In Business Las Vegas, October 26th, 2007
In an effort to further his bid to make
Nevada
the renewable energy capital of the world,
Sen.
Harry
Reid
last week released a report outlining the potential economic benefits of developing solar, wind, biomass and geothermal power stations in the state.
The report states that developing green power plants that harness the state's natural resources to make electricity could be worth more than a trillion dollars and would create thousands of jobs, primarily in rural areas.
The report cites research by groups such as the Apollo Alliance — a group aimed at creating industrial jobs in
America
within the clean energy sector — unions, the National Renewable Energy Laboratory and congressional testimony by a University of California, Berkeley researcher.
"Renewable resources can provide the affordable and reliable energy we need, while creating an industry which can make Nevadans proud and prosperous,"
Reid
said in a statement accompanying the report. "So many states, including
Arizona
and
California
, are creating jobs by actively developing this industry. If those other states can do it, then
Nevada
can certainly do it and be the leader and catalyst in our country's energy revolution."
According to the report, a $30 billion investment in the renewable energy industry each year over ten years would result in more than 3 million jobs a and boost the national gross domestic product by $1.4 trillion.
The report cited research from UNLV's Center for Business and Economic Research that found renewable resources such as wind, biomass and geothermal could generate nearly $21.5 billion in gross state product through 2035.
With investment in the renewable energy industry, there could be nearly 80,000 jobs in renewable energy in
Nevada
by 2025, the report states, citing congressional testimony from University of California, Berkeley,
researcher
Daniel
Kammen
.
The report also states that
Nevada
could see about 19,000 manufacturing jobs created in the state by 2013 if renewable energy is pursued. That number could rise as high as 27,000 new jobs after factoring in operations, maintenance and installation positions.
Currently there are about 850 jobs in
Nevada
in the renewable energy industry.
The development of solar energy in particular could also give a boost to the construction industry, the report states.
Southern Nevada
is one of the best sources for solar energy in the world and the local construction industry has taken a hit in the housing downturn.
Building one 100 megawatt solar trough facility could create 817 jobs a year (as may as 1,570 during construction) and have an economic impact of about
Reid
report.$485 million, according to a study by the National Renewable Energy Laboratory cited in the
Construction of ten solar plants over 11 years is projected to add nearly 4,000 jobs in the first year of construction and peaking at nearly 7,000 jobs. The first post-construction year could see 1,090 to 1,800 jobs added, the study found.
Building three 100 megawatt plants over a two year cycle would add 7,000 jobs in the first year with an average employment impact during construction of about 5,000 jobs. Post-construction jobs creation would be at about 475 jobs.
The
Reid
report does not outline where the funding for such developments would come from.
The report states that money invested in renewable energy projects would create more jobs than money invested in traditional energy sources like natural gas or coal-fired power plants. Unnamed studies were cited as showing that renewables created four times more jobs than natural gas-powered plants and 40 percent more jobs per dollar invested than coal-powered plants.
This is because renewable energy is more labor intensive, the
Reid
report states.
The report does not outline whether the savings made from not having to buy fuel to burn in power plants would outweigh the cost of adding qualified workers, who are in high demand across the globe.
Reid
's proposed switch to renewables has earned the backing of some labor organizations, who support the creation of "good jobs" in the industry through a partnership between private power companies and the federal government. They foresee a surge in employment for the struggling U.S. manufacturing industry as a result of demand for new wind turbines and solar arrays that could be built here.
"Investments in environmentally friendly alternative energy programs at the state level, supported by federal initiatives, can create a new surge of quality job growth while significantly reducing our dependence on foreign oil," said United Steelworkers PresidentLeoGirard in a statement in the
Reid
report.
Sierra Pacific Resources PresidentMichaelYackira praised
Reid
's dedication to the development of green power sources in
Nevada
, but argued that basing the state's future power portfolio on renewables alone is not feasible.
"We agree with
Senator
Reid
in that renewable energy is a vital component of
Nevada
's energy strategy going forward. In fact,
Nevada
is currently a leader in geothermal and solar use,"
Yackira
said. "However, we cannot rely on renewables alone to meet the energy supply needs of our growing state."
Because of the great global demand for components of solar, wind and geothermal energy harvesting systems and the scarcity of contractors qualified to install them, the cost of building these systems is very high. The exact cost of implementing
Reid
's plans could vary greatly based on where the energy plants are located and what infrastructure — such as transmission lines — are nearby.
While federal government does give tax incentives for such projects, they have not yet taken the step of subsidizing them. And even if they do, solar, wind, geothermal and biomass energy plants still may not be reliable enough to meet demand year-round,
Yackira
said.
"It is feasible to increase the development and use of renewable resources as part of an overall strategy," he said. "In fact, we are doing that. We plan to invest hundreds of millions of dollars in wind, solar and geothermal projects within the next several years. But as we've stated before, when the sun isn't shining and the wind isn't blowing, we still have to provide electricity. A balanced approach is the best way to provide our customers with reliable electric service at predictable prices."
"Renewable resources can provide the affordable and reliable energy we need, while creating an industry which can make Nevadans proud and prosperous."
HARRY
REID
, Nevada senator
