"Good Morning, Chairman Baird and the other members of the sub-committee. I appreciate the opportunity to be here today to testify on the issue of public and private roles and research needs in renewable energy forecasting.

Electricity generation from renewable sources such as wind and solar comes with the disadvantage that the output is variable and fluctuates as the weather does. As renewable energy generation has come to supply an increasing amount of the electricity consumed in our country it has become clear that forecasting renewable energy output hours and days in advance is key to the cost-effective integration of this variable energy source.

The first point that I would like to make is that small and medium sized private businesses in the US have assumed a leadership role in providing renewable energy forecasting services. Our sector is vibrant, competitive, and maturing, and is creating high paying technical jobs and exports. Our company, 3TIER, and our competitors routinely provide accurate forecasts of renewable energy output, hours and days in advance, to project owners, system operators, utility companies, and power marketers. Our company alone provides wind energy forecasts for over 12,000 MW of installed capacity, representing over 100 individual projects and serving over 40 unique clients. 3TIER employs over 60 staff in the production and delivery of these forecasts and other services for the renewable energy industry. To seize the opportunity of the global market, we have established offices in India, Latin America and the Pacific Rim for the export of our energy forecasting services.

As the renewable energy industry has grown, so has the experience level of the private sector in providing these forecasts. Our company was founded in 1999, and we have played an integral role in the improvement of forecast accuracy as we invest in our forecast systems to meet the demands of our clients. In fact, recent work overseen by NREL has demonstrated that the current state-of-the art provides 80% of the value of a perfect forecast. In short, the private sector renewable energy forecasting community is strong and well-positioned to meet the demands of our clients worldwide, both today and into the future.

The second point I would like to make is that the government does have an important and fundamental role in supporting the private sector in our task of creating more accurate renewable energy forecasts. 3TIER, as well as our competitors, rely on accurate government weather forecasts on both the regional and global scale as inputs to our more specialized energy forecast systems. The government operates a reliable national network of routine surface and upper-air weather observations. It also develops and operates sophisticated computer weather forecast models that ingest these data and produce weather forecasts. Improve the quality of these weather forecasts, by improving the observational inputs, the models themselves, and the systems that create the forecasts, and the private sector will improve the quality of the renewable energy forecasts. Improving the accuracy of the nation’s fundamental weather forecasts is an enormous challenge. This charge falls squarely on the Department of Commerce, where NOAA is uniquely positioned to accomplish these improvements through its office of atmospheric research and other divisions. Doing so will not only improve the quality of renewable energy forecasts supplied by the private sector, but will aid the National Weather Service in its primary mission of protecting life and property, and will provide benefits to transportation, agriculture and other economic sectors, ensuring that investments made are not solely for the benefit of one industry.

The last point that I would like to make is that the roles of the government and the private sector in renewable energy forecasting need to be clearly defined. Fundamental research and infrastructure investments are required to improve the nation’s weather forecasts, but these should not be confused with applied research and product development for specific industries and end users. The public sector can, and should, provide the best possible scientific foundation upon which the private sector can do what it does best: drive innovation and deliver services nimbly and competitively to its customers. Confusion in these roles blurs the lines between business and government, creates a distorted marketplace, and ultimately increases the tax burden while squeezing out the very companies that are effectively serving these markets. To be clear, it is essential that the federal agencies provide fundamental research, data collection and accurate foundational weather forecasts, without then inserting themselves into the marketplace as an alternative to the private sector, thereby undermining a vibrant industry of small businesses like ours.

In these times of strong renewable energy industry growth and federal stimulus program funding, there is the opportunity—if not the obligation—for the public sector to work aggressively towards complementing the private sector’s capabilities. Working together will allow American companies to continue to lead the world’s clean energy revolution. But for these companies to lead, we need to make sure that they don’t find that their biggest competitor is their own government, both at home and abroad.

Thank you for allowing me the opportunity to testify today, and I look forward to any questions you may have."