Green Well Renewable Power

Renewable Portfolio Standard ("RPS") legislation in 26 states requires utilities to purchase electricity from renewable energy projects.¹ California, for example, has an RPS requiring 20% by 2010 (or 60 billion kWh); and legislation requiring 33% by 2020 (or 155 billion kWh) is pending.

Coincidently, the highest potential oil and gas and geothermal resources are also located in the highest electrical growth area. Linear Power, with its baseload attributes (i.e., electricity that is available 24 hours per day, seven days per week, predictable operational costs, and high availability mirroring coal and nuclear) is and will continue to be increasingly recognized by utilities as a viable alternative to coal and natural gas and a way to stabilize long-term electricity prices, unlike the intermittent nature of wind and solar.

In addition California utilities are prohibiting incremental generating capacity additions from coal, which accounts for nearly 15% of energy delivered to California and about 50% of the electricity generated in the U.S., exacerbating the baseload problem. Studies show that demand for renewable electricity will grow at a compound rate of 2.0% over the next thirty years; however, the studies assume coal-fired projects meeting baseload requirements after 2010.4 If, in the alternative, renewable energy replaces coal, renewable energy will grow at a compounded rate of 54% during the period.

As stagflation has given way to severe inflationary pressures, most industrial sectors continue to decline because of increasing energy costs. National Oil Companies own approximately 75% of total worldwide reserves and presently control supply, particularly to the US. Exacerbating the situation is a deadly combination of lack of much needed capital investment in infrastructure coupled with slow adoption of alternative energies and strategies due to poor policy management, slow consumer acceptance or demand, and the need to absorb costs.

The culmination of all of these factors has lead to the current unprecedented inflationary pressures as countries, most notably in the US, try and accommodate the cost shocks, and now the frantic and frenetic search for alternative energies and technologies. This can only portend worse future economic struggles as energy supplies remain tight as world as the world competes for diminished energy reserves and as prices move higher. With no meaningful increase in oil production, and the lack of implanting real conservation, emerging market resources must grow. This presents the ideal opportunity for Green Well.



¹ http://www.dsireusa.org/summarytables/reg1.cfm?&CurrentPageID=7&EE=1&RE=1