Bay State Bets Big On Clean Energy Future
Think back to the late 1990s, when dot-com companies were popping up with such regularity one had to stop and wonder if there was a limit to the number of Internet-based companies possible. Now imagine that same era, but without the eventual, gut-wrenching bust that the industry experienced in early 2000, and you might have a clear sense of what's possible for the clean and renewable energy industry here in Massachusetts.
"It has that feel of 1999 when you had a lot of excitement around the Internet and computers," said Patrick Cloney, the interim-executive director of the Massachusetts Clean Energy Center. "It's a new market that everybody is talking about, and leadership continues to talk about the climate and energy on a daily basis and they're making a commitment to fund it, which makes investors comfortable and it makes people look around to see what kind of opportunities there are."
But the chances that the current boom in the energy industry could lead to a dot-com-like bust are slim, Cloney says, because it's been less than a decade since the bottom fell out of the e-business market and many of the same investors that were hit hard in 2000 are taking a more cautious approach this time around.
Efficient Planning
Looking back, 2009 saw a great advancement in all sectors of clean/renewable energy, from solar and wind energy installations to energy efficiency initiatives. This past October, the state's rebate program for solar panel installations exhausted its $68 million in funding a full two years ahead of schedule. Massachusetts also saw 11 wind energy projects installed in 2009-a notable number considering that only eight projects previously had been installed between 2001 and 2008. And in regard to energy efficiency, the state accepted proposals for $15 million of available American Recovery and Reinvestment Act (ARRA) funds, and received more than $200 million worth of applications.
Still, all those noteworthy accomplishments could pale in comparison to what's in store for 2010.
According to Energy and Environmental Affairs Secretary Ian Bowles, the majority of the ARRA funds dedicated to renewable and clean energy initiatives will be spent during the first half of 2010, meaning that the achievements of 2009-made mostly without a financial boost from the federal government-represent only the tip of the iceberg.
"The Recovery Act funds are going to be spent," he said, "so there are some good reasons to think that next year will be much better."
However, the leading sector in 2010 may surprise you.
While solar energy has dominated the news in 2009, a push toward energy efficiency initiatives is likely to power the state's energy industry next year.
Bowles says that Massachusetts will spend $2 billion over the next few years for utility companies to implement "massive improvements in energy efficiency." The expected savings to be generated from that investment will be close to $6.5 billion. It means that the state will go from investing between $100 and $150 million a year to $500 million a year on energy efficiency.
Solar's Staying Power
The state might make energy efficiency a priority in 2010, but that doesn't mean the other renewable energy sources will suffer. The Massachusetts Clean Energy Center will unveil a new solar credit program at the first of the year, which will pick up where last year's Commonwealth Solar Rebate Program left off.
The program will offer production credits for generating solar power as opposed to a cash rebate, but it will appear very similar to the homeowner, Bowles said.
He even believes that within five years, solar power could be popular enough to exist without any associated subsidy programs.
"Solar is the one technology that has the potential to be completely ubiquitous," he said. "Its simplicity is a big part of why it's popular. In the next few years, it might really take off where it will become a mainstream part of building retrofit and new construction."
Speaking of new construction, solar energy is already exhibiting a noticeable impact in Danvers. At North Shore Community College, developers recently broke ground on a new, 58,000-square-foot, zero net energy building. The $32 million project will consume 60 percent less energy than a normal building its size and all of its electricity will be generated by solar panels installed on its roof. It cost $2 million to transform the property into a zero net energy building, but Philip Giudice, commissioner of the Massachusetts Division of Energy Resources, says it offers a unique return on investment.
"For that $2 million, they won't have to worry about oil prices or electricity prices," he said. "All of us need to be thinking about that in all of our energy decisions. Solar is really a way of opening up people's minds about what's possible."
The Far Distant Future
And the possibilities here in Massachusetts far exceed what's currently visible.
"Renewable energy is a lot like the life sciences," Cloney said. "There's a long development cycle and a long adoption cycle."
Biotechnology and the life sciences are fueling the Central Massachusetts economy right now, but Cloney points out that those industries began to take form almost a decade ago, which makes the case that renewable energy could be a major economic driver for the region in the coming years.
The state is trying to position itself as a hub for the newest technological advancements in the field. For example, developers broke ground Dec. 1 on a wind technology testing center in Boston. The $40 million facility, funded in part by a $25 million ARRA grant, will be capable of testing wind turbine blades up to 90 meters long. Currently, testing in the United States is limited to 50 meters, which has kept the United States from competing on a manufacturing level with other parts of the world, most notably Europe.
Industry experts believe that the development of longer wind turbine blades will serve as the catalyst for large-scale offshore wind power facilities in the United States.
What the future holds for the renewable energy market remains somewhat of a mystery, but Cloney says one thing is for sure: the current demand for alternative energy sources will not wane, as it has in the past.
"The difference between what's happening now and what happened in the 70s is people believe that climate change is here and real," he said. "A major factor was the summer of 2005. You had the environmental issues with all the hurricanes that came through and people saw the direct impact on the cost of energy."
The state may be reaping some of the benefits now, but as it continues to look toward the future in terms of development, it is that future that remains the motivating factor behind investments in research and new technology.
WBJ Web Partners
Most Recent
Most Recent
0 Comments