Summary
1. With Oil at a $ 100 a barrel, it is inevitable that alternate energy sources like wind and solar need to grow and prosper. 2. The biggest caveat is the expiration of the renewal energy tax credits by the end of 2008. 3. America needs a long-term policy focused on alternate energy sources.
Analysis
The current renewable energy tax credits are due to expire at the end of 2008, but planning for large-scale projects takes years and investors will not risk financing projects with such major uncertainties in their economics. If the tax credit runs out, solar power as an alternative energy source will soon lose interest and cause even more shortages.
The US has not exactly been a big supporter of anything other than oil and gas which has caused a number of companies major hardship. They have offered tax credits but limited to a few years only. This has been one of the primary reasons why the US is so far behind countries like Germany and Spain in this market.
Congress is unable to figure out how a country can support both the traditional and alternate energy sources. We just need to learn how other countries have done it and follow suit. I think there is a general awareness of what could happen if we do not support wind and solar energy now and solely depend upon oil and gas. We all know that give or take a few years, oil and gas is not going to last beyond the 21st century. We do not have a country-wide policy on this but have great support at some state levels with California leading the way.
The pared down energy legislation bill is undoubtedly going to have a disastrous impact on solar and wind initiatives. We need to be able to support companies engaged in these endeavors and stand right behind them 100% if we want this to be a true alternate source of energy that we and our kids can rely on.
Bottom line, oil is at a hundred dollars a barrel and gas prices are back on their way up. 2007 has seen a number of wind power installations but we should not lose the momentum here. America needs a long-term policy focused on alternate energy sources that will slowly and steadily add to the capacity now and will completely replace our energy needs once oil is gone.
