Flip the Old Energy Model Upside Down

It's almost hard to imagine. Mankind has had accessConservation first: The watt that you don't need to
to electricity for only 130 years. In just over agenerate is the cheapest and cleanest energy of all.
century, we have extended transmission lines, lightConservation is a habit that each of us can embrace.
bulbs and refrigeration to nearly 5 billion people aroundBy recycling, turning off the lights and turning down
the world. This extraordinary feat has elevatedthe thermostat, or taking the bus or metro, we can
three-quarters of humanity out of the daily toilcollectively reduce the need for that next power
experienced by our pre-Edison generations. Still 25%plant. During times of utility crisis, consumers have
of humanity lives without access to electrical servicesresponded with 10-20% cuts in use. We do know
- spending their days in labor, fetching water andhow to conserve -- and it requires constant
wood, preparing food and farming simply to survive.education.
In the past four decades alone, we've landed a manEnergy efficiency next: This means doing more with
on the moon and launched satellites to explore theless. Increasing the efficiency of a power plant
universe. How large a task, given our technology, tomeans more power using less fuel, or more miles per
electrify the rest of humanity?gallon for an automobile. Continuous improvement in
It is ironic that the very choices we have made totechnology enables us to get the same amount of
achieve our unprecedented prosperity may also bringwork while using less energy, materials and/or time.
about our downfall. In 1950, there were only 2.5 billionEntirely new businesses are created by increasing
people and a global economy of $7 trillion. Today, weenergy efficiency, for example, IGCC turbines,
have 6.6 billion people and a $66 trillion gross worldcompact fluorescent light bulbs, hybrid cars, energy
product. Burning fossil fuels in the first half of thestar appliances and automatic light sensors.
20th century at that time had a relatively smallThen we get to new power generation. In this new
ecological footprint. However, today's impacts are feltpriority model, the renewable energies get primary
markedly on every continent, coastline and in ourfocus. In the past few years, renewables have
commonly shared atmosphere. The old energy modelbecome mainstream -- providing cost-competitive,
- based on a hierarchy of choices -- to this daysecure and reliable power into utility grids. Today, five
prevails in many utility boardrooms and nationalnations meet almost all their electrical needs from
capitals. The priority has been something like thisrenewables: Brazil, Canada, Iceland, New Zealand and
(percentages are of global electricity mix):Norway. These nations use primarily large hydro,
Build large hydropower dams (16%), coal-fired (40%)whose benefits also include agricultural irrigation,
or nuclear (16%) power plants. Defined as centralizedmunicipal drinking water, recreation and flood control.
plants, their power was fed into regional transmissionDenmark, Germany, Spain, Japan, India and the US
grids. The voltage was then stepped down intoare now incorporating utility-scale wind, solar and
distribution lines which delivered electricity to ourgeothermal power. A little known fact: using just 4%
cities and industries. As the demand for energyof the world's deserts, there is sufficient solar
increased because of economic and populationradiation to power all the electrical needs of the
growth, the answer has usually been to build more ofworld! In addition, the winds of the American plains
the same.could supply all the needs of the United States.
With the development of the jet engine for airRenewable resources maps clearly reveal an
transport, the power industry found a quicker andabundance of clean energy potential on every
cleaner way to generate power. Consequently,continent.
natural gas (20%) became the fuel of choice for newIt is critical to understand that renewable energy at
power plants that could be sited and on-line withinthis scale requires the transmission grid to get this
months instead of years. A few oil-rich nations stillpower to market. The grid acts as the freeway for
burn petroleum (7%) to keep the lights on.electrons. Some of the optimal solar, wind and
Considered last priority were the renewables: solar,geothermal sites are in remote locations, even
wind, geothermal, biomass, small hydro and oceanneighboring nations, and requires transmission access
energies (wave, currents, tides, and ocean thermalto deliver this clean energy for our daily use.
energy conversion). Called "alternative resources" byLast in line are the fossil fuels and nuclear. Natural gas
utilities, these resources have been marginalized for ais the cleanest burning fuel. Compared to burning coal,
variety of reasons. Utilities argued that renewablesnatural gas emits just 25% of the carbon dioxide and
were intermittent, diffused, remote and insufficientreleases no nitrous and sulfur oxides or particulate
to meet demands of our modern society.matter. In the context of climate change, natural gas
Almost as an afterthought, energy efficiency andbeats coal hands down. In fact, many climate
conservation were given lip service. Energy efficiencyscientists assert that no new coal fired plants should
is about using better, smarter technology: i.e. gettingbe built unless the carbon dioxide can be sequestered.
more output from a power plant while using less fuelThere are currently 430 nuclear power plants around
or having washing machines and refrigerators thatthe world. Each one has a stockpile of radioactive
use half the energy. Conservation of energy requireswaste that is deadly to humans for 25,000+ years
that people turn off the lights and their computer(half-life of waste fuel). Construction, facility
monitor and was dismissed as a 'personal virtue butprotection, decommissioning, waste storage costs --
not an energy plan.'all are higher than all other options . . . and all nuclear
But the world has now changed. Our addiction toplants are essentially high-tech ways to boil water to
fossil fuels for both power and transportation isgenerate steam to turn a turbine and generate
increasing CO2 levels at unprecedented rates. Itelectricity.
seems certain that a 'market price per ton of carbon'We now have more elegant, sophisticated and
will soon be enacted and will dramatically alter thecleaner ways to generate and deliver electricity to
cost equation for all fossil fuel producers andour society going forward. Remaining addicted to
consumers. We now realize that the energy systemfossil fuels is damaging to our environment and bad
we built over the 20th century may now also causelong term policy. It is unsustainable. Aggressive
tremendous disruptions in the 21st century.policies that encourage conservation, energy
A new energy paradigm is required, one that flips theefficiency and linking renewable resources are the
old energy paradigm upside down. We propose thatnew priorities. Flipping our energy choices upside
policy-makers, utilities and ratepayers analyze energydown will drive innovation and investment towards a
choices in the following priority order:de-carbonized future . . . and just makes sense.