ABSTRACT
Electricity is necessary for modern life. The problem is how to produce and consume it in a manner that is environmentally and economically sustainable over the long haul. This chapter describes the emerging transformation of the electric supply and demand system in the desert Southwest from one dominated by central station fossil-fueled power plants to a cleaner energy future that relies much more on renewable energy and energy efficiency. This transformation depends on the development of institutional capabilities in the public and private sectors to plan for and implement a more sustainable energy system. The chapter begins with an overview of the energy system today. It provides a review of the environmental and economic risks of the current system and describes how those risks can be managed through sustainable energy alternatives. The chapter highlights the institutional bases for a sustainable energy system, and assesses the prospects for establishing a sustainable power system.
