Today the Virginia Alternative and Renewable Energy Association (VA-Area) held their first annual conference at the Omni in downtown Richmond.  There were over 200 attendees representing domestic alt-energy producers (e.g. solar, biomass, and wind) from around the Commonwealth. 

I participated in a two-hour (!) panel on Virginia's renewable energy future that was moderated by the Secretary of Natural Resources, the very able Preston Bryant.   The panelists included Dr. Patrick Hatcher, the "algae biodiesel" guru from Old Dominion, and Steve Walz, the current energy czar for the Executive Branch.

The discussion was wide-ranging and featured audience questions.  There is great interest in domestic alternative energy in this state, despite the ongoing recession which has depressed energy and fuel prices (thus taking away the most powerful incentive to drive alternative investment).

The first reason for the ongoing interest is simply the wealth of opportunities that Virginia affords in its natural resources.  No other Mid-Atlantic state has our combination of coastal winds, rolling farms and wooded forests.  The second reason is the amount of Federal grant opportunities which are out there for clever entrepeneurs.  By the administration's estimate, there is approx $300 million available in stimulus funds in this state alone for energy-related projects. 

However, with all these natural and political advantages, Virginia has done a weak job of converting these opportunities into a renewable energy industry.  The primary reason has been the inability of the General Assembly to pass actual mandates or incentivize green industries.  Instead, we are muddling along with a 20th century model for energy production and distribution. 

Anyway, this was all discussed today before a friendly crowd of Virginia businessmen.  One question summed it up:

If you could trap the new Governor in an elevator, what would you tell him to do to enable Virginia's energy future? 

Here's my short answer:

1.  Make the Renewable Portfolio Standard ("RPS") mandatory in Virginia so that all utilties must supply a defined percentage of their power from renewables.

2.  Focus Virginia's economic development funds -- Tobacco Commission, Federal stimulus, Governor's Opportunity Fund -- on the energy industry sector with a particular focus on renewables.

3.  Use the state purchasing power to create a market for renewable energy products.  (note -- Gov Kaine is doing that right now by requiring state trucks to use Virginia-produced biodiesel).

Anyway, the discussion continued after the panel and morphed into a discussion on "dynamic pricing" of energy which is the topic of my upcoming Efficiency Subcommittee on November 24.  More on that at a later date. 

After many months of politics, it was good to get back to solution-oriented discussions.  Starting to look forward to January now.