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Introduction The technological and economic potential for renewable energy to provide a growing share of clean, secure energy for North America over the coming decades is very large. In the transportation sector, a well-designed biomass fuels program in combination with efficiency improvements could substantially reduce North America’s overwhelming 97 percent reliance on petroleum. This shift would reduce the risk from unstable supply sources abroad, help guard against price shocks and lower the rapidly growing international competition for oil just as global oil production peaks sometime within the next few decades. In the electric service sector, technologies for distributed wind, geothermal, solar, small-scale hydro and biomass are available. Centralized, large-scale hydro, wind, biomass and geothermal sources also can provide significant alternatives to fossil and nuclear thermal power plants. Both distributed and centralized renewable technologies are increasingly available at competitive prices in many areas. Buildings can not only be made much more efficient, but can take advantage of active and passive solar technology for integrated electric power production, space heating, hot water and cooling. The increased adoption of renewable technologies would also reduce air pollution, lower the risk of climate change, help solve both electric power plant cooling-water problems and damage to water bodies from extraction of fossil fuels. These technologies would also decrease land disturbance from mining coal, drilling for oil and gas, and from inundation by large-scale hydropower. The development of a North American renewable energy industry would also create more jobs than are likely to be lost from the current economy, although there are important transition issues that need to be addressed (Barrett and Hoerner 2002). Despite these multiple benefits from an expansion of renewable technology, their introduction is being held back by regulations that disadvantage them with respect to existing, conventional technologies. There is ample opportunity to shift from blocking legislation and regulations in all three North American countries to consistent policies that accelerate adoption of renewable technology. Cooperation among the NAFTA members would further accelerate the transition to a greater use of renewable technology to provide essential energy services. Many of these technologies may also need some form of financial incentives to overcome the costs of making a transition to this new type of energy system. Such incentives not only were supplied starting a century ago to create our present energy system, many direct and indirect subsidies continue to support existing energy technologies and systems. For the purposes of this analysis, technologies that utilize any of the following energy sources will be considered to be renewable: distributed and centralized wind, biomass and geothermal energy, solar energy, small-scale biomass burning or conversion to liquid or gaseous fuels (including ethanol or methanol transportation fuels), geothermal, small- scale hydroelectricity under 50 MW. Large-scale hydropower is also renewable. It already plays an important role in North America, and involves quite different policy issues. Thus, this report will not include a major discussion of large-scale hydropower. A slight modification of a general definition for renewable energy that was provided at the CEC meeting of 18 February 2002, is that 1PDF Image | Assessing Barriers and Opportunities for Renewable Energy in North America
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