THE ECONOMY:

Does going green bring the promise of jobs?

Prospects for green jobs may not be as positive as proponents think

Chris Morris

By Nicole Lucht (contact), In Business reporter

Fri, Aug 7, 2009 (3 a.m.)

Summit to address workforce's role in clean energy shift (8-7-2009)
Perfect time, place for clean energy summit (7-17-2009)
Building a green economy (5-26-2009)
Training for green jobs in plans for stimulus money (3-22-2009)

As the recession wears on, there’s a lot of enthusiasm for renewable energy’s potential to create jobs.

This economy, proponents say, promises to rebuild communities abandoned by bankrupt manufacturers, restore jobs lost by the busted housing market and reinstate America as a global leader.

Not so fast.

Although Senate Majority Leader Harry Reid says renewable energy has the potential to create “tens of thousands of jobs” in Nevada and more than a million nationwide, little research has been done on actual job creation in such an unchartered area.

“The real detailed work has not been done,” UNLV economist Keith Schwer said. “A lot of unknowns are in front of us.”

Such as how many of those are temporary construction jobs, and how many are long term.

Reid spokesman Jon Summers said the Nevada Democrat’s office is looking into how many of those jobs would be temporary, and how many translate into permanent employment.

Although it’s a stretch, the renewable energy push has been likened to President John F. Kennedy’s national challenge to put a man on the moon.

Congress is considering expansive energy legislation and is expected to take up the issue after its August recess. The House passed a bill June 26 that mandates an increase in the percentage of renewable energy utilities must use to generate electricity to 15 percent by 2021. It also contains grants for green jobs. The Senate is considering similar legislation.

Schwer compared renewable energy to the industrial revolution, which brought about technological changes, but pushed out established industries.

“It created new jobs, but it also killed jobs,” he said.

“There’s a lot of problems we face ... when there are large numbers of unknowns and perhaps a lot of misspoken statements,” Schwer said.

But if renewable energy lowers energy costs as proponents say it will, that would free up money for consumers to spend elsewhere, he said.

• • •

Just as Spain opened the New World to Western discovery, it also is one of the leaders in the green energy frontier.

Green energy jobs could kill other energy jobs at a rate higher than new jobs are created, said a study by Rey Juan Carlos University in Madrid.

The Spanish study showed that should the U.S. continue to follow the European model, it can expect to lose nine jobs for every four created.

Of the jobs created in Spain two-thirds were in construction, fabrication and installation and one-quarter in administration, marketing and projects engineering. One out of every 10 jobs created was a permanent position in operation and maintenance, the study said.

It concluded that, based on Spain’s high subsidies for of its green energy initiatives, the country spent $823,000 to create each green job, based on the current exchange rate. In the wind industry, it cost $1.4 million per job. Overall, Spain spent $36 billion subsidizing solar, wind and minihydro, the study said.

Each megawatt created from a green energy source cost about five jobs within the general economy, the study said. A megawatt created from photovoltaic solar caused the loss of nine jobs; wind energy, four jobs; minihydro, five jobs.

“These costs do not appear to be unique to Spain’s approach, but instead are largely inherent in schemes to promote renewable energy sources,” the study said.

If the cost of renewable energy forces consumers to pay more for electricity, as was the case in Spain, businesses could move elsewhere, the study said.

But the naysayers have their own naysayers.

So far, 750,000 renewable energy jobs have been created without sustained government investment, reported the Center for American Progress, a think tank.

From 1998 to 2007 jobs in clean energy grew at a national rate of 9.1 percent while traditional jobs grew by 3.7 percent, according to the think tank Pew Charitable Trusts.

Colorado Gov. Bill Ritter Jr. is an advocate of clean energy, especially as it benefits his state.

Using its history as a manufacturing state, Colorado has attracted a wind turbine producer that is expected to employ 2,500 workers, Ritter testified July 21 before the Senate Environment Committee and the Green Jobs and New Economy Subcommittee.

“Just as the industrial revolution created the jobs of the 20th century, we now usher in a new century of innovation, creativity and entrepreneurial vigor,” he said. “The new energy economy is creating the pathway to these careers and a new American century of energy leadership.”

The data are mixed, and it’s difficult to find a balanced study, said economist John Restrepo, principal of Restrepo Consulting Group.

Although Nevada has the potential to house solar, wind and geothermal plants, there is always the possibility the facilities will be built elsewhere.

“You ask where the research is and everyone starts looking at their shoes,” Restrepo said. “The jury’s still out, so to speak.”

Discussion: 13 comments so far…

By DTJ

8/8/09 at 3:07 a.m.

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Oh, just get it over with. Put Keith Schwer on your payroll and give him the bylines, since you trot him out in all your stories. He particularly had nothing of substance to add to today's article...
On the other hand, that Spanish study does give one pause. I'm sensing it'll be on the wrong side of the facts, in the long-run. And I'm curious who funded the study. But it's necessary to get the dissenting views into the discussion.
By Future

8/8/09 at 3:16 a.m.

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"Each megawatt created from a green energy source cost about five jobs within the general economy, the study said. A megawatt created from photovoltaic solar caused the loss of nine jobs; wind energy, four jobs; minihydro, five jobs."

What the author is trying to say is that, as has been the case in history in all industries, when an industry's production become more effecient jobs are lost.

There is nothing wrong with that.

There are far fewer farmers feeding more people today.

What is wrong is for the Adminstration and Congress to sell the cap and trade bill as a "Job Creator".

We need to move to new forms of energy, Just be honest there is a net loss of jobs and that is natural and normal.
By steve7952

8/8/09 at 5:21 a.m.

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While so called 'clunkers' are being donated, with tax exemptions, to the needy and the government is destorying perfectly good automobiles in the name of "Green" leaves me to believe 'Green can be mean'. Green first? People second? I don't think so!
By Sunlizard

8/8/09 at 9:07 a.m.

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"Senate Majority Leader Harry Reid says renewable energy has the potential to create "tens of thousands of jobs" in Nevada"

"Each megawatt created from a green energy source cost about five jobs within the general economy, the study said. A megawatt created from photovoltaic solar caused the loss of nine jobs; wind energy, four jobs; minihydro, five jobs."

The proposed Searchlight wind farm which is promising over 300 megawatts (only on windy days,the fine print says) will create a staggering (hold your breath for the drum role) 15 full time jobs!! (none of which will go to any local residents)

Sempra (which is mostly a coal company built the 10 megawatt photovoltaic system next to Solar One near Boulder City. They employed several people from Nicaragua! I'm sure Sempra was kind enough to provide those people with a hefty 3 dollars a day!

You could talk to Harry if you have 150 dollars to get into his Green Energy Summit!

How many people here really believe the crap the Mr. Reid is attempting to sell? The way the democrats are promoting green energy is a complete energy rush scam. If you invest in it, you are the loser...
By Siromega

8/8/09 at 9:11 a.m.

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It wouldn't surprise me that on a per-MWh basis, green energy is less operations and maintenance intensive than coal or natural gas generation. Overhauling a natural gas turbine is a lot of money and jobs, where as you don't have to touch a solar PV panel for 25 years after its installed.

This is OK though - the idea that even though green energy might have a high up front cost, the long-term maintenance costs are very low.
By commoncentsnow

8/8/09 at 10:07 a.m.

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I love what the Dems tell us what a great job thier doing,knowing that the public will vote for them based on a cycle of 4yr. rhetoric. Lets take a long term view like the Chinese do.
It takes 700lbs of neodymium to make a modest 3MW wind turbine, 25 lbs of Lanthaum and neadymium in a hybrid car for batteries and drive motor. These and other derivitives are in all computers, Ipods, Cel phones, MRI equip. the list is end less.
The derivitives come from mining Rare Earth.
We have a small supply of Rare Earth mined by Molycorp( I-15 south at Bailey rd.) This is the only significant supply in the world out side of China. China at present supplies vertually all of the Rare earth in the world. In 1980 they flooded the market with rare earth shutting down Molycorp and a small mine in Australia. But now the Chinese mines are runnig at Capcity allowing Molycorp to start up again (hopfully by the end of 2009) The Australian mine finally found a buyer by selling part of their holdings( guess who bought it). Can China open more mines? You betcha. As Chinese leader Deng Xiaoping said "The Arabs have their oil but we have our rare earth"
By jim-nevada

8/8/09 at 10:08 a.m.

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The enthusiasm for green jobs will wane if the Administration, or State of NV, doesn't unveil its master plan soon. "Green" talk continues to be incredibly nebulous and no reports have shown that jobs related to renewable energy have led to substantial job creation anywhere in the US.

If green jobs are our economy's salvation, could someone please send some information on them, like what they are or how the unemployed might prepare for them? The reality is that any entry level hospitality position is still a better career choice in Las Vegas than "unspecified green job".
By Sunlizard

8/8/09 at 11:41 a.m.

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"President Barack Obama's push for wind and solar energy to wean the U.S. from foreign oil carries a hidden cost: overburdening the nation's electrical grid and increasing the threat of blackouts. The funding Obama devoted to get high-voltage lines ready for handling the additional load of alternative supplies is less than 5 percent of the $130 billion that power users, producers and the U.S. Energy Department say is needed..."... http://www.bloomberg.com/apps/news?pid=2...
By waterwitch

8/8/09 at 11:57 a.m.

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I just love the continued point of:

"Such as how many of those are temporary construction jobs, and how many are long term."

Can anyone tell me what a permanent construction job is beyond maintenance? The expansion of renewable growth can provide sustained jobs, whether it is rooftop PV, wind energy, geothermal or utility scale solar. No construction jobs are permanent.
By DessertSun

8/8/09 at 12:20 p.m.

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No.
By Audit

8/8/09 at 2:48 p.m.

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The published study can be read at -

http://www.juandemariana.org/pdf/090327-...
By sunnysideup

8/8/09 at 4:42 p.m.

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People would need to be hired to install and maintain solar and wind turbines (lots of cheap, vacant land plus plenty of sun and wind around here is a plus).

Sure, the initial investments might be costly, but they should pay for themselves in no time. The oil, natural gas, and coal companies would have you think otherwise. Go figure.
By travislv86

8/8/09 at 6:10 p.m.

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I just wrote a 310 dollar check to nevada power, so I'm all for looking into green power created here in Nevada. It is a nobrainer however, that technology cost jobs, just think of casinos, the ticket in/out machinne has almost completely eliminated the need for a floor/change person.

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