Aug. 19--BOSTON -- Massachusetts has been called the bluest of the blue states. But it's starting to turn green.

The renewable-energy industry is poised to become the 10th largest job sector in the commonwealth, surpassing the textile industry that was once a staple in the region. While textiles are losing jobs at a rate of about 5 percent a year, the emerging "clean energy" cluster is expected to grow 20 percent annually, adding to the 14,400 jobs already in the state. "It's a growth industry because we have some of the right makings for it to be successful," said Warren Leon, director of the Renewable Energy Trust. "We have universities generating the technology leading to start-up companies. Secondly, we have a skil ed technical work force.

And third, we have a heritage in the clean-energy sector." A new report published by the Massachusetts Technology Collaborative details the job potential in the clean-energy market. The state has added 116 new renewable energy companies, mostly small start-ups, since 2001, adding to the cluster's ranks, which now total 556 companies statewide. Massachusetts' clean-energy industry is expected to add more than 2,800 in the next year, pushing it past the textile industry, which now employs 15,400 people statewide. California is viewed by industry executives as Massachusetts' chief rival in creating a hospitable business climate to grow a clean-energy cluster.

A high concentration of these jobs and companies are locating in the Merrimack Valley and the Interstate 495 corridor, including Nuvera Fuel Cells and Schott Solar, in Billerica, and Konarka, Stellaris and Solar Innovation, all in Lowell. "We have a history of innovation and transition in this valley," said Dave Tibbetts, general counsel for the Merrimack Valley Economic Development Council. Tibbetts, harkening back to the computer age of Digital and Wang, which gave way to networking companies like Lucent and Nortel, said the region is attractive to emerging-technology companies because of the highly skilled work force.

"We have a very adaptable business climate," he said. Collaboration with UMass Lowell has also played a key role in attracting renewable-energy jobs to the region, building off research done at the university. Leon and others gave a lot of credit to the state government and Gov. Deval Patrick's administration for creating a welcoming environment for renewable-energy companies by taking a number of steps to encourage these entrepreneurs to start up or grow exi ting businesses in the state. In addition to working to streamline the permitting process for these manufacturing companies, Patrick has also signaled that the state will be a willing partner to help create a market for their products and secure federal grants and research funding.

Patrick took the lead, working directly with Evergreen Solar Co. to encourage that firm to undertake a major expansion at Devens, a project that will create hundreds of new jobs. He also convinced the federal government to pick Charlestown as the locati n for a major wind-turbine testing center. "From day one, he made it clear he was going to embrace this industry," said Robert Halpin, president of the Merrimack Valley Economic Development Council. "He caught on very early."