Renewable Energy

Considerable attention is being given to renewable energy technologies from government and environmental proponents, traditional fossil energy interests, and a variety of end-users from residential to large commercial sectors. Renewable energy technologies are becoming increasingly reliable and cost-effective. Sophisticated and traditional investors are exploring renewable energy use and business opportunities. Significant research, development and deployment (RD&D) dollars and tax incentives exist for solar, wind, bioenergy, hydrogen and hydropower technologies. Renewable energy also offers several other benefits ranging from electric grid-tied applications to renewable energy credits or “green tags.” Regulatory activities on the state, regional and federal levels provide opportunities to affect siting, permitting and interconnection standards currently under development.

Solar
Solar technologies use the sun's energy and light to provide heat, light, hot water, electricity, and even cooling. Photovoltaic cells, or PV, convert sunlight into electricity. PV systems are used on homes, businesses, and in grid-independent applications, like traffic signs. The federal government spends roughly $90 million each year on solar RD&D. Following electricity deregulation, many states also mandate and fund solar projects and programs. In addition to grants, the federal government offers a 10% corporate tax credit and accelerated depreciation for businesses using solar energy.

Wind
Wind energy is the world’s fastest growing energy source. Five years ago the vast majority of U.S. wind generation was located in California. Today, wind generation has tripled nationally and can be found in 22 states providing nearly 5,000 MW of power.

About $40 million is spent by DOE each year on wind RD&D, and through the end of 2003, commercial wind projects enjoy a production tax credit (PTC) of 1.7¢ per kilowatt-hour. As wind energy becomes more competitive the industry is striving to bring turbines closer to load centers. Current RD&D involves the development of low-speed turbines.

Bioenergy
Bioenergy technologies use renewable biomass resources to produce an array of energy related products including electricity, liquid, solid, and gaseous fuels, heat, chemicals, and other materials. Bioenergy accounts for three percent of the primary energy production in the United States.

DOE regularly spends more than $80 million on biomass RD&D in the stationary power and transportation sectors. The Department of Agriculture will also spend approximately $800 million over the next five years on a variety of biomass activities.

Hydrogen
President Bush has unveiled the Hydrogen Fuel Initiative. The Initiative will direct $1.7 billion over the next 5 years to develop hydrogen powered fuel cells, hydrogen infrastructure and advanced automotive technology.

Hydropower
Micro-hydropower facilities (<100kw) using Low Head technology are a key element of renewable energy programs. Hydropower provides a relatively low-cost, renewable source of electricity that can be used on a vast scale to meet demands for peaking power and to minimize overall power production costs. DOE’s RD&D effort is focused on advanced fish-friendly turbines and low-head hydropower technologies.

L&A Advantage

L&A provides strategic and market counsel to two of the nation’s largest renewable energy funds. L&A’s extensive experience in the renewable energy arena has caused it to be retained by Fortune 500 end-users and the nation’s largest utilities. L&A personnel have worked in the renewable energy industry for many years, in both the public and private sectors. L&A has supported renewable energy deployments across the following applications:

Utilities
Telecommunications
Commercial Buildings
Large Residential Developments
Pulp and Paper Industry
Transportation