Dive Brief:
- Ohio froze its clean energy standards last year amid much debate, and state lawmakers are now debating whether to reenact them as they were, adjust them or kill the program off entirely.
- Last summer, Ohio Gov. John Kasich signed a Republican-sponsored and utility-backed measure freezing the state’s mandates for renewables and efficiency until 2017.
- As debate continues as to the appropriate levels, some observers say the state's decision may be costing it billions of dollars in clean energy investment, and there is doubt that Kasich would support a full repeal of the standards.
Dive Insight:
Lawmakers in Ohio are considering what to do with the state's renewable and efficiency mandates – now frozen after a fierce debate last year – but The Columbus Dispatch reports the final outcome is more likely to be a reduction in targets than simply tossing the program.
“I think everything is still on the table,” state Sen. Troy Balderson (R), told the newspaper. “I’d like to see the standards go down somewhat.” He is co-chair of the Energy Mandates Study Committee, which this week had its final meeting. Recommendations from the group are due to House and Senate leaders by the end of September.
While it seems unlikely the state would extend the freeze permanently, with mandates set to go back into effect next year the targets do look steep – a 12.5% renewables goal by 2027, and 22% efficiency savings in the same time frame.
Two years ago the state had 692 MW clean energy capacity: 62% from wind power and about 15% each from hydro and solar.
The state's business climate may be having an impact on the debate.
Prior to last year, Ohio was on its way to becoming a major destination for wind energy projects. Navigant Research's data showed wind power installations in the state totaled 420 MW and attracted $755 million from 2009 to 2013. And analysis by Pew Charitable Trusts found Ohio attracted $1.3 billion in private clean energy investment from 2009 to 2013 — and was predicted to generate an additional $3.3 billion over the next decade. The freeze in the renewables and efficiency mandates derailed much of that investment, and the clean energy sector has been clamoring for their return.
