J.D. Power and Associates Reports: Future Global Market Demand for Hybrid and Battery Electric Vehicles May Be Over-Hyped; Wild Card is China

/PRNewswire/ -- Combined global sales of hybrid electric vehicles (HEVs) and battery electric vehicles (BEVs) are expected to total 5.2 million units in 2020, or just 7.3 percent of the 70.9 million passenger vehicles forecasted to be sold worldwide by that year, according to a report issued by J.D. Power and Associates. For comparison, global HEV and BEV sales in 2010 are forecasted to total 954,500 vehicles, or 2.2 percent of the 44.7 million vehicles projected to be sold through the end of 2010.

The report, titled "Drive Green 2020: More Hope than Reality" considers various factors affecting the future potential for "green" vehicles in the world's largest automotive markets. These factors include market trends, regulatory environment, consumer sentiment and technology development in these markets.

According to the report, it will be difficult to convince large numbers of consumers to switch from conventionally powered passenger vehicles to HEVs and BEVs. A consumer migration to alternative powertrain technologies will most likely require either one of the following scenarios, or some combination of these scenarios:

* A significant increase in the global price of petroleum-based fuels by 2020
* A substantial breakthrough in green technologies that would reduce costs and improve consumer confidence
* A coordinated government policy to encourage consumers to purchase these vehicles.


Based on currently available information, none of these scenarios are believed to be likely during the next 10 years.

"While considerable interest exists among governments, media and environmentalists in promoting HEVs and BEVs, consumers will ultimately decide whether these vehicles are commercially successful or not," said John Humphrey, senior vice president of automotive operations at J.D. Power and Associates. "Based on our research of consumer attitudes toward these technologies—and barring significant changes to public policy, including tax incentives and higher fuel economy standards—we don't anticipate a mass migration to green vehicles in the coming decade."

Consumer Sentiment about HEVs and BEVs

Consumers have a variety of concerns about HEVs and BEVs, including:

* Dislike of their look/design
* Worries about the reliability of new technologies
* Dissatisfaction with overall power and performance
* Anxiety about driving range
* Concern about the time needed to recharge battery packs


More importantly, however, are the personal financial implications of deciding to purchase an alternative-energy vehicle. While many consumers around the world say they are interested in HEVs and BEVs for the expected fuel savings and positive environmental impact they provide, their interest declines significantly when they learn of the price premium that comes with purchasing these vehicles.

"Many consumers say they are concerned about the environment, but when they find out how much a green vehicle is going to cost, their altruistic inclination declines considerably," said Humphrey. "For example, among consumers in the U.S. who initially say they are interested in buying a hybrid vehicle, the number declines by some 50 percent when they learn of the extra $5,000, on average, it would cost to acquire the vehicle."

The overall cost of ownership of HEVs and BEVs over the life of the vehicle is also not entirely clear to consumers, and there is still much confusion about how long one would have to own such a vehicle to realize cost savings on fuel, compared with a vehicle powered by a conventional internal combustion engine (ICE). The resale value of HEVs and BEVs, as well as the cost of replacing depleted battery packs, are other financial considerations that weigh heavily on consumers' minds.

Finally, it is clear from research in the world's largest automotive markets that buyers of hybrid and electric vehicles occupy a unique demographic niche. Buyers of HEVs and BEVs are generally older, more highly educated (possessing a postgraduate degree), high-income individuals who have a deep interest in technology, or who like to be among the early adopters of any new technology product. As a result, it is not clear that HEVs and BEVs will appeal to the general population.

Government Regulations

While the governments of the world's largest automotive-producing nations have schedules in place for improving fuel economy and reducing exhaust emissions, there is little consensus about the timing or manner in which these objectives are to be achieved. Some governments are promoting HEVs, others are focusing on BEVs, and still others are considering additional options.

According to Humphrey, the lack of consistency in regulations across markets is causing global automakers to hedge their options by seeking alliances and technology-sharing agreements. The heavy fixed costs associated with developing multiple powertrain options simultaneously are prohibitively expensive. When combined with the projected lower sales volumes of these products, collaboration between auto companies is almost a necessity to control costs and remain competitive.

One unpredictable aspect of the 2020 outlook is how markets would be affected if more stringent and consistent legislation is adopted that supports specific technologies. In particular, China has the ability to move quickly, invest heavily in the development of one specific propulsion technology, and mandate fuel economy or emissions standards that could favor a particular technology or require a minimum sales penetration level for vehicles with a designated technology. Given the size and growth rate of the Chinese auto market, such a coordinated regulatory environment might allow Chinese companies to achieve economies of scale and drive down the cost of alternative-energy vehicles.

Technology

While HEVs and BEVs offer an interesting alternative for the future, it must be acknowledged that many of the shortcomings that defined battery-based vehicles 100 years ago are still prevalent today. These include limited driving range, extended recharging times, limited support infrastructure, and the high cost of battery packs.

Moreover, while reducing exhaust emissions was not an important factor in the development of battery-based vehicles 100 years ago, it has been a significant driver behind the development of BEVs today. For many governments, the primary goal of transitioning to alternative powertrains is to reduce exhaust emissions, and it is not clear how much of this can be achieved.

"We don't want to replace tailpipe emissions with the emissions of coal- and oil-fired power plants that produce the electricity used by BEVs," said Humphrey. "We have to look at the carbon footprint of the entire energy supply chain."

Breakdown of Global HEV and BEV Sales by 2020

Of the 5.2 million HEVs and BEVs forecasted to be sold worldwide in 2020, some 3.9 million units are expected to be HEVs, according to the J.D. Power and Associates global forecast numbers for the third-quarter of 2010. The leading markets for HEVs are the United States (1.7 million units), Europe (977,000 units), and Japan (875,000 units). China is expected to sell fewer than 100,000 HEVs in 2020.

Of the 1.3 million BEVs projected to be sold worldwide in 2020, sales in Europe will account for 742,000 units; sales in China will account for 332,000 units; and the United States and Japan should each account for sales of approximately 100,000 BEVs in 2020.

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New Report Shows Significant Potential for Renewable Energy in South

The South could generate 20-30 percent of its electricity from renewable energy sources within the next 20 years – up from less than 4 percent today -- if strong federal policies are enacted, according to a report released July 27 by researchers at the Georgia Institute of Technology and Duke University. The analysis, “Renewable Energy in the South,” finds that conventional wisdom has underestimated the available renewable resources in the region and that a federal renewable electricity standard (RES) would enable the South to capitalize on this untapped renewable energy potential.

Read the Full Report Here: http://www.spp.gatech.edu/aboutus/workingpapers/renewable-energy-in-the-south

The South lags behind all other regions in renewable electricity, obtaining 3.7 percent of its power from renewable sources, compared to 9.5 percent for the country as a whole. Only four states (Delaware, Maryland, North Carolina, and Texas) have a state-level renewable portfolio standard, while three others have voluntary renewable energy goals.  The fate of renewables in the South is not only important for the region, but for the nation as a whole since, in 2008, the region accounted for 44 percent of the country’s energy consumption.

Opponents of renewable energy production claim that the South lacks the renewable energy resources to capitalize on the growing demand for clean energy.  However, the report finds that there are abundant renewable energy resources available that can be tapped if supportive policies are put in place. The report shows that if a 25 percent (by 2025) federal RES is enacted, the amount of electricity supplied by power companies from renewable sources could increase more than 250 percent above the level expected in 2030 if no new federal renewables policies were enacted.

A number of other studies have shown a large potential for renewable energy in the South,” said Etan Gumerman of Duke University’s Nicholas Institute and co-lead researcher of the study.  “Our study shows that significant increases can actually be achieved, particularly through supportive local or federal policies.”

The report, using a customized version of the economic modeling system used by the U.S. Energy Information Administration, finds that a federal renewable electricity standard and carbon pricing system would increase the proportion of electricity derived from renewable sources by power companies in every state, particularly in wind and biomass. By 2030, the report shows, federal carbon pricing policy would increase renewable electricity production in the South by 390 percent.

“Countries around the world are already tapping into the potential of renewable energy, and are capturing export markets and generating jobs in the process,” said Dr. Marilyn Brown of the Georgia Institute of Technology and co-lead researcher of the study.  “The report demonstrates that although many states in the South are off to a slow start, renewable initiatives are now underway across the region, and the potential for expansion is promising.” 

In addition, the report finds that electricity produced by end-users, such as households and businesses using small-scale solar electric and heating facilities, would also benefit from federal policies and could supply a substantial portion of the region’s renewable electricity.  Under a 25 percent RES, for example, renewable electricity supplied by utilities and end-users could increase by 154 percent. Carbon pricing policy could lead to a 266 percent increase above the total level of renewable electricity expected in the absence of federal policy changes.

“In the future, households and businesses have the potential to become major suppliers of clean, renewable electricity,” added Dr. Brown.  “This changes the way we need to think about the South’s renewable energy potential.”

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IEER: French-Style Nuclear Reprocessing Will Not Solve U.S. Nuclear Waste Problems

/PRNewswire/ -- Contrary to some prevailing opinion, reprocessing would not eliminate the need for a deep geologic disposal program to replace Yucca Mountain. It aggravates waste, proliferation, and cost problems. The volume of waste to be disposed of in deep geologic repository is increased about six times on a life-cycle basis in the French approach compared to the once-through no-reprocessing approach of the United States.

A new report by the Institute for Energy and Environmental Research (IEER), a nonprofit scientific research group, shows that France uses less than 1 percent of the natural uranium resource, contrary to an impression among some policy makers. The report has several recommendations for President Obama's Blue Ribbon Commission on America's Nuclear Future, which was created to address U.S. nuclear waste issues after the administration's cancellation of the Yucca Mountain program.

IEER President Dr. Arjun Makhijani, the author of the report: "In recent years, a 'French fever' has gripped the promoters of nuclear power in the United States. Praise of France's management of spent fuel by reprocessing, including its use of the extracted plutonium as fuel in its nuclear power reactors, is now routinely heard. But it is a fantasy on the scale of the 1950s "too cheap to meter" mythology about nuclear power to imagine that 90 or 95 percent of the "energy value" of U.S. spent fuel can be extracted by reprocessing."

Key IEER report findings include the following:

-- On a life-cycle basis, French-style reprocessing and recycle increases
the volume of waste that would have to disposed of in a geologic
repository. Reprocessing results in high-level radioactive waste and
large volumes of Greater than Class C waste, both of which must be
managed by deep geologic disposal. Their combined volume on a
life-cycle basis is estimated to be about six times more than the
no-reprocessing approach that is current U.S. policy, according to
Department of Energy estimates. Low-level waste volume and waste
transportation shipments are also estimated to increase several-fold.
-- France spends about two cents per kilowatt-hour more for electricity
generated from reprocessed plutonium compared to that generated from
fresh uranium fuel.
-- Attempting to combined reprocessing with breeder reactors to convert
uranium in U.S. spent fuel in plutonium will create intolerable costs
and risks. Reprocessing plus breeder reactors are much more expensive
than light water reactors today, which are themselves expensive. Such
a system is required to convert most of the uranium in spent fuel into
a reactor fuel. Even a single penny in excess generation cost per
kilowatt-hour in a breeder reactor-reprocessing system would lead to
an added $8 trillion in costs to convert nearly all of the uranium in
the 100,000 metric tons of U.S. spent into usable fuel. It would take
hundreds of years to accomplish the task and require separation of
tens of thousands of bombs equivalent of fissile material each year.
The proliferation risks will be far greater than today.
-- Adoption of French-style reprocessing program would not eliminate the
need for a deep geologic repository. Even complete fissioning of all
actinides - an unrealistic proposition - will leave behind large
amounts of very long-lived fission and activation products like
iodine-129, cesium-135, and chlorine-36 that will pose risks far into
the future -- much beyond the 24,100-year half-life of plutonium-239.
In fact, France needs a geologic repository and opposition to one has
been intense there. The French appear to dislike nuclear waste in
their backyards as much as people in the United States.
-- Proliferation risks are inherently part of the French (and any other)
approach to reprocessing. Even advanced reprocessing technologies will
not significantly reduce proliferation risks. For instance a study
authored by scientists from DOE laboratories, including Los Alamos and
Sandia, concluded that it would take only a few days or a few weeks
for proliferant country to make material for nuclear bombs once it had
reprocessing plants. It found that new technologies, including
electrometallurgical processing, resulted in "only a modest
improvement in reducing proliferation risk over existing PUREX
technologies and these modest improvements apply primarily for
non-state actors." The IEER report concluded that electrometallurgical
increases risks in other ways. For instance, it is far less difficult
to conceal a plant than the present PUREX technology.

Other key findings include the following:

-- Six decades of sodium cooled breeder reactor development has so far
resulted in failure. Historical experience indicates no learning curve
for the sodium cooled fast breeder reactor, which is the breeder
technology that has received the most development. In fact, the two
most recent large scale demonstration reactors, Superphénix in France
and Monju in Japan, have been failures. Superphénix had a cumulative
capacity factor of less than 8 percent before it was shut. Monju has
been closed for almost 15 years, following a sodium fire, and has not
generated a significant amount of electricity. Sodium cooled breeder
reactors are not commercial today despite global expenditures on the
order of $100 billion over six decades. They face a host of safety,
proliferation and cost hurdles to overcome, some arising from the fact
that they use liquid sodium for cooling. They are unlikely to be
commercial in the near future. For instance, Japan's estimated date
for commercialization of the sodium cooled fast breeder is 2050.
-- Storage of liquid high-level wastes creates some risk of catastrophic
releases of radioactivity. For instance, the Norwegian Radiation
Protection Authority has estimated that a severe accident at the
liquid waste storage facility in Sellafield, Britain, could result in
cesium-137 contamination between 10 percent and 5,000 percent of that
created in Norway by the 1986 Chernobyl nuclear reactor accident,
which is the worst commercial accident to date, by far. A catastrophic
release of radioactivity from a military high-level waste tank
occurred in the Soviet Union in 1957.
-- Using more than 1 percent of the uranium resource in a light water
reactor system is technically impossible even with reprocessing and
re-enrichment. In light water reactor systems, almost all the uranium
resource winds up as depleted uranium or in spent fuel. Even with
repeated reprocessing and re-enrichment, use of the natural uranium
resource cannot be increased to more than 1 percent in such a system.
A corollary is that the use of 90 to 95 percent of the uranium
resource or of the material in the spent fuel is impossible in a light
water reactor system even with reprocessing.


These are physical constraints that go with the system and also apply to France's system.

The IEER report also sets out a number of recommendations for the Blue Ribbon Commission on

America's Nuclear Future appointed by Energy Secretary Steven Chu:

-- Spent fuel from existing reactors should be slated for direct geologic
disposal without reprocessing of any kind; a suitable path for a
scientifically sound program should be set forth.
-- In the interim, spent fuel should be stored on site as safely as
possible - in low density configurations while in pools and in
hardened storage when moved to dry casks.
-- Breeder reactors and reprocessing are not commercial after six decades
of development of sodium cooled breeder reactors, and enormous
expenditures. Given the long time frame for commercialization
estimated even by some promoters, the proliferation risks, and efforts
already made, it does not appear to be a good investment to spend more
R&D money in that direction. Rather energy supply R&D resources should
be focused on development and deployment of renewable energy
technologies and energy efficiency.
-- The Commission should request the French company AREVA and/or the
French government to supply it with data on the present use of the
natural uranium resource purchased for French nuclear reactors,
including, specifically, the increases in fission fraction that have
actually been achieved by reprocessing and recycling.
-- The Commission should also request official data on Greater than Class
C waste equivalent expected to be generated on a life-cycle basis in
France, and the total volumes and heat generation of packaged waste
expected to be disposed of in a deep geologic repository, including
estimates of decommissioning waste.
-- The Commission should investigate the public support or lack thereof
for repository programs in France and Britain, the countries with the
longest history of commercial spent fuel reprocessing.
-- The Commission should make the same requests regarding the British
reprocessing program.
-- Official analyses of the mechanisms, probability, and consequences of
large accidental releases of radioactivity to the atmosphere from
liquid high-level waste storage in tanks should be requested from the
French and British governments.

ABOUT IEER


On March 24, 2010, IEER held a news conference to release documents acquired under the Freedom of Information Act (FOIA) showing that the outgoing Bush Administration inked 11th-hour agreements with more than a dozen utilities involving 21 proposed nuclear reactors. As IEER noted, between the output of existing commercial nuclear reactors and the 21 proposed nuclear reactors covered by the agreements quietly signed by the outgoing Bush Administration, the U.S. already has agreed to store enough spent (used) reactor fuel to fill the equivalent of not one, but two, Yucca Mountain high-level radioactive waste repositories. For more information on the March 24th news event, go to http://216.250.243.12/ieer/032410.cfm.

State-by-State Analysis of Waxman-Markey Cap and Trade Legislation Paints Dour Picture for Nation's Economy

/PRNewswire/ -- The National Association of Manufacturers (NAM) and the American Council for Capital Formation (ACCF) today unveiled a comprehensive study on the impact of The American Clean Energy and Security Act of 2009, also known as the Waxman-Markey Bill (HR 2454). The bill aims to reduce greenhouse gas emissions and to cap the amount of carbon that is emitted by U.S. industry. The legislation does so by mandating a cap and trade program and other provisions governing fuel choices available to businesses and consumers. This bill passed the House of Representatives by a slim margin (219-212) earlier this summer. The Senate is expected to release its version of climate legislation in September.

The study, which was commissioned by the NAM and ACCF and conducted by Science Applications International Corporation (SAIC) using NAM and ACCF input assumptions, assesses the impact of the Waxman-Markey Bill on manufacturing, jobs, energy prices and our overall economy. The NAM and ACCF released national data as well as the analysis for 15 industrial states that would be impacted greatly if this or similar legislation is signed into law. The full report, including the data covering the remaining 35 states will be released in the coming weeks.

Jay Timmons, executive vice president of the NAM said, "Climate change is a very complex issue and I hope Senators will look closely at this study as they consider climate change legislation this fall. At a time when our country is struggling to come out of our longest and deepest economic downturn since the Great Depression, lawmakers should be focused on policies that provide incentives for businesses so they can create jobs and grow. Unfortunately, this study confirms that the Waxman-Markey Bill is an 'anti-jobs, anti-growth' piece of legislation. Further, leaders of countries such as China and India have made it clear they have no intention of reducing their own emissions. Waxman-Markey would give an edge to overseas competitors, discouraging domestic investment and the creation of American jobs."

The NAM/ACCF study accounts for all federal energy laws and regulations currently in effect. It accounts for increased access to oil and natural gas supplies, new and extended tax credits for renewable generation technologies, increased World Oil Price (WOP) profile, as well as permit allocations for industry and international offsets. Additionally, the provisions of the stimulus package passed in February are included in this study. Key findings include:

-- Cumulative Loss in Gross Domestic Product (GDP) up to $3.1 trillion
(2012-2030)
-- Employment losses up to 2.4 million jobs in 2030
-- Residential electricity price increases up to 50 percent by 2030
-- Gasoline price increases (per gallon) up 26 percent by 2030


Dr. Margo Thorning, senior vice president and chief economist for ACCF, highlighted the importance of reviewing economic findings while debating the climate change legislation. "This data shows that we cannot divorce the environmental impacts from potential economic damages. Policymakers may have the best of intentions when it comes to the environment, but it's crucial that we compare the economic cost to the legislation's actual impact on global GHG reductions. Considering that developing countries such as China and India have publicly stated that they will not undertake similar emissions policies, there would be almost no global environmental benefits from the bill. Ultimately, this study shows that Waxman-Markey, would significantly decrease employment and increase energy prices at a time when we can least afford it."

Further, this study shows industrial states would be disproportionately impacted by high energy prices, loss of jobs and income. The 15 states analyzed in the initial study include:

1. Arkansas
2. Illinois
3. Indiana
4. Iowa
5. Kentucky
6. Michigan
7. Minnesota
8. Missouri
9. North Carolina
10. Ohio
11. Pennsylvania
12. Tennessee
13. Virginia
14. West Virginia

15. Wisconsin


SAIC used a modified version of the National Energy Modeling System, NEMS/ACCF-NAM 2, and the NAM and ACCF input assumptions, to quantify the impact of the Waxman-Markey bill.

"Policymakers and the public must have a clear understanding of the potential impact of climate change legislation to assess whether it will cause more economic harm than environmental good," concluded Timmons.

The national and 15 state-by-state economic impacts can be found by visiting: http://www.accf.org/publications/126/accf-nam-study

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New UPS Sustainability Report Sets Carbon Reduction Goal

(BUSINESS WIRE)--In a significant move that once again demonstrates its environmental leadership, UPS (NYSE:UPS) has adopted a plan to cut the carbon emissions of its airline by an additional 20 percent by 2020, for a cumulative reduction of 42 percent since 1990.

The goal is laid out in the latest edition of UPS’s Sustainability Report, released today at the website http://www.responsibility.ups.com/sustainability. The report shows the UPS Airlines already is a leader in fuel efficiency in the package delivery sector with an efficiency factor of 1.42 CO2 pounds per Available Ton Mile.

The report further discloses UPS’s total global carbon inventory including Scope 1 (direct) emissions as well as Scope 2 and 3 (indirect) emissions, a level of reporting unusual for its industry.

“We believe this is important not just for UPS but also for our customers and society,” UPS Chairman and CEO Scott Davis writes in the Sustainability Report. “The fact is that customers rely on the transportation and logistics industry as part of their supply chains. They need accurate information from the industry in order to calculate their own CO2 inventories and report them to the public. For that reason, we advocate full disclosure (Scopes 1, 2 and 3) for the entire transportation and logistics industry.”

The aircraft goal is the first of a series of carbon reduction goals that the company plans to set in the coming years, according to Bob Stoffel, UPS senior vice president and the executive responsible for UPS’s sustainability program.

“We set our first goal for aircraft emissions because our jet planes are the source of 53% of UPS’s carbon output,” Stoffel added.

UPS intends to achieve its 2020 airline goals by investing in more fuel-efficient aircraft types and engines; fuel-saving operational initiatives, and the introduction of biofuels.

The report extensively outlines UPS’s approach to reducing its environmental impact and explains how the company intends to make improvements going forward. The report also discusses in detail how the company uses an integrated and flexible transportation network to reduce its carbon intensity and save fuel.

“This is the most comprehensive, data-rich and global report we have ever produced since UPS released the industry’s first report in 2002,” Stoffel said. “It is a showcase of our renewed commitment to transparency and sustainable business practices.”

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Statement by the American Clean Skies Foundation Regarding PGC Report Confirming America's Abundant Supply of Clean-Burning Natural Gas

/PRNewswire/ -- The Potential Gas Committee's study on natural gas supply in the United States, unveiled by the American Gas Association in Washington, D.C., reinforces the fact that America has an enormous supply of recoverable natural gas. According to the study, America's own natural gas supply is capable of meeting the country's industrial, power generation and transportation needs for the next 100 years. Additionally, the abundance of natural gas in the United States means we can also considerably increase the use of it to meet the country's desire for cleaner, more reliable domestic energy.

The results of this biennial assessment support the findings released approximately one year ago by our group, the American Clean Skies Foundation, through a groundbreaking study conducted by Navigant Consulting, Inc. Those findings were the first validation that there are enormous supplies of domestic natural gas contained primarily in deep natural gas shale formations across the country.

Natural gas is the only domestic fuel capable of quickly lowering our dependency on foreign oil from unstable suppliers in the Middle East, Africa and Central and South America. As a significantly cleaner-burning fuel, natural gas is also the only fuel source available right now to help meet carbon-reduction goals without the added expense of high-cost carbon sequestration investments.

As this report underscores, domestically produced, clean-burning natural gas is indeed affordable and abundant. Now is the time to move America forward on a path toward a promising and new clean energy future, built on the increased usage of alternative and renewable energy sources, and led by America's own natural gas.

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GridWise Alliance Releases Smart Grid Jobs Report: 280,000 New U.S. Jobs Tied Directly to Smart Grid Deployment

/PRNewswire-USNewswire/ -- In a Smart Grid Jobs Report released today by the GridWise Alliance, it is estimated that up to 280,000 new jobs can be created directly from the deployment of smart grid technologies. The report explains that Federal investment in a smart grid could act as a catalyst for these planned and immediate direct jobs as well as spawn many indirect jobs.

The Smart Grid Jobs Report was written by GridWise member company, KEMA, Inc. In addition to the 280,000 direct jobs, the report notes that a smart grid will drive a substantial number of indirect jobs as it enables the deployment of new technologies such as plug-in hybrid electric vehicles, distributed renewable energy resources such as solar, smart appliances, home automation software and hardware, and wind energy generation. The report does not quantify the number of these indirect jobs. To view the full report visit www.gridwise.org.

"Increasingly a smart grid is seen as a key enabler for the new energy economy and as such, is foundational for the millions of 'green collar jobs' President-Elect Obama is aiming for," says Guido Bartels, Chairman of the GridWise Alliance and General Manager Global Energy & Utilities Industry at IBM.

The report projects that a $16 billion Federal investment in smart incentives over the next four years would drive $64 billion in smart grid related projects resulting in approximately 280,000 new direct positions across various categories. "Over 150,000 of these jobs would be created by the end of 2009 and nearly 140,000 newly created high-value positions would become permanent after a smart grid deployment," explained Ralph Masiello, Sr. VP, Energy Systems Consulting, KEMA, Inc.

"We know first-hand that a smart grid allows our electric infrastructure to be more reliable, resilient, and secure. There is also a growing consensus that a smart grid is one of the critical and necessary enablers for optimizing renewable resources, maximizing energy efficiency, and unleashing the potential of distributed energy storage technologies," said Katherine Hamilton, President of the GridWise Alliance.

President-Elect Obama and key Senate and House leaders have frequently mentioned a smart grid as an economic and infrastructure booster. The GridWise Alliance, with 70 members from all across the energy value chain, believes that a smart grid is essential to achieving goals for integrating energy from renewable resources and energy efficiency technologies such as plug-in hybrid electric vehicles.

"A smart grid will enable a transformed electric supply sector and related job creation; incentivize a strong domestic market for U.S. smart grid technology firms; and create high value permanent positions in the energy economy," concludes Hamilton.

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OPEC Attempts Shock Therapy for Declining Demand: Abraham Energy Report

/PRNewswire-USNewswire/ -- The Abraham Energy Report today issued a special analysis to subscribers of OPEC's decision Wednesday to cut production by 4.2 million barrels per day.

A special Web-only bulletin from the Abraham Energy Report (AbrahamEnergyReport.com) advises subscribers that "the cut is the largest the organization has attempted at one time in its history to date" and that the "agreement was swift with little apparent dissention."

The recent collapse in oil prices by almost $100 per barrel is a symptom of the slowing economy. "Global oil demand is now certain to shrink in 2008 for the first time in 25 years, and a consensus is developing around the notion that demand will fall next year as well," the Report said.

The Report also noted OPEC had to take action. "After some months of relative inaction, OPEC now appears to be racing ahead once again in an attempt to catch up with a declining market. But bringing supply and demand into better balance next year will still prove to be tricky, especially in the first half of 2009 when demand could be its weakest. In addition to the uncertain global economic outlook, the big wild cards in this deck now appear to be the size of the growing inventory overhang, the degree of OPEC compliance with the agreed cuts, and the uncertain outlook for non-OPEC supplies."

The Report also discussed the question of compliance by OPEC members. "If the latest round of cuts succeeds in shocking the market and nudging prices upward, revenues will improve and possibly make compliance an easier pill to swallow. On the other hand, higher prices could prove to be a strong temptation to produce more, and lead to quota busting. This will be especially true for Venezuela, Iran, Nigeria and Ecuador, as well as Russia, who are all facing difficult political choices at home.

"As a result, it's possible that we could see a considerable amount of seesawing in prices and OPEC output over the course of next year. OPEC also has to be wary of the world's fragile economic condition. Some in OPEC view the drop in oil prices as their contribution to economic recovery, and some may be better prepared and able to live with relatively low prices for a year or two.

"OPEC may have some limited success in preventing prices from falling much further, but it seems doubtful that they will succeed in raising prices to $75 per barrel anytime soon. Sustained higher prices may only be possible when the global economy shows definite signs of recovery and renewed growth," the Report concludes.

The Abraham Energy Report's analysis by Contributing Editor John Brodman is available on its Web site at AbrahamEnergyReport.com.

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