State's Renewable Energy Reaps Economic Benefits
Developing renewable energy in California would create more jobs
than continuing on the fossil fuel path, according to a recent study
by the California Public Interest Research Group Charitable Trust.
The report, comparing employment rates for natural gas power plants
and renewable energy technologies like wind, solar, and geothermal
energy, found that an increased level of renewable energy development
would create 28,000 year-long construction jobs and 3,000 permanent
operating jobs, while the equivalent amount of new natural gas-fired
power would generate only one-fourth as much employment for California.
"This is the perfect solution to both our energy needs and
our budget challenges," said Brad Heavner, the group's policy
analyst and report author. "Unemployment in California remains
over 6% - but increasing our clean energy production will allow
us to create new jobs in what may be the biggest industry of the
21st century."
The new report, Renewables Work: Job Growth from Renewable Energy
Development in California, analyzes economic studies and draws
on the experience of currently operating facilities. Much of the
cost of generating electricity from natural gas power plants is
associated with the ongoing purchase of fuel, whereas the money
spent on renewable power largely stays in the state economy and
creates jobs, according to the report.
Satisfying the same portion of California's growing energy needs
over the next decade with natural gas power plants would require
the purchase of $10.3 billion of gas from out-of-state providers
and would be far less labor-intensive overall than renewable energy
production, the study found.
 "CALPIRG's
new report shows that by increasing renewable energy here in California,
we can boost our economy and preserve our environment at the same
time," said State Assembly Majority Leader Marco Firebaugh.
"Boosting our clean energy production will bring critically
needed new employment for Californians."
"Natural gas power plants suppress California's job market,
since most of the money goes to buying fuel," said Heavner.
"That money should be spent on clean energy sources that create
jobs for Californians."
Despite the current low capacity of renewable energy compared to
that of fossil fuels, renewable energy industries in California
are reaching a healthy level of maturity, including companies of
all shapes and sizes. Many of these companies currently cater to
the overseas market - where support for renewables has been greater
- but are ready to expand into the in-state market. The diversity
of companies will provide both stability and agility in the rapidly
evolving market, according to the report.
Jobs from renewable energy would benefit areas throughout California.
Plans submitted by renewable energy producers for state support
include projects in 24 counties, including rural areas where jobs
are most needed.
The CALPIRG Charitable Trust called on the state to provide market
guarantees for renewable energy production in the form of long-term
contracts or requirements that utilities obtain a portion of their
electricity from renewable energy producers.
The group also supports financial incentives for renewable energy,
which they say will provide a net benefit to the state due to job
creation and a strong economy.
Taking these steps would more than double California's renewable
energy output, according to the new study. The state would generate
20% of its electricity from clean renewable sources in 2010 with
favorable policies.
"Each new solar, wind, biomass, or fuel cell-related job created
is, in effect, a vote for energy security, price stability, and
generally a vote to 'buy American,'" wrote UC Berkeley professor
Daniel Kammen in the report's preface. "Renewable energy is
a plentiful resource in the U.S., and therefore each new job in
this field is another job, and another dollar of gross national
product, that we choose to reinvest in the American economy."
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