Why California’s good news is so badly needed....

Today's post: Wednesday, 4-13-2010

We need an 80% reduction in fossil fuel use by 2050 to avoid the worst global warming effects. And, practically speaking, we need to also double our electricity generation and double the useful work done per unit of electricity & other energy sources as well during that same time to have a decent economy.

At some point, the oil that we’ve been using to power much of our economy will begin to run low enough that our world economy will shrink due to lack of supply or excessive costs or both. Kuwaiti scientists recently predicted peak oil in 2014 – just 3 years from now.

And, once the demand for oil picks up again with the apparent economic recovery or supply begins to plateau or drop, the prices will again go back up. That will cause more hard times economically unless we have enough alternative sources of energy to turn to.

Today’s post:

Why California’s good news is so badly needed....

Tuesday, 4-12, yesterday, Governor Jerry Brown signed into law a mandate that requires the state's utilities to get 33 % of their electricity from renewable sources like geothermal, wind, small scale hydro power, and solar by 2020.

In 2009, California generated 14 % of its electricity from renewable sources. Last year it was likely closer to 15 to 17 % & the largest California utilities were closer to 17 to 19%.

This was done at an event announcing a Department of Energy $1.2 billion conditional loan guarantee for SunPower and NRG Solar to build a 250-megawatt photovoltaic power plant in San Luis Obispo County.

And, this past Monday, BrightSource Energy closed financing for an even larger thermal solar power plant in Southern California near Ivanpah that included $1.6 billion from a DOE loan guarantee, a $168 million equity investment from Google, and a $200 million venture capital round.

Even better, this project is one of several they are committed to build in Southern California and the rest of the Southwestern United States.

Hopefully this will now be followed up by the utilities helping their commercial and residential customers install onsite photovoltaic solar and similar wind, small hydro, and geothermal plants as well reach the mandated level of 33%.

And, there is the potential, in California at least, of increasing energy efficiency and tripling that amount of renewable energy although population an economic growth will like mean that will be 60 to 75% of California’s energy at that time.

But this progress is very badly needed!

1. Because transport in California and the rest of the United States is so dependent on gasoline and diesel fuel now, the run up in oil prices recently has the potential to derail the economic recovery. An analytic essay by UPI says it has already created a 5 percent cut in discretionary income and shows signs of worse soon. Their article went on to say that since such a large percentage of the oil comes from outside the United States that money will create jobs elsewhere – NOT here. That decrease in consumer demand and job creation they say has the potential to derail the economic recovery or keep it very weak.

When we have far more clean sources of generation of electricity than now and the majority of miles driven in our cars and trucks comes from electricity, we not only will have far less impact from the coming doubling of oil prices otherwise, not only will it derail our economy less on the demand side, far less of our money will leave the country for foreign oil so more jobs can be created here.

Even better, once that happens, electric powered vehicles will cost less per mile to drive and will quickly go to an even larger percentage of our transport.

2. We open this blog with the idea that we need to cut fossil fuel use by 2050 by 80 % while actually growing our economy. In the book, Hot: Living Through the Next Fifty Years on Earth by Mark Hertsgaard, he says that because we are unlikely to get to 100% in time, we also will need to decide what part of our coastal cities we can afford to save from rising sea levels and plan ahead now how we will save the part we can afford to save.

We also will need to think through now how we can save enough farm output to feed ourselves.

So, this good news from California, though 20 to 40 years too late, is extremely good news indeed.

The more of this kind of thing we do and the faster we do it, the less we will have to plan how to lose our economic assets and food production and do it safely.