1

IMPACTS OF GOVERNMENT MANDATED RENEWABLE

ENERGY

PREPARED FOR

ENGLISH REPORT WRITING, COMSATS UNIVERSITY LAHORE

CAMPUS

PREPARED BY

M. IBRAHIM, M. ZUBAIR, A. NASIR

5th NOVEMBER 2019

IMPACTS OF GOVERNMENT MANDATED RENEWABLE ENERGY 2

Table of Contents
Table of Figures ............................................................................................................................................. 3

Executive Summary....................................................................................................................................... 4

Introduction .................................................................................................................................................. 5

Background Information ........................................................................................................................... 5

Statement of the Problem ........................................................................................................................ 5

Significance and Scope of Study ............................................................................................................... 5

Limitations ................................................................................................................................................ 6

Methods of Research .................................................................................................................................... 6

Renewable Energy .................................................................................................................................... 6

Advantage of Renewable Energy .......................................................................................................... 7

Limitations in Renewable Energy .......................................................................................................... 9

Government Mandates ........................................................................................................................... 10

Some consequences and challenges of Energy Mandates ..................................................................... 11

Conclusion ................................................................................................................................................... 12

Recommendations in contrast to Pakistan ................................................................................................. 13

References .................................................................................................................................................. 14
IMPACTS OF GOVERNMENT MANDATED RENEWABLE ENERGY 3

Table of Figures

Figure 1 Energy Consumption Trend (Gaille, 2018) .................................................................................... 6

Figure 2 World Consumption of Energy (Cloete, 2013) .............................................................................. 7

Figure 3 Actual Production by Wind Energy (Cloete, 2013)........................................................................ 8

Figure 4 Projected U.S RPS Demand ( (Roberts, 2016) ................................................................................ 9

Figure 5 Capital Costs (Gaille, 2018) ......................................................................................................... 10

IMPACTS OF GOVERNMENT MANDATED RENEWABLE ENERGY 4

Executive Summary

The need for energy has been exponentially increasing over the years due to the

advancement of technology and how we generate that energy has changed dramatically over time.

Our primary source of energy has been from carbon-based fuels and has evolved into a mix of

carbon-based fuels and clean energy. The need for “clean energy” has been gaining momentum

from consumers and even the government. More than half of the United States have some form of

clean or renewable energy mandate. This poses the question of how these government mandates

are making an impact. Through extensive research of the current state renewable portfolio

standards and goals, this report will be able to establish if there are positive or negative impacts

that their government mandates have caused. It will plan to explore various cases that are currently

out there regarding these mandates. Each issue will be reviewed without bias until a conclusion is

drawn. Its reflection upon positive environmental outcome but a negative outcome to the

consumer. But in order to implement all of this, the world face a lot of challenges. This paper will

discuss the impacts of government mandates, the advantages and disadvantages of renewable

energy, what exactly is a renewable energy, its adaptation and the drawbacks of clean energy.
IMPACTS OF GOVERNMENT MANDATED RENEWABLE ENERGY 5

Introduction

Background Information

For more than a century, we had been relying on fossil fuels after the industrial revolution

back in the 1800’s. Power generated by these sources causes’ greenhouse gasses which affects our

planet we live in. Due to the increased demand for ‘clean’ and renewable energy, government has

made policies when it comes to mandated energy. We now envision the future of our planet when

the increased growth of energy demands in the industrial and domestic sector can be

environmentally sustained. Hydrogen and Fuel Cells are living examples of how far we have come

in the sustainable energy segment.

Statement of the Problem

The increased amount of greenhouse gasses like carbon dioxide from combusting fossil

fuels for energy has not only affected our health but also has affected the overall climate change.

Due to the change in climate, we can observe randomness in the weather, sea levels and even the

artic glaciers which has not affected a large number of animals to go extinct. This change in climate

imbalances the nature’s balance. Air Pollution has been another major issue due to which the world

is facing global warming and climate change. The emissions released from not only the industries

but also motor vehicles causes ozone to deteriorate, spreads hazardous gases like Sulfur and

Nitrogen Oxides, smog into our environment which can not only affect human health but also

causes imbalances in the ecosystem.

Significance and Scope of Study

Due to sustain the future of humanity and its growth, world is now shifting to a more

towards clean energy, thus reducing the amount of emissions caused by the generically using fossil
IMPACTS OF GOVERNMENT MANDATED RENEWABLE ENERGY 6

fuel for energy by combustion. This will not only be an attempt to save our planet but also a step

towards smarter and much greener solutions, which includes shifting towards solar power stations

or wind powered stations, electric cars, hydroelectric power stations, nuclear energy.

Limitations

The limitations in this study are further on discussed later in the report.

Methods of Research

Renewable Energy

Renewable Energy is basically the energy which is generated by the processes which not

only occur naturally but also at the same time are being replenished. This energy is constantly

being renewed and cannot exhaust. This includes Heat, Tides, Hydro, Sunlight, Wind and various

types of biomass. (Ciolkosz, 2009)

Figure 1 Energy Consumption Trend (Gaille, 2018)

IMPACTS OF GOVERNMENT MANDATED RENEWABLE ENERGY 7

Figure 2 World Consumption of Energy (Cloete, 2013)

Advantage of Renewable Energy

Using renewable energy sources such as wind power, hydroelectricity or solar energy on

an individual level can reduce your overall carbon footprint as they do not produce any emissions

such as greenhouse gasses. There is no discharge of water when it comes to the wind and the solar

energy, reducing the overall environmental impact using these as energy sources. If we consider

the heating and cooling units in the house we can assume that they cause the most carbon footprint,

but choosing the renewable energy source over the non-renewable can greatly reduce the overall

environmental impact. As such sources of energy are not harmful for the earth as they don’t need

to be mined or drilled. (Stubblefield, 2019)

IMPACTS OF GOVERNMENT MANDATED RENEWABLE ENERGY 8

Figure 3 Actual Production by Wind Energy (Cloete, 2013)

One of the fundamental strengths of the renewable energy is that it is available in vast

quantity which can be considered unlimited to some extent according to the EPA (Stubblefield,

2019). Adding on it can be completely said that renewable energy won’t run out as technologies

used to extract it is straight from the environment, generating power like sunshine or wind or tides.

In contrast it cannot be said the same about the fossil fuels as now they are increasingly getting

difficult to obtain which is driving up both the overall impact on environment due to their

extraction and the cost. (Thoubboron, 2018)

IMPACTS OF GOVERNMENT MANDATED RENEWABLE ENERGY 9

Figure 4 Projected U.S RPS Demand ( (Roberts, 2016)

Limitations in Renewable Energy

There is also a lack of the interconnection rules and standards which are basically the

procedures and the technical requirements required for making a connection between the

renewable energy systems and the electric utility grid is difficult. Adding on to it the lack of

transmission is also another factor because most of the renewable resources are located in the

remote areas which lacks effective and efficient transmissions. The States have not decided upon

utility regulations which enables the investors to make investments in the transmission to be

reimbursable in cost, nor there any planning or permitting processes. (United States Environmental

Protection Agency, 2019)

IMPACTS OF GOVERNMENT MANDATED RENEWABLE ENERGY 10

Furthermore, Renewable energy has large capital costs. At this stage the capital costs of

non-renewable energy are much less than the renewable ones, therefore governments are slightly

leaned towards the use of non-renewable energy as their primary consideration due to less capital

costs. (Gaille, 2018)

Figure 5 Capital Costs (Gaille, 2018)

Government Mandates

When it comes to the solar industry in the USA, the government mandates are expected to

blunt. The solar industry is continuously thriving even if President Trump’s administration tariffs

on the import of the solar panels has generally raised its prices throughout. As indicated by utility
IMPACTS OF GOVERNMENT MANDATED RENEWABLE ENERGY 11

officials and examiners, neighborhood and state strategies expecting utilities to consolidate

sustainable power source will keep up a standard market for sun based power and halfway balance

the effect of the taxes. Numerous states have define objectives to move to 50 percent inexhaustible

based power generation by 2030. New York, specifically, has issued a command to introduce three

gigawatts of sun powered electricity limit by 2023 – multiple times the total amount introduced

toward the last months of 2017. Authorities state that innovative enhancements and cost funds in

different territories additionally should balance the cost increments related with the tax. (Ailworth,

2018)

When it comes to the level for a regulator, the policy-makers will set the objectives and

(frequently) changes methods for Renewable Energy (RE) activities. Although the limits between

"approach making" and "controlling" are innately questionable, the job of the controller in

advancing RE is constrained by authoritative and official choices. RE strategies and structures are

arrangement choices that are generally and maybe, ideally, taken by approach producers and not

controllers. Policymakers, in any case, may assign these choices or a subset of them, to controllers;

or they may stay quiet on such issues. In the previous case, obviously, controllers have the ability

to practice their watchfulness, while, in the last mentioned, the extent of administrative tact relies

upon what the legitimate framework gives. For instance, Kenya gives the controller some scope in

the structure of closeouts for Feed-in Tariffs. (Berg & Brown, 2012)

Some consequences and challenges of Energy Mandates

An example of unintended consequence is the wind production tax credit imposed by the

U.S Government. From a monetary and national security point of view, there is no doubt, for

instance, that shale gas has enormously profited the country. Ongoing investigations looking at the

effect of sustainable power source approaches point to their problematic effect on aggressive
IMPACTS OF GOVERNMENT MANDATED RENEWABLE ENERGY 12

power markets, including the activity of atomic plants situated in those zones. The breeze

generation charge credit (PTC) of $23 per MWh has been the focal point of a lot of this exploration

on account of its connect to negative valuing for power (i.e., when control suppliers must pay

"clog" charges to the framework to take their power). Over the previous decade, wind offices have

expanded 10-fold to more than 60 GW—because of state sustainable prerequisites and the breeze

PTC, which incents wind homesteads to create power paying little heed to showcase request,

generally amid the late night and early morning when interest for power is at its most minimal.

Since wind generators are compensated the duty credit, they are eager to pay "clog" charges to the

framework as long as those charges don't surpass the credit, accordingly promising them a benefit.

Negative evaluating has developed from an exceptionally low event before the acquaintance of

sustainable orders with a lot larger amounts, representing up to 13 percent of every single hourly

cost in some U.S. districts. Those numbers increment radically in hours in which the breeze blows

all the more regularly. (Banks, 2013)

Conclusion

Overall we can see that the renewable resources of energy can greatly help to reduce the

overall carbon footprint and the greenhouse gasses in the world. This can further reduce the

global warming. Switching towards the renewable resources of energy is also very cost effective

and can help lower the financial burdens on an individual and also at the government scale. But

as the world move towards the greener planet, some governments might impose taxes and

sanctions on the renewable sources of energy, and as we have destroyed or nearly completely

consumed our non-renewable resources it can be said that the renewable resources can be

somewhat effective due to the climate change which we are currently facing. At some places like
IMPACTS OF GOVERNMENT MANDATED RENEWABLE ENERGY 13

Norway it is difficult to get continuous sunlight, or at some places it is difficult to get enough

wind to move the turbines of wind mills.

President Donald Trump, conversely, has vocally bolstered the coal business, and his

organization has moved to move back a few atmosphere guidelines and to leave the Paris

Climate Accord, under which signatories swore to lessen their ozone harming substance

emanations. A few states, Texas among them, have seen their oil and flammable gas penetrating

flood in the previous two years with the ascent in oil costs. (Beitsch, 2018)

Recommendations in contrast to Pakistan

Therefore, this study might not be very fruitful towards understanding/estimating the

phenomenon of global oil or gas peak. However, this work, on the other hand, designed in the

spirit of facilitating Pakistan’s energy planning process, is significantly important as the country

is facing an acute energy supply shortage. We noticed that coal is the only abundant fossil fuel in

Pakistan and production is expected to peak in 2080 with a production of 134.06 million tones.

Therefore, the power production sector which is one of the key consumers of natural gas and oil

can replace these with coal until renewable sources of energy are put into place. It should be

noticed that coal run technologies carry significant environmental consequences regarding

environmental emissions leading to air pollution and global warming. Thus, the substitution of

oil and gas with coal must be accompanied by carbon-capture and storage technologies to

mitigate the negative impacts. The final decision in this regard shall also incorporate economic

assessments based on cost-benefit analysis of coal, oil and gas run power plants. For optimal

benefits both non-renewable and renewable energy resource development should be streamlined

and projects based on the resources planned side by side, even if the country needs to import

some inevitable quantity of fossil fuels in future.

IMPACTS OF GOVERNMENT MANDATED RENEWABLE ENERGY 14

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