• 7 hours Saudi Fund Buys Stake in Hollywood Talent Agency
  • 3 hours Country With Biggest Oil Reserves Biggest Threat to World Economy
  • 12 hours Putin Is A New Russian Stalin - Victory For The Next 6 Years
  • 3 days Russian hackers targeted American energy grid
  • 3 days Is $71 As Good As It Gets For Oil Bulls This Year?
  • 7 hours G20 Rejects Calls for Cryptocurrency Regulation
  • 4 hours Trump Bans Venezuelan National Cryptocurrency
  • 2 hours Self-Driving Cars' First Fatality
  • 3 days Oil Boom Will Help Ghana To Be One Of The Fastest Growing¨Economies By 2018!
  • 3 hours Is Trump Harming Oil Industry?
  • 6 hours Volkswagen To Announce $340 Million Tennessee Investment To Build New SUV For U.S. Market
  • 7 hours Africa Is The New Land Of Opportunity For Investors
  • 11 hours Miners against Government: Largest Miners In Congo Quit Chamber Of Commerce Amid Growing Tax Dispute
  • 3 days HAPPY RIG COUNT DAY!!
  • 3 days Spotify to file $1 billion IPO
  • 4 hours Tillerson just sacked ... how will market react?
Alt Text

The OPEC Deal Could Fall Apart In June

The OPEC output cut deal…

Alt Text

Experts Divided On Trump’s Tariff Plan

Economists are polarized on Trump’s…

Daniel J. Graeber

Daniel J. Graeber

Daniel Graeber is a writer and political analyst based in Michigan. His work on matters related to the geopolitical aspects of the global energy sector,…

More Info

Trending Discussions

Despite Green Energy Gains, U.S. Reliance On Coal And Gas Set To Continue

Despite Green Energy Gains, U.S. Reliance On Coal And Gas Set To Continue

Barring an unlikely change of heart by the U.S. Congress, the U.S. Energy Department believes natural gas and coal will continue to provide the bulk of electricity to the nation's grid in the years ahead, despite a projected increase in renewable energy.

The U.S. Energy Information Administration (EIA), the statistical arm of the Energy Department, said it expects renewable electricity generation to increase steadily in the coming decades even without any major overhaul to tax or regulatory policy.

Despite the increase, under the same scenario, coal will still account for 32 percent and natural gas will account for 35 percent of the electricity generated for the U.S. grid by 2040.

U.S. President Barack Obama outlined his so-called “all of the above” energy policy more than two years ago, saying that existing strategies were based on outdated models for a secure energy future. Under his plan, there should be enough renewable electricity programs permitted to meet the annual energy demands of 6 million homes by 2020.

On April 28, the Energy Department said it was exploring ways to generate electricity from ocean waves through a $10 million test program in Hawaii. Last week, it said $15 million has been set aside to help communities develop solar energy strategies. Installed solar energy already provides more than 13 gigawatts of power to the grid, according to the department.

But EIA says those efforts may not be enough to put renewable energy on par with conventional power sources, assuming current laws on the books expire, technology remains the same and demographic trends are static.

Related Article: A Polluted Superfund Site Is Now Home To 36,000 Solar Panels

If existing policies supporting renewable energy aren’t allowed to expire, however, renewable energy will account for nearly a quarter of the electricity generated by 2040, EIA said.

Mike Prior, executive director of the Iowa Wind Energy Association, wrote in “The Hill” newspaper last week that production tax credits for renewable resources are the "de facto energy policy" in the United States. Without them, he said, the formula for a low-carbon success is in jeopardy.

Energy industry groups with deep pockets are lobbying Congress to turn away from renewable energy, and so far, they’re winning; in March, the House of Representatives passed a bill aimed at blocking Obama’s so-called war on coal.

In his State of the Union address earlier this year, Obama said one home or business adopts solar energy as an alternative every four minutes. Policies that give the fossil fuels incentives over renewables, he said, don't make sense. Given EIA projections, however, a business-as-usual plan will keep low-carbon alternatives at a minimum in the U.S. energy mix.

By Daniel J. Graeber of Oilprice.com

Back to homepage

Trending Discussions

Leave a comment
  • David Hrivnak on May 02 2014 said:
    I really think EIA and most people will be blind sided in how fast solar PV is being installed and how in the near future EV's will sell in much larger quantities. I used to work for Kodak and I remember them saying how film is so much better than digital and maybe just maybe in 10 or 20 years there will be digital cameras. Just try getting a film camera these days. Things can change fast.

    My last two electric bills were $7.21 and that includes about 700 miles a month in my electric vehicle. Once you have experienced the freedom and driving of an EV you will never go back.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News