On December 5th, 2013 U.S. President Barack Obama signed a memorandum directing the nation's federal government to meet 20% of its electricity demand with renewable energy sources by 2020, more than double the current level. As a first step, agencies are required to source 10% of their electricity from renewables by 2015.
This move is the latest step in U.S. President Barack Obama's Climate Action Plan, which was announced in June 2013. The increase in renewable energy goals was praised by the Solar Energy Industries Association (SEIA, Washington D.C.).
“This is a landmark moment in our nation’s history,” said SEIA President and CEO Rhone Resch. “Today, climate change is a real and growing threat to America and the rest of the world. It’s indisputable. Sea levels are rising. Arctic ice is disappearing. We’re experiencing more intense and unpredictable storms. And droughts plague the world.”
“From an environmental perspective, few things threaten our nation’s future prosperity and way of life more than climate change. That’s why it’s so important for the federal government to lead by example. We applaud President Obama for standing firm and following through on a key commitment he made as part of his Climate Action Plan.”
The memorandum lays out a priority sequence for renewable energy procurement, with building agency-funded on-site renewable energy systems and retaining renewable energy credits as the preferred method. Contracting for a renewable energy installation either on-site or off-site would be the the next most-preferred option.
In its response to the action, SEIA has called on the Obama Administration to develop a procurement process that allows PV to compete evenly with fossil fuels, including giving federal agencies the authority to negotiate long-term power purchase agreements (PPAs).
The agency described current federal electricity procurement practices as “outdated”, and noted the wide use of renewable energy PPAs among major corporations.
The agency described current federal electricity procurement practices as “outdated”, and noted the wide use of renewable energy PPAs among major corporations.
The federal renewable energy memorandum follows a December 4th, 2013 announcement by the U.S. Department of Agriculture (USDA) that it will provide up to USD 250 million to rural electric cooperatives for loans to support residential and commercial energy efficiency improvements and renewable energy systems.