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The Energy Policy Act of 2005 and it’s Impact on Distributed Generation
The Energy Policy Act of 2005 substantially modifies a number of past energy legislation and adds new legislation. This will impact the applications, R & D efforts and perhaps how electricity will be delivered and utilized in the foreseeable future. A part of the bill has the stated purpose of achieving energy self-sufficiency by the year 2025 (a very ambitious goal) within the United States, Canada, and Mexico. This bill also has provisions for anyone wishing to connect to the existing power grid (either at the transmission or distribution level) and sell power to a utility or other entity including incentives for generation of electricity from certain types of sources. This paper will provide a comprehensive review and describe the impact of this bill on distributed generation, the electricity market, the national electrical grid, and the future of how electricity will be delivered in the U.S. within the Energy Policy Act of 2005.
“To ensure jobs for our future with secure, affordable, and reliable energy,”  thus begins the Energy Policy Act of 2005 which includes measures ranging from the modification of daylight savings time to the initiation of a program to produce hydrogen from both new and existing nuclear facilities. The section of the bill titled “Set America Free Act of 2005” has the further stated purpose of “making recommendations for a coordinated and comprehensive North American energy policy that will achieve energy self-sufficiency by 2025 within the contiguous North American nations of Canada, Mexico, and the United States.”
The press release issued by the White House when the bill was signed stated that “The President’s national energy plan will encourage energy efficiency and conservation, promote alternative and renewable energy sources, reduce our dependence on foreign sources of energy, increase domestic production, modernize the electricity grid, and encourage the expansion of nuclear energy.” Part of the plan set out in this bill directly impacts generation connected at the distribution level.
|The Energy Policy Act of 2005 and it’s Impact on Distributed Generation|