The first week of the new administration has provoked a flurry of speculation about the status and future of American energy policy, from the efficacy of a carbon tax to the structure of new clean energy incentives. It is certainly an exciting time for the world of renewables, solar in particular.
It is worth nothing, however, a tendency on the part of Americans – myself included – to view energy innovation and the embrace of clean power as a Western phenomenon, motivated largely by a desire to break the stranglehold of third world – particularly Middle Eastern – oil. In the meantime, however, the Persian Gulf is not sitting back on its heels, and is paying quite a bit of attention to the opportunities in clean energy. This is not trivial investment, either, according to a fascinating New York times report. To cite one example, the $15 billion in money going towards renewable energy innovation in Dubai from only one of its emirates (states, essentially) could be on par with the equivalent public investment in the entire United States for the near future. It’s a staggering reminder of the wealth and savvy of energy interests in the Gulf.
The obvious question to ask is whether this represents the kind of token investment that big companies or magnates often engage in; tobacco companies funding anti-tobacco campaigns to dodge lawsuits, American oil companies putting money into hydrogen cars they hope will never work, etc. From most indications, this isn’t the case. Instead, the beneficiaries of Middle Eastern oil resources are attempting to lay the groundwork to seize a significant chunk of the next big energy pie.
What’s the end-implication for an American citizen? On the positive end, this investment can only help fuel improvements in solar technology; grants to American universities and even non-stateside technical research will improve and increase the suite of options that will eventually be available to an American consumer. Competition with foreign investment, as well, could spur American efforts to try to take a lead in the global green transition.
This could, however, be a perilous situation if the United States does not aggressively seek to own its energy destiny. The twentieth century – and the beginning of the twenty-first – has in many ways been a story of curtailed options and negatively influenced decisions surrounding a lack of control over the course of our own energy position. If America chooses to rest, stall, and delay on green energy initiatives, and fails to aggressively expand and strengthen its renewable energy market, Americans could find themselves again outpaced by foreign-owned firms, technologies, and energy sources, placing us into a rather counter-intuitive but all-too-familiar position of energy subservience despite cleaner surroundings. In other words, while the example of forward-thinking energy policy on the part of Middle Eastern oil is inspiring, if it fails to inspire real action then the country could miss out on one of the major benefits of its coming energy revolution; we might find the new boss is the same as the old boss.
Great post, Eric–it’s definitely important to remember that although no on can monopolize the sun (or wind or tides, etc.), someone can certainly own the technology that most efficiently utilizes that resource. Hopefully the US can start playing catch-up in this field now that our administration doesn’t subscribe to a “good to the last drop” energy policy!