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Renewable Energy Trends, Options, and Potentials for Agriculture, Forestry, and Rural America

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Renewable Energy Trends, Options, and Potentials for Agriculture, Forestry, and Rural America Office of the Chief Economist U.S. DEPARTMENT OF AGRICULTURE RENEWABLE ENERGY TRENDS, OPTIONS, AND POTENTIALS FOR AGRICULTURE, FORESTRY, AND RURAL AMERICA How to Obtain Copies: You may electronically download this document from the U.S. Department of Agriculture’s Web site at: https://www.usda.gov/sites/default/files/documents/renewable-energy-trends-2020 For Further Information, Contact: Jan Lewandrowski, USDA-OCE Project Manager ([email protected]) Bill Hohenstein, Director, USDA-OCE Office of Energy and Environmental Policy ([email protected]) Diana Pape, ICF Project Manager ([email protected]) Suggested Citation: Schultz, Craig, D. Man, J. Rosenfeld, M. McCurdy, M. Anderson, K. Jaglo, B. Goossen, M. Kaffel, J. M. Farrell, F. Wissell, T. Hendrickson, J. Lukas, T. Buchholz, I. M. Xiarchos, W. Hanson, J. Lewandrowski, D. Pape, 2021. Renewable Energy Trends, Options, and Potentials for Agriculture, Forestry, and Rural America. March 2021. U.S. Department of Agriculture, Office of the Chief Economist. This report describes conditions and trends observable in renewable energy markets over the period 2000 through 2019. All data, Government and private sector reports, peer reviewed literature, and other materials cited in this report are publicly available. Events that have impacted renewable energy markets since the beginning of 2020, including the COVID-19 pandemic, are not reflected in this report. Any views presented in this paper are those of the authors and do not represent the views of USDA. Use of commercial and trade name does not imply approval or constitute endorsement by USDA. USDA is an equal opportunity provider, employer, and lender. RENEWABLE ENERGY TRENDS, OPTIONS, AND POTENTIALS FOR AGRICULTURE, FORESTRY, AND RURAL AMERICA Table of Contents Executive Summary ....................................................................................................................... 1 1. Introduction .............................................................................................................................. 26 2. Public Policies to Incentivize Adoption of Renewable Energy in Agriculture, Forestry, and Rural America ........................................................................................................................................ 28 Historical Policy Development (1970–2009) .............................................................................. 28 Current Policy Landscape (2010–2020) ..................................................................................... 31 Future Direction and Intended Impacts of Current Policies ................................................... 38 References .................................................................................................................................... 40 3. Bioelectricity ............................................................................................................................. 43 Technology Characterization .................................................................................................... 44 Current Level and Cost of Adoption and Regional Distinctions ............................................ 48 Adoption Impacts ........................................................................................................................ 60 Dominant Ownership/Financing Model .................................................................................... 65 Anaerobic Digesters .................................................................................................................... 65 Challenges to Extending Adoption ........................................................................................... 71 References .................................................................................................................................... 73 4. Solar Energy .............................................................................................................................. 79 Technology Characterization of PV .......................................................................................... 80 Current Level and Cost of Adoption and Regional Distinctions for PV ................................. 84 Adoption Impacts of PV.............................................................................................................. 92 Dominant Ownership/Financing Model For PV ........................................................................ 96 Battery Energy Storage: Supporting Technology ..................................................................... 98 Solar Water and Air Heating Systems ........................................................................................ 99 Challenges to Extending Adoption ......................................................................................... 102 References .................................................................................................................................. 104 5. Wind Energy ............................................................................................................................ 108 Technology Characterization for Utility-Scale Systems ......................................................... 109 Current Level and Cost of Adoption and Regional Distinctions .......................................... 111 Dominant Ownership/Financing Model for Utility-Scale Systems ......................................... 122 Distributed Wind Energy Systems ............................................................................................. 123 Challenges to Extending Adoption ......................................................................................... 125 References .................................................................................................................................. 126 6. Corn Ethanol Refineries ......................................................................................................... 130 Corn Feedstock Characterization ........................................................................................... 130 Technology Characterization .................................................................................................. 131 Current State of Adoption and Regional Distinctions ........................................................... 134 Adoption Costs........................................................................................................................... 136 RENEWABLE ENERGY TRENDS, OPTIONS, AND POTENTIALS FOR AGRICULTURE, FORESTRY, AND RURAL AMERICA Adoption Impacts ...................................................................................................................... 138 Dominant Ownership/Financing Model .................................................................................. 140 Policies to Encourage Adoption .............................................................................................. 140 Challenges to Extending Adoption ......................................................................................... 145 References .................................................................................................................................. 148 7. Biodiesel and Renewable Diesel ......................................................................................... 152 Technology Characterization .................................................................................................. 154 Biodiesel Feedstocks .................................................................................................................. 157 Current State of Adoption and Regional Distinctions ........................................................... 159 Adoption Costs........................................................................................................................... 161 Adoption Impacts ...................................................................................................................... 164 Dominant Ownership/Financing Model .................................................................................. 165 Policies to Encourage Adoption .............................................................................................. 165 Challenges to Extending Adoption ......................................................................................... 169 References .................................................................................................................................. 172 8. Agriculture and Forestry Energy Crops ............................................................................... 176 Bioenergy Crops and Their Renewable Energy Uses ............................................................. 178 Availability and Current Production of Bioenergy Crops ...................................................... 184 Favorable Locations for Production ........................................................................................ 187 Production and Use Costs and Potential Environmental and Land Use Impacts .............. 189 References .................................................................................................................................. 193 9. Wood Pellets and Wood Chips ............................................................................................. 198 Renewable Energy Uses ...........................................................................................................
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