What is an alternative energy portfolio standard by xarrnet

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									What is an "alternative energy                   have portfolio standards or renewable           landscape to support waste coal electricity
portfolio standard?"                             energy goals.                                   generation and the capture of methane
                                                                                                 gas - a potent greenhouse gas - that
A portfolio standard requires the                Tier I requires 8 percent of electricity sold   otherwise would be released to the
companies that deliver your electricity -        at retail in the state to come from             atmosphere.
utilities and electricity providers - purchase   traditional renewable sources such as solar
a certain percentage of their electricity        photovoltaic energy, wind power, low-           Additionally, the renewable resources
from specified resources.                        impact hydropower, geothermal energy,           developed as a result of this act are
                                                 biologically derived methane gas, fuel          estimated to avoid 50,000 tons of sulfur
Why have an "alternative energy                  cells, biomass energy or coal-mine              dioxide, 6.5 million tons of carbon
portfolio standard?"                             methane. At least 0.5 percent of Tier I         dioxide, and 14,000 tons of nitrogen
A portfolio standard helps to ensure that        must be met by electricity from solar           oxide annually by 2020.
more of our electricity is generated by          photovoltaic cells – the most ambitious
domestic resources. It also ensures that         solar energy requirement in the nation.         What are the economic benefits
we are not overly reliant on one or two                                                          of an alternative energy portfolio
resources for our electricity needs. The         Tier II requires 10 percent of Pennsylvania     standard?
development encouraged by a portfolio            retail electricity to be generated from
                                                 waste coal, distributed generation systems,     The development of resources associated
standard also has meaningful
                                                 demand-side management, large-scale             with the portfolio standard will have
environmental and economic benefits for
                                                 hydropower, municipal solid waste,              significant economic benefits for
the citizens of Pennsylvania.
                                                 generation from pulping and wood                Pennsylvania. A study by Black and
                                                 manufacturing byproducts, and integrated        Veatch Consulting, Inc. compared the
What is Pennsylvania’s                                                                           economic benefits created by the
                                                 combined coal gasification technology
Alternative Energy Portfolio                                                                     alternative energy portfolio standard with
                                                 (Clean Coal).
Standard?                                                                                        the economic benefits created by
On Nov. 30, 2004, Governor Rendell               What are the environmental                      conventional electricity generation. Black
signed into law a two-tiered portfolio                                                           and Veatch Consulting, Inc. found the
                                                 benefits of an alternative energy
standard that ensures in 15 years, 18                                                            following compared to conventional
                                                 portfolio standard?                             generation:
percent of all the electricity sold in           There are many environmental benefits
Pennsylvania comes from clean,                   associated with an alternative energy            • Over 20 years, the AEPS would cost
advanced sources. Today over 20 states           portfolio standard, including the clean-up          $1.8 billion less;
                                                 of thousands of acres of Pennsylvania's
 • It would result in $9 billion more in     comparison with the rising costs of
    gross state output over 20 years;        conventional fuels, especially natural gas.      Alternative
                                             The study concluded that electricity cost
 • It would provide a $2.7 billion
    earnings advantage over 20 years;        savings from the portfolio standard would
                                             be equal to about $0.46, $3.12 and
                                                                                                Energy
    and
 • Over 20 years, it would generate
                                             $75.61 per month for the average
                                             residential, commercial and industrial
                                                                                               Portfolio
    3,500 more jobs.                         customers, respectively.
                                                                                               Standard
Pennsylvania’s commitment to renewable       Where can I learn more about
energy – embodied by the Alternative         renewable energy in
Energy Portfolio Standard – was
                                             Pennsylvania?
instrumental in Gamesa, a major Spanish-
based wind equipment manufacturer,           For more information visit the Department
committing to locate their North American    of Environmental Protection’s Web site at
headquarters and manufacturing facility in   www.depweb.state.pa.us, click on Energy
Pennsylvania. Gamesa’s Pennsylvania          Topics and select “Renewable Energy.”
operations will create over 1,000 new
jobs.

Will the alternative energy
portfolio standard raise my
electricity prices?
The study by Black and Veatch found that
electricity costs would actually be lower
with an alternative energy portfolio                                                           Edward G. Rendell, Governor
standard than they would be if the same                                                       Commonwealth of Pennsylvania
amount of electricity were generated from
conventional sources. The primary                                                             Kathleen A. McGinty, Secretary
reason for this is the falling costs of                                                    Department of Environmental Protection
renewable energy over time in                                                                  7000-PA-DEP4048      12/2005

								
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