Study: Renewable energy could be boon to north state

The north state stands to benefit greatly from California’s growing demand for renewable energy, according to a new economic study.

The study (see multimedia link) focused on the 20 northernmost counties in “upstate” California, including Colusa, Glenn and Tehama counties. New state mandates to deliver more energy from renewable sources offers multiple growth opportunities, it concludes.

“An aggressive program of renewable resource utilization would not only assist in meeting the statewide Renewables Portfolio Standard, but would also be a major driver of economic development in the north state,” states the report by the Center for Economic Development at California State University, Chico.

Economist David Gallo, the principal author of the study, held a press conference Thursday at Chico State to explain its findings. “It’s an economic development strategy,” he said in a later interview. “Unless we pursue these renewable technologies, we’re not going to see much development.”

Gallo said he hadn’t heard about a proposed Mid-Valley transmission line that would connect to renewable resources in Lassen County until he was questioned by reporters Thursday. While the study concludes Lassen does have some growth potential, it doesn’t address whether new power lines are needed.

“Do we need more lines? That’s the question,” Gallo said. Upgrading existing power lines and expanding the number of small solar installations – which can feed surplus energy into the grid – could be more cost-effective ways to build capacity, he suggested.

In November, Gov. Schwarzenegger issued an executive order that gives utilities a 2020 deadline to provide one-third of their electricity from renewable resources. A January report by the Renewable Energy Transmission Initiative – a collaborative planning process by utility companies and state regulators – concludes that more transmission capacity is needed to accomplish that goal.

“The crucial point for policymakers and the public is that transmission investment leverages much larger investments in new generating resources,” the RETI report states. “... In addition, transmission lines approved for the primary purpose of delivering renewable generation to the grid will provide other benefits to consumers such as increased reliability, decreased congestion, and greater system efficiency.” The report makes no conclusions about individual projects.

For Gallo, the economist, transmission lines are just part of a bigger picture where renewable-energy and energy-conservation industries need to mature enough to help lower power costs.

“The question is whether it’s worth spending all this money on development,” Gallo said. “It’s the chicken-and-egg problem. If you don’t generate demand, where are the cost reductions going to come from?”

Charging ahead

Primary conclusions from a new report on the north state’s renewable energy resources:

• The 20-county region of “upstate” California produces 43 percent of the energy it consumes from renewable resources, well above the 33 percent standard that will apply statewide in 2020.

• Development of the north state’s untapped renewables could boost that share to 92 percent within the next 20 years.

• Biomass, small hydroelectric and geothermal represent the bulk of the north state’s existing renewable resources, with little potential for wind power. Solar has the greatest growth potential.

• Over a 20-year period, construction of renewable generation facilities would pump more than $2.7 billion annually into local business sales.

• Those sales would generate $1.6 billion in annual income and more than 23,000 jobs.

Source: “Renewable Electricity Production in Upstate California,” Center for Economic Development, CSU Chico.

Contact Michael S. Green at 934-6800 or mgreen@tcnpress.com.