From the President

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Renewable energy one aspect of a competitive state energy policy

By John R. Rathgeber

CBIA President and CEO

In promoting the use of renewable energy, the state has several goals: lessening the load on the power grid; reducing the emission of greenhouse gases; and long-term, helping consumers cut their energy costs.

CBIA supports all of those goals — as long as renewable energy is one part of a comprehensive state energy policy. A comprehensive and economically competitive policy must also include upgrading infrastructure, promoting energy efficiency and conservation, and encouraging the use of diverse fuel sources for generating electricity. Together, these steps will help ensure that Connecticut can meet businesses’ and residents’ need for affordable and reliable energy.

Our economy and society are becoming ever more dependent on electronic and other energy-driven technologies. While energy efficiency and conservation measures can moderate the growing demand for energy, that demand will continue to grow. So, increasing the use of renewable energy sources makes sense. We do need to be realistic, however, about which types of renewables are economically feasible in Connecticut and the extent to which we can rely on them.

For example, a state law enacted last year requires electric utility companies to gradually increase the percentage of renewable energy sources used to generate the electricity they purchase in the wholesale market to 20% by 2020. Connecticut doesn’t have enough in-state renewable energy capacity to meet those goals. That means utilities will have to purchase renewably generated energy from out-of-state sources, which will raise costs.

Connecticut businesses, too, need to be realistic and strategic about using renewable energy. As our cover story notes, for some businesses it can be a smart follow-up to — not a substitute for — energy efficiency.