By Dorothy Davis
One of America's most critical resources is the nation’s electrical grid, an engine of commerce across essentially all industries. The less popular side of the electric generation industry is its role as one of the country's biggest sources of emissions.
While everyone wants to keep the lights on, consumers now more than ever are demanding cleaner energy. In response, the U.S. Environmental Protection Agency (EPA) took decisive action last year to reduce emissions. The new regulations are spread across several major new proposals covering both the energy industry and several other related sectors.
Perhaps the most widely-reported rule has been the Mercury and Air Toxics Standards (MATS), which the EPA hails as the first overarching regulation of emissions of toxic substances ranging from mercury to arsenic. Technically the EPA implemented rules governing mercury emissions under the Bush administration, but these regulations were challenged by local and environmental groups for failing to meet standards set out by the Clean Air Act.
On top of these new emissions limitations, the EPA also imposed restrictions on emissions that travel across state boundaries. The Cross-State Air Pollution Rule (CSAPR) would replace the Clean Air Interstate Rule (CAIR) from 2005 and requires more than two dozen states to reduce their emissions of sulfur dioxide, nitrogen dioxide and ozone. CSAPR has been challenged in court and the industry is currently operating under CAIR while the case is reviewed.
Lastly, a more specifically targeted rule would require that all businesses using boilers and large incinerators to meet specific emissions standards for chemicals such as mercury and other substances like soot, known as the Maximum Achievable Control Technology or MACT standards. Most boilers already meet these standards, but some 1 percent would need maintenance, modification or replacement.
Each of these new rules would be implemented under the timeline laid out in the Clean Air Act, requiring full compliance with the law within three years, with the possibility of a one-year extension at the discretion of the EPA.
The debate over these new rules has involved vehement arguments on either side, with the EPA touting huge potential health savings and many energy companies insisting the costs of implementing these new regulations could prove economically catastrophic.
The impact on electric generation capacity alone could reach a substantial level. The North American Electric Reliability Corporation estimates that, between derated power plants and retirements, the MACT standards alone could lead to the loss of anywhere from 2.9 gigawatts (GW) to 17.6 GW of generation capacity. The CSAPR regulations, meanwhile, could lead to the loss of between 2.8 GW and 7.2 GW.
Combined with all other new regulations the report predicts anywhere from 40 GW to 76 GW of lost capacity. According to the EIA, the highest figure represented more than 7 percent of the country's electricity generation capacity in 2010.
In particular, a report from Credit Suisse projects that around 60 GW of coal-fired power plants are likely to shutter. Given that NERC projected lower-than-usual capacity reserves in some of the affected areas, particularly Texas, in its 2011 Long-Term Reliability Assessment, those losses could prove costly.
Certain sectors expect to be hit particularly hard by the new regulations. The American Forest and Paper Association notes an internal report estimating as many as 36 paper mills might be forced to close without the ability to pay to upgrade outdated boilers. Those closures would cost more than 20,000 jobs. The Council of Industrial Boiler Owners projects even more substantial cuts of 230,000 jobs, suggesting that the vast majority of current boilers are entirely incapable of meeting the proposed standards at all. Replacement and improvement costs are estimated at $14.3 billion.
All told, a report commissioned by the American Coalition for Clean Coal Electricity and composed by National Economic Research Associates found that the net effect through the rest of the decade would be a loss of 1.4 million job-years. That amounts to a net loss of around 175,000 jobs. It also projects electricity rates to rise around 12 percent, imposing its own economic costs.
But not all analyses project economic losses because of the rules. Credit Suisse portrays the new regulations as an opportunity to realize larger profits on existing generating capacity that already does or can meet emissions standards, which represents the majority of all generating capacity. This will necessarily mean higher electricity rates for the affected areas, and potential economic costs as a result, but also means greater stability for natural gas-fired power plants and other electricity generators, as well as the potential for greater investment in new capacity that meets emissions standards.
A Bloomberg Government study goes so far as to suggest that the new EPA regulations will have limited impact on the energy sector and similarly minimal effect on actual emissions.
But other analyses project a more substantially positive impact. The EPA estimates the MATS regulations alone will produce 46,000 temporary construction positions and another 8,000 long-term jobs.
A report put together by environmental advocacy group Ceres and the Institute of Clean Air Companies suggest that the total economic impact of the new rules could mean as many as 1.5 million new jobs over the next five years. Many of these would be shorter-term construction positions, while others would come from long-term jobs with power plants or at environmental control mechanism manufacturers. The remainder would represent the broader impact of these new jobs.
The Economic Policy Institute takes a more inclusive approach, accounting for lost positions in the energy sector and their impact, but still finds a net gain of between 28,000 and 158,000 jobs in the same time frame. The energy industry could stand to lose as many as 17,000 positions, while anywhere from 31,000 to 46,000 jobs could be lost because of higher electricity rates.
However, the energy sector could also gain as many as 35,000 positions as resources shift in other directions, while the pollution control industry would add at least 81,000 jobs. With the net-positive impact on industry jobs, the impact on secondary economies is expected to be substantially positive as well.
So where do all these numbers leave the electric power industry and consumers in terms of the far reaching impact of these new regulations? Nowhere near a clear answer unfortunately. What lies ahead is as always determined by what roads are taken now and that road is still being paved by electric power regulators, providers and consumers.
Monday, May 21, 2012
Thursday, March 1, 2012
Spare the rod, spoil the oil-producing nation…
New Eyes on an Old Industry
By Hilton Price
Growing up an only child, I missed out on some of the unique elements of living in a sibling-filled household. Luckily, thanks to Iran, I still get to experience the petty and often meaningless tirades of a selfish child on a regular basis. The country has long been home for random acts of foolishness broadcast to the world, but in recent weeks the petulance, selfishness, and downright silliness have gotten out of hand. For these new eyes on an old industry, it’s clear. The naughty children need to spend more time in time-out.
Like many of the impromptu and heated words of children, reality often steps in with other plans. Sure enough, after Iran refused to sell some of its oil, the country was left with unsold oil. That seems a poor choice of endgame for an oil-exporting country. Last I read, some of that unsold oil had been sold, but the clock remains ticking to unload the bulk of it or risk it sitting idle on tankers in the open sea. That possibility, and the resulting unpredictability in the oil-trading markets, has led my new eyes to realize something else about this old industry. Supply and demand is useless here, and that is the cornerstone of Iran’s power in this struggle.
When there’s a potential oil shortage, the price at the pump goes up. When there’s uncertainty in reserves, the price at the pump goes up. When there’s potential that a bunch of unsold oil will be sitting around in tankers on the open sea…, the price goes up? Wait…what? I’ve come to realize the markets don’t seem to reflect the actions of the world in any way similar to business basics. It’s all because of “speculation,” a word that seems to give far too much power to analysts. However, I’m new here and still learning how it works. I’ll try to reign in the urge to go running down the street screaming, “The whole thing is fixed! The game is rigged! We’ll never win!” without at least a little more time in the trenches.
It’s this negative effect on the markets that Iran clearly hopes will drive EU countries back to its oil. The problem is, outside of the markets, Iran has almost no power. The country traditionally exports 2.2 million barrels each day. That seems like a lot, until you consider the typical world consumption of 89 million barrels each day. Then, it quickly becomes a drop in a pretty big bucket. Who’s providing the other 86.8 million? Are any of those countries causing trouble? Norway produces almost as much oil as Iran. When was the last time Norway threatened to close any shipping straits? How much “not for weapons (we swear)” yellow cake are the Norwegians going after? I’m pretty sure the country hasn’t done either of those things. Okay, maybe the yellow cake, but it’s probably just moist, delicious, yellow cake. And who doesn’t love cake?
I can’t answer that, but I can tell you who doesn’t “get” any cake; Naughty children. Even as I bring this blog to a close, I’m reading how Iran is refusing to allow nuclear inspectors onto its military bases, even though it’s believed that is where the country is storing nuclear-related items, possibly even potential weapons. This half-assed approach to openness is another childish maneuver. It’s the world-stage equivalent of “I’ll show you how I cleaned my room, but you’re not allowed to look in my closet.”
Enough is enough. I don’t allow this nonsense in my home, and it shouldn’t be allowed in the interactions between nations. It’s time to put the naughty children in time-out. They clearly need to spend some more time thinking about what they did.
Thursday, February 16, 2012
Oh, for frac’s sake…
New Eyes on an Old Industry
By Hilton Price
In the upcoming edition of PennEnergy Workforce Magazine, I’ve contributed an article on why I believe public outcry and government legislation have been good for the fracking industry. It’s pretty compelling stuff. You should read it.
During the week I spent researching the piece, I learned a lot about fracking, far more than I had in the preceding 3 months I’ve been working in the industry. Amid that intense study, I realized two things. First, the theme of my submissions in this recurring blog will be my own ongoing education in the oil and gas industry. Second, no one outside the industry is ever going to be entirely comfortable with fracking. The process is too weird for normal human consumption, and the very nature of how it is performed means someone, and most likely many someones, will always oppose it.
The list of fracking chemicals is shrinking. With each unsuccessful frac (or successful legislation), the number of reliable and permissible chemicals is reduced. That’s a good thing. That means less dangerous junk is pumped underground. For instance, the first frac involved Napalm. I don’t have the list of acceptable chemicals in front of me, but I’m pretty sure that’s not on it anymore. You’d be hard pressed to find someone who would say napalm should be used in anything, expect possibly for blowing stuff up.
Even with napalm and some of the other obviously problematic chemicals removed, the permitted frac fluid list is still littered with a bevy of chemicals not familiar to most people. Unfamiliarity breeds fear. Until the bulk of mankind starts taking a personal interest in high school chemistry, almost every chemical on that list is going to be a source of fear.
Okay, I found the list. There are, admittedly, a few that don’t sound so scary. Take Isopropyl Alcohol, for example. Practically every family has at least one bottle of Isopropyl Alcohol under a bathroom counter in their home. So, seeing that name on the list might not concern everyone. Of course, the chemicals on this list aren’t just sitting on a list or hiding under a bathroom counter, they are being forced into the ground at high pressure and speeds. This brings up the other reason most people won’t ever be “okay” with fracking. It involves pumping stuff into the Earth, a concept that in itself is unsettling to the uninformed.
It’s easy to make assumptions on how people will act, and that’s largely what I’m doing here. So, allow me to add some context. I’m in Tulsa, Oklahoma as I write this. It’s where I live; I didn’t just stop here to write. Over the last few years I’ve grown accustomed to Tulsa’s unique weather anomalies. Severe thunderstorms, epic snowfall, and tornado warnings are just part of the Oklahoma life. Then last year, something else popped up with increasing frequency: earthquakes. I felt two of them, and they were pretty scary. So, I understand why people began trying to find a cause almost immediately. We’re not used to them and we want answers.
Of course, someone from Tulsa posted a story about fracking’s possible link to earthquakes on their social network page. Within minutes, everyone had strong opinions on the topic. It was very cute. Thoroughly uninformed, but very cute. It also exemplified the way people view fracking. The effect of the process isn’t fully understood by people, so the idea of some frac fluid setting off “the big one” makes a weird kind of sense. Geologists have found a connection between fracking and earthquakes, but not in the point-A-leads-to-point-B way the public has embraced. It’s more complex than that, and that complexity, a recurring theme here, is why the public just doesn’t get it.
Lucky for us, the public doesn’t understand a lot of things it discusses, and that’s why in the end we don’t really have to pay too much attention to what they say. From Federal finances to relationships in Hollywood, public discourse is common. Politicians don’t worry about my thoughts during budget debates, and celebrities have never asked for my input on their trysts. As long as the people behind the fracking industry can accept that the process will be discussed by those who aren’t fully informed, it can persevere past the hurdles mass discourse will occasionally toss in its way.
By Hilton Price
In the upcoming edition of PennEnergy Workforce Magazine, I’ve contributed an article on why I believe public outcry and government legislation have been good for the fracking industry. It’s pretty compelling stuff. You should read it.
During the week I spent researching the piece, I learned a lot about fracking, far more than I had in the preceding 3 months I’ve been working in the industry. Amid that intense study, I realized two things. First, the theme of my submissions in this recurring blog will be my own ongoing education in the oil and gas industry. Second, no one outside the industry is ever going to be entirely comfortable with fracking. The process is too weird for normal human consumption, and the very nature of how it is performed means someone, and most likely many someones, will always oppose it.
The list of fracking chemicals is shrinking. With each unsuccessful frac (or successful legislation), the number of reliable and permissible chemicals is reduced. That’s a good thing. That means less dangerous junk is pumped underground. For instance, the first frac involved Napalm. I don’t have the list of acceptable chemicals in front of me, but I’m pretty sure that’s not on it anymore. You’d be hard pressed to find someone who would say napalm should be used in anything, expect possibly for blowing stuff up.
Even with napalm and some of the other obviously problematic chemicals removed, the permitted frac fluid list is still littered with a bevy of chemicals not familiar to most people. Unfamiliarity breeds fear. Until the bulk of mankind starts taking a personal interest in high school chemistry, almost every chemical on that list is going to be a source of fear.
Okay, I found the list. There are, admittedly, a few that don’t sound so scary. Take Isopropyl Alcohol, for example. Practically every family has at least one bottle of Isopropyl Alcohol under a bathroom counter in their home. So, seeing that name on the list might not concern everyone. Of course, the chemicals on this list aren’t just sitting on a list or hiding under a bathroom counter, they are being forced into the ground at high pressure and speeds. This brings up the other reason most people won’t ever be “okay” with fracking. It involves pumping stuff into the Earth, a concept that in itself is unsettling to the uninformed.
It’s easy to make assumptions on how people will act, and that’s largely what I’m doing here. So, allow me to add some context. I’m in Tulsa, Oklahoma as I write this. It’s where I live; I didn’t just stop here to write. Over the last few years I’ve grown accustomed to Tulsa’s unique weather anomalies. Severe thunderstorms, epic snowfall, and tornado warnings are just part of the Oklahoma life. Then last year, something else popped up with increasing frequency: earthquakes. I felt two of them, and they were pretty scary. So, I understand why people began trying to find a cause almost immediately. We’re not used to them and we want answers.
Of course, someone from Tulsa posted a story about fracking’s possible link to earthquakes on their social network page. Within minutes, everyone had strong opinions on the topic. It was very cute. Thoroughly uninformed, but very cute. It also exemplified the way people view fracking. The effect of the process isn’t fully understood by people, so the idea of some frac fluid setting off “the big one” makes a weird kind of sense. Geologists have found a connection between fracking and earthquakes, but not in the point-A-leads-to-point-B way the public has embraced. It’s more complex than that, and that complexity, a recurring theme here, is why the public just doesn’t get it.
Lucky for us, the public doesn’t understand a lot of things it discusses, and that’s why in the end we don’t really have to pay too much attention to what they say. From Federal finances to relationships in Hollywood, public discourse is common. Politicians don’t worry about my thoughts during budget debates, and celebrities have never asked for my input on their trysts. As long as the people behind the fracking industry can accept that the process will be discussed by those who aren’t fully informed, it can persevere past the hurdles mass discourse will occasionally toss in its way.
Thursday, February 2, 2012
Natural gas prices and shale estimates plummet

The drop has been attributed to the massive surge in natural gas production from the proliferation of hydraulic fracturing and the recent lull in demand created by an unusually mild winter.
Natural gas prices have slumped from above $4 per million British thermal (Btu) units to below $3 per million Btu; a game changing drop that has prompted many of the nation’s gas producers to begin scaling back operations to focus on higher value resources. All told, the country has 780 natural gas rigs in operation, a 14 percent decline from the same time last year.
Now in an interesting turn of events, the latest estimates of shale natural gas reserves in the U.S. have taken a shocking step backward.Projections released by the U.S. Department of Energy estimate that the country holds around 482 trillion cubic feet of recoverable natural gas from shale basins. That represents a 42 percent decline from the year before when estimates of shale gas reserves were placed at around 827 trillion cubic feet.
Probably the most substantial impact of the updated estimates, however, was the 66 percent reduction in recoverable reserves in the Marcellus shale formation in Pennsylvania, New York, Ohio and West Virginia.
Ironically, it’s the surge in natural gas exploration in shale deposits over the last year that has provided these revised estimates. Last year that basin was estimated to hold 410 trillion cubic feet of gas, enough to fill U.S. gas demand for 17 years at 2010 level. Now, that number has been reduced to 141 trillion cubic feet, or around 6 years.
Nevertheless, the DOE estimates natural gas production will rise even higher than previously predicted despite the smaller resource base.
Thursday, December 29, 2011
Powering America: The Critical Need for Transmission Investment to Spur Growth

The Department of Energy (DOE) reports that the U.S. electricity grid spans more than 300,000 miles of transmission lines connecting more than 1 terawatt-worth of generation capacity to hundreds of millions of homes and businesses. While the DOE suggests the system is still 99.97 percent reliable, outages still cost more than $150 billion a year and appear to be steadily impacting more and more people.
With electricity demand outpacing investments in transmission capacity by nearly 25 percent a year for the past three decades and peak demand expected to increase another 20 percent in the next 10 years, the problem only stands to worsen. It is time to stop taking our energy infrastructure for granted.
Energizing Employment
While our transmission and distribution systems serve to bring us the power we have come to rely on for almost every aspect of our daily lives, it is also a significant source of employment. Electrical grid workers are no small part of the U.S. economy. The Bureau of Labor Statistics (BLS) reports that occupations related to electric power generation, transmission and distribution accounted for over 300,000 jobs nationwide with a mean annual salary of over $65,000.
The Working Group for Investment in Reliable and Economic Electric Systems (WIRES) suggests that the country could see a major surge in employment with only a relatively modest investment in our electric infrastructure system. WIRES projects that barring regulatory and permitting issues, the transmission sector is likely to spend between $12-16 billion per year on upgraded transmission. This level of investment would lead directly to between 51,000 and 68,000 full-time jobs annually, with anywhere from 150,000 to 200,000 total full-time jobs produced a year as a result. The total economic return on these investments is estimated at around 250 percent.
In large part this is because transmission, unlike many sectors, is an eminently local industry. The group estimates domestic costs at roughly 82 percent of the total, with construction, design, permitting and most other facets entirely contained within the U.S. Even materials, which account for 45 percent of total costs are still estimated at 61 percent domestic.
This kind of investment could prove particularly important for the struggling construction sector, which the BLS reports saw an unemployment rate of 14.2 percent in October 2011. The broad installation category saw a far lower rate of 7.2 percent, which still leaves 388,000 people in that sector out of work, though this also includes workers from multiple industries.
Vital to Green Energy
While traditional power sources face many of the strains imposed by an outdated grid, the current limitations of the U.S. transmission system pose an even greater problem for renewable power. Renewable energy sources like solar and wind power must contend with intermittency, generating electricity in inconsistent and often unpredictable patterns. With limited transmission capacity, these power sources can overload the grid at times of unusually high production.
Yet WIRES notes that current standards on how much power must come from renewable sources already require doubling the amount of renewable generation by the end of this decade. Under a stricter 20 percent national standard, this growth would be more than 350 percent by 2020 and 450 percent by 2025. Under the more modest current standards the U.S. would still need nearly $60 billion in transmission upgrades by 2025 just to accommodate growing renewables. At the stricter standard, that number would be more than $100 billion. Either way a significant investment in our energy infrastructure is going to be required to sustain reliability.
Facing the Issues
WIRES suggests that transmission companies are likely to spend billions each year on expanding and developing the grid in coming years, which might lead some believe the issue is well in hand. But these investments are only likely to come with the resolution of some serious issues in the development process. Because transmission lines cross numerous political boundaries and are often seen as unsightly, these projects can become major targets of protest, extending the approval process and dramatically raising costs. Many companies also have no realistic ways to recoup the costs of building further transmission lines, as the systems in place are designed at the state or lower levels with monolithic utilities in mind.
The Federal Energy Regulatory Commission attempted to address some of the prevailing concerns with the approval process over the summer, introducing Order No. 1,000 in June. The regulatory agency imposed new rules requiring a greater degree of regional collaboration on transmission development, though also required the costs of these projects be targeted specifically at those who directly benefit from them and that utilities consider non-transmission alternatives first. However, one crucial development for easing the approval process was ending the practice of granting local utilities the first right of refusal on transmission projects.
In addition to these more recent changes, the American Recovery and Reinvestment Act of 2009 set aside more than $1.9 billion for the distribution and reliability improvements to the grid, but many of the procedural concerns loom larger in the industry's eyes than the outright costs.
Nevertheless, a paper produced by the Federal Reserve Bank of San Francisco found the infrastructure investment of the ARRA resulted in substantial job gains in the years since, making addressing the lingering issues in the electrical distribution system an important point for encouraging economic and job growth in the country.
Thursday, December 8, 2011
Drilling Down: What Can Geothermal Do for You?

Geothermal energy is far from new, but only recently has this renewable resource truly begun to garner a more comprehensive look into how it can serve as a viable commercial power source.
Geothermal energy is thermal energy naturally stored within the earth. When utilized to generate electricity, geothermal power is an effective, environmentally sound and sustainable resource.
Research, investments and project developments in the geothermal power industry are on the rise; more importantly, so are the jobs associated with this burgeoning energy sector.
Burgeoning Business
According to the International Geothermal Association, as of 2010 more than 10,000 megawatts (MW) of geothermal power is currently being utilized, a nearly 20 percent increase in active capacity since 2005. In 2010 the United States led the way in geothermal electricity production with more than 3,000 MW of installed capacity from 77 plants.
The Geothermal Energy Association (GEA) recently revealed the findings of new industry reports that show the geothermal industry will add thousands of jobs as dozens of new geothermal power plants come online or enter advanced stages of development. Furthermore, these reports highlighted that the geothermal industry is not just creating more jobs than most conventional energy per megawatt, but jobs that are permanent, full-time and often providing a higher wage.
Growth Potential
The GEA anticipates that 2011 will be a high point of geothermal activity in the US, yielding approximately 500 to 700 MW of power projects in the final construction phase. These projects will add approximately 3,000 construction jobs, primarily in Nevada and California.
Nevada is an excellent example of the rapid and significant potential impact the growth of geothermal can present to a regional economy. In July 2010, the GEA said the growth of the geothermal industry in Nevada alone could be worth as much as $22.5 billion over the next 30 years if current trends continue.
With 14 geothermal power plants in the later stages of development, after groundbreaking these projects would create an estimated 1,400 construction jobs in Nevada.
“This high volume of geothermal projects moving into final stages of development will likely generate a massive geothermal boom in Nevada,” said GEA Executive Director Karl Gawell. “Along with the millions of dollars in federal and private investment, come thousands of new jobs.”
Governmental Support
The GEA report “Green Jobs through Geothermal Energy” also found that the federal stimulus, tax incentives, and strong state renewable standards continue to fuel the growth in geothermal power and job creation. Every geothermal project that came online in 2009 took advantage of the tax reimbursement provisions of the stimulus bill, which helped maintain momentum for new projects and continue to create new jobs in America.
It is also important to recognize that the benefits of the stimulus to the geothermal industry have yet to be fully realized. Nearly 95 percent of the projects receiving American Recovery and Reinvestment Act (ARRA) funding are either less than 50 percent complete or have yet to break ground.
“Recovery Act funding is going to make a huge difference over the next year to push projects to completion and create more jobs. The majority of the ARRA investment will really start to pay dividends for the economy in 2011,” said Karl Gawell, GEA Executive Director. “It is critical that we continue to support these sound policies despite the rancor of several short-sighted initiatives which seek to strip away these tools to help grow our economy.”
Diversified Portfolio
The ARRA also appears to have attracted diverse groups into the geothermal sector. Almost half of the Geothermal Technologies Program awards from the stimulus went to non-industry entities such as colleges and universities; cities, counties, and other state and local institutions; tribal entities; and The Department of Energy’s National Labs.
This trend in diversity within the geothermal sector is only proving to bolster the emerging industry. As more geothermal jobs are being created, a number of educational providers across the country are establishing undergraduate, graduate and certification programs to meet demand.
“To keep creating jobs in the geothermal industry, we must keep getting talented individuals coming into the industry. The programs at these leading schools will develop the next generation of geothermal professionals,” Gawell said.
Geothermal energy has stepped beyond its once understated status into a promising sector with the potential to offer not only sustainable energy, but also sustainable jobs.
Thursday, December 1, 2011
Finding the Green Workforce

As renewable energy continues to establish itself in the global market, an emerging concern is how to fill the industry’s need for skilled workers. According to a poll conducted by the Society for Human Resource Management, 40 percent of HR professionals say their organization is currently focused on creating green jobs or adding green duties to existing jobs. Further, a comprehensive report from the American Solar Energy Society forecasts that more than 17 percent of all anticipated U.S. employment could be generated from the renewable energy and energy efficiency industries over the next two decades. The need and opportunity for a green workforce is apparent, but are there enough skilled workers to meet demands?
The good news is there has been a tremendous cultivation of resources for training, funding and development in the renewable energy sector within the past five years. A good number of educational providers have expanded or modified their curriculums to include renewable education and training programs in response to the growing demand.
The U.S. government has also stepped up its efforts, paving the way in funding to support the creation of a competent green workforce through programs supported by the American Recovery and Reinvestment Act of 2009(ARRA). The U.S. Department of Labor’s Program of Competitive Grants for Worker Training and Placement in High Growth and Emerging Industry Sectors has been allotted $750 million through the ARRA to provide competitive grants for worker training and placement. Of that, $500 million is specifically for research, labor exchange and job training projects that will prepare workers for careers in the renewable energy and energy efficiency industries.
Companies in and outside of the renewable sector have also begun to invest in developing their own training courses in the hopes of attracting the workforce they are seeking and repurposing positions for renewables.
Now for the bad news; although there is an existing abundance of resources to support the establishment of a multi-level green workforce, there are far less available to bring these initiatives together or provide information to help establish realistic industry standards for recruitment. Which begs the question, is there truly a shortage of qualified workers or simply a shortage of renewable focused information, standards and hiring resources?
To move forward in creating the workforce needed for the renewable sector there must be a collaborative effort to establish a framework for industry knowledge, recruitment and training that will evolve into recognized standards as the industry matures. Establishing an understanding of just what quantifies a green job will lead to helping to define what is required to fill one. Developing resources to share information between industry insiders, education providers and recruiters will help balance expectation, shape training programs and, more importantly, highlight how existing skills can be re-tooled to benefit the emerging green industry.
One of the more attractive aspects of renewable energy is how balanced the industry is in providing career building paths across a vast array of skill sets. Low- to medium-skilled workers are needed for manufacturing, installation and maintenance; while highly skilled employees are needed for research, development and leading the commissioning of renewable services.
The issue does not appear to be a lack of workers to fill these roles but a lack of information and expectations on the part of those seeking workers. Until standards are established and enough time has elapsed to develop a seasoned body of workers within the industry, it’s simply not plausible for companies and recruiters to require advanced degrees in specific renewable niches or the equivalent amount of experience in service to it.
An available option is to take a more realistic inventory of the existing workforce with the purpose of grooming it for the green industry. Among those who are unemployed or underemployed there is the opportunity to utilize existing skills or higher-level disciplines that can be restructured to work within the renewable energy sector. Veteran solar engineers may not be numerous, but environmental engineers are certainly available.
Recent technical or college graduates are in a unique position to offer fresh perspectives, a clean learning slate and innovative thinking to an industry that is still forming itself. Those entering the workforce as unskilled laborers will not only benefit from highly subsidized training in a growing sector but can also provide the industry with the workforce needed to build its infrastructure through apprenticeships and vocational rehabilitation programs.
Meeting the demands of the renewable industry is not only attainable, but under many circumstances requires a very manageable investment on behalf of the industry. Finding the green workforce could be as simple as utilizing what is right in front of us.
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