SOLUTIONS Electric Power

Electricity generation in the Northeast relies substantially on fossil fuels, a circumstance that provides a host of near-term opportunities to reduce emissions. A concerted move toward cleaner, more efficient generation and low- or zero-emissions technologies can lower energy costs, create jobs, help clean our air and water, and enhance energy security.

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Regional Greenhouse Gas Initiative is an effort between ten Northeast states to implement the nation's first multi-state program to stabilize and then reduce heat-trapping emissions from the region's power plants. Using the mechanism of "cap & trade," the program aims to initiate a shift in the region's electricity market toward more efficient and cleaner sources of generation and more efficient use. During 2007 and 2008, Northeast states will be deciding critical policy details and designing and implementing the market mechanisms needed to ensure the program's successful launch on January 1, 2009. More about RGGI.

Energy Efficiency/Demand Management programs can provide many cost-effective opportunities to reduce demand for electricity in the Northeast region's homes, businesses, and industries; the effectiveness of these efforts has been demonstrated in numerous analyses. The region's utilities and state governments operate a range of programs to help seize these opportunities.

Renewable Energy resources including solar, wind, geothermal, tidal, and biomass energy offer increasingly cost-effective opportunities to replace fossil fuels and produce electricity with virtually no global warming emissions. In addition, the performance, range of products, and potential applications have also increased. The Database of State Incentives for Renewable Energy (DSIRE) can tell you what kind of tax incentives and grant and/or loan programs are available in your area.

Combined Heat & Power systems, referred to as "CHP" or co-generation, are small power plants that range in size from serving a single building to a large college campus, industrial park, or commercial district. CHP plants use steam driven turbines to generate electricity, while capturing the "waste heat" to be used for heating, cooling, and water heating. They can use as much as 80% of the energy from their fuel supply, compared to around 30% for a conventional power plant and 50% for a combined-cycle power plant. The U.S. Environmental Protection Agency's Combined Heat & Power Partnership is a voluntary program that supports the development of new projects.

Tax incentives adopted by several Northeast states, and the federal government support renewable energy. These policies include 1) exempting the value of renewable equipment from property tax valuations; 2) providing income tax credits and deductions for the cost of purchasing and installing a renewable power source; 3) permitting accelerated depreciation of renewable energy equipment; or 4) exempting such equipment from state sales taxes.

Net metering policies enable customers with on-site power production (renewables or CHP) to sell their excess electricity to the utility, thus making their installation more cost-effective. All Northeast states have such policies, although capacity limits and other restrictions often prevent realization of their full value in the marketplace.

Green Power, electricity generated from renewable resources, can be purchased voluntarily, either as an option directly from your utility or through Renewable Energy Certificates (RECs) from a Green-E certified provider. This is a popular and rapidly growing method of supporting the needed shift to cleaner sources of energy. The U.S. EPA's Green Power Partnership program provides information about providers and ranks of businesses and organizations driving this market.