Renewable energy consumption in 2003 grew 3 percent to 6.1 quadrillion Btu (Table 1). More than half of the increase came from a 4 percent gain in conventional hydropower, which contributed 104 trillion Btu more to consumption than it did in 2002. A 3 percent increase in biomass accounted for most of the remaining growth. Wind, geothermal, and solar energy consumption changed only modestly. Overall, renewable energy contributed 6 percent of the Nation's total energy supply (Figure 1).
At 6.1 quadrillion Btu, renewable energy consumption in 2003 was at essentially the same level it was in 1989, the year the Energy Information Administration (EIA) first began tracking Anon-utility@ electricity facilities (Table B1 and Figure 2). Renewable energy consumption peaked in the mid-
1990s at 7.1 quadrillion Btu, or 7.5 percent of total US energy, owing largely to record hydropower output. After its peak in 1997, hydropower production declined for 5 consecutive years and has been at normal or below-normal levels since 2000. Industrial and residential biomass consumption have declined slowly, while geothermal output has remained static. Wind and solar photovoltaics have
expanded rapidly in recent years, but their share of the total is so small that this growth has not affected the renewable industry trend significantly.
Biomass energy consumption presented a complex picture in 2003. Although overall consumption rose 3 percent, there was great disparity among the components. Industrial and electric power sector biomass consumption declined 1 and 2 percent, respectively, compared to 2002 (Table 2). These two sectors account for over three-fourths of total biomass consumption. However, consumption during 2003 grew so fast in the smaller residential and transportation sectors, 15 and 41 percent, respectively, that their growth more than offset the major sector declines. Ethanol use increased from 133 trillion Btu in 2001 to 156 trillion Btu in 2002 and surged to
220 trillion Btu in 2003 (Figure 2). Since ethanol’s primary
use is as an oxygenate in reformulated gasoline, its demand is
tied to reformulated gasoline output and as a replacement for
the other oxygenate additive, MTBE. Originally, MTBE was
the overwhelming choice for oxygenating gasoline. Over the
past few years, however, several states have passed bans on
MTBE due to fears of groundwater contamination from leaky
tanks.1 As a result, MTBE consumption has declined since
2001, from 313 trillion Btu to 277 trillion Btu in 2002 and to
225 trillion Btu in 2003 (Figure 3).

Geothermal energy consumption has remained largely
unchanged for 5 years, as very little new generating capacity
has come on line. During 2000, nearly 600 net megawatts of
geothermal capacity were retired, and little new capacity has
come on line since (Table 5). Non-electric applications
represent only a tiny fraction of total geothermal energy
consumption.
Wind energy consumption grew 3 percent during 2003 to 108
trillion Btu, far below the double-digit growth experienced in
the last few years. The EIA and industry sources document a
major increase in capacity at the end of 2003 in anticipation
of the expiration of the production tax credit. However, the
full effect of these plants on generation levels will not be felt
until 2004 when they are in full operation and are reporting to
the EIA.
Solar energy maintained its contribution of about 63 trillion
Btu in 2003, as solar thermal energy consumption declined
while photovoltaic use expanded.
The electric power sector (excluding industrial and
commercial combined heat and power (CHP) plants)
consumed the most renewable energy in 2003 of any energy
use sector, using nearly 60 percent, or 3.6 quadrillion Btu, of
total renewable energy consumption. Three-fourths of electric
power sector renewable consumption is water for
hydropower. The industrial sector is heavily dominated (over
95 percent) by biomass; specifically, wood and wood waste.
Residential renewable energy consumption is also heavily
dominated by biomass. Residential wood consumption has
generally been declining over the past 15 years. Despite a 15
percent increase to 359 trillion Btu, 2003 residential
consumption equals just 62 percent of its 1990 value.
Commercial sector consumption experienced a 15 percent rate
of growth in 2003, bringing consumption near levels of the
late 1990’s and 2000. As mentioned previously, ethanol
consumption in the transportation sector surged during 2003.
Electricity generation (including generation from CHPs)
accounted for 4.1 quadrillion Btu, or two-thirds of total
renewable energy consumption in 2003 (Table 3). Over 90
percent of this amount came from biomass and water for
hydropower. Renewable energy was also consumed for space
heating, process heat, and steam (Table 6).
Renewable net electricity generation amounted to nearly 360
billion kilowatthours in 2003, up 2 percent from 2002 (Table
4). Ninety percent came from the electric power sector; its
322 billion kilowatthours was also up 2 percent from 2002.
Industrial sector generation was essentially flat.
Geothermal generation dropped 9 percent between 2002 and
2003. The majority of geothermal generation comes from 21
plants at The Geysers field in California, one of the largest geothermal fields in the world. Production at The Geysers fell
sharply about 10 years ago because of a decline in
underground pressure to produce steam. As a result, The
Geysers, which have a total rated capacity of 1,650
megawatts, are currently achieving (according to industry
measurements) an average annual net capacity of only 862
megawatts. The Santa Rosa Geysers Recharge Project, which
became operative in December 2003, is designed to enhance
steam production and produce 85 megawatts of additional
generating capacity from this field by pumping about 11
million gallons of tertiary-treated wastewater daily into The
Geysers geothermal reservoir.2 The wastewater comes from
the Santa Rosa regional sewage treatment plant and other
cities through a 41-mile underground pipeline. The project
also mitigates a major wastewater disposal problem. The
project’s final cost was just over $200 million.
Hydroelectric generation, largely in the electric power sector,
rose 4 percent and accounted for over three-fourths of
renewable electricity generation in 2003. Despite increasing
27 percent since 2001, hydroelectric generation remains
slightly below its average over the past 15 years (Figure 4).
Generation from biomass in 2003 varied by detailed fuel
category, with wood/wood waste-based generation declining
4 percent, but generation from Aother biomass@ jumping 17
percent.

There was a net addition of 560 megawatts of renewable
electric generating capacity in 2003 (Table 5). Of this amount,
438 megawatts was additional wind capacity, and 110
megawatts was biomass. Industry sources indicate the
increase for wind was closer to a total of 1,700 megawatts,
but some new plants were not yet reporting to EIA.3 At nearly
97,000 megawatts of capacity, renewable energy provided 10
percent of the 2003 total net summer electric generating capacity. Note that a considerable amount of renewable
capacity typically operates at lower capacity factors than large
baseload coal, gas, and nuclear plants.
Use of renewable energy for space heat, steam, and process
heat grew 8 percent in 2003 to 2 quadrillion Btu (Table 6).
Over 60 percent of this energy was consumed in the industrial
sector. Over 95 percent of total non-electric renewable energy
consumption, and nearly 97 percent of industrial sector nonelectric
consumption, is biomass. Most of the 1.1 quadrillion
Btu of AWood@ consumed in the industrial sector for nonelectric
energy is a paper mill wood waste product, black
liquor. Residential biomass use grew 15 percent in 2003, due
mostly to a colder winter than in 2002. Commercial sector
biomass use grew similarly. As mentioned previously,
transportation sector non-electric consumption growth was
rapid at 41 percent, due to increased ethanol usage as an
oxygenate in gasoline.
A detailed examination of total biomass energy consumption
reveals some interesting points. First, twice as much biomass
was used for space, steam, and process heat (1.9 quads) as for
electricity production in 2003. This contrasts with all other
renewables, which are largely or entirely used to generate
electricity. Since the industrial sector has by far the greatest
demand for process heat and steam, the majority of total
biomass (59 percent) was consumed there in 2003.

Second, about 72 percent (1.2 quadrillion Btu) of industrial
biomass was used for steam and process heat (also known as
Auseful thermal output@) in 2002 (Tables 8 and B3 and Figure
5). In addition to the Paper and Allied Products industry, the
Lumber industry used a significant amount of biomass (248
trillion Btu) in 2002 to produce useful thermal output (Table
8). (Data for 2003 is not presently available for these detailed
categories.) Third, after growing strongly between 2001 and
2002, waste and other biomass declined in 2003 by 3 and 7
percent, respectively (Table 7). Over half of biomass waste
was consumed by independent power producers in 2002
(Table 9).
The Pacific Acontiguous@ (i.e., continental) Census Division
generated nearly half, or 170 billion kilowatthours, of all
renewable electricity in 2002 (Table B2). This included 144
billion kilowatthours of hydropower. Four other divisions
(East South Central, Middle Atlantic, Mountain, and South
Atlantic) generated roughly 30 billion kilowatthours each.
The Pacific Contiguous division, which includes California
and Washington, dominated generation from all renewable
fuels except biomass. Black liquor- and wood/wood waste
solids-based electricity were concentrated in the South
Atlantic, South Central and Pacific Contiguous divisions
(Table B4). New England also had substantial generation
from black liquor.
Ninety-six electricity generating plants burned both biomass
and coal in 2002 (Table B5). Plants for which biomass is only
a small fraction of coal consumption are generally Aco-firing@
plants attempting to reduce emissions without making major
retrofit investments. The remainder are genuine dual- or
multi-fired plants consuming fuels based upon availability,
demand, and price. For example, paper mills frequently
require more energy than is available from the quantity of
black liquor produced in the paper-making process.
State developments in renewable electricity generation
complemented national trends in 2002. Washington, Oregon,
California, and Montana (in descending order of importance)
experienced major increases in hydroelectric generation as
they recovered from the 2001 drought in the West (Tables C3
and C6). The net increase in renewable electric capacity was
modest, less than 500 MW, led by expansion of wind in
California, Iowa, and Texas and hydroelectric power in South
Dakota and Tennessee (Tables C9 and C12). The western
states and New York dominated hydroelectric capacity, while
California was the leader in non-hydro electric capacity, with
30 percent of the national non-hydro total.
According to the Database of State Incentives for Renewable
Energy (DSIRE), 18 states have renewable portfolio standards
or state mandates with varying degrees of commitment to
develop renewable energy in the future4 (Table C14). The list
includes recently added Colorado, Florida and Maryland.

Contact:
Louise Guey-Lee
louise.guey-lee@eia.doe.gov
Phone: (202) 287-1731