Summary:While California does not currently have an energy crisis, the possibility of one looms over the state in the next few years if changes are not made, panelists said.
Susan Kennedy noted that while we do not have a supply crisis, we may soon find ourselves with a cost crisis. She said California must figure out how to integrate alternative sources of energy, renewable sources, and energy efficiencies. The most important need, she said, is to stabilize the market.
Assemblyman Lloyd Levine spoke about measures being considered in the state Legislature, such as accelerating the renewable portfolio standard to 20 percent by 2010 and 33 percent by 2020.
"I don′t think we have a choice," he said. "The people of California have spoken and they want environmentally friendly alternatives."
The panelists discussed some of the obstacles preventing a wider implementation of alternative sources of energy such as solar and wind. One conundrum, they said, is that the equipment is too expensive because the low demand, which means there is no market incentive to develop cheaper equipment. But the reason for the low demand may be the prohibitive cost.
All of the panelists agreed with Michael Rosenfeld that more certainty is needed in the market to encourage investment in renewables.
Ed Feo pointed to two challenges that must be addressed: first, the lack availability of some of the technology needed to produce cost-effective alternative sources of energy, and second, the fact that the transition to renewables will displace the current energy infrastructure.
Levine talked about a triangle of issues that are related: cost effectiveness, reliability and environmental friendliness. Usually, getting more of one of these means sacrificing some of another. The tradeoffs between these three areas create a challenge for the future of California′s energy policy.
