Opportunities Synergy Natural Gas and Renewable Energy

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Opportunities Synergy Natural Gas and Renewable Energy ( opportunities-synergy-natural-gas-and-renewable-energy )

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Figure 5. Renewable energy as share of total primary energy consumption in 2011 (left) and growth of renewable energy consumption, 1950–2011 (right)46 In the transportation sector, corn-based ethanol has been the fastest growing source of renewable energy over the past decade. Ethanol production has grown by more than seven-fold to 14 billion gallons in 2011, about 8% of the total U.S. highway vehicle fuel.47 Ethanol use has been promoted by a combination of mandates and incentives, and now accounts for about 2% of primary U.S. energy supply. Without further developments in non-corn-based ethanol production, continued growth in domestic ethanol supply may be limited; production in 2012 has already declined due to the drought affecting many corn-growing regions of the United States.48 In the electric power sector wind has dominated other forms of renewable energy to date in terms of growth in generation and capacity installed. Solar PV, in particular, has been growing very rapidly even if it has started from a much smaller base. After nearly 2 GW of installed solar capacity in 2011, the United States could cross the 3 GW level in 2012.49 State-level RPSs will continue to incent deployment of some renewable energy going forward, although many states are currently ahead of their deployment schedules and some are even debating scaling back their targets.50 2.2.3 Renewable Energy Costs Many sources of renewable energy are still more expensive than non-renewable options, although full economic costs, values, and risks are often not represented in market prices across all energy production sectors. Some renewable energy costs are changing rapidly, while others are relatively stagnant. Over the past two decades, wind turbine costs have fluctuated considerably.51 Perhaps more widely noted, solar PV module costs have declined by a reported 75% over the past four years,52 making them increasingly competitive with the cost of average retail electricity service in different regions of the world. Figure 6 summarizes different levelized 14

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