Alternative energy technologies are starting to look a little more mainstream, and when wind, solar, bioenergy and other sources gain market share, politicians and government agencies are going to have some difficult choices to make.  It’s one thing to talk about new energy sources, but what about when they actually start to compete with oil and gas?  The U.S. has devoted decades and countless billions to developing a fossil fuel infrastructure.  But as Peter Slevin points out in the Washington Post, sparks fly when traditional fuels meet real competition from alternatives — especially when "old-style" power companies start to see the benefits of solar and wind and even begin to question the subsidies and set-asides they themselves have enjoyed.

In Colorado, the legislature at first mandated that 10% of the state’s energy supply come from renewables within 10 years — and this was just recently, in 2004.  By 2008 at least one energy company had successfully met the challenge and was ready to boost its own renewable energy production to 20%.  Why?  There was money to be made — and to be saved, with the help of federal tax credits.  These credits, however, are miniscule compared to those lined up for the oil and gas industry in Colorado.  These amount to about $280 million per year, and you can bet that renewable energy fans are calling for some of those tax breaks to move into wind and solar. 

From Slevin’s account, it’s clear that the debate in Colorado has already become a bitter one, with one side portrayed as an entrenched interest, and the other as a late arrival that will cost jobs long supplied by the oil and gas industries.  Since renewables can only  be part of the energy mix  for the foreseeable future,  it would seem that government should be able to strike a balance between developing new sources and maintaining older ones.  But what happens when the battle goes national?  When real money begins to flow into wind and solar?  When it comes time to develop new infrastructure to move new energy to the end user?  The debate about renewable energy tax credits that can’t seem to pass in Congress this year will probably seem like a peak of cordiality.  And unless government takes the lead now, it will be putting out wildfires. -NH

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