Bipartisan flash – Distributed generation makes sense

In this politically partisan era, it’s refreshing to see the liberal Brookings Institution and the conservative Hoover Institution agree on something. That something, in the wonky words of such policy reports, is: distributed power systems (DPS) have “the potential to make a significant positive contribution to the U.S. power system.” The two think-tank behemoths also found “a strong case for DPS as a resource for the defensive and offensive operations of the U.S. military.”

The report pays particular attention to combined heat and power, lamenting that CHP is “homeless” since energy efficiency advocates think it will detract from their preferred lighting and appliance standards, renewable energy advocates argue it will divert benefits from solar collectors and wind turbines, and utility lobbyists worry independent cogenerators will take away their load and customers.

The report, in contrast, argues CHP needs a home in the minds of all policymakers, since cogeneration offers environmental benefits as well as “the added security benefit of being able to operate independently of the grid and greatly superior efficiency.”

Of note, the bipartisan researchers call for placing a price on carbon, either through a tax or a cap-and-trade system, as well as a fund, such as the proposed Clean Energy Development Authority (CEDA), that finances the development and deployment of innovative technologies. The researchers also want to extend Section 1603, which provides greater access to financing for clean energy projects; that cash-grant initiative, they say, has been successful and much less expensive that a tax-equity approach.

Let’s hope congressional leaders read about the energy policies on which conservatives and liberals agree.