By Dan Burgess
This April, near the 40th anniversary of the Clean Air Act, Interior Secretary Ken Salazar will make the final decision that seals the fate of Cape Wind. The tumultuous 130 off-shore wind turbine project, in process for almost ten years, has the potential to turn the powerful Nantucket Sound winds into enough clean electricity for approximately 400,000 homes.
No matter how Secretary Salazar adjudicates, however, it is clear that there is a lesson that Massachusetts policy makers must learn from Cape Wind: large projects cannot be the unilateral focus of clean energy development.
While Cape Wind has helped to blaze a critical path for wind electricity generation in New England, it has also shown that such projects can be incredibly controversial. Opponents of Cape Wind believe the turbines would hinder sea navigation, do harm to the local environment, diminish the Sound’s natural beauty, and negatively impact tourism. Additionally, opponents are skeptical about supporting a project in their backyard that appears to only financially benefit the few who have access to the tremendous resources that are required for a wind farm like Cape Wind.
Considering the abject criticism that arises with large renewable energy sites, it is evident that a parallel policy which supports smaller projects should be pursued.
Imagine a policy which allows every Commonwealth resident or business with a parcel of land or a rooftop to prosper from installing their own renewable energy system. A system in which each citizen, not just those with great means, has the ability to produce clean, safe electricity that also increases their financial security. Envision windmills on every farm, solar panels on every home or business, and Massachusetts taking a real step towards energy independence.
This vision is not some policy pipe dream. This scenario is beginning to happen today in several European countries and Canada, and is leading to rapid growth in renewable energy generation. In Germany, a country that is considered a world leader in clean energy production, over 15% of electricity consumed is produced by renewable energy sources. This number is expected to grow to at least 50% by 2050. In Spain, wind turbines supply over half of the national power grid and solar panel installment is on the rise. These surges of clean, homegrown electricity are made possible in part through a simple policy mechanism called a feed-in tariff.
A feed-in tariff, also known as a renewable energy payment, is a guaranteed monetary payment per kilowatt-hour for electricity generated by a renewable source. These guaranteed payments from power companies to renewable producers create a market for clean electricity, reduce the barriers to entry for individual investors, and allow virtually any individual to prosper financially from installing a clean energy system.
Currently in Massachusetts, most of those who produce clean energy can only count on receiving a kilowatt credit on their bill for the unused electricity that they create. This policy, known as net metering, is the most common form of clean energy incentive in the United States and does allow some clean energy projects to be feasible for individuals. Unfortunately, these electricity credits, even when combined with available rebates, grants, and tax incentives, are simply not enough to kick start the renewable power surge that our state needs. In fact, the lack of a singular incentive policy can have the reverse effect and can become too complex of an investment puzzle for potential investors to piece together.
Forty years ago, the Clean Air Act set off a stampede of environmental innovation and investment that our country had never seen before. Recently, Massachusetts has led the United States by enacting several progressive clean energy policies such as the Green Communities Act. Now, on the cusp of the looming Cape Wind decision, Massachusetts residents are calling once again for more progressive energy policy. People are desperate for new jobs, financial security, and freedom from being held hostage by yo-yoing energy prices. Bay State officials should heed these pleas, and enact a smart, comprehensive feed-in tariff policy that allows all citizens to take part in the clean energy revolution that Massachusetts so desperately needs.
