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use.”21 According to the American Council for an Energy Efficient Economy, placing minimum efficiency standards on these products could save approximately 73 TWh of electricity by 2010 and 164 TWh by 2020.22 It would also save consumers and businesses more than $80 billion in discounted net benefits.23 2. Expand and continue financial incentives for renewable energy heating and cooling. Heating and cooling applications represent 40-50 percent of global energy demand each year.24 Reducing reliance on electricity and natural gas for these applications through the development and deployment of renewable energy heating and cooling systems—solar, geothermal, biomass, and ocean thermal—could significantly reduce carbon emissions. Currently, federal incentives for installing renewable heating and cooling equipment in the United States include investment tax credits. The IEA reports, “Mature REHC [renewable energy heating and cooling] technologies using solar, biomass and geothermal resources are currently available as cost-effective means of reducing both carbon dioxide emissions and fossil fuel dependency under many circumstances.”25 However, these renewable energy heating and cooling methods—although further along in product life cycles than many renewable electrical generating technologies—have suffered from a lack of market up-take due to geographical and cost constraints in some regions. To increase the popularity and deployment of these market-ready systems, Congress should provide more aggressive installation and operating incentives in conjunction with state incentives. Efforts to improve energy storage (see below) will work in conjunction with these policies to improve the technological efficiency and return on investment of REHC installations. 3. Increase investment in energy storage technology. The lack of mature energy storage technologies for a wide array of applications (e.g., utility-scale power, CSP, wind, vehicles), combined with difficulties in recovering the capital costs associated with those energy storage technologies, make realizing efficiency gains through energy storage extremely difficult in the United States. At the same time, interviewed experts believe that energy storage is one of the top five technologies available that could advance national policy objectives for energy independence, economic growth, and environmental progress. The U.S. Department of Energy’s Electricity Advisory Committee noted that the benefits of energy storage are universal, that energy storage technologies “are not an alternative to any particular resource decision” but “a valuable adjunct to all resources and they will allow increased capacity to be derived from any given quantity of physical resources.”26 To help develop and deploy useful energy storage solutions for a variety of applications, the government should increase investment in research, development, and deployment of energy storage technologies. These include battery storage and hydrogen fuel cell storage for transportation applications as well as the various forms of grid energy storage methods outlined in Chapter 4 that ensure bulk storage, distributed generation, and power 174PDF Image | Shaping Energy Technology Transition
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