In the most recent State of the Union Address, President Barack Obama dedicated a portion of his speech to his "Clean Air Initiative", further clarifying his investment plan into renewable technology. His message was clearly received and understood by the private sector, where several ESCO's have announced renewable technology projects over the past month.
- - Constellation Energy: $6.3M performance contract including wind energy for Woodbridge Housing Authority (New Jersey).
- - Pepco Energy Services: $11M project including geothermal heating and cooling for Virginia Dept. of Military Affairs.
- - Ameresco: Recently launched first phase of energy efficient project including solar energy for Fall River, MA school district.
- - Chevron Energy Solutions: Won two landfill gas projects in Virginia and Georgia to supply power for a U.S. Marine Base in Albany.
According to The Energy Information Administration's annual energy review (11/9/11), there has been a steady increase in renewable energy consumption within the United States since 2007, accounting for about 8% of total consumption. The biggest gains in that time have been within the biofuels and wind markets. For years, the potential of renewable technologies has been a topic of hesitant excitement due to the initial cost outlay. So, has renewable technology really made significant strides in reducing costs and creating a newly affordable solution?
My contention is that this is not the case. Although the strides that have been made in renewable technologies are undeniable, the ROI for most projects is still too low to implement without significant government subsidy. According to industry sources, the costs for these projects will continue to significantly outweigh the benefits without these Federal subsidies.
Jess Galle, National Accounts Director, Energy