Global Corporate Xpansion

STEPS TOWARD A RENEWABLE ENERGY INDUSTRY

1. Climate stabilization and energy security will demand at least 18,500 megawatts of new renewable energy projects per year. There are between 70,000 and 110,000 firms active in the industries that could supply component parts for these renewable projects. A 10-year stabilization program would both provide and require 2 million full-time equivalent jobs that need training programs to develop the necessary skills.

2. Federal policy currently focuses on mandates and incentives to develop projects but neglects the industry necessary to supply those projects. This neglect will result in supply bottlenecks and labor skill gaps. Without a new energy policy, it is highly likely manufacturing will migrate overseas in search of cheap labor, lax environmental standards, or massive government supports. ¹

3. Support for the development of a domestic renewable energy industry and job-training program must be made a part of national energy policy. Federal incentives should allow states to cooperate in order to achieve greater gains for the nation as a whole. State-on-state competition is often a “zero-sum game;” one state’s gain is another state’s loss. Cooperation in support of federal policies can lead to gains for all states.

4. We must integrate technology innovation and commercialization programs to support world-class domestic manufacturing and labor productivity. Direct basic research and development to be as responsive as possible to the commercial opportunities to improve manufacturing efficiencies, reduce installed costs and lower the delivered price of renewable energy.

End Note 1. The Renewable Energy Policy Project (REPP) developed a model to show where the demand created from a national renewable development program could provide a stimulus for the development of new manufacturing enterprises to provide the component parts for those technologies. In the current framework, REPP assumes that the United States commits to developing 18,500 MW of a basket of commercial renewable energy each year for 10 years. The analysis and methodology is explained in a series of reports available at www.repp.org. The most recent reports focus on specific states but run off the national program.