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Chapter 4 Benefits of Using Solar Power An Untapped and Abundant Energy Source Solar energy is the source of all energy on Earth with the exception of nuclear and geothermal energy. Yet, very little of our energy needs are met directly by tapping into this abundant resource. Only through the use of hydro, wind, and biomass have humans indirectly taken advan- tage of the solar energy that reaches the Earth every day. For the greater part of our energy needs, we rely on fossil fuels.1 Modern technology now allows harnessing solar energy directly for home heating or electric power generation. Solar power can be produced using the photovoltaic effect or by using the sun’s heat to power engines or turbines. The southwestern United States is home to world-class solar resources. The latitude, the low humidity, and the high altitude of the Colorado plateau make southwestern solar resources likely the best in the world.2 In the scorching deserts of California, Nevada, and Arizona lie some of the greatest untapped domestic energy reserves. As our analysis has shown, only 0.5% of western lands would have to be used to produce twice the energy consumed in 16 states (excluding Alaska) of the Western Governors’ Association (WGA) using existing technology. This energy could be produced with no air emissions and indefinitely. Fuel Diversity Hedges Against Fuel Cost Today, the western states obtain 68% of their electric energy from fossil fuels. In 2001, this was equal to 741,830 GWh, which is equivalent to 727 million barrels of oil.3 Of this portion, 24% was natural gas (and some oil) and 44% of this energy was derived from coal. Over two-thirds of western energy depends on the price of two fuels. In this report we have indicated that, in our view, future volatility of natural gas prices may be higher than has been experienced historically due to the increasing competition for natural gas to fuel generating units. If western states want to hedge against fuel price volatility, then a diversification of energy sources is essential. Renewable energies with no fuel cost, such as wind and solar, can play a fundamental role in hedging against volatility. Portfolio theory clearly shows that even higher cost 95PDF Image | Solar Fuel From The Sky
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