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June 3, 2008

R.I. Senate passes bill requiring renewable-energy buy

PROVIDENCE -- Senate lawmakers have approved a bill requiring the state's largest power company to buy renewable energy for at least a decade at a time.

Supporters say the Senate proposal will spur the construction of renewable energy projects in a state with just a single wind turbine. The House is still debating a similar bill.

The proposals would require National Grid to sign enough contracts by 2013 so that it could meet 9 percent of the state's average electricity needs using wind turbines, solar panels or other systems. The contracts would have to extend at least 10 years.

Bill supporters say renewable energy developers won't build here until a large customer is forced to buy renewable energy. House Republicans warn the plan could cause electricity prices to rise.

-- The Associated Press

Posted by Mike McKinney  at 6:35 PM | Permalink

Comments

Isn't National Grid already required to buy back energy placed on the grid by producers, be they home or industrial? In that case, they are already 'forced to buy renewable energy', at the usual buy-back rate.

So it would seem that this bill, by REQUIRING a certain percentage of energy to come from renewable source, would have no effect UNLESS it means that NG will have to buy power from these producers at THEIR bloated prices, creating yet another monopoly or oligopoly.

This is not necessarily in the best interests of the state's energy consumers or producers.

However, a legislated increase in the buy-back rate WILL entice more producers to place power on the grid. For example, other kinds of renewable energy such as home solar panels will become more cost-justifiable when the reimbursement rate for excess power production is increased. Bonus, our local energy system would be more robust if it were not constructed around just a few points of failure.

Potential energy producers are lined up around the block waiting to set up shop in RI. There's lots of money to be made, but the last thing we need is special interest legislation that would force consumers to pay through the nose for energy to the company that left the most dosh in the political contribution basket.

Laissez-faire | June 4, 2008 7:56 AM link

Rhode Island should give a better credit for Solar Hot Water heating kits that are now on the market for about $3,000.
They adapt to the existing hot water heater and use a simple drain down tank for freeze protection. Each one installed could save 500 Gal of home heaing oil or equivalent a year!

Bruce MacGregor | June 24, 2008 2:03 PM link

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