In light of the challenges we have faced as a nation in responding to the COVID-19 crisis, public health experts have been discussing the “panic-neglect cycle” of America’s preparedness (or lack thereof) for a pandemic. For even longer, there has been a similar dynamic at play when it comes to our energy policy. And with fossil fuel prices now temporarily depressed, it is easy to fall back into the “neglect” camp. However, if history is any judge, this crisis too shall pass, and with it, the low energy prices that we are now witnessing.
As tragic and disruptive as the COVID crisis has been, we are fortunate that this is unfolding in the spring as opposed to fall or winter or coinciding with extreme weather. Competing with power outages or high heating bills in addition to all of the other stresses going on would have made this so much worse (spiking gasoline prices caused the first dominos to fall during the Great Recession).
However, with energy normally used at work or school shifting to our homes with all the computers, dishwashers, lights and other electricity-consuming households appliances running much more than they were a few months ago, households are bearing an additional financial burden because of the COVID crisis just as incomes are decreasing or disappearing all together.
During the depths of the Great Recession, the American Recovery and Reinvestment Act invested in energy efficiency and renewable energy, not only jump-starting hiring but also serving as a catalyst for the adoption of new technologies. What better way to put people back to work now than making improvements that lower household energy costs, improve air quality, keep energy dollars circulating in our local economy and reduce our dependence on fossil fuels shipped in from out of state or out of our country. Another benefit of such investments is that energy expenses become more predictable and stable for the system as a whole and much less impacted by the vagaries of international energy markets.
By making capital investments now, which will result in lower electricity and thermal energy demand in the future, we can do our part to strengthen our state, our region and our country so that we are less vulnerable when the next crisis comes. There is even an existing source of funding that could pay for such an initiative: the $5 million Clean Energy Fund established through Eversource’s divesture of generation assets in 2017. These funds have been sitting idle while how to put them to work is debated, with one idea being to use them for loan loss reserve for energy efficiency and renewable energy projects. This is far from the most impactful way these dollars could be used, and in this recessionary environment, it is naïve to think this would entice new lenders into making these very specific and esoteric type of loans.
It is time to make direct investments with some urgency for a clean and resilient energy future for New Hampshire. Labor is more readily available than it has been in years, there is hope a compromise can be reached on net metering legislation, and construction season has started. Let’s put these dollars to work now.
(Kevin Porter of Concord is vice chairman of Clean Energy NH.)