an important and valuable validation of a 25x'25 energy future.
Washington, D.C. (Vocus) September 12, 2007
Reid Detchon, Executive Director of the Energy Future Coalition, today hailed a new report from the U.S. Energy Information Administration, as “an important and valuable validation of a 25x’25 energy future.”
“The EIA reported today that without any subsidies the U.S. could eliminate 11% of its oil consumption, cut global warming emissions by one-seventh, and stimulate new domestic industries and job growth in rural America – at a cost of one-eighth of one percent of GDP,” Detchon said. “That is a remarkable bargain.”
The EIA report presents its findings, which it prepared at the request of Sen. James Inhofe (R-OK), in very cautious terms, reflecting its analysis of the risk of a 25x’25 mandate. For the same reasons, the Energy Future Coalition has supported adoption of 25x’25 as a national goal, with the expectation that continuous improvement in technology will reduce costs far below the predicted range.
The EIA numbers are particularly eye-popping, Detchon said, because of the very conservative assumptions under which the agency, part of the U.S. Department of Energy, operates. The EIA 25x’25 “policy case” relies on business-as-usual projections of technological trends. For example, even the “high-tech” scenario contains no breakthroughs in solar technology despite massive venture capital investment in the area.
The policy case finds that in 2025, even with no technology breakthroughs and no subsidies:
- Biomass and wind power generation grows to more than 10 times current levels, but electricity prices are only 0.5 cents per kilowatt-hour higher.
- Ethanol production rises to 66 billion gallons, and oil imports fall by 2.1 million barrels per day.
- Energy-related carbon dioxide emissions are nearly 1 billion tons lower than now projected.
- Cumulative discounted losses in consumer expenditures amount to one-tenth of one percent.
“We expect that improving technology will outperform these estimates by a considerable margin,” Detchon said, “but even the EIA’s conservative assessment makes a compelling case for pursuing a 25x’25 future.”
The Energy Future Coalition is a nonpartisan public policy initiative, supported by foundations, that seeks to bridge the differences among business, labor, and environmental groups and identify energy policy options with broad political support.
Katherine Miller, Executive Director, Communications & Public Affairs
(o) 202.778.1622, (c) 202.247.7280
(e) kmiller @ unfoundation.org