New report encourages energy innovation as Defense Department priority

On 07.29.10, In Events, News, Reports, By Staff
The 14 MW solar farm at Nellis Air Force Base in Nevada demonstrates the potential for further energy innovation opportunities within the Department of Defense.

The 14 MW solar farm at Nellis Air Force Base in Nevada demonstrates the potential for further energy innovation opportunities within the Department of Defense.

With Congress demurring once again on comprehensive energy innovation reform, creative and practical thinking will be necessary to build America’s clean energy economy. One opportunity often overlooked is to leverage the Department of Defense (DOD), a traditional engine of American innovation,for the task.

Along these lines, the CNA Military Advisory Board today debuted their new report, Powering America’s Economy: Energy Innovation at the Crossroad of National Security Challenges, at an event at the Russell Senate office building. The new report–which foreshadows an upcoming AEL report–explores the growing challenges presented by the close connection between the U.S. energy portfolio and its economic and national security.

As the largest single energy consumer in the nation, the report finds that Department of Defense (DOD) can play a key role in supporting innovation, commercialization, and widespread deployment of clean energy. The report further examines how DOD can harness the leadership characteristics inherent to the military culture, leverage its organizational discipline, and cultivate strategic relationships within the federal interagency network to move America forward in clean energy technology innovation. The briefing–headlined by Sherri Goodman (CNA Senior Vice President), Vice Admiral Dennis McGinn (U.S. Navy Ret.; member of CNA Military Advisory Board), Brigadier General Gerald E. Galloway (U.S. Army Ret.; member of CNA Military Advisory Board), Dr. Dorothy Robyn (Deputy Under Secretary for Installations and Environment, U.S. Department of Defense), and Dr. Henry Kelly (Principal Deputy Assistant Secretary for Energy Efficiency and Renewable Energy, U.S. Department of Energy)–made a case for expanding federal support for energy research, development, demonstration and deployment at the DOD, as well as a more collaborative relationship with the Department of Energy (DOE).

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News Roundup on Climate Bill Death

On 07.26.10, In News, By Clifton Yin
Photo courtesy of the AP.

Photo courtesy of the AP.

Last Thursday, July 27, Senate Majority Leader Harry Reid announced the abandonment of comprehensive climate legislation, shifting to a much more limited oil spill response-bill with minor energy efficiency provisions. Reid had been hard-pressed to rally sufficient support in the Senate for a market-wide cap on carbon, or even one imposed solely on electric utilities. “It’s easy to count to 60,” he said last week. “I could do it by the time I was in eighth grade. My point is this, we know where we are. We know we don’t have the votes…This is a step forward.”

A roundup of the reactions to Reid’s announcement from various organizations and news outlets is below:

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A Repeal of Fossil Fuel Subsidies is Long Overdue

On 07.23.10, In Columns, By Clifton Yin

oil_rigAmerican fossil fuel subsidies can be traced to the rise of OPEC and the 1973 oil embargo. At the time, these subsidies raised fears that the United States was too dependent on foreign oil and needed to increase domestic energy production. But policies that might have made sense when Richard Nixon was president and oil was $3 a barrel are drastically outdated today. The Environmental Law Institute conducted a comprehensive report on the cost of these subsidies – a smorgasbord of tax and royalty relief measures – during fiscal years 2002-2008 and contrasted it with government support for renewable energy during the same time period:

Subsidies to fossil fuels—a mature, developed industry that has enjoyed government support for many years—totaled approximately $72 billion over the study period, representing a direct cost to taxpayers. Subsidies for renewable fuels, a relatively young and developing industry, totaled $29 billion over the same period… Most of the largest subsidies to fossil fuels were written into the U.S. Tax Code as permanent provisions. By comparison, many subsidies for renewables are time-limited initiatives implemented through energy bills, with expiration dates that limit their usefulness to the renewables industry.

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Empowering Women for the Clean Energy Revolution

On 07.23.10, In Columns, News, By Kimberly Muñoz
Undersecretary of Energy Kristina Johnson discusses the importance of women in energy fields

Undersecretary of Energy Kristina Johnson is emphasizing the importance of women in energy fields

On Tuesday, U.S. Department of Energy Under Secretary Kristina M. Johnson announced a new initiative at the Clean Energy Ministerial to promote the participation of women in clean energy science and engineering fields called the “Clean Energy Education and Empowerment (C3-E) Initiative.”  The C-3E Initiative will encourage young women to pursue careers in STEM (Science, Technology, Engineering and Mathematics) fields by supporting workshops and speeches from clean energy leaders to inspire students, and officials in participating countries will lead outreach events and make scholarship funds available for women pursuing advanced degrees in clean energy.

Today, women make up only 20 percent of the professional energy workforce. Many capable and talented women are not joining the effort to promote clean energy technologies due to a variety of factors.  As Under Secretary Johnson stated:

“The clean energy revolution will progress farther and faster if it draws on the brightest minds everywhere. Every young woman who is discouraged from studying science and engineering represents potential innovation lost. The world will be better off — men and women alike — if those who have succeeded in these fields share their own stories, and inspire young women to follow in their footsteps.”

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China Reigns as Largest Energy Consumer

On 07.22.10, In News, By Yan Zhu

china_destination

This week’s energy focus is unarguably on China. The argument between China and the International Energy Agency (IEA) about China becoming the biggest energy consumer is still fresh in everyone’s mind and the energy giant continues to make more news that no one can ignore.

China Surpasses the U.S. as No.1 Energy Consumer

According to figures recently released from the International Energy Agency, China has overtaken the U.S. and is now the world’s number one energy consumer.

China’s total 2009 consumption equals approximately 2.265 billion tons of oil, compared with 2.169 billion tons used by the U.S., according to the IEA. These figures show that energy consumption in China has more than doubled over the last decade, from 1.107 billion tons in 2000, despite the fact that the U.S. still consumes five times the amount of energy that China does per capita. The staggering energy consumption increase is driven by China’s leapfrog economic development and burgeoning population growth.

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China Leaves U.S. in Clean Energy Dust: Teryn Norris on The Alyona Show

On 07.21.10, In News, By Staff

On Wednesday evening, Director of Americans for Energy Leadership Teryn Norris was interviewed on TV as part of The Alyona Show in a segment called “China Leaves U.S. in Clean Energy Dust,” aired live in Washington DC, New York City, and Los Angeles.

In the midst of a raging nation-wide debate on energy and climate policy, Alyona asked Teryn what will it take for lawmakers to realize the U.S. is falling behind in the global clean energy industry and take the necessary action to regain our position.  Teryn discussed the clean energy race and implications for federal policy, the need for a “third way” energy and climate strategy based on public investment in technology innovation, and the DOE Clean Energy Ministerial as an alternative global forum for climate change mitigation.

 
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BP’s Necessity, America’s Opportunity

On 07.19.10, In Columns, By Jeremy Cohn

gas liens

In the world of technology innovation, 86 days is the blink of an eye.  Most companies are looking months or years down the road when they invest in research and development.  But when barrels of oil began pouring into the Gulf from BP’s Deepwater Horizon, the equation changed.  Suddenly, research and development wasn’t optional, it was essential.

BP is the perfect model of what the United States should not do. The American citizen has paid the price for fossil fuel dependence for decades now and we can’t wait for another disaster to strike the US.  Eighty-six days is almost nothing when you talk about technology innovation, but when you are trying to plug an oil spill, rescue workers from a collapsed coal mine, or end an OPEC embargo, 86 days is an eternity.  We need to jump-start the clean energy R&D process now.  We need to invest like we mean it.

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China Surpasses U.S., Europe in Clean Energy Asset Financing

On 07.14.10, In News, By Daniel Goldfarb

While America talks about energy innovation, our competitors are championing it. Just weeks after Chinese company Yingli Solar signaled its nation’s status as the world leader in solar technology at the World Cup, Bloomberg Bunsinessweek provided yet another reminder of China’s increasing competitive edge:

“China attracted more asset financing in clean-energy technology in the second quarter than Europe and the U.S. combined, Bloomberg New Energy Finance said…Financing of wind turbines, solar panels and low-carbon technology in China climbed 72 percent to $11.5 billion compared with the year-earlier quarter [while]…total new investment in clean energy worldwide, including share sales, venture capital, private equity and asset finance, slipped 3 percent to $33.9 billion in the second quarter from the same period last year.”

This news came on the same day that Devon Swezey, Project Director at the the Breakthrough Institute, testified before the U.S.-China Economic and Security Review Commission on China’s clean energy innovation policy and the steps the U.S. must take to remain competitive.  He explained to the commission that the Chinese government is simply putting more effort and resources into its clean energy industries:

“China is not out-competing the United States through some inherent comparative advantage, but through targeted and comprehensive public policy characterized by large and sustained public investment across the entire industry.”

Swezey goes on to point out a startling trend: America is no longer just losing manufacturing jobs, it is losing key investments in research and innovation because of it’s lack of sustained funding for clean energy.  The testimony builds on criticism of Washington for its paralysis in the face China’s ambitious energy policy.

 
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Three Posts on Energy Innovation & Competitiveness

On 07.13.10, In Columns, By Sydney Baloue

The Americans for Energy Leadership summer policy fellows, who we recently highlighted here, have three new posts at our fellows blog about energy innovation and competitiveness. Excerpts of these articles are included below, and full articles can be accessed at our AEL Fellows Blog.

“Yingli Solar at the World Cup“ by Clifton Yin

“China did not participate in this year’s World Cup and has actually qualified for the tournament only once, in 2002. Nevertheless, 2010 saw a solar energy company – Yingli Green Energy Holding Company – become the first firm from that country to secure global marketing rights to the sporting event.”

“Leading the Clean Energy Industry Requires Public Investment” by Yan Zhu

“While carbon pricing has polarized the U.S. energy and climate policy debate, the governments of some Asian nations are investing heavily to develop clean technology manufacturing and form innovation clusters. As a result the United States lags far behind its economic competitors in clean technology manufacturing.”

“Understanding the Energy Innovation Lifecycle“ by Jeremy Cohn

“Understanding the process of energy innovation and investment is an important next step towards taking the necessary actions to ensure energy independence and security.  By recognizing the innovation gap between what is best for a firm versus what is best for all firms we can ensure that American-made products and technologies dominate the marketplace in the years to come.”

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Creating American Jobs: Former Intel Chief Urges New Economic Strategy

On 07.11.10, In News, By Teryn Norris

BusinessWeek’s latest cover story by Andy Grove (Intel co-founder and former CEO), “How America Can Create Jobs,” makes a strong case against traditional free market economics and in favor of targeted industrial policy to secure American jobs, adding to the growing consensus in favor of a public investment approach to economic growth.

Several of Grove’s arguments align with those in our latest report, “The Power to Compete,” which outlines a comprehensive federal strategy to secure U.S. leadership in the global clean energy industry, including a manufacturing development agenda.  This contrasts to commentators like Thomas Friedman, who consistently argue that modest market incentives like a carbon price are enough to secure U.S. competitiveness.

According to Grove, high-tech domestic job creation depends on supportive public policy mechanisms, including targeted public investment, to achieve scaling and economic cluster formation.  It’s not enough to simply create a friendly environment for start-ups.  Unfortunately, the U.S. has lost large numbers of jobs in the computer and clean-tech industries because it has failed to implement a broader industrial development strategy, including investment in manufacturing capacity.  Grove points to the state economic development policies of Asian countries as a potential model, which we examined as related to the clean energy industry in “Rising Tigers, Sleeping Giant“:

Our fundamental economic beliefs, which we have elevated from a conviction based on observation to an unquestioned truism, is that the free market is the best of all economic systems—the freer the better. Our generation has seen the decisive victory of free-market principles over planned economies. So we stick with this belief, largely oblivious to emerging evidence that while free markets beat planned economies, there may be room for a modification that is even better.

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