PrepTest 41, Section 4, Question 20

The following passage was written in the mid-1990s.

The demand for electricity in certain countries has been projected recently to grow by 50 percent by the year 2010. Unfortunately, the increased use of fossil fuels to generate this electricity may ultimately damage human and environmental health. For example, emissions of air pollutants in these countries are expected to double over the next 25 years, even if energy is used efficiently, so that local urban air quality will likely deteriorate. Renewable sources of electricity, such as solar radiation, wind, and waterpower, are possible solutions to the problems caused by increasing demand for electricity. Unlike fossil fuels, renewable energy sources are available in virtually all geographic regions, and they allow electricity production without dangerous environmental pollutants. Additionally, these sources can usually be located closer to consumers than can plants that use fossil fuels, thus reducing transmission and distribution costs. Technologies for the successful long-term exploitation of these resources, however, are not always implemented successfully.

In rural Brazil, for example, millions of citizens do not have electricity, and the lack of necessary infrastructure has limited efforts to provide it. In 1992, an energy agency from the United States developed a joint project with two Brazilian states to install 800 household solar electrical systems and train local personnel to service them. Under the project's terms, local utilities install, maintain, and own the systems, and collect fees from users. Backers hoped the project would attract enough private investment for substantial expansion throughout Brazil. But the project directors rejected the relatively high bids of local Brazilian companies to produce the solar collectors and thus missed an opportunity to stimulate local production. Consequently, a short-term savings in start-up costs precluded the long-term benefits deriving from the development of local production capacity and technological skill, which eventually would have led to independence from costly foreign expertise. As a result, participating utilities can generate only enough income to cover operating and maintenance costs, which makes further investment and expansion unlikely. Thus, the movement toward a sustainable, rural electricity system in Brazil remains stalled.

But some efforts have avoided these pitfalls. In the mid-1980s, a Danish energy agency helped agencies in India build three modern wind turbine plants and gradually develop local technical capacity. Local participants were trained in planning, operation, maintenance, and construction of turbines. Indian firms subsequently began manufacturing turbines and, as more locally manufactured equipment became available, Indian utilities were able to increase their use of wind energy profitably. The success of these small projects spurred enthusiasm; Indian utilities were soon ordering more equipment and private investment in wind energy surged. Because the Danish agency, unlike its U.S. counterpart, recognized the importance of local involvement at all levels, the project has a good chance of remaining competitive and profitable for the long run.

The following passage was written in the mid-1990s.

The demand for electricity in certain countries has been projected recently to grow by 50 percent by the year 2010. Unfortunately, the increased use of fossil fuels to generate this electricity may ultimately damage human and environmental health. For example, emissions of air pollutants in these countries are expected to double over the next 25 years, even if energy is used efficiently, so that local urban air quality will likely deteriorate. Renewable sources of electricity, such as solar radiation, wind, and waterpower, are possible solutions to the problems caused by increasing demand for electricity. Unlike fossil fuels, renewable energy sources are available in virtually all geographic regions, and they allow electricity production without dangerous environmental pollutants. Additionally, these sources can usually be located closer to consumers than can plants that use fossil fuels, thus reducing transmission and distribution costs. Technologies for the successful long-term exploitation of these resources, however, are not always implemented successfully.

In rural Brazil, for example, millions of citizens do not have electricity, and the lack of necessary infrastructure has limited efforts to provide it. In 1992, an energy agency from the United States developed a joint project with two Brazilian states to install 800 household solar electrical systems and train local personnel to service them. Under the project's terms, local utilities install, maintain, and own the systems, and collect fees from users. Backers hoped the project would attract enough private investment for substantial expansion throughout Brazil. But the project directors rejected the relatively high bids of local Brazilian companies to produce the solar collectors and thus missed an opportunity to stimulate local production. Consequently, a short-term savings in start-up costs precluded the long-term benefits deriving from the development of local production capacity and technological skill, which eventually would have led to independence from costly foreign expertise. As a result, participating utilities can generate only enough income to cover operating and maintenance costs, which makes further investment and expansion unlikely. Thus, the movement toward a sustainable, rural electricity system in Brazil remains stalled.

But some efforts have avoided these pitfalls. In the mid-1980s, a Danish energy agency helped agencies in India build three modern wind turbine plants and gradually develop local technical capacity. Local participants were trained in planning, operation, maintenance, and construction of turbines. Indian firms subsequently began manufacturing turbines and, as more locally manufactured equipment became available, Indian utilities were able to increase their use of wind energy profitably. The success of these small projects spurred enthusiasm; Indian utilities were soon ordering more equipment and private investment in wind energy surged. Because the Danish agency, unlike its U.S. counterpart, recognized the importance of local involvement at all levels, the project has a good chance of remaining competitive and profitable for the long run.