Energy
To broaden the use of renewable sources of electricity we need new storage and transmission strategies, more efficient generation, and pricing that covers electricity’s hidden costs.
Electricity that’s generated by renewable energy sources like solar, wind, and hydropower. In 2018, the United States got about 17% of its electricity from renewables. In contrast, the nation got about 35% of its electricity from natural gas, because in many places it’s the least expensive source of energy.
Burning natural gas to generate electricity produces less pollution (including greenhouse gases such as CO2) than burning other fossil fuels such as coal. But natural gas creates considerably more pollution than renewables. And although the oil and natural gas industry tries to prevent it, some natural gas leaks into the atmosphere from wells, storage tanks, pipelines, and processing plants. In 2017, the U.S. Environmental Protection Agency estimated that such leaks accounted for about one-third of U.S. methane emissions—a powerful greenhouse gas. About 4% of U.S. greenhouse gas emissions overall came from these leaks. That makes natural gas a notable contributor to climate change.
Sources of electricity generation in the United States in 2018. (Sum of percentages does not equal 100% due to independent rounding.) Credit
Electricity from renewables has grown significantly. For example, the amount of energy generated by solar technologies increased more than 100% from 2014 to 2018, though it’s still a small slice of the electricity generation pie. Wind energy grew 46% over the same time period.
One factor is cost. Some types of renewable energy—such as wind power and utility-scale solar—are already cheaper than natural gas in some locations. But cost comparisons vary across the nation. Technological advances could lower renewables’ costs by helping them generate electricity more efficiently. For example, one federal research effort is working to merge two different types of solar technologies into a single technology that can generate energy at a lower cost than either technology alone.
Adjusting energy prices to more accurately reflect their costs. Right now, the prices that utilities and consumers pay for energy don’t reflect the costs that energy sources impose on human health and the environment. For example, they don’t cover the costs of respiratory illness from air pollution, or energy sources’ contributions to climate change.
Because these “hidden” costs aren’t reflected in energy prices, businesses and consumers may not realize the full impact of their choices. If market prices were corrected to reflect these hidden costs—for example, if policy makers placed a tax on pollution or issued pollution permits that electricity plants could buy and sell—the price of natural gas and coal would rise. The price of some renewables such as biomass and geothermal would rise too, but far less. Overall, the price gap would narrow, lessening the incentive to choose fossil fuels.
It’s complicated, but possible. For example, a 2010 National Research Council report looked at a sample of 498 natural gas fueled plants, which accounted for 71% of gas-generated electricity in the United States. The report committee estimated those plants produced $740 million in total damages to human health and the environment in 2005.
That estimate didn’t include damages from climate change—the economic costs that result from changing temperatures and rising seas. It’s harder to attach a precise dollar figure to these hidden costs, though, since they will unfold over a long timeframe and their extent is still uncertain.
Hidden costs reflect a failure in energy markets. When market failures occur, there may be a case for the government to intervene—in the form of regulations, taxes, or tradeable permits—in order to make the hidden costs visible. That way businesses and consumers can take them into account when they make choices.
Yes, tax policies and regulations also affect the use of renewable electricity, especially wind and solar. The federal government currently provides tax credits for investment in and production of most renewable electricity sources. And some states are mandating the use of renewables. For example, 29 states have adopted standards requiring that a certain amount of electricity consumed within the state come from renewable or zero-carbon-emissions sources.
Improved availability. While natural gas can generate electricity on demand, electricity generation from wind and sun varies with the weather and time of day. That presents a challenge, because people still need electricity on calm or cloudy days and at night. We need electricity storage that can preserve wind or solar energy for later use. Some storage technologies exist now—such as pumped storage, which uses energy to pump water into a hydropower reservoir and then releases the water through a turbine when electricity is needed. New battery technologies are beginning to be used as well. Converting excess electricity from renewables to other fuels such as hydrogen is another storage option.
Yes. In the United States, many locations where sun and wind are plentiful are far from major cities where the electricity needs are greatest. Transmitting renewable energy from the places it’s produced to the places it’s used poses a major challenge.
Transmitting more electricity—and doing it efficiently—will be key to overcoming this barrier and helping renewables achieve wider use. New technologies, such as high voltage direct current and the use of superconducting materials, are improving the efficiency of transmission. However, policy and siting issues for new transmission lines remain barriers to many new transmission projects.
Yes, incorporating “smart grid” technologies into the electrical grid will make its overall operation more flexible and efficient. That will allow greater use of renewables. For example, smart meters can incorporate prices that change based on demand for electricity, allowing utilities to better estimate electricity demand and production. Smart grid technologies also include monitors and controls that can help to better manage electricity sources and storage technologies.
Looking for the power of more knowledge? Check out The Power of Change: Innovation for Development and Deployment of Increasingly Clean Electric Power Technologies and Hidden Costs of Energy: Unpriced Consequences of Energy Production and Use.
