Will the U.S. Lead or Follow in Developing Alternative Energy? Anthony Ricigliano

Sept. 26, 2011 - PRLog -- Anthony Ricigliano - News by Anthony J Ricigliano: With the recent failure of the climate bill in the Senate, the question comes up as to whether the U.S. is going to provide some leadership in alternative energy or abdicate it to other countries. One of the most disturbing aspects of the failure of the climate bill was that it was defeated with both Republicans and Democrats voting against it. The defeat of the bill also accomplished something thought of as very unlikely just months ago; it is driving investment dollars for climate change to, of all places, China.  

Apparently, the broad defeat of the climate bill was enough to convince the one large bank that nothing substantial will happen on the climate front in the U.S. It’s not an inconsequential sum either. Deutsche Bank will be placing $6 billion to $7 billion in investment money it has dedicated to climate change in Western Europe and China.

The political waffling and uncertainty in the United States was the primary reason given for stiffing the U.S. In the meantime Deutsche Bank will apparently focus its “green” investment dollars on opportunities where it sees governments providing a more positive environment. For all that’s been said about China’s disregard for the environment, the country is now being seen to be taking the lead with plans to spend $450 billion to develop alternative energy solutions. The U.S. was once the pioneer for these technologies but political infighting has basically brought everything to a standstill over the last five years.

A Deutsche Bank spokesman said of Washington’s inability to seal a climate-change program and other alternative energy incentives into place, “They’re asleep at the wheel on climate change, asleep at the wheel on job growth, asleep at the wheel on this industrial revolution taking place in the energy industry”.  

With all the political chat about shifting to clean and renewable energy sources, America’s power generation is still largely provided by fossil fuels. 68% of America’s power comes from coal and natural gas, followed by nuclear at 20% and hydroelectric 7%. That leaves about 5% of America’s power being provided by alternative sources.

Despite the political vacillation, there are some bright spots in alternative energy in the U.S. The United States is the world leader in wind energy, and while it's still relatively expensive to produce, with new technology, costs are coming down. Texas has the largest wind farm in the world, covering more than 85,000 acres. It's more than 25 miles from north to south and covers an area bigger than Manhattan.

For the U.S. to take the lead, a national policy will be required. The problem is that alternative energy faces opposition from many sides, including the NIMBY’s (not in my backyard) who don’t want massive projects spoiling the local landscape and, of course, the coal and petroleum lobbies which spend millions each year to protect their business.

For the U.S. to assume leadership again in alternative energy the debate in Washington will have to end and solid steps will have to be taken toward passing measures like the recently rejected climate bill. Until that time investors like Deutsche Bank will wait to see whether the U.S. is really committed to renewable energy sources.

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