EP77: The US renewable energy market - challenges for business and technology

Sanjiv Anand, Chairman, Cedar Management Consulting InternationalThe US is a major electricity consumer, with coal generating nearly half its power and contributing significantly to greenhouse gas emissions. Renewable energy has become a national priority, driven by policy support, environmental awareness, and stricter emissions regulations. Renewables accounted for 9.4% of US electricity by 2009, though excluding hydro this falls to about 4%, highlighting an early-stage but growing market.Wind, biomass, and solar are the key “true” renewables. Wind is the most cost-competitive, benefiting from economies of scale and declining costs, though still subject to supply constraints. Biomass offers carbon-neutral power using varied feedstocks, with co-firing providing a low-cost entry point. Solar remains costly but is effective for distributed generation and niche applications.Government incentives tax credits, grants, loans, and proposed cap-and-trade legislation are critical to growth. Despite infrastructure, technology, and regulatory challenges, strong policy backing and innovation position renewables for significant long-term expansion, with major investment and profit opportunities for early movers.