Op Ed
Oregon's Energy Future:
Weighing the value of renewable energy
Printed in the Oregonian, November 23, 2007
By Rachel Shimshak and Jason Eisdorfer

There is robust demand for clean energy in the Northwest, and there are also increased costs. But in considering the region's energy future, we shouldn't lose site of the value of renewable energy to Oregon's customers ("Wind demand dwarf's supply," Nov. 9).

All sources of energy are increasing in cost. The price of oil is nearing $100 a barrel.  Natural gas used to power plants has more than tripled in price since 1999, according to the U.S. Energy Information Administration.  Coal prices are up 45% over the same period.  The worldwide demand for steel and other component parts has led to upward price pressure across the electricity resource board.

But here's the big difference between fossil fuel plants and those powered with renewable resources like wind:  Mother Nature supplies the fuel for renewable resources -- sun, wind, water -- for free.  The lack of fuel cost allows wind projects to offer a stable price over the life of the project, much like a fixed-rate mortgage gives you certainty over future costs.  There is no volatility in fuel price and resulting exposure for customers, because there is no fuel. No other kind of energy resource guarantees a long-term, fixed-price. 

Moreover, renewable resources do not contribute to global warming and they avoid the financial risk of future climate change regulation.  The resulting price stability has a positive effect on a utility portfolio of resources and a positive effect for customers.

Renewable resources are in high demand because prudent utilities and customers see that a fossil-fuel dependent utility will have much higher rates when we have to pay for both the fuel going into the plant and the carbon dioxide coming out of it. That’s why the Northwest Power and Conservation Council and every investor-owned utility in the region -- including PGE and Pacific Power in Oregon -- have compared all available resources in their 20 year plans and found that renewable resources such as wind are the long-term, least-cost, least-risk resources for their customers. 

There is hope for an easing of the supply and demand issue.  Today’s demand is bringing new manufacturers to the market.  In just the last two years, Suzlon, Gamesa and Clipper have all opened US factories to produce wind turbines.  New investors are supporting the development of additional renewable resources and three new solar manufacturers are moving to Portland. 

Oregon is blessed with a generous endowment of clean energy sources like wind, solar, geothermal, biomass and wave energy that will contribute positively to a 21st Century economy and help us meet our power needs — for this generation and the next.

Rachel Shimshak is the Executive Director of the Renewable Northwest Project, a Portland-based advocacy organization promoting solar, wind and geothermal resources in Oregon, Washington, Idaho and Montana.

Jason Eisdorfer is the staff attorney with the Citizens’ Utility Board of Oregon, which advocates for residential customers of privately owned utilities.

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