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California began the global move to develop wind energy following the energy price shocks of the 1970s. By the end of the 1980s it had installed over 1500 MW of wind capacity that constituted 90 percent of global wind power. Then, because of policy changes, this effort stalled and little capacity was added until recently. However, changes in national law made the 1990s a time of rapid growth for wind generation, and by the end of 2001, the US had an estimated 4150 MW of wind capacity. This is about one-half of the capacity of Germany, the world leader, whose production now accounts for nearly one-third of the global total. The United States, like Canada, has more wind potential than it now needs to meet its current electricity demand. Much of the wind resource is located in the Great Plains states, stretching from North Dakota to Texas, with additional resources along the Northeast coast. Much of the new capacity has been added in states such as Texas, and large additions are planned for some of the northern plains states. The addition of large wind turbines on private agricultural lands is significantly improving rural incomes. The world’s largest offshore wind facility totaling 420 MW is planned for the coast of Cape Cod, Massachusetts (Sawin 2001). California is the largest producer of geothermal power in the United States, and the US leads the world with about one-third of global geothermal production (WRI 2000). Renewable Energy Policies in North America—What has been tried? How has it worked? Canada In Canada, much energy policy is conducted at the provincial level. However, the federal government has set forth a number of policies and provides tax and other incentives to encourage renewable energy development. The Canadian government is also committed to purchasing 13 million kWh of wind electricity over a ten-year period, and has made significant commitments to lowering its greenhouse gas emissions through efficiency and the use of cleaner fuels and renewable energy (NRCAN 2001). In the electricity sector, the government will provide an incentive for wind production for facilities begun between 31 March 2002 and 1 April 2007. The incentive will be in force for the first ten years of operation, and will begin at 1.2 cents per kWh and decline to 0.8 cents per kWh. The production incentive program is expected to spend C$260 million over its 15-year lifetime. The Canadian government has also made a commitment to purchase electricity generated by renewables (CANWEA 2002). The Renewable Deployment Initiative is a six-year program begun in 1998 to encourage the use of active solar hot water and air heating systems and efficient biomass combustion. Businesses are eligible for a refund of 25 percent up to a maximum of C$80,000 towards the purchase price of qualifying systems. A total of C$24 million is available. Natural Resources Canada also provides incentives for these types of systems for federal departments and public institutions (REDI 2002). 5PDF Image | Assessing Barriers and Opportunities for Renewable Energy in North America
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