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Renewable Energy Trends in Consumption and Electricity
  2006 Edition



The report, Renewable Energy Trends in Consumption and Electricity, 2006, provides an overview and tables with historical data spanning as far back as 1989 through 2006 on renewable energy consumption and electricity.

Following the highlights section, the report contains four "Issue in Focus" sections designed to provide an in-depth look at some of the major issues affecting renewable energy in the near term.

Issues in Focus
   Wind Energy Developments
   Central Station Solar Thermal Electricity
   Biodiesel in the Energy Supply
   Wave and Tidal Energy

Consumption[back to top]

Total renewable energy consumption increased by 478 trillion Btu or 7 percent between 2005 and 2006 to 6,922 trillion Btu (Table 1.1). At the same time total US energy consumption decreased 1 percent largely due to decreases across the board in fossil fuel energy consumption. The combination of these trends resulted in moving renewable energy's share of total US energy to nearly 7 percent, up from over 6 percent in 2005 (Figure 1.1).

Figure 1.1 The Role of Renewable Energy Consumption in the Nation's Energy Supply, 2006

An exploding pie chart that shows renewable energy consumption accounted for 7 percent of total U.S. energy consumption in 2006.

Source: Energy Information Administration, Office of Coal, Nuclear, Electric and Alternate Fuels   Chart data.

During 2006 renewable energy consumption reached its highest level since 1997, which was a record year for hydropower due to water availability (Table 1.5a and Table 1.5b). Hydropower is the second largest source of renewable energy consumption.

Biomass and conventional hydroelectric power had the largest volumetric increases at 220 and 166 trillion Btu respectively, while wind energy consumption had the fastest annual rate of growth at almost 50 percent.

The electric power sector continued to be the largest consumer of renewable energy in 2006 (55 percent of total), primarily due to the very large contribution of conventional hydroelectric power (Table 1.2). The industrial sector was second (29 percent of the total), due to that sector's major consumption of wood and derived fuels. Geothermal and conventional hydropower played only minor roles in the industrial sector. The residential sector also consumed wood for space heating and solar energy for water heating and electricity. The commercial sector accounted for just 2 percent of total renewable energy consumption. The transportation sector was the fastest growing sector, consuming 40 percent more renewable fuel between 2005 and 2006. This is mainly due to increased ethanol consumption, by far the larger component of biofuels during those years.

Renewable energy used to produce electricity contributed 4.229 quadrillion Btu or 61 percent of total renewable energy consumption in 2006 (Table 1.2 and Table 1.3). Ninety percent of this energy was consumed in the electric power sector, which includes traditional electric utilities and independent power producers whose primary purpose is to sell electricity, or electricity and heat, to the public. Almost all of the remainder is used by the industrial sector. Nonhydro renewable electricity energy consumption expanded slowly from 1,278 to 1,360 trillion Btu between 2002 and 2006. Increases in wind consumption were partially offset by decreases in biomass.

Nonelectric uses of renewable energy made up the balance (2,693 trillion Btu or 39 percent) of renewable energy consumption (Table 1.2 and Table 1.4). Nonelectric uses include applications such as wood for space heating, noncentral station solar, process heat from biomass for manufacturers, geothermal heat pumps and direct use of geothermal, biofuels for transportation and losses and coproducts from the production of biofuels. Over the last five years the share of renewable energy consumed for nonelectric use expanded from 33 to 39 percent (Figure 1.2).

Figure 1.2 Renewable Energy Consumption, 2002-2006

A clustered bar graph for 2002-2006 that shows renewable energy consumption for electricity was 61 percent of total consumption and energy for nonelectric purposes was 39 percent in 2006.

Source: Energy Information Administration, Office of Coal, Nuclear, Electric and Alternate Fuels   Chart data.

A major portion (over 65 percent) of the 745 trillion Btu increase in nonelectric biomass energy consumption from 2002 to 2006 was in biofuels. Table 1.6 (included for the first time in this report) presents an overview of biofuels, showing that a considerable amount of biomass energy is lost or goes to coproducts during production of ethanol. Ethanol production increased about 25 percent from 3.9 billion gallons in 2005 to 4.9 billion gallons in 2006.[1] A number of factors contributed to this growth:

  • Continued replacement of methyl tertiary butyl ether (MTBE) by ethanol as a gasoline additive.
  • Strong world oil demand and higher crude oil prices, which have raised the price of gasoline and thus the demand for, and price of, ethanol as a substitute.
  • Tax laws that provide incentives, such as the 51 cent per gallon Federal tax credit available to blenders for each gallon of ethanol blended into gasoline.
  • The Energy Policy Act of 2005, which mandated annual renewable fuel use in gasoline at 5.4 billion gallons by 2008.

At 2006 production levels, ethanol accounted for nearly 4 percent of U.S. finished motor gasoline production.[2]

Ethanol consumption, when compared to production, increased at an even faster rate, 35 percent.[3] The difference between production and consumption was largely made up of increased imports (principally from Brazil) and stock withdrawals. So total consumption for 2006 was 462 trillion Btu, up from just 175 trillion Btu in 2002 (Figure 1.3).

Figure 1.3 Ethanol Consumption, 2002-2006

A line graph for 2002-2006 which shows the rapid growth in ethanol consumption over the last five years.

Source: Energy Information Administration, Office of Coal, Nuclear, Electric and Alternate Fuels   Chart data.

Biodiesel production also was in a period of growth and more than doubled between 2005 and 2006. A later section of this report on renewable issues presents general information to familiarize readers with the biodiesel industry.

In December 2007 the Energy Independence and Security Act (EISA) of 2007 was signed into law.[4] This boosted the renewable fuel standard to 9 billion gallons of renewable fuels by 2008 and 36 billion gallons in 2022. Assuming the targets are achieved, biofuels consumption (ethanol and biodiesel) will increase substantially from current levels.

Waste energy consumption stood at 407 trillion Btu in 2006 and was little changed from the previous few years. More than half of the waste energy was consumed by independent power producers (Table 1.7). MSW biogenic provided the most energy (42 percent) followed by landfill gas (37 percent).

Industrial biomass energy consumption increased about 6 percent between 2005 and 2006 (Table 1.2). The paper and allied products industries dominated biomass consumption in the industrial sector with 64 percent of the total (Table 1.8). Most of this was useful thermal output and a much smaller share was used to produce electricity. Biorefineries, which produce biodiesel and ethanol, and the lumber industry had the next largest shares with 15 and 13 percent of the total, respectively. In addition, fifty-two power plants in 23 states with total generating capacity of 6,317 megawatts reported having generators with biomass/coal cofiring capacity that totaled 3,569 megawatts (Table 1.9).

 

(entire report also available in printer-friendly format) 1.3MB

Table Title Table Formats
Highlights PDF EXCEL HTML
1.H1 Wind Net Summer Capacity by State, 2002-2006
1.H2 U.S. Operating Solar Electric Generating Systems (SEGS)
1.H3 Physical Characteristics of Biodiesel vs. Ultra Low Sulfur Diesel (ULSD)
 
Consumption PDF EXCEL HTML
1.1 U.S. Energy Consumption by Energy Source, 2002-2006
1.2 Renewable Energy Consumption by Energy Use Sector and Energy Source, 2002-2006
1.3 Renewable Energy Consumption for Electricity Generation by Energy Use Sector and Energy Source, 2002-2006
1.4

Renewable Energy Consumption for Nonelectric Use by Energy Use Sector and Energy Source, 2002-2006

1.5a Historical Renewable Energy Consumption by Energy Use Sector and Energy Source, 1989-1999
1.5b Historical Renewable Energy Consumption by Energy Use Sector and Energy Source, 2000-2006
1.6 Biomass Energy Consumption by Energy Source and Energy Use Sector, 2002-2006
1.7 Waste Energy Consumption by Type and Energy Use Sector, 2006
1.8 Industrial Biomass Energy Consumption and Electricity Net Generation by Primary Purpose of Business and Energy Source, 2006
1.9 Net Summer Capacity of Power Plants Cofiring Biomass and Coal, 2006
1.10 Average Heat Content of Selected Biomass Fuels
 
Electricity PDF EXCEL HTML
1.11 Electricity Net Generation From Renewable Energy by Energy Use Sector and Energy Source, 2002-2006
1.12 U.S. Electric Net Summer Capacity by Energy Source, 2002-2006
1.13 Renewable Electricity Net Generation by Energy Source and Census Division, 2006
1.14 Industrial Biomass Electricity Net Generation by Census Division and Energy Source, 2006
 
State Electricity PDF EXCEL HTML
1.15 Renewable Electric Power Sector Net Generation by Energy Source and State, 2005
1.16 Renewable Commercial and Industrial Sector Net Generation by Energy Source and State, 2005
1.17 Total Renewable Net Generation by Energy Source and State, 2005
1.18 Renewable Electric Power Sector Net Generation by Energy Source and State, 2006
1.19 Renewable Commercial and Industrial Sector Net Generation by Energy Source and State, 2006
1.20 Total Renewable Net Generation by Energy Source and State, 2006
1.21 Renewable Electric Power Sector Net Summer Capacity by Energy Source and State, 2005
1.22 Renewable Commercial and Industrial Sector Net Summer Capacity by Energy Source and State, 2005
1.23 Total Renewable Net Summer Capacity by Energy Source and State, 2005
1.24 Renewable Electric Power Sector Net Summer Capacity by Energy Source and State, 2006
1.25 Renewable Commercial and Industrial Sector Net Summer Capacity by Energy Source and State, 2006
1.26 Total Renewable Net Summer Capacity by Energy Source and State, 2006
1.27 Renewable Market Share of Net Generation by State, 2005 and 2006
1.28 Renewable Portfolio Standards by State, 2007
1.A1 Other Non-renewable Energy Consumption by Energy Use Sector and Energy Source, 2002- 2006
1.A2 Other Non-renewable Net Electricity Generation by Energy Use Sector and Energy Source, 2002- 2006
 
Figures PDF HTML
1.1 The Role of Renewable Energy Consumption in the Nation’s Energy Supply, 2006
1.2 Renewable Energy Consumption, 2002-2006
1.3 Ethanol Consumption, 2002-2006
1.4 Wind Electricity Net Generation, 2002-2006
1.5 Renewable Portfolio Standards and State Mandates by State, 2007
1.6 U.S. Census Regions and Divisions
1.7 Wind Capacity by State, 2000- 2006
1.8 Parabolic Trough System
1.9 Dish/Engine System
1.10 Power Tower System
1.11 Renewable Portfolio Standards
1.12 Artist’s Rendition of Point Absorber Wave Energy Farm
1.13 Artist’s Rendition of Ocean Tidal Current Turbines
 
Related Links Format
About Us html
Renewable Experts html
FAQ html
EIA Survey Forms html
EIA Electricity Databases html
State Energy Offices html
Publications html
Renewable Energy Websites html

 

Electricity[back to top]

Renewable energy provided almost 386 billion kilowatt hours of electricity generated in 2006 of a U.S. total of 4,065 billion kilowatthours.[5] While total U.S. electricity generation increased by 0.2 percent in 2006, conventional hydroelectric generation grew 7 percent and wind generation increased by nearly 50 percent, though from a much smaller base (Table 1.11 and Figure 1.4).

Figure 1.4 Wind Electricity Net Generation, 2002-2006

A line graph for 2002-2006 which show the rapid growth wind electricity generation since 2003.

Source: Energy Information Administration, Office of Coal, Nuclear, Electric and Alternate Fuels   Chart data.

Most of the electricity produced using renewable energy during 2006 was in the electric power sector, which accounted for 91 percent of the market; the industrial sector accounted for just 8 percent. In the same year, results were mixed for nonrenewable electricity. Nuclear- and coal-fired electricity generation stayed fairly steady, while electricity from petroleum plunged and natural gas rose 7 percent.

As a result of expanded government-sponsored renewable energy programs, total renewable electric capacity stood at 101,934 megawatts by the end of 2006, up from 98,746 megawatts in 2005 (Table 1.12). With an increase of 2,622 megawatts between 2005 and 2006 wind energy accounted for the largest increase in renewable capacity and the second largest increase in capacity nationwide.[6] Natural gas capacity was first nationwide with an increase of over 5,000 megawatts. A later section of this report discusses wind electricity developments in detail.

Table 1.13 shows that conventional hydroelectric generation was concentrated in the Pacific Contiguous Census Division where it accounts for a major portion of electricity supplied to that market (Figure 1.6). Electricity from geothermal and solar/ photovoltaic (PV) energy was found mainly in the Pacific Contiguous and Mountain Divisions, while electricity from the remaining renewable energy sources tended to be scattered geographically. Nearly 98 percent of industrial biomass generation was provided by wood and wood derived fuels (principally, black liquor, wood/wood waste liquids and solids) mainly in the southern Census Divisions of the U.S. (Table 1.14).

 

State Electricity[back to top]

Renewable electricity generation increased by 28 billion kilowatthours between 2005 and 2006. The largest increases were for conventional hydroelectric power in Washington, California, Oregon, Idaho and New York and for wind in California, Iowa, Oklahoma, and Texas (Table 1.17 and Table 1.20).

Renewable electric capacity increased by 3,189 megawatts between 2005 and 2006. Eighty-two percent of this increase was wind capacity. Texas, Washington, and California led that growth (Table 1.23 and Table 1.26). Most of the remainder of the capacity increase was for landfill gas/MSW biogenic (111 megawatts), wood and derived fuels (179 megawatts), and conventional hydroelectric (281 megawatts).

In 2006 renewable electricity generation captured 9.5 percent of the U.S. electricity market, while nonhydro renewable electricity took just 2.4 percent (Table 1.27). Some States had little or no renewable generation, while others had shares as high as 89 percent for Idaho, 78 percent for Washington, and 75 percent for Oregon. Maine had the largest share of nonhydro renewable electricity generation at 24 percent. In terms of volume, California had the most nonhydro renewable generation with 24 billion kilowatthours due to its diverse supply of renewable energy sources, which includes the majority of the nation's geothermal and solar power.

Although there is considerable variation in objectives and standards for enforcement, many States continue to expand their efforts to incorporate more renewable energy in their electric supply. By the end of 2007 32 states had enacted renewable portfolio standards (RPS) or state renewable mandates (Table 1.28 and Figure 1.5).

Figure 1.5 Renewable Portfolio Standards and State Mandates by State, 2007

A map of the United States showing that by the end or 2007 32 states, spread across the country, had enacted renewable portfolio standards or state mandates.  Similar information is presented in table 1.28.

Note: In Florida, Michigan and Missouri the RPS is not statewide. In some states, including Illinois, Michigan, Missouri, North Dakota, Virginia and Vermont, the renewable portfolio standard (RPS) is voluntary.
Source: North Carolina Solar Center, Database of State Incentives for Renewable Energy (DSIRE) website: http://www.dsireusa.org (January 8, 2008).

These include the following states that were new on the list in 2007:

Michigan. Early in 2007, the Lansing Board of Power and Light (LBPL) established a series of voluntary goals for meeting its customers' electricity demand with renewable energy. The goal for 2016 is 7 percent of retail sales.

Missouri. In mid-2007, Missouri created a renewable energy and energy-efficiency objective for its investor owned utilities. Each utility must make a "good-faith effort" to generate or procure electricity generated by renewable energy equal to 11 percent of its retail electric sales by 2020. Credit towards the objective also may be achieved through energy efficiency that includes utility and consumer efforts to reduce consumption of electricity.

New Hampshire. In mid-2007, New Hampshire enacted a renewable portfolio standard that requires electricity providers to acquire renewable energy certificates (RECs). equivalent to 23.8 percent of retail electricity sold to end-use customers by 2025. Class I and II eligible new renewable sources (in operation after January 1, 2006) will provide 16.3 percent of retail electricity sold, while Class III and IV eligible existing renewable sources will provide 7.5 percent.[7]

North Carolina. In mid-2007, North Carolina enacted a Renewable Energy and Energy Efficiency Portfolio Standard. Basically, this requires investor owned utilities to supply electricity equivalent to 12.5 percent of their 2020 sales using renewable energy or eligible alternatives by 2021. Up to 25 percent of the requirement can be met through energy efficiency technologies, including combined heat and power systems powered by nonrenewable energy sources. Municipal utilities and electric cooperatives must meet a target of 10 percent of their sales coming from renewables by 2018 but using slightly different rules.

North Dakota. Early in 2007, North Dakota enacted legislation establishing a goal that 10 percent of all retail electricity sold in the state is to be obtained from renewable energy and recycled energy by 2015. The goal is voluntary.

Oregon. At about the same time in 2007 that Oregon's governor signed the Western Climate Initiative, the state enacted its renewable portfolio standard.[8] In summary the standard is stepped in over the years from 2011 to 2025 and it varies by the size of the utility's load. In practice this means that the three large utilities (each with three percent or more of Oregon's total retail sales) will meet a target of 5 percent of electricity sold from renewable energy by 2011 and 25 percent by 2025, while smaller utilities will have lower targets.[9]

Virginia. As part of its legislation to reregulate the state's electricity industry, Virginia enacted a voluntary renewable energy portfolio goal. The goal for investor owned utilities is to have 12 percent of base load sales in 2007 in Virginia (less the average annual percentage of power supplied from nuclear generators between 2004 and 2006) to come from renewable energy sources by 2022.

A number of other states including Arizona, Colorado, Delaware, Maryland, Minnesota, Montana, New Mexico, and Pennsylvania expanded the provisions of their renewable portfolio standards in 2007.

 

Data Revisions

Estimates of residential wood consumption were revised upward for 2005 and 2006 to reflect a higher number of households reported as having wood burning units in the preliminary data from the EIA Residential Energy Consumption Survey 2005. Renewable electricity data for 2006 is now final.

Also a new source of data was found for feedstocks consumed to produce inedible methyl esters (biodiesel).[10] This was used to estimate biodiesel production and apparent consumption starting in 2006 after the U.S. Department of Agriculture's Commodity Credit Corporation ended its biodiesel program.

 


Endnotes:
[1] Energy Information Administration, Form EIA-819, "Monthly Oxygenate Report."
[2] Energy Information Administration, Petroleum Supply Monthly, February 2007 (Washington, DC, February 2007) Table 2.
[3] Ethanol consumption is calculated as the sum of production, net imports, and stock changes.
[4] See EISA 2007 Title II here: http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h6
[5] Energy Information Administration, Monthly Energy Review December 2007 (Washington, DC, December 2007), Table 7.2a
[6] Energy Information Administration, Electric Power Annual 2006 (Washington, DC, October 2007), Table 2.1.
[7] For a detailed explanation of eligible energy sources, see the New Hampshire Code of Administrative Rules, Chapter Puc 2500 Electric Renewable Portfolio Standard, here: http://www.puc.state.nh.us/Regulatory/Rules/Puc2500%20Interim%20Rules%20-%20January%2010%202008.pdf
[8] The agreement establishing the Western Climate Initiative was signed in February 2007. Targets to lower greenhouse gases to 15 percent below 2005 levels by 2020 were announced in August. Oregon enacted the renewable portfolio standard that would support that mission in June 2007.
[9] For details such as the list of eligible sources, the matrix of RPS targets, implementation plans, and possible exemptions and modifications to the targets, etc., see the Oregon Department of Energy website, here: http://www.oregon.gov/ENERGY/RENEW/docs/Oregon_RPS_Summary_Oct2007.pdf .
[10] Refer to the U.S. Department of Commerce, Census Bureau series of Current Industrial Reports: Fats and Oils - Production, Consumption, and Stocks.

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