was in the form of heat.

Renewable electric power is becoming cheap and convenient enough to place it, in many cases, within reach of the average consumer. By contrast, the market for renewable heat is mostly inaccessible to domestic consumers due to inconvenience of supply, and high capital costs. Heating accounts for a large proportion of energy consumption, however a universally accessible market for renewable heat is yet to emerge. Solutions such as geothermal heat pumps may be more widely applicable, but may not be economical in all cases.

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