energy paper

Running head: ENERGY 1

ENERGY 2

M1A1 Clean Energy Incentive Program

Clean Energy Incentive Program

It is one of the policies implemented under the Energy Independence and Security Act of 2007. This program allows states and other organizations to voluntarily join in the usage of clean and renewable energy to supply energy. In return, they can incentivize this investment by eligibility for allowances and credits. The policy also allows for investments in programs that allow for energy efficient projects in low income communities. The program aims at encouraging the widespread usage of clean energy especially renewable forms of wind and solar. It also aims to provide employment to citizens in the various plants producing renewable energy. According to this policy, the companies that produce renewable and clean energy will be compensated for every megawatt-hour electricity generated. The targeted renewable sources of energy include but are not limited to solar energy, wind energy hydro and geothermal energies.

Desired outcomes of the program

To begin with, the program aimed at an extended usage of renewable and energy efficient sources of energy in the country. There has been a remarkable penetration of the market for renewable energy in different states all over the country. This is a projection that there is extensive usage of renewable energy all over the country.

Secondly, with the increased production of renewable energy and with an increasing market demand, companies producing renewable energy have been set up. These companies need workers and therefore, the manpower required has been obtained from the country’s population. This has consequentially resulted in the provision of employment all over the country.

Finally, the use of energy efficient sources highly rooted for by the Clean Energy Incentives Program has resulted in the development of these sources especially in low income communities. This provides efficient energy uses for these low-income communities thus conferring numerous advantages.

Impact on associated Technologies

With the development of renewable energies and efficient energies usage across the country, there ahs been need for manufacture and usage of associated technologies in providing the energies. Also, increased market demand for renewable energy and energy efficient sources has led to increased demand for technologies producing them. This has positively impacted on these technologies since they have to be constantly developed. Companies that are tasked with the duty of manufacturing these technologies and developing the software used in production of these energies have in the past years experienced an increase in profit resulting from extensive demand and usage of their products.

Unintended consequences

With the implementation of clean energy incentives program, most companies and households across the state that require constant energy supply have opted for the use of renewable energy sources for provision of these services. The resulting effect is that there is lower market for those companies still producing non renewable energy sources. They consequentially receive lower marginal profits and may have to retrench some of their workers in order to maintain their positions in the market system.

References

FACT SHEET: Clean Energy Incentive Program. (2017, May 9). Retrieved from https://archive.epa.gov/epa/cleanpowerplan/fact-sheet-clean-energy-incentive- program.html

Herath, N., & Tyner, W. E. (2019, September 10). Intended and unintended consequences of US renewable energy policies. Retrieved from https://www.sciencedirect.com/science/article/abs/pii/S1364032119305933

Programs & incentives for energy efficiency. (2019). Retrieved from https://www.energysage.com/energy-efficiency/costs-benefits/ee-programs/

Project, T. C. R. (2019, November 6). Here's Why the EPA's Clean Energy Incentive Program Matters. Retrieved from https://www.climaterealityproject.org/blog/why-clean-energy- incentive-program-matters