Iowa sees progress in energy sector

DES MOINES - Iowa's overall energy situation is moving in a positive direction, although the state still consumes more than it produces at a per-capital rate higher than its six bordering states, a consultant said Thursday.

Simon Tripp, principal and senior director of Pittsburgh-based TEConony Partners, told a state economic panel his energy analysis found that Iowa consumes more raw energy than it produces and imports more raw energy than it produces.

'Increasing energy production in Iowa will enhance Iowa's balance of trade and benefit the Iowa economy,” he said.

Overall, Iowa consumes more than 1.516 trillion British thermal units (Btu), producing 730.5 trillion units and importing 786 trillion units, he said.

'Without a significant base of fossil resources, Iowa has to currently import more than two times the raw energy it produces,” Tripp told members of Iowa's Partnership for Economic Progress. But he noted that investment in renewable energy is significantly improving Iowa's balance of energy equation.

Electrical power generation has increased significantly, by nearly 40 percent, primarily because of expansion in wind production, he said. Data did not reflect wind expansion by MidAmerican Energy and Alliant Energy, announced since 2014.

The net effect of Iowa's renewable energy expansion has been a significant decrease in the overall percentage of Iowa's electricity generated by fossil fuels, which declined from 87 percent in 2001 to 62 percent in 2014, according to Tripp's data.

Iowa uses more renewable energy, but also uses more coal than the rest of country. Iowa is less reliant on nuclear power, natural gas, gasoline and other petroleum sources. Also, Iowa's economy is more 'industrially intensive” than the U.S. average. Iowa accounts for 2.4 percent of the U.S. industrial energy consumption but has only 1 percent of U.S. population.

'You managed to make use of the assets that you do have in energy,” Tripp said. 'Without the traditional fossil fuel resources, you've managed to still maintain low-cost, reliable electricity and energy in general while introducing state-of-the-art renewable energy.

'You're a place that's producing advanced technologies for renewable energy, that's manufacturing them, that's using them and experimenting with them in a very diverse energy market within the state,” he added. 'It's a really exciting place to look at energy.”

Brian Selinger, who leads a working group that's preparing a statewide energy plan, said he expects a draft to be ready by October and completed in December.

Gov. Terry Branstad said he came away from Tripp's presentation encouraged about Iowa's energy outlook.

'We're already in a strong position because of what we've done in terms of renewables - ethanol, biodiesel wind and the related jobs that have been created. But I think this will give us a blueprint for the future that we can build off of, and I think a great marketing tool,” he said.