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WELCH: Udall has track record advancing new energy economy

By Jim Welch

Published November 1, 2008 at 12:01 a.m.

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To solve our economic woes in Colorado and the U.S. we need to encourage investment and policy that supports the rapidly growing renewable energy industry. Amid the bleak economic news that hits us daily there is one bright spot of optimism: Since 2004 the Colorado renewable energy industry has generated thousands of new jobs, from entry-level positions to top level management.

Colorado is blessed with abundant and practically limitless solar, wind and biomass energy potential. We could easily lead the nation in renewable energy usage and manufacturing.

Thanks to the leadership of Democratic U.S. Congressman Mark Udall and Republican State Rep. Lola Spradley, Colorado has already become a leader in the new energy movement. In 2004, Udall and Spradley worked together to pass Colorado Amendment 37 requiring that 3 percent of Colorado’s total energy come from renewable energy by 2007 and 10 percent by 2015.

Supported by Gov. Bill Ritter, the state legislature expanded the initiative in 2007 requiring 20 percent renewable electricity by 2020. This new legislation also required net metering statewide so homeowners and ranchers can sell their excess renewable energy back to the grid.

Three years ago, a handful of Colorado companies were selling solar products. Today there are over 300 business members in CoSEIA, each employing from 5 to 50 people. Solar energy services and sales is one of the fastest growing industries in the state.

The residential solar business alone has grown 1,300 percent in 3 years. The commercial solar business is just beginning to take off but soon it will be commonplace to see large solar systems on state buildings, colleges, manufacturers and everyday businesses in your neighborhood.

The County of Boulder and Bella Energy are currently installing more than 800 kilowatts of solar power on county buildings, one of the largest projects in the state. Large solar systems are going up on schools, from private Kent Denver School in Englewood to Antonito Schools in the San Luis Valley.

Municipalities, private businesses and homeowners see that renewable energy makes financial sense in the long run because it fixes energy rates at today’s prices or even lower, and electrifies the building independently using local Colorado sunshine or wind.

Two years ago we had one solar manufacturer in the state. Today we have a half dozen start-up manufacturing companies, with the promise of more jobs once their technologies are ready for market.

Several wind energy companies have set up large manufacturing facilities around the state making turbine blades and towers, settling in towns like Windsor and Lamar.

Colorado’s current solar successes have already set an example for the rest of the county. In Washington D.C., Congressman Udall championed a national renewable energy standard requiring that energy companies in every state produce a minimum of 20 percent of their overall power from renewable energy by 2020. Unfortunately the requirement passed the House, but was blocked in the Senate.

The federal tax credits for residential renewable energy systems were due to run out at the end of 2008. Fortunately, Congressman Udall helped lead the successful effort to get federal tax credits extended, and even increased, making renewable energy even more affordable.

A National Solar Energy Industry Association study revealed that 1.2 million jobs and $232 billion in investment nationwide will be supported through 2016 by the extension of the federal solar investment tax credits.

We need the leaders that have long term commitment and vision to make a clean energy future a reality in Colorado and nationwide. To be strong, our future economy needs commercial innovation and government support of all types of renewable energy.

Jim Welch is president of the Colorado Solar Energy Industries Association (CoSEIA) and the founder and CEO of Bella Energy, a solar energy company based in Louisville, Colo.

Comments

  • November 1, 2008

    6:05 a.m.

    Suggest removal

    eoj writes:

    Jim,
    At what cost??
    Here's an example of one of those great solar energy projects, do you want to let the people know the all in cost?
    Can Average People Afford the Real Cost of Solar Power?

    Recently, DOE announced their Washington DC Headquarters building solar power system. It cost $30 Million, with electric power savings projected of $26,000 per year. Their system will generate 200 MW hours of electricity per year. Its panels have an expected life of 25 years, so $26,000 times 25 years equals $650,000. Now divide $30 Million by $650,000. That equals 46 times what electricity from the grid would have cost. By not calculating and publicizing real energy costs, U.S. utilities are going down this same path. It’s embarrassing that DOE can’t do the simple math that says this pilot example is a pathetic looser. As a country, can't we do better than this?

    We need reasonable electric power costs. When political minds forget that energy solutions must be cost-effective, we move farther away from what we really need - low cost power from private industry. Business must assess the true costs with cost/benefit analysis. Congress and every American should consider the logical conclusions continuing down this expensive path: high cost power provided by Congress. Is that really what we want, need – or can afford?
    Reference Links;

    U.S. DOE Headquarters to Get $30 M Solar PV System
    February 14, 2007

    http://www.renewableenergyworld.com/r...

    September 9, 2008

    U.S. Energy Department Turns on Headquarters’ Solar Energy System

    http://www.energy.gov/news/6521.htm

    If our media and those in the industry like you cannot put the story together, who can?

  • November 1, 2008

    6:10 a.m.

    Suggest removal

    eoj writes:

    Jim,
    The renewable energy concerns

    Developing renewable energy, we can forget economics. Here's a cost breakdown:

    Nuclear 1.9 cents/kW

    Coal 2.5 cents/kW

    Natural Gas 7.0 cents/kW (this has varied from 6 cents to 12 cents recently)

    Wind 20 cents/kW

    Solar 40 cents/kW

    Note: this is the price the utility pays! When you account for the entire cost which includes tax credits and tax incentives.

    People, fuel, and physical plant hardware -- e.g., capital -- make up electric costs. Rates recoup those costs. All solar and wind must be backed up with 24/7 power plants, most likely gas since it takes less time get on line.

    Just a few years ago, Colorado’s rate was 7 cents/kWh. That’s jumped to 11.5 cents/kWh, today. Newspapers say the rise will continue, raising affordability concerns.

    According to the papers, this winter some people won’t keep their homes heated. Those who decide how we will use energy should show more concern for the poor. Is it fair for people in Boulder to set electricity rates, statewide? Lawyers and scientists who direct policy should disclose their interests, and justify their qualifications. Someone should represent the poor, who must endure poor energy choices. Gas, Wind & Solar -- clean energy sources -- caused most of the recent energy cost increases. Tax credits and incentives made them look better, yet states even loose tax revenue by sponsoring these programs. Their real cost is hidden.

    Scientists and nobel laureates dictate policy, but shouldn't they listen to those who can project costs? The loudest voices today have no engineering background. While college kids may find high rates easy to discount, subjecting the poor to their preferences isn't fair. We must base every energy solution on actual costs. We shouldn’t piggyback choices onto everyone else, especially those least able to afford pricey solutions.

  • November 1, 2008

    6:24 a.m.

    Suggest removal

    Mike_In_Hartsel writes:

    The new energy economy is a myth just like the Millennium Bug, Global Warming, and the Avian Flu.

    The sky is falling. Waaaaaaa.

  • November 1, 2008

    6:31 a.m.

    Suggest removal

    a_watcher writes:

    The jobs are built on the sand foundation of Federal and state subsidies. Take away the subsidies and the jobs go away. The solar and wind industries have admitted as much, which is why neither Bill Ritter nor Mark Udall can or will tolerate a nuclear plant in Colorado.

  • November 1, 2008

    10:17 a.m.

    Suggest removal

    ghoax writes:

    what new energy economy? the huge 90000 plus workforce working hard to develop technologies that won't even meet 10-15% of our energy needs while taking up mind boggling amounts of real estate, that, as the greens say about the drilling ops, "will destroy the majestic view forever" (wah wah wah)

    get a clue, wind and solar are great little localized supplemental sources, we need coal, natural gas, oil and move to hydrogen.

    These so called renewables will be facing the same environmentalist obstruction and attacks that the oil and gas industry faces soon enough, and they are already the most expensive sources...

    before any of these clowns do anything, they should take a math refresher course.

  • November 1, 2008

    11:51 a.m.

    Suggest removal

    prk166 writes:

    Congrats to Udall for taking tax payer money and giving it to "green" companies.

  • November 1, 2008

    1:22 p.m.

    Suggest removal

    woodwose writes:

    Oh, what a nice article about our wonderful environmental hero Mark Udall! I hate to throw a monkey wrench into this disdusting mess of propandistic, environmental jingoism, but since the 2004 Ammendment passed, Colorado residential electric rates have increased by a staggering 20%. It's expected that with even all piles of cash appropriated from the wallets of taxpayers that every level of government is shoveling as fast as they can on the renewable energy "industry," that Colorado's electric rates will more than triple in the next 12 years.

    Who gets hurt the most by this garbage? The people that can least afford it. Those on fixed incomes, those struggling to survive today. And the taxpayers that have less and less to spend the more the government takes out of their wallets.

    We're getting screwed royally by jacka$$ politicians like Udall, and like lemmings we keep voting the clown back into office.

    Well, I didn't vote for him, and I hope you don't either.

  • November 2, 2008

    5:52 a.m.

    Suggest removal

    eoj writes:

    And to make it perfectly clear…
    A Marine's perspective
    Video 3:50 minutes

    http://www.youtube.com/watch?v=UAb5lM...

    Proud OR Ashamed…

    And what should have been the final nail…
    Obama & Live Birth Abortion
    Video 5:32 minutes

    http://www.youtube.com/watch?v=BYRpIf...

  • November 3, 2008

    12:02 p.m.

    Suggest removal

    gmr writes:

    Talk about ignorance.

    You complain about renewable energy getting tax credits as if it were a handout. Do you realize that the oil and gas industry has been receiving tax credits forever? Take away their tax credits and solar, wind etc. would do just fine without them too. But without a level playing field they can't survive. The true cost of oil, coal and nuclear have never been fully passed on at the pump or from the utility company. Significant tax dollars are diverted to protect the flow of oil, insure nuke plants and pay for storage and cleanup.

    Additionally solar and wind programs have not caused your electric bill to go up. Do some real math and you will find the life cycle costs of solar and wind are considerably less than polluting fossils fuels.

    As to efficiencies. Solar is not some little drop in the energy bucket. More energy strikes the earth than we can use and it is clean, free and everlasting. So why would we pollute the environment for less efficient forms of energy? You may not believe in global warming but the problem is if we do nothing about it by the time you realize you were wrong it will be too late to reverse the damage.

    To those of you who keep talking about being screwed by green politicians and green companies. Do you really think the oil companies haven't been screwing you all along? Somehow you mistrust a green company if they make money but you don't question the politicians who have been in the back pocket of the oil companies all these years.

    Consider this. If we had no use for oil do you really think we would be in Iraq today?

    And to the fellow that wants nukes in Colorado. I hope they build it near your house not mine. And by the way. The true economics of nukes is about the worst energy source we have available.

    Oh...and congrats and thanks to Udall and all the other sensible politicians we have. Glad I voted for him in the past and I'm glad I can vote for him again.