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Kevin Bullis is Technology Review’s energy editor.

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Tuesday, February 17, 2009

The Stimulus Will Be a Boon to Green Energy

The law, to be signed today, will help renewable-energy businesses and improve efficiency.

President Obama is expected to sign the stimulus bill into law today. While there's been a lot of debate about whether the provisions in the bill are the best way to stimulate the economy--for example, some of the money won't be spent for years--it's pretty clear that the bill is good news for businesses involved in reducing the use of fossil fuels.

The New York Times has a detailed breakdown of the final stimulus bill as it relates to energy here. The Wall Street Journal also has a useful graphic that puts that spending into context. The Congressional Budget Office details the costs of the bill over several years here (PDF). And, in a story posted today, I break down how the bill could help kick-start an advanced battery industry in the United States.

In previous blogs, I've mentioned two key provisions for renewable energy that were up for debate because of differences between the House and Senate versions of the bill. Both made it through.

The first allows businesses that invest in building renewable-energy facilities (such as wind and solar farms) to claim a government grant that covers 30 percent of the investment, rather than claiming a tax credit. The change is important, as many companies can't claim the credit because they have no tax liability. (The tax credits plus grants are expected to cost the government $14 billion.)

The second is a credit for building manufacturing facilities for renewable energy as well as advanced batteries, which could, for example, encourage solar-panel manufactures to build plants in the United States.

Comments

  • Stimulus Boondoggle Bill
    The ethanol industry has requested $1 billion to bail out plants struggling with economics of making ethanol.  They further want $50 billion of taxpayer money to help build more facilities. They also want a mandatory increase in the required % in fuel up to 30%, despite motor manufacturers saying it will destroy engines, and the EPA claiming environmental problems.  Even with the $0.47/gallon taxpayer subsidy; the trade restricting tarriff on importing ethanol; the biofuel mandates; and the infrastructure build by taxpayers;  the industry can't make it on its own.  And to "stimulate" them, we have to borrow more money from...whom?  China now hates us, the Middle East is suffering, Russia is saber rattling and now may be taking over a US West Coast steel mill (repayment?), Venezuela just voted to retain its dictator, Mexico is imploding, and even Dubai is near financial collapse. 
    Rate this comment: 12345

    RD
    02/18/2009
    Posts:151
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    3/5
  • State of the Art Bill Leverage
    Hi Kevin,

    I have used your input to write the EWPC article How to Increase the Leverage of Stimulus Bill to Global Green Energy .

    Thanks,

    José Antonio
    Rate this comment: 12345

    javs
    02/18/2009
    Posts:95
    Avg Rating:
    4/5
  • Need to monitor the progress of all these initiatives
    It's great to see such a commitment to renewable energy and energy efficiency in this stimulus package. It's also interesting to see how many of the areas receiving funding open up huge opportunities for the energy monitoring market. The grants for smart grid, HUD, Energy Efficiency and Conservation Block,State Energy Programs, transmission systems upgrades, GSA, and many more -- all of these initiatives will require open energy monitoring platforms that can ensure maximum efficiency and performance across all renewable energy systems. Technologies from companies like Fat Spaniel Technologies -- www.fatspaniel.com -- that provide open platforms that can monitor all renewable energy systems using one central console will likely become a key/required component for ensuring that the systems paid for by the stimulus grants are operating as optimally as possible, while also providing max energy efficiency.

    These technologies are essential for ensuring the cost-effectiveness of the systems deployed, and providing oversight and accountability. Especially in this economy, it's not enough to just deploy "green" technology and use renewable energy -- you need to oversee those systems and get the most of them. We must combine eco responsibility with fiscal responsibility.

    Fat Spaniel was the first open energy monitoring platform on the market, and already monitors over 2,000 energy systems in 15 countries. Our platform enables the integration of many different vendors’ hardware devices – such as inverters, solar modules, wind turbines, environmental sensors, combiner boxes – into the intelligent energy management infrastructure. So, regardless of the hardware components organizations choose to use for their renewable energy initiatives, they can rest assured that they'll have one single platform to manage everything, giving them a holistic view of their systems to ensure that everything is operating optimally. If you'd like to learn more or have any questions, please visit us at www.fatspaniel.com. We'd be happy to answer any questions you have.
    Rate this comment: 12345

    Robb_Hensh...
    02/21/2009
    Posts:2
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