Clean Energy Industry Trends and Clean Energy Industry Trends and Workforce DevelopmentWorkforce Development

Research Summary

November 18, 2010

Alan Alan HardcastleHardcastle

Sr. Research AssociateSr. Research Associate

Green Jobs BackgroundGreen Jobs Background

2008 legislation directed Employment Security to identify the number of green jobs in Washington.

47,194 private-sector jobs were found for 2008.

2009 legislation directed a series of follow up studies to cover both public and private sector green jobs.

First step: First step: Define green jobs

Development of products and services that promote environmental protection and energy security.

Businesses engaged in: Energy efficiency Renewable energy Preventing and reducing pollution Mitigating or cleaning up pollution

The SurveyThe Survey

Scientifically sound design. Direct, public and private-sector green jobs. More than 13,000 responses.Results weighted to represent green jobs in all

sectors. Second survey enabled initial measurement of

change over one year.

Key Results (1)Key Results (1)

Estimated 76,137 private-sector green jobs

3.1 % of total covered private sector employment

Additional 23,182 public-sector green jobs

Total: 99,319 green jobs

Key Results (2)Key Results (2)

These 99,319 green jobs represent 3.3% of total covered state employment

Up from 1.6% in 2008

Private-sector employers surveyed in 2008 and again in 2009 reported 32.4% increase in number of green jobs

Private-SectorPrivate-SectorResults by Green Core AreaResults by Green Core Area

Energy efficiencyEnergy efficiency: 44.3% of all private-sector : 44.3% of all private-sector green jobs. More than two-thirds in construction, green jobs. More than two-thirds in construction, which is up 28.9% from 2008which is up 28.9% from 2008

Prevent/reduce pollutionPrevent/reduce pollution: 39.9% of private-: 39.9% of private-sector green jobs. More than half in agriculture.sector green jobs. More than half in agriculture.

Clean/mitigate pollutionClean/mitigate pollution: 11.6% of private : 11.6% of private sector green jobs. Mostly professional/technical sector green jobs. Mostly professional/technical services and waste management & remediation.services and waste management & remediation.

Renewable energyRenewable energy: 4.1% of private-sector green : 4.1% of private-sector green jobs. Mostly construction and jobs. Mostly construction and professional/technical services.professional/technical services.

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Public-SectorPublic-SectorResults by Green Core AreaResults by Green Core Area

Energy efficiency: 20.9% of public-sector green jobs.

Prevent/reduce pollution: 66.2% of public-sector green jobs.

Clean/mitigate pollution: 11.6% of public-sector green jobs.

Renewable energy:1.3% of public-sector green jobs.

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2009 Renewable Energy Trends and 2009 Renewable Energy Trends and Workforce Study Workforce Study

Global, National, State and Global, National, State and Regional Trends in Renewable Regional Trends in Renewable EnergyEnergy

Employer Data (27)Employer Data (27)

Workforce ImplicationsWorkforce Implications

Identify RE Education and Identify RE Education and Training in StateTraining in State

Wild Horse Wind/Solar Project – Kittitas CountyPhoto courtesy of Puget Sound Energy

Hubbert’s Curve and the EvidenceHubbert’s Curve and the Evidence

U.S. A Net Importer of Oil U.S. A Net Importer of Oil

The Cost of Oil – UpdatedThe Cost of Oil – Updated(High=$140 Barrel in July 2008)(High=$140 Barrel in July 2008)

Clean Energy InvestmentsClean Energy Investments

Global : New investment in clean energy was $162 billion in 2009

(China leads at $33.7 billion) Second highest figure ever, after $173 Second highest figure ever, after $173

billion in 2008, and up from $157 billion in 2008, and up from $157 billion in 2007billion in 2007

U.S.: Clean energy investment was $17 Clean energy investment was $17 billion in 2009, down 45% from 2008billion in 2009, down 45% from 2008

WA: $600 million in new federal stimulus funding in 2010, in addition to $2 billion for Hanford cleanup

Source: New Energy Finance, 20010

Workers service a wind turbine at Nine Mile Canyon SitePhoto courtesy of Energy Northwest

Annual Growth Rates In World Annual Growth Rates In World Renewable Energy Supply 1990-2006Renewable Energy Supply 1990-2006

1.9% 1.9% 1.5% 2.1% 2.2%

9.2% 9.3%

24.5%

0%

5%

10%

15%

20%

25%

30%

Tota

l energ

y su

pply

Tota

l Renew

able

s

Solid

Bio

mass

Geoth

erm

al

Hyd

ro

Renew

able

Munic

ipal

Wast

e/B

iogas/

Liq

uid

Bio

mass

Sola

r

Win

d

Source: EIA World Renewable Outlook 2008

Projected World Energy UseProjected World Energy Useby Source, 2007-2035by Source, 2007-2035

Source: DOE-EIA International Energy Outlook, 2010

Net Electricity GenerationNet Electricity GenerationEstimates by Source, 2007-2035Estimates by Source, 2007-2035

Source: DOE-EIA International Energy Outlook, 2010

 

0

50

100

150

200

250

20

06

20

09

20

12

20

15

20

18

20

21

20

24

20

27

20

30

bil

lio

n K

Wh

Geothermal

Municipal Solid Waste

Wood and Other Biomass

Solar

Wind

Annual Average Growth Rate 2006-2030

Geothermal 2.6% Municipal Solid Waste 2.2% Wood and Biomass 18.6% Solar 94.0% Wind 27.2%

U.S. Non-Hydro Renewable U.S. Non-Hydro Renewable Electricity Generation 2006-2030Electricity Generation 2006-2030

(includes effects of post-stimulus investments)(includes effects of post-stimulus investments)

Source: DOE-EIA, March 2009

2006 Resource Mix for 2006 Resource Mix for Electric Power GenerationElectric Power Generation

67%71%

12%

16% 7%

77%

15%19%

9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

World US WA

% o

f Tot

al E

lect

ricity

Pro

duct

ion

Geothermal

Solar/Wind

Biomass andWasteNuclear

Hydro

Fossil Fuels

Industry Trends: Industry Trends: Washington Employer PerspectivesWashington Employer Perspectives

Federal/state policies driving growthFederal/state policies driving growth

Uneven patterns of development Uneven patterns of development

Renewable energy employers optimisticRenewable energy employers optimistic Recession has had negative impact, but Recession has had negative impact, but

viewed as a “viewed as a “temporary setbacktemporary setback.”.”

Workforce Issues: Workforce Issues: Employer PerspectivesEmployer Perspectives

Future workforce shortagesFuture workforce shortages

Need for a multi-skilled workforceNeed for a multi-skilled workforce

Core skills often lackingCore skills often lacking

Significant interest from youth:Significant interest from youth: Solar employer:“I get an application a day from Solar employer:“I get an application a day from

energetic young people”energetic young people”

Workforce Issues: Workforce Issues: Education and TrainingEducation and Training

Lack of renewable education and training Lack of renewable education and training (at all levels, including STEM)(at all levels, including STEM)

Capacity limitedCapacity limited

Training delivery options—balance of Training delivery options—balance of distance options and applied learningdistance options and applied learning

Energy Efficiency Energy Efficiency Trends and Job CreationTrends and Job Creation

Energy price volatility, supply concerns, technology advances, climate change, energy independence, all contribute to long-term investments in EE.

NWPPC-6th power plan: Efficiency gains to meet 85% of new regional energy demand by 2020

Efficiency-related investments in 2004 were $300 billion;

support 1.63 million jobs in US Twice the number of jobs that were created in energy

supply sector But—still less than 1/3 of annual energy spending

Source: ACEEE: American Council for an Energy Efficient Economy

EE Sector Job Growth ProjectionsEE Sector Job Growth Projections

Source: Lawrence Berkeley National Lab

EE study – Occupations in EE study – Occupations in Weatherization (needed by 2020)Weatherization (needed by 2020)

Source: USDOE Weatherization Assistance Program

2008 = ˜13,000

Over 55,000

ConclusionsConclusions Clean Energy sectors will Clean Energy sectors will

experience long-term growthexperience long-term growth Economic recession has moderated Economic recession has moderated

new investment and growth, but new investment and growth, but there is momentumthere is momentum

State policies and green economy State policies and green economy goals impact clean sectors goals impact clean sectors differently; many opportunities differently; many opportunities and challengesand challenges

Retirements, demographic trends, Retirements, demographic trends, and inadequate education-training and inadequate education-training capacity will tighten labor marketcapacity will tighten labor market

Career opportunities available for Career opportunities available for students, workers who are preparedstudents, workers who are prepared

Solar panels on the roof of Wenatchee Valley CollegePhoto courtesy of Chelan County PUD

Contact:Contact:

Alan HardcastleAlan Hardcastle

Senior Research AssociateSenior Research Associate

(360) 956-2167(360) 956-2167

hardcast@wsu.edu

WSU Energy Workforce Research Reports:WSU Energy Workforce Research Reports:http://www.energy.wsu.edu/ResearchEvaluation.aspx