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See Inside September 2006

The Rise of Renewable Energy

Solar cells, wind turbines and biofuels are poised to become major energy sources. New policies could dramatically accelerate that evolutio

No plan to substantially reduce greenhouse gas emissions can succeed through increases in energy efficiency alone. Because economic growth continues to boost the demand for energy--more coal for powering new factories, more oil for fueling new cars, more natural gas for heating new homes--carbon emissions will keep climbing despite the introduction of more energy-efficient vehicles, buildings and appliances. To counter the alarming trend of global warming, the U.S. and other countries must make a major commitment to developing renewable energy sources that generate little or no carbon.

Renewable energy technologies were suddenly and briefly fashionable three decades ago in response to the oil embargoes of the 1970s, but the interest and support were not sustained. In recent years, however, dramatic improvements in the performance and affordability of solar cells, wind turbines and biofuels--ethanol and other fuels derived from plants--have paved the way for mass commercialization. In addition to their environmental benefits, renewable sources promise to enhance America's energy security by reducing the country's reliance on fossil fuels from other nations. What is more, high and wildly fluctuating prices for oil and natural gas have made renewable alternatives more appealing.

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