Consumers Feel the Pinch of Clean Energy

Clean energy might be renewable, but it does come with a price. Or at least, it will, while clean energy technology catches up. Consumers find out about this when electric utilities begin investing more on alternative energy sources to meet the required percentage of clean energy in their total generation. That means they need to fund the additional infrastructure needed.

Due to the recent plunge in the natural gas and oil prices, electrical costs aren’t heavily affected yet. But your electricity bill may rise when projects for clean energy goes full speed. As utilities rush to meet the quota, expect rates to rise. This is the price we have to pay to make the world a brighter place for future generations.

In Oregon, Portland General Electric seeks the approval of a 2.3% rate increase, so that it can raise $41.3 million a year. This amount is said to be needed for the construction of a massive wind farm. In Texas, Tucson Electric Power raises its rates by 6%, or an average of $4.29 monthly, for the average consumer. This will augment the fund for new solar power arrays. Texas’ Austin Energy will be raising their rates next year due to the cost of a new wind power system.

Among the states, California has the highest rates for electricity. This is because it needs to have 20% of its total power generation from clean energy sources by the year 2010. Southern California Edison will spend around $2 billion to build transmission lines for wind energy. It’s an ambitious goal, to go from 3% to 20% in just a year, but from the looks of things, California in on the right track. It’s just too bad that the consumers must pay extra for clean energy.

Many of people think that broad-scale clean energy production will be cheaper because there will be no fuel costs. In reality, utilities need a large amount of money to be able to deliver clean energy generated – particularly in the beginning while they are still being established and streamlined. Most of renewable sources are not yet connected to the main power grid. And these sources are in remote locations, which means there is a greater distance between the clean power plants themselves, and the locations which will be receiving the generated power.

But that doesn’t mean that green energy should not be supported. Just like any new idea, hiccups will be experienced. Green energy is one way of fighting global pollution. Fossil fuel prices are unstable and could go up at any point.

What’s more, with the impending cap on the carbon monoxide emissions from power plants, clean alternative energy might soon become cheaper than conventional electric sources.

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3 Responses to “Consumers Feel the Pinch of Clean Energy”

  1. Sommerhuse
    May 3, 2009 at 5:14 am #

    So true, although the price of green energy is not that affordable, we should join forces to support it. I do believe that in time, we can find ways to produce clean green energy in more affordable ways.

  2. Lyn@APC UPS
    May 17, 2009 at 2:36 pm #

    Green energy isn’t that difficult to obtain. Nuclear energy can reduce carbon output dramatically and natural gas is abundant, easy to transport and can heat homes, businesses, and fuel vehicles from small transportation cars to heavy equipment.

  3. Fred
    July 10, 2009 at 10:10 am #

    Its a sad fact that for now… clean energy does actually cost more. In the future when the effects of peak oil etc etc become more pronounced – I think clean energy will start to look like a more cost effective solution.
    .-= Fred@Leadership´s last blog ..Leadership Development Training =-.

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