[The Vector] Natural Gas Transition to Renewables – Another Corporate View
John Rowe, CEO at the Exelon Corporation, gave a presentation this spring at the American Enterprise Institute called “Energy Policy: Above All, Do No Harm”. Exelon is one of the largest electric and gas utility companies in the U.S, and they are one of the largest nuclear power plant operators (with 17 reactors) but also a large generator of hydropower, wind and some solar. Rowe said that Exelon has committed to reducing, offsetting or displacing their carbon footprint by 2020 and they are halfway there.
Obviously, every company has their own slant on issues and their own business to protect. However, Rowe did have some points worth reviewing. He states that Congress and individual states, perhaps in well-intended efforts, have enacted and “continue to float proposals” that would burden consumers, hurt economic markets and increase the federal debt while doing little or nothing for air quality nor for U.S. competitive position.
What are some bullet points from his talk?
“Congress, stop doing things that don’t make sense.”
Energy policy is “being driven by a mess of mandates and power subsidies…with the constant urge to pick winners and losers.”
Natural Gas – Rowe believes natural gas is a clear choice as a current energy source that will bridge us to renewable energy.
1) The windfall in abundant U.S. natural gas can deliver energy to compete and bridge us to alternative energy.
2) Natural gas strengthens our domestic energy security.
3) Natural gas is the cleanest of the fossil fuels with 80% less sulfur dioxide and nitrogen dioxide per megawatt hour than coal; with no mercury nor particulates; and with 55% less carbon dioxide than coal.
4) Natural gas is already working in the transition to clean energy.
5) It is inexpensive and plentiful.
6) It can compete now, not tomorrow, without introducing new market distortions.
There is no question that many energy sources have their pros and cons. Natural gas isn’t perfect, but it is the cleanest burning fuel of the fossil fuels; it is plentiful in the U.S. which can help with jobs & the economy as well as supplying a source that is already working in concert with solar and other renewable energy sources. It is certainly better (in my opinion) than costly and dangerous nuclear, cleaner than coal and oil, more powerful than most renewables (to date.)
A key point is that the U.S. does not have an energy plan, and Congress is “messing around” with no clear goal, as he infers. Smart countries not only have general energy plans, but many also have specific renewable energy plans with very clear goals to reach.
