Electricity is a secondary power source that is derived from sources such as coal, natural gas, nuclear power, flowing water, and sunlight. Any of these sources that produce electricity must answer and abide by the regulations of the U.S. Federal Energy Regulatory Commission (FERC). The commission’s vision advocates “abundant, reliable energy in a fair competitive market [FERC].”
There is a problem with FERC’s vision; it is hard to say that the market is balanced in today’s global economy. There are foreign competitors in the market who are not strictly regulated, and they have a significant advantage in energy production. Fortunately, the United States is not alone while facing this problem. 20 member states, part of the European Union, are having trouble abiding by newly formed energy efficiency standards [Europa]. These laws put the energy companies between a rock and hard place; it is difficult to conform to these standards without reducing energy outputs, but it is just as difficult to erect a new plant to supply power.
The European Union, along with the United States, seems tied up by standards and regulations that hinder energy production, and forces them to rely on imports. Not surprisingly, the efficiency of U.S. power plants has not changed since 1957, and for good reason [Lozanova]. Energy companies, under the government umbrella, do not operate like normal business where success is profit driven. Instead, power companies are required to sell to their consumers by a price dictated by the government, which gives no profitable incentives to make energy production more efficient.
With all these government standards and regulations, it is impossible for energy companies to compete in a global market. The laws of the energy industry must change in order for U.S. energy companies to be competitive.
With the recent disaster in the gulf and the new democratic agenda, we will be moving closer and closer towards alternative energy. Surprisingly, hydro, wind, and solar plants are the most expensive methods. Is it a wise move to use our time and resources to develop these costly alternatives or should we wait until our most efficient, cost-effective methods (coal, natural gas, nuclear) are close to depletion?
Your blog stated: "With all these government standards and regulations, it is impossible for energy companies to compete in a global market. The laws of the energy industry must change in order for U.S. energy companies to be competitive." (Shoemaker)
ReplyDeleteThere are many developing technologies that are currently being tested. Many of these technologies were designed specifically for energy companies, to help them comply with government regulations. Actually, many of these technologies are currently being tested with funds provided by DOE.
I believe that the DOE is very involved in looking for sustainable solutions for our energy crisis. Of course, these solutions will not become available overnight.
Furthermore, many U.S. companies are heavily involved in the research of second generation biomass, which may be another viable solution to our energy crisis. Here in the U.S., there is also the technology to capture carbon emissions for permanent storage or reuse http://fossil.energy.gov/news/techlines/2010/10017-DOE_Selects_Industrial_CCS_Project.html
Additionally, the regulations that are being enacted are intended to encourage companies to find ways to abate their carbon emissions. Because power generators are the biggest carbon emitters, it is obvious that they would get the biggest benefit from these technologies.
The alternative energy sources I think would be a good idea for the world to try and adapt and find a way to make it more cost-effective. It would be very benefical if it is recognized both nationally and internationally. Alternative energy refers to energy sources that have no undesired consequences such for example fossil fuels or nuclear energy. Alternative energy sources are renewable and are thought to be "free" energy sources. They all have lower carbon emissions, compared to conventional energy sources. Research and further development of these alternative methods will hopefully slow down the rate the natural resources are depleting at. These methods can also make many large companies be more socially responsible.
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