Ohio has a legacy of ignoring the solar energy boom in favor of trying to drive minuscule victories in fossil fuel extraction in state. Leading advanced energy companies are trying to change this, urging the Ohio General Assembly to reject proposals that would extend the current freeze of the state’s Renewable Portfolio Standard (RPS) and Energy Efficiency Resource Standard (EERS). As the legislature reconvenes, these businesses sent a letter, signed by 19 companies active in Ohio, calling on legislators to recommit the state to energy innovation instead of continuing a freeze that has paralyzed advanced energy investment here.
“The legislature has a clear choice. It can create a business-friendly environment to attract investment in advanced energy or Ohio can keep the door shut on billions of dollars of benefits,” said Ted Ford, president and CEO of Ohio Advanced Energy Economy. “By embracing advanced energy, Ohio will send a signal to the rest of the country and the world that it is laying the foundation for long-term growth and competitiveness.”
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Senate Bill 310 of 2014 imposed a two-year “freeze” of the state’s renewable energy and energy efficiency requirements, which were designed to diversify Ohio’s energy sources and save Ohio electricity customers money on their utility bills. The freeze ostensibly offered an opportunity for an appointed Energy Mandates Study Committee of the legislature could evaluate the costs and benefits of these rules. In a series of hearings, the Study Committee focused entirely on the supposed costs of the renewable energy and efficiency standards, and gave scant attention to the benefits for ratepayers and the state economy. The Study Committee recommended an indefinite extension of the freeze, but Governor Kasich immediately called that “unacceptable.” The freeze is due to expire at the end of 2016.
The freeze has had a chilling effect on investors and project developers, signaling that Ohio is no longer a receptive market for innovative technologies. While Ohio saw approximately $750 million in wind and solar investment in 2012, solar investment dropped below $100 million in 2013, and wind development dropped to zero.
“The freeze on Ohio’s advanced energy standards sends a message to Ohio consumers and the rest of the country that Ohio is going backward, not forward, on energy,” said Steve Melink, CEO of Melink Corp, an advanced energy company in Southwest Ohio. “Competitive markets and innovation are driving down energy costs, giving consumers choices, and diversifying energy sources in many other states. Ohio is the birthplace of innovation, and we should be leading the way.”
Prior to the freeze, Ohio’s EERS and RPS were on track to provide billions of dollars in economic benefits to the state and its residents. After the EERS was adopted in 2008, energy savings achieved by Ohio utilities increased 2,800%, from 55 GWh in 2008 to 1,571 GWh in 2012 – the equivalent of saving over 180,000 tons of coal. Studies by the Ohio State University have shown that ratepayers saved approximately $1 billion through the EERS while it was in effect. Spurred by the RPS, renewable energy development quickly ramped up, with $1.3 billion in total investments from 2009 to 2013.
“It is important that stable policies encourage innovation and a more modern electric grid. The advanced energy standards achieved this aim by setting clear goals and allowing the market to determine the most cost-effective means of achieving them,” said Ford. “We encourage the legislature to adopt policies that create certainty in the markets and provide opportunity for energy efficiency and renewable energy to compete in the marketplace.”
— Solar Builder magazine
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