a labor market analysis of the electricity sector for 2030 ...€¦ · benefits of renewable energy...

1
$11,762,677,095 $16,246,562,537 $22,608,580,299 $5,869,405,765 $7,618,880,223 $10,101,144,260 $9,398,068,015 $11,893,853,419 $15,435,030,212 $- $10,000,000,000 $20,000,000,000 $30,000,000,000 $40,000,000,000 $50,000,000,000 R-Low, NG-High R-Mid, NG-Mid R-High, NG-Low Annual Earnings Direct Indirect Induced $162,124,413 $356,657,410 $58,582,612 $73,518,175 $- $100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 R-LOW, NG-HIGH R-MID, NG-MID R-HIGH, NG-LOW Annual Tax Revenue Sales Tax-O&M Sales Tax-Construction 206,550 268,384 356,118 99,363 128,836 170,654 117,441 152,131 201,352 - 200,000 400,000 600,000 R-Low, NG-High R-Mid, NG-Mid R-High, NG-Low Annual Jobs Induced Indirect Direct $17,554,725,535 $2,168,300,826 $4,332,251,774 $4,285,620,522 $- $5,000,000,000 $10,000,000,000 $15,000,000,000 $20,000,000,000 $25,000,000,000 $30,000,000,000 R-LOW, NG-HIGH R-MID, NG-MID R-HIGH, NG-LOW Annual Earnings Induced Indirect Direct 285,571 73,733 90,261 0 100,000 200,000 300,000 400,000 500,000 R-Low, NG-High R-Mid, NG-Mid R-High, NG-Low Annual Jobs Induced Indirect Direct $12,356,439,067 $10,533,351,062 $1,921,878,745 $7,311,593,856 $6,208,581,421 $4,631,312,922 $3,940,372,537 $- $5,000,000,000 $10,000,000,000 $15,000,000,000 $20,000,000,000 $25,000,000,000 R-Low, NG-High R-Mid, NG-Mid R-High, NG-Low Annual Earnings Induced Indirect Direct A Labor Market Analysis of the Electricity Sector for 2030 using the National Energy with Weather (NEWS) Simulator L. Terry, The University of Alabama/NOAA; J. Paine, University of Miami/NOAA; P. Picciano, Pomona College/NOAA; and C. T. M. Clack, CIRES/NOAA Project goal To assess jobs, tax revenues, and earnings generated by the National Energy with Weather System (NEWS) simulator. The NEWS model uses 3 years of hourly 13 - km wind and solar power data to integrate cost - optimal combinations of wind, solar, natural gas and transmission across the contiguous US. NEWS previously only used weather and cost considerations to determine site placement. This project enables NEWS to consider the economic benefits of renewable energy and to spread those benefits across the country. Natural Gas Assumptions: Year of Construction 2014 Total Project Size-Nameplate Capacity 300 MW Turbine Size 2000 kW Number of Turbines 150 Installed Project Cost $2,100/kW Variable O&M Cost $12/MWh Fixed O&M Cost $30/kW Year of Construction 2014 Solar Cell/Module Material Crystalline silicon System Tracking Single axis Average System Size - DC Nameplate Capacity 1,000 kW Number of Systems Installed 100 Total Project Size - DC Nameplate Capacity 100,000 kW Base Installed System Cost $2,600/kW DC O&M Cost $25.00/kW Year of Construction 2014 Project Size - Nameplate Capacity 500 MW Capacity Factor 30% Heat Rate (Btu per kWh) 6,430 Construction Period (Months) 12 Plant Construction Cost $1,300/kW Cost of Fuel ($/mmbtu) $7.85 Fixed O&M Cost ($/kW) $10/kW Variable O&M Cost $3.27/MWh Wind Assumptions: Works Cited "A Guide to Careers in the Oil and Natural Gas Industry." Shalenet.org . ShaleNET, 2013. Web. 2 June 2015. “Arizona Solar Jobs Census 2014,” The Solar Foundation. n.d. Web. 21 June 2015. "Chapter 4: Photovoltaics: Technologies, Cost, and Performance." Sunshot Vision Study . N.p.: U.S. Department of Energy, 2012. 69 - 94. Web. Gloria, Ayee, and Gereffi Gary. "CHAPTER 11: Wind Power: Generating Electricity and Employment." Manufacturing Climate Solutions: Carbon - Reducing Technologies and U.S. Jobs . Ed. Lowe Marcy. Durham: Center on Globalization, Governance & Competitiveness, 2009. 1 - 36. 22 Sept. 2009. Web. Jobs and Economic Development Impact Models . NREL.gov . National Renewable Energy Laboratory, n.d. Web. 10 June 2015. Liming, Drew. "You're a What? Wind Turbine Service Technician." Occupational Outlook Quarterly Fall (2010): 34 - 35. BLS.gov . Web. 2 June 2015. A.E. Macdonald and C.T.M. Clack, et al . Future cost - competitive electric systems of the US and their impact on CO 2 emissions . Nature Climate Change. Under Review. "National Solar Database." SEIA.org . Solar Energy Industries Association, n.d. Web. 21 June 2015. Solar PV Assumptions: $73,075,71 4 $52,492,853 $1,289,714 Works Cited Olson, Arne, Nick Schlag, Kush Patel, and Gabe Kwok. Capital Cost Review of Generation Technologies . Rep. San Francisco: Energy and Environmental Economics, 2014. Print. Platzer, Michaela D. "U.S. Solar Photovoltaic Manufacturing: Industry Trends, Global Competition, Federal Support." Congressional Research Service (2015): 1 - 27. Fas.org . Congressional Research Service, 27 Jan. 2015. Web. 15 June 2015. Torpey, Elka Maria. "You're a What? Solar Photovoltaic Installer." Occupational Outlook Quarterly Fall (2009): 34 - 35. BLS.gov . Web. United States of America. Department of Labor. Bureau of Labor Statistics. Careers in Solar Power . By James Hamilton. Bureau of Labor Statistics, June 2011. Web. 30 May 2015. United States of America. Department of Labor. Bureau of Labor Statistics. Careers in Wind Power . By James Hamilton and Drew Liming. Bureau of Labor Statistics, September 2010. Web. 30 May 2015. "Workforce Challenges Survey Results." Api.org . American Petroleum Institute, May 2005. Web. 2 June 2015. Project Assumptions Industries capturing maximum economies of scale. All parts of the process done inside one state. Homogeneous cost of installation across all states. Cost assumptions identical with NEWS model. Utilizing the National Renewable Energy Laboratory’s Jobs and Economic Development Impact Models Methodology Step 1: Isolate industry segments Step 2: Record jobs and earnings generated for each job type Step 3: Divide by total MW Step 4: Program into NEWS Model Step 5: Run 27 energy mix scenarios Three possible price assumptions Nine possible divisions Results for national HVDC transmission system shown here Step 6: Record and study results Findings: : Findings Findings: Potential to generate: 744,000 annual direct jobs under national HVDC system Net gain: 573,000 jobs More than 4x the coal jobs lost $53 billion in direct earnings $4 billion in state tax revenues Cheaper electricity prices Potential to reduce: Carbon emissions (78% compared with 1990 levels) Health care expenditures due to coal Boom and bust development cycles Water consumption by energy production (~65% compared with 1990 levels) 251,936 215,549 43,676 133,505 113,522 107,857 91,890 - 100,000 200,000 300,000 400,000 500,000 600,000 R-Low NG-High R-Mid, NG-Mid R-High, NG-Low Annual Jobs Induced Indirect Direct $1,693,180,734 $1,429,897,743 $186,263,765 $720,687,040 $621,374,128 $- $500,000,000 $1,000,000,000 $1,500,000,000 $2,000,000,000 $2,500,000,000 $3,000,000,000 R-LOW, NG-HIGH R-MID, NG-MID R-HIGH, NG-LOW Annual Tax Revenue Sales Tax-O&M Sales Tax-Construction 55,376 876

Upload: others

Post on 07-Jul-2020

1 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: A Labor Market Analysis of the Electricity Sector for 2030 ...€¦ · benefits of renewable energy and to spread those benefits across the country. Natural Gas Assumptions: Year

$11,762,677,095 $16,246,562,537 $22,608,580,299

$5,869,405,765 $7,618,880,223

$10,101,144,260 $9,398,068,015

$11,893,853,419

$15,435,030,212

$-

$10,000,000,000

$20,000,000,000

$30,000,000,000

$40,000,000,000

$50,000,000,000

R-Low, NG-High R-Mid, NG-Mid R-High, NG-Low

Annual EarningsDirect IndirectInduced

$162,124,413

$356,657,410 $58,582,612

$73,518,175

$-

$100,000,000

$200,000,000

$300,000,000

$400,000,000

$500,000,000

R-LOW, NG-HIGH R-MID, NG-MID R-HIGH, NG-LOW

Annual Tax RevenueSales Tax-O&MSales Tax-Construction

206,550 268,384 356,118 99,363

128,836 170,654

117,441 152,131

201,352

-

200,000

400,000

600,000

R-Low, NG-High R-Mid, NG-Mid R-High, NG-Low

Annual JobsInduced IndirectDirect

$17,554,725,535

$2,168,300,826

$4,332,251,774

$4,285,620,522

$-

$5,000,000,000

$10,000,000,000

$15,000,000,000

$20,000,000,000

$25,000,000,000

$30,000,000,000

R-LOW, NG-HIGH R-MID, NG-MID R-HIGH, NG-LOW

Annual Earnings Induced IndirectDirect

285,571

73,733 90,261

0

100,000

200,000

300,000

400,000

500,000

R-Low, NG-High R-Mid, NG-Mid R-High, NG-Low

Annual Jobs Induced IndirectDirect

$12,356,439,067 $10,533,351,062

$1,921,878,745

$7,311,593,856 $6,208,581,421

$4,631,312,922

$3,940,372,537

$-

$5,000,000,000

$10,000,000,000

$15,000,000,000

$20,000,000,000

$25,000,000,000

R-Low, NG-High R-Mid, NG-Mid R-High, NG-Low

Annual Earnings Induced IndirectDirect

A Labor Market Analysis of the Electricity Sector for 2030 using the National Energy with Weather (NEWS) Simulator

L. Terry, The University of Alabama/NOAA; J. Paine, University of Miami/NOAA; P. Picciano, Pomona College/NOAA; and C. T. M. Clack, CIRES/NOAA

Project goal• To assess jobs, tax revenues, and

earnings generated by the National Energy with Weather System (NEWS) simulator.

• The NEWS model uses 3 years of hourly 13-km wind and solar power data to integrate cost-optimal combinations of wind, solar, natural gas and transmission across the contiguous US.

• NEWS previously only used weather and cost considerations to determine site placement. This project enables NEWS to consider the economic benefits of renewable energy and to spread those benefits across the country.

Natural GasAssumptions:

Year of Construction

2014

Total Project Size-Nameplate

Capacity

300 MW

Turbine Size 2000 kWNumber of Turbines

150

Installed Project Cost

$2,100/kW

Variable O&M Cost

$12/MWh

Fixed O&M Cost

$30/kW

Year of Construction 2014Solar Cell/Module Material Crystalline silicon

System Tracking Single axisAverage System Size - DC Nameplate

Capacity 1,000 kW

Number of Systems Installed 100Total Project Size - DC Nameplate Capacity 100,000 kW

Base Installed System Cost $2,600/kWDC

O&M Cost $25.00/kW

Year of Construction 2014Project Size - Nameplate

Capacity 500 MW

Capacity Factor 30%

Heat Rate (Btu per kWh) 6,430

Construction Period (Months)

12

Plant Construction Cost $1,300/kW

Cost of Fuel ($/mmbtu) $7.85

Fixed O&M Cost ($/kW) $10/kW

Variable O&M Cost $3.27/MWh

WindAssumptions:

Works Cited"A Guide to Careers in the Oil and Natural Gas Industry." Shalenet.org. ShaleNET, 2013. Web. 2 June 2015.“Arizona Solar Jobs Census 2014,” The Solar Foundation. n.d. Web. 21 June 2015."Chapter 4: Photovoltaics: Technologies, Cost, and Performance." Sunshot Vision Study. N.p.: U.S. Department of Energy, 2012. 69-94. Web.Gloria, Ayee, and Gereffi Gary. "CHAPTER 11: Wind Power: Generating Electricity and Employment." Manufacturing Climate Solutions: Carbon-Reducing Technologies and U.S. Jobs. Ed. Lowe Marcy. Durham: Center on Globalization, Governance & Competitiveness, 2009. 1-36. 22 Sept. 2009. Web. Jobs and Economic Development Impact Models. NREL.gov. National Renewable Energy Laboratory, n.d. Web. 10 June 2015.Liming, Drew. "You're a What? Wind Turbine Service Technician." Occupational Outlook Quarterly Fall (2010): 34-35. BLS.gov. Web. 2 June 2015.A.E. Macdonald and C.T.M. Clack, et al. Future cost-competitive electric systems of the US and their impact on CO2 emissions. Nature Climate Change. Under Review."National Solar Database." SEIA.org. Solar Energy Industries Association, n.d.Web. 21 June 2015.

Solar PV Assumptions:

$73,075,714

$52,492,853 $1,289,714

Works CitedOlson, Arne, Nick Schlag, Kush Patel, and Gabe Kwok. Capital Cost Review of Generation Technologies. Rep. San Francisco: Energy and Environmental Economics, 2014. Print.Platzer, Michaela D. "U.S. Solar Photovoltaic Manufacturing: Industry Trends, Global Competition, Federal Support." Congressional Research Service (2015): 1-27. Fas.org. Congressional Research Service, 27 Jan. 2015. Web. 15 June 2015.Torpey, Elka Maria. "You're a What? Solar Photovoltaic Installer." Occupational Outlook Quarterly Fall (2009): 34-35. BLS.gov. Web. United States of America. Department of Labor. Bureau of Labor Statistics. Careers in Solar Power. By James Hamilton. Bureau of Labor Statistics, June 2011. Web. 30 May 2015.United States of America. Department of Labor. Bureau of Labor Statistics. Careers in Wind Power. By James Hamilton and Drew Liming. Bureau of Labor Statistics, September 2010. Web. 30 May 2015."Workforce Challenges Survey Results." Api.org. American Petroleum Institute, May 2005. Web. 2 June 2015.

Project Assumptions• Industries capturing maximum economies of scale.• All parts of the process done inside one state.• Homogeneous cost of installation across all states.• Cost assumptions identical with NEWS model.• Utilizing the National Renewable Energy

Laboratory’s Jobs and Economic Development Impact Models

MethodologyStep 1: Isolate industry segmentsStep 2: Record jobs and earnings

generated for each job typeStep 3: Divide by total MW Step 4: Program into NEWS Model Step 5: Run 27 energy mix scenarios

• Three possible price assumptions• Nine possible divisions• Results for national HVDC

transmission system shown hereStep 6: Record and study results

Findings::

Findings

Findings:

Potential to generate:• 744,000 annual direct jobs

under national HVDC system• Net gain: 573,000 jobs

• More than 4x the coal jobs lost• $53 billion in direct earnings• $4 billion in state tax revenues• Cheaper electricity prices

Potential to reduce:• Carbon emissions (78% compared

with 1990 levels)• Health care expenditures due to coal• Boom and bust development cycles• Water consumption by energy

production (~65% compared with 1990 levels)

251,936 215,549 43,676

133,505 113,522

107,857 91,890

-

100,000

200,000

300,000

400,000

500,000

600,000

R-Low NG-High R-Mid, NG-Mid R-High, NG-Low

Annual Jobs Induced IndirectDirect

$1,693,180,734 $1,429,897,743

$186,263,765

$720,687,040 $621,374,128

$-

$500,000,000

$1,000,000,000

$1,500,000,000

$2,000,000,000

$2,500,000,000

$3,000,000,000

R-LOW, NG-HIGH R-MID, NG-MID R-HIGH, NG-LOW

Annual Tax Revenue Sales Tax-O&MSales Tax-Construction

55,376876