Clean Energy Industry Trends and Workforce Development Research Summary

1. Clean Energy Industry Trends and Workforce DevelopmentResearch Summary November 18, 2010 Alan Hardcastle Sr. Research Associate

2. Green 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.

3. 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

4. The 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.

5. 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

6. 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

7. Private-SectorResults by Green Core Area • Energy efficiency: 44.3% of all private-sector green jobs. More than two-thirds in construction, which is up 28.9% from 2008 • Prevent/reduce pollution: 39.9% of private-sector green jobs. More than half in agriculture. • Clean/mitigate pollution: 11.6% of private sector green jobs. Mostly professional/technical services and waste management & remediation. • Renewable energy: 4.1% of private-sector green jobs. Mostly construction and professional/technical services.

8. Public-SectorResults 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.

10. 2009 Renewable Energy Trends and Workforce Study Global, National, State and Regional Trends in Renewable Energy Employer Data (27) Workforce Implications Identify RE Education and Training in State • Wild Horse Wind/Solar Project – Kittitas County • Photo courtesy of Puget Sound Energy

11. Hubbert’s Curve and the Evidence

12. U.S. A Net Importer of Oil

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

14. Clean 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 billion in 2008, and up from $157 billion in 2007 U.S.: Clean energy investment was $17 billion 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 Site • Photo courtesy of Energy Northwest

15. Annual Growth Rates In World Renewable Energy Supply 1990-2006 Source: EIA World Renewable Outlook 2008

16. Projected World Energy Useby Source, 2007-2035 Source: DOE-EIA International Energy Outlook, 2010

17. Net Electricity GenerationEstimates by Source, 2007-2035 Source: DOE-EIA International Energy Outlook, 2010

18. U.S. Non-Hydro Renewable Electricity Generation 2006-2030 (includes effects of post-stimulus investments) Source: DOE-EIA, March 2009

19. 2006 Resource Mix for Electric Power Generation

20. Industry Trends: Washington Employer Perspectives Federal/state policies driving growth Uneven patterns of development Renewable energy employers optimistic Recession has had negative impact, but viewed as a “temporary setback.”

21. Workforce Issues: Employer Perspectives • Future workforce shortages • Need for a multi-skilled workforce • Core skills often lacking • Significant interest from youth: • Solar employer:“I get an application a day from energetic young people”

22. Workforce Issues: Education and Training Lack of renewable education and training (at all levels, including STEM) Capacity limited Training delivery options—balance of distance options and applied learning

23. Energy Efficiency Trends 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

24. EE Sector Job Growth Projections Source: Lawrence Berkeley National Lab

25. EE study – Occupations in Weatherization (needed by 2020) Over 55,000 2008 = ˜13,000 Source: USDOE Weatherization Assistance Program

26. Conclusions Clean Energy sectors will experience long-term growth Economic recession has moderated new investment and growth, but there is momentum State policies and green economy goals impact clean sectors differently; many opportunities and challenges Retirements, demographic trends, and inadequate education-training capacity will tighten labor market Career opportunities available for students, workers who are prepared • Solar panels on the roof of Wenatchee Valley College • Photo courtesy of Chelan County PUD

27. Contact: Alan Hardcastle Senior Research Associate (360) 956-2167 hardcast@wsu.edu WSU Energy Workforce Research Reports: http://www.energy.wsu.edu/ResearchEvaluation.aspx