Study: Alternative Energy Brings Savings

By: Mike Glover, Associated Press writer

As published in the Fairfield Ledger on Tuesday, March 5, 2002

DES MOINES (AP) - Alternative energy proposals already in place could save Iowa consumers $27.5 million if fully implemented, a study released Tuesday said.

"This is a serious illustration that both actual and potential alternatives to energy production can and do leave a big economic footprint in the state," said David Swenson, an Iowa State University researcher.

While alternative energy supporters cite environmental and other benefits, the latest study looked exclusively at the economic benefits of alternative energy.

Wind energy tops the list. The state has 650 medium- or large-scale wind turbines either in operation or under development, which could produce 3.6 percent of the electricity generated in the state. The spin-offs from this type of power generation are greater because the money is spent in Iowa, and not out of state, the study found. Current plans to augment coal-fired electrical generation with the use of switchgrass as a fuel also could increase the amount of energy spending in the state, cutting down the amount of dollars flowing out of state.

Combining the proposals could lead to saving 1.8 million tons of coal a year, virtually all of it purchased outside the state, the study concluded.

Swenson is an economist at ISU, but the study was not conducted under the University's auspices. It was sponsored by the Iowa Policy Project, a Mount Vernon-based liberal think tank.

"Reducing the amount of out-of-state coal purchased by Iowa utilities is more than an environmental issue," said David Osterberg, head of the group. "This study demonstrates there are economic reasons to use renewable energy sources right here at home."

The study concludes that savings from use of alternative energy sources channel about $53 million into the state's economy. It recommends increasing the amount of alternative energy that utilities are required to purchase and additional tax credits for producing alternative energy. It also recommends including land used to grow switchgrass in the conservation reserve program, which could help encourage farmers to plant switchgrass rather than corn and soybeans.

On the Net: Iowa Policy Project: http://www.iowapolicyproject.org