The marketplace for renewable energy resources are growing quickly in the U.S. and around the world. A new report from the Advanced Energy Economy Institute explained renewable energy sources, such as residential solar power systems, are cost-effective solutions for each state as they get ready for the U.S. Environmental Protection Agency's Clean Power Plan.
The overall market for these energy resources play a significant role in each state's growing demand for electricity. Malcolm Woolf, senior vice president for policy and government affairs at AEE, said there are more renewable options that are driving down the cost of electricity, according to the AEE press release.
"Costs are dropping fast for wind and solar power, and energy efficiency is almost always the lowest cost way to meet new electricity needs," Woolf added. "There is every reason to believe that renewable energy and efficiency will play growing roles in electricity markets based on price alone. They can also help states reach their Clean Power Plan emission targets at low cost."
EIA information not completely viable
Additionally, the AEE report said the U.S. Energy Information Administration's Annual Energy Outlook continually miscalculates the rise of renewable energy in the nation. These misconceptions have led to incorrect beliefs about the performance of these renewable resources, which only makes the public more hesitant to adopt solar or wind projects.
"There is every reason to believe that [renewable energy] and [energy efficiency] will continue to play an increasing role in our changing electric power system strictly on the basis of the economic value they provide," the AEE report stated.
It has been more than a year since the EPA announced the CPP or the new Carbon Pollution Standards for Existing Power Plants act that plans to be complete by 2030. This would force each power plant in the nation to cut is greenhouse gas emissions by 30 percent from figures starting in 2005 to 2030.
Since transportation and electric power generate roughly 72 percent of the carbon dioxide emissions in the U.S. (as per a 2012 EPA report), the goal is to cut down on these emissions through a detailed plan. There are many reasons why these renewable resources haven't gained as much traction as they should. According to the AEE press release, there's still concern over cost-effectiveness and being able to generate a cash flow to make renewable financial viable for new renewable systems.