U.S. Southeast Well Positioned for Clean-Energy Economic and Job Growth

When it comes to clean energy resources in the United States, many often assume four things: the Northwest has hydro, the Southwest has solar, the Midwest has wind, and the Southeast has nothing. The first three hold true, but our research suggests that rumors about a lack of clean energy in the Southeast have been greatly exaggerated. Prompt policy action can prioritize cost-effective energy savings and develop renewable resources to meet more than a quarter of Southeast electricity needs by 2025. Consider the following highlights from several recent reports:

-- The region is ripe for efficiency, which is the cheapest, cleanest, and most abundant power option. Cost-effective energy savings in the region could conceivably reduce energy use by more than 10 percent by 2015—about equal to the power produced by more than 30 coal-fired power plants. This would set the region well on its way to reducing energy demands by 20 percent or more by 2025.

-- Estimates drawing on studies from national laboratories, regional assessments, and state energy commissions show a strong portfolio of renewable resources in the Southeast. Of that mix, solar and biomass power (from forest residues, energy crops, and other sources) could each make up 10 percent or more of regional electric power sales within the next 15 years. The feasible onshore wind and low-impact hydro power could account for an additional 5 percent of total electric power. (In the longer term, renewable resources could play even larger roles with technologies that harness offshore wind or ocean energy.)

Realizing these opportunities not only offers several co-benefits for air and water resources, but also positions the region to be a major player in the clean-energy economy. Of course, getting there will take (create) plenty of work, with all indicators pointing to the Southeast as a growth market for clean-energy jobs.

The University of Florida estimates a moderate-sized biomass power plant could create 170 to 370 jobs, along with $11 million to $23 million of additional economic activity. Those jobs are primarily focused on operations, with less need for new technology manufacturing or additional training programs. Developing solar resources in the Southeast requires less on the operations side, but much more for new manufacturing and installation—both high-wage opportunities. Policy will be a key factor determining whether these jobs materialize. North Carolina, for example, has set modest renewable energy and efficiency targets for utilities. The policy is expected to result in 2,000 additional jobs through 2021 and has already spurred investments across the state. Florida has recently debated a more aggressive clean energy requirement for utilities, seeking to capture more of the state’s clean energy potential. The legislation seems to have stalled, unfortunately, leaving in limbo an estimated 60,000 new jobs for solar and biomass power production through 2020.

Many large energy users in the Southeast are actively seeking opportunities to utilize renewable resources. Interface and Georgia Pacific are two examples. They are both part of World Resource Institute’s Green Power Market Development Group, a coalition of major companies that recently attained a goal of purchasing 1,000 megawatts of renewable energy. Though they pursued several local projects, they were also drawn to invest in projects outside the region that had more policy support for renewable energy production and key financial incentives. Such incentives will be essential to spur markets for clean energy in the Southeast.

Other state policies, in addition to targets and incentives, will be critical to developing clean energy in a timely and sustainable manner. Environmental performance criteria and assessments of biomass resources, for example, will help ensure bioenergy production does not threaten vital land, water, and economic resources. Clear rules and permitting processes will help ensure renewable power production can be sited promptly and responsibly. Updated interconnection and net metering rules, along with upgrades for transmission and distribution infrastructure, will all be critical to making a successful transition to a greener grid in the Southeast – and ultimately creating clean-energy jobs in the region.

Tim Blackwell has seen promise in the Southeast clean power market for a number of years. He is president of OneWorld Sustainable, a small business providing efficiency and renewable energy solutions to residential, commercial, and institutional clients. Growing interest in clean power has helped his Georgia-based company grow from a two-man operation in 2002 to nearly 20 employees and $4 million in annual revenues today, with anticipated growth between 30 to 50 percent annually over the next few years.

It is also important to keep in mind the Southeast’s clean energy opportunity is not strictly limited to regional borders. As national demands for clean energy increase, states across the country are competing for investments in high efficiency products and clean power technologies. To be a force in a national and global clean-energy economy, states will need supportive workforce training programs and a solid regional market. Tennessee recently attracted two $1 billion manufacturing facilities that will produce components of solar photovoltaic panels and employ several hundred. Tax incentives helped draw the investments, but it is easy to imagine even more investment with local markets for clean power emerging in the Southeast.

As the United States transitions to a greener grid, the Southeast region has a prime opportunity to enhance efficiency and develop a portfolio of local renewable resources. Regions across the country will be developing their own clean power solutions and defining their role in tomorrow’s global clean energy market. The sooner policy action in the Southeast can establish the targets, incentives and infrastructure, the sooner the region can attract investment and create jobs.

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Eliot Metzger is a project manager at the World Resources Institute. He can be reached at emetzger@wri.org.

The World Resources Institute recently partnered with regional experts at Southern Alliance for Clean Energy, Southeast Energy Efficiency Alliance, and Southface to take a closer look at clean energy options in the Southeast. The research informed a series of reports highlighting abundant opportunities to save energy, produce power from local renewable resources, and leverage water-energy connections to protect vital freshwater resources.

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