My thesis will look at Aquidneck Island in Rhode Island, in order to answer the question: Can Aquidneck Island achieve 100% renewable electricity within a decade, and what are the implications for meeting that goal nationwide?  In so doing I will accomplish two things:

1) Provide a practical blueprint, with several scenarios, cost estimates and policy recommendations, for achieving energy independence on Aquidneck Island and

2) Use my findings to address the issues raised by Gore’s challenge for the United states “to commit to producing 100 percent of our electricity from renewable energy and truly clean carbon-free sources within 10 years.” This challenge is exciting and necessary, especially given rising co2 concentrations in the atmosphere as well as increasing issues stemming from the geopolitics of fossil fuels.

While we already have much of the technology needed to meet the challenge, many technical, cultural, economical and political questions remain.  In particular, I am interested in the issue of the variability of renewable energy resources.  Put simply, the wind doesn’t always blow and the sun doesn’t always shine.  In order to deal with this issue, The Rocky Mountain Institute (RMI) recently conducted a study of 43 wind and solar sites in the midwest and modeled how much power would be produced from them, and at what times. In the end, “they found that variability in the whole system went down by 55 percent compared to the average of all sites studied.”

This is the kind of study that will have to be conducted in every region and that I will conduct on Aquidneck Island; in addition, utilities, planners and policy-makers will have to understand what other resources are available (biomass, tidal, hydroelectric, geothermal, etc.) and at what times.  Only by looking comprehensively at all renewable energy resources available to a utility will Gore’s goal be realized.  In addition, regions, states and local communities will have to understand how to integrate renewable energy production and storage with energy efficiency, conservation and other demand side management measures (such as distributed energy, smart metering and other “smart grid” technologies.) in order to ensure a constant supply of clean, affordable energy.  Doing this kind of study of Aquidneck will enable me to make generalizations applicable to the entire American grid.

I chose Aquidneck Island because, while the goal of energy independence in 10 years may or may not be practical, it possesses a potent symbolism that is often best embodied by isolated communities--such as islands--that come together to wean themselves from fossil fuels.  For instance, Samsø, a Danish island which is roughly the size of Nantucket, now produces, on an annual basis, 10% more energy than it uses.  Their example has attracted worldwide attention as the international community struggles to summon the resources to tackle climate change, air pollution and rising energy costs.  Aquidneck already possesses much of the planning and community buy-in needed to undertake the task of energy independence, and I believe I can build on that energy and enthusiasm.
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How Can Microfinance and Community Banking Create a Green Economy in Providence, Rhode Island?

Overview

On the face of it, solving the growing challenges of dependence on foreign oil, climate change, poverty and inequality are incompatible with addressing the current economic crisis in America and the world.  After all, the conventional thinking goes, the former will take massive investments that, for now, will need to go towards bailing out “Wall St.” in order to help “Main St.” However, a national movement, spurred by Van Jones, Majora Carter, the Apollo Alliance, Al gore and others, is arguing that the health of the economy, the health of our society, and the health of the planet are intertwined, and that all three can be achieved through a green economy.

As banks falter, greenhouse gas emissions rise, and the gap between the rich and poor in the United States continues to widen, the time is ripe to ask whether a new model is needed.  Much work is being done around the creation of new policies and technologies to address the aforementioned problems of poverty, pollution and geopolitics, but precious little attention is being paid to the role that lending institutions—the predominant sources of capital in the world—are playing and can play in creating a green American economy. 

Fortunately, there are both domestic and international models paving the way forward.  Grameen Bank in Bangladesh began by proving that access to affordable loans is all the poorest of the poor need to move out of poverty, but Grameen has now expanded to the point where it is one of the largest sources of loans for wind and solar energy, organic fertilizer, and efficient stoves in the developing world.  Domestically, ShoreBank, a Community Development Financial Institution (CDFI) with $2.4 billion in assets, has pioneered the use of community banking as a means of advancing social and environmental goals (Kolodinsky, Jane pg. 2).

As the climate crisis meets the financial crisis the question then becomes, how can the Grameen model of micro-loans for entrepreneurship and the ShoreBank model of community banking be put to use to create the urgently needed green economy in cities like Providence, Rhode Island?  Providence, with its high poverty rate, diverse immigrant and minority communities, and geographic location (a capital city located near the major metropolitan areas of Boston and New York), is an ideal candidate for the implementation of a new model for creating sustainable growth.  This thesis seeks to identify how the green jobs movement can be tied to the green banking movement to ensure that the new wave of green products, entrepreneurship and jobs are accessible to all, and that both the environment and minorities, immigrants and women truly benefit.

Concept

The idea is to show how micro-loans and community lending can spur environmentally sustainable economic development in Providence that benefits women, minorities and immigrants.  On the micro-lending side, the idea is to leverage existing and future green job training programs, which teach skills in green cleaning, landscaping, building and other fields, as well as existing and future business skills programs, which teach entrepreneurship and, potentially, green entrepreneurship.  Graduates of these programs will then be eligible for micro-loans so that they can start their own green businesses.  In addition, the micro-lender will provide additional support to help the business succeed.  Finally, the micro-lender will work with city and state officials to ensure the create of policies supporting these micro-and-small businesses succeed, creating jobs, economic growth, and help the city and state meet climate and other environmental goals.

On the community lending side, the idea is two-fold: on the one hand, to analyze what existing community banks nationally and locally are doing to advance the green agenda, and on the other, to look at what role a new community lender might play in, for example, funding green start-ups, green urban revitalization, and alternative energy/energy efficiency development.

The end result of this analysis will be a clear picture of the current lending landscape as it applies to green/social justice goals, as well as the development of a possible model for moving forward with an innovative microfinance and community banking initiative.