McKinsey recently published a study on the costs of reducing US greenhouse gas emissions [GHG's]. This study looks at the costs of abating the amount of carbon we use in our economy and lifestyle and assigns a value, based on current technologies and cost, of different abatement options.
Sustainability is rapidly becoming a priority for those of us in the real estate and renewables business. The most significant take-away was that the cost of becoming sustainable is not as forbidding as some think. McKinsey brought an analytical structure to looking at the costs and benefits--giving us a robust point of departure for determining what we build and where.
What struck me was the potential of PV in California and the West to be a dramatic driver for reducing our carbon footprint, insulating us from escalating energy prices, and adding value to real estate. The math really does work...
"...distributed generation with photovoltaics represent considerable abatement potential. In total, distributed solar PV could achieve nearly 50 gigawatts of capacity by 2030..."
PV was one of more than 250 abatement options McKinsey researched, from swapping out light bulbs to buying that Prius.
PV is not a slam dunk. The US is late [this time] to this global technology, and there is a significant inelastic response to new ways we develop, build, and operate real estate.
"...abatement from solar power exhibits the widest range of potential outcomes. In 2005, the US had less than 0.5 gigawatts of installed solar PV capacity. By 2030, the US could have somewhere between 28 and 148 gigawatts of solar pv capacity, depending largely on the degree of cost compression and learning rates achieved for production and installation."
California is at the head of the pack--we have a favorable climate for integrating this technology into our built environment, our Governor has set up a ten year funding program to aid cost compression, and our power costs are high--and increasing. And we have great sunshine.
I recommend you spend some time going through this study. For a country that put a man on the moon, reducing our carbon footprint is a much more manageable moon-shot--but we need to get going. Now.