Obama Backs Renewable Energy

The need for a comprehensive renewable energy policy is so apparent that all three candidates in the last two presidential elections have publicly competed to promote their own versions of it. Judging by the results of those elections, the Obama energy policy is a clear favorite with the public. But what is Obama's energy policy? What opposition does it face, and what impact will it have on the utilities industry? These questions have to be answered before anyone, inside the industry or out, starts making plans for the transition.

The Obama energy policy has the support of at least one powerful interest in Washington—the President himself. On March 15, 2012, President Obama endorsed what he called an "all-of-the-above" policy for developing domestic energy sources. While he might have been hedging to avoid giving offense to conventional suppliers, President Obama has historically favored a strong commitment to a largely renewable energy policy that leans heavily on wind and solar power.

This position is borne out by the public statements of cabinet members. The latest effort is by Energy Secretary Steven Chu, who called on Congress to support the creation of master/limited partnerships in the utilities field as a way of attracting investment capital and spurring development in new renewables technology.

Obama's energy policy has lately been focused on lending executive support to the legislation, with an eye toward the gradual development of cheaper, more efficient wind and solar devices. Senator Chris Coons (D-Delaware) has led the support for the Obama energy policy in the legislature and foresees more bipartisan support in the House after the 2014 election, which is predicted to deliver a majority to his party. Assuming this aspect of the policy succeeds in winning Congressional approval, Secretary Chu predicts cheaper capital and lower entry barriers to renewable development.

The effect of the law cannot be considered in isolation. Assuming a major implementation of the Obama energy policy nationwide, workers in the utilities industry will see serious changes in work and employment patterns within just a few years. At first, during the development stage, high-tech, high-skill labor will be more in demand than at present, as new technologies are developed with the cheap capital from the proposed partnerships. Afterward, more conventional skills will be in demand, from network engineers to general labor, in support of what amounts to a second, cleaner energy infrastructure being built on top of the old one.

The Obama energy policy is a bold call to action that has the potential to touch every life in America. For several years, the administration has been building support among power blocs in Congress and the executive bureaucracy for a major overhaul, and those efforts are starting to bear fruit. It remains to be seen how much of the Obama energy policy gets translated into actual policy, but so far signs are hopeful.

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