About Alternative Energy

What is an alternative energy?

An "alternative energy" is an alternative to conventional energy sources. In most cases, these alternatives are attractive because they are cleaner and/or renewable. "Alternative energy technology" refers to the science and equipment we use to collect energy from a given source, like wind, and use it in a different way, such as electricity.

A different way to think about it

It is important to understand that people have long used energy sources we label "alternative." The energy has always been there, and people have often used it, but communities are starting to use the energy in new ways. People the world over use wind to propell their sail boats, which is a traditional use of the energy of wind. We can also use wind to make electricity, which is a newer and less common use of wind.

The table above illustrates the difference between conventional
uses of energy sources and alternative uses of the same sources.
It is neither complete nor exhaustive.

Comparing Costs

When determining the fuel source to use in constructing a new generating plant, "levelized" cost is usually used to determine which technology and energy source will be least cost. Levelized costing considers all capital, fuel, and operating and maintenance costs. In levelized costing, capital costs are amortized over the expected power output for the life of the plant.

The Energy Information Administration estimates the levelized costs of all generating technologies using its National Energy Modeling System. The table to the right shows decision-year 2000 cost and performance information, for fossil and renewable technologies for the major regions of the country best suited for renewables.

• Although geothermal energy appears to be the least costly of the technologies compared in the California-Southern Nevada power area, there is very limited capacity available for development at 37.6 mills per kilowatthour.
• Wind power offers a 10-percent cost advantage over natural gas combustion turbine technology. However, wind technology is intermittent and therefore cannot be fully credited for firm capacity.
• The levelized cost of biomass power is about double that of wind and gas combustion turbines. The biomass power cost, however, does not include any credit for waste disposal costs that might be otherwise incurred.

It is worth reiterating that site-specific conditions are critical to the economic feasibility of renewable electric generating plants. The National Energy Modeling Systemdoes not assess generating plant feasibility on a site-specific basis.

Source for data and summary - Energy Information Administration, Challenges of Electric Power Industry Restructuring for Fuel Suppliers