Alternative Energy Sources Assignment, Essay Example

Abstract

The objective of this work is to discuss the various types of alternative energy sources. This work will investigate why it is important for the United States to find alternative energy sources. Finally, this work will examine the incentives offered by the United States for different companies to focus on finding alternative energy sources as well as instituting tax breaks for business people that use alternative energy sources. This work examines the literature in this area of study and states a conclusion that alternative energy sources hold great potential for present and future innovators. As well, financial incentives for development and use of alternative fuel sources are plentiful in the United States and throughout the world.

Introduction

The objective of this work is to discuss the various types of alternative energy sources. This work will investigate why it is important for the United States to find alternative energy sources. Finally, this work will examine the incentives offered by the United States for different companies to focus on finding alternative energy sources as well as instituting tax breaks for business people that use alternative energy sources.

A World Without Electricity

Sally Morgan writes in her work entitled “Alternative Energy Sources” that the individuals living in the state of California “discovered what it would be like to live in a world where electricity was in short supply…during 2001.” (p. 3) The supply of electricity was not equal to the demands and electricity was down in entire districts for hours. This situation resulted in many in the state of California looking toward alternative energy sources. Morgan relates that today’s world is highly dependent on fossil fuels, which includes the following:

1. oil;
2. gas;
3. coal; and
4. peat. (Morgan, p. 4)

The supply of fossil fuel will be depleted eventually and as well fossil fuel procurement results in great damage to the environment and this is at each stage in the process, which includes:

1. extraction;
2. processing; and
3. utilization of fossil fuels. (Morgan,  p. 4)

Alternative Energy Sources Identified

The dependency of the United States on fossil fuels is stated to be a great portion of the problems that are being experienced. Presently fuels including oil and coal power are reported to “account for greater than 80 percent of worldwide consumption.” (Craddock,    , p. 16) Alternative energy sources include such as: (1) wind generated electricity; (2) trapping light; (3) water power; (4) ground heat; (5) nuclear energy;  (6) solar power and (7) biopwer. (Morgan, 2009) There are other energy sources as well. The alternative fuel sources are stated to be “sustainable energy sources” and to be found practically anywhere. Craddock states that the Middle East is not invaded by other countries in order to “restock sunlight”. (Craddock,    , p. 18) Craddock states that some types of renewable energy “carry more negative points than others.” (   , p.18)

Incentives to Identify and Utilize Alternative Energy Sources

The United States along with Germany, India, Denmark, Netherlands, United Kingdom, China and others have developed “…policies for renewable energy development that include a package of financial incentives to encourage investment.” (Piscitello and Bogach, 1998, p.  4) The financial incentive package for each of these countries has been especially designed for the economic, legal and fiscal systems of each individual country. The types of incentives are stated to include:

• Concessional import duties;
• Excise tax benefits;
• Corporate and personal income tax benefits (tax exemptions, holidays, credits and deductions as well as accelerate depreciation);
• Subsidies against investment costs;
• Low-interest loans; and
• Premium power purchase prices. (Piscitello and Bogach, 1998, p. 4)

It is reported that There has been a federal 1.5 cents k/Wh production tax credit since 1992 in the U.S. and 10% wind investment tax credit. Between 1983-1991 a requirement was placed on utilities to issue standard 15-30 year power purchase agreements with option of high foxed princes for initial 10 years.” (Piscitello and Bogach, 1998,  p. 6) Other incentives are stated to include multiple federal and state tax benefits including accelerated depreciation. (Piscitello and Bogach, 1998, p.  4) Reported as well are financial incentives, which are based on performance in terms of “efficiency in planning, development, technical and cost.” (Piscitello and Bogach, 1998, p.  4, 1998, p. 11) Grid-connected projects are related to performance based incentives stated to be typically provided on a per=kilowatt-hour (kWh) basis.” (Piscitello and Bogach, 1998, p.  7)

Summary and Conclusion

The stated objective of this work was to discuss the diverse alternative energy sources available for use. Toward this end, this work has related the various alternative energy sources as well as explaining the importance for the U.s. to locate alternative energy sources. The U.S. has been too long dependent on the Middle East for its energy source and as well, fossil fuel energy sources are becoming rapidly depleted as well as posing a great risk to the environment which is already under a great strain due to climatic changes. This work has additionally related the state and federal incentives available to businesses and individuals who actively seek to utilize alternative energy sources. For those who are innovators, the future does not seem dark but full of potential alternative energy sources for heat and electricity generation in homes and businesses throughout the United States.

References

Craddock, D. (2008) Renewable Energy Made Easy: Free Energy from Solar, Wind, Hydropower, and Other Alternative Energy Sources. Atlantic Publishing Company 2008. Retrieved from: http://books.google.com/books?id=W7wnjkSm1ZMC&dq=Alternative+energy+sources&source=gbs_navlinks_s

Morgan, S. (2009) Alternative Energy Sources. Science at the Edge. Heinemann-Raintree Library 2009. Retrieved  from: http://books.google.com/books?id=cnE_b4tlqA4C&dq=Alternative+energy+sources&source=gbs_navlinks_s

Piscitello, E.S. and Bogach, V.S. (1998) Financial incentives for renewable energy development: proceedings of an international workshop, February 17-21, 1997, Amsterdam, Netherlands, Parts 63-39. World Bank Publications, 1998. Retrieved from: http://books.google.com/books?id=0O3XShcu98EC&dq=Incentives+to+Identify+and+Utilize+Alternative+Energy+Sources&source=gbs_navlinks_s