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Renewables Work: Job Growth from Renewable Energy Development in California 6/25/2002 Renewables_Work.pdf

Executive Summary

As the new home of CALPIRG's environmental work, Environment California can be contacted with any questions regarding this report.

Generating electricity from renewable energy sources provides more jobs than traditional energy sources, according to both economic models and reallife experience. Much of the cost of electricity from natural gas power plants is from the ongoing purchase of fuel. A higher portion of the generating cost goes to labor for renewable energy than for traditional energy sources.

California could take advantage of the job benefits of renewable energy by initiating long-term contracts or requirements that utilities obtain electricity from renewable sources. With such market guarantees, renewable energy companies would build 5,900 MW of new facilities in California by 2010. Added to the current capacity of 3,163 MW of clean renewable energy, the state would then be able to generate at least 20% of its electricity from renewables.

Studies done by the utility industry’s own research institute, the California Energy Commission, and independent researchers summarize energy industry experience to measure the employment intensity of different electricity generating technologies. The most conservative projections from these studies show significant employment benefits from new renewable energy development.

• Building 5,900 MW of renewable energy capacity would lead to the equivalent of 28,000 year-long construction jobs and 3,000 permanent operations and maintenance jobs.

• Over thirty years of operation, these new plants would create 120,000 personyears of employment.

Other studies and the experience of existing renewable energy operations support these projections as reasonable and conservative.

Although natural gas power plants can often produce power at a slightly lower cost per kilowatt-hour when measured in a shortterm time frame, the generating cost does not benefit the regional economy through the creation of jobs as much as money spent on renewable energy. Building 5,900 MW of natural gas power plants would result in:

• $10.3 billion in gas purchases over 30 years to fuel the new plants.

• 29,000 person-years of employment, one-fourth as many jobs as the equivalent capacity of renewable energy would create.

Wind power typically provides 70% more jobs than gas, and solar technologies provide twice as many jobs. Job creation from geothermal energy is 11 times higher than from natural gas. Landfill gas plants employ 14.7 times as many workers.

The California renewable energy industry has reached a healthy level of maturity, involving companies of all shapes and sizes. At least 300 companies are directly involved in renewable energy development and production. This industry includes more small start-up companies than many other industries, but large and well-established companies are also involved in wind, solar, and geothermal energy production. California is home to 46 renewable energy companies larger than 100 employees. This diversity will provide both stability and agility in a rapidly evolving market.

Many renewable energy projects have already been proposed. The California Power Authority has signed letters of intent with private developers for 66 projects in 24 counties, including many rural areas where jobs are most needed. These plants would have a combined capacity of 2,255 MW, and are now in the due diligence process.