The Wall Street Journal-20080118-Politics -amp- Economics- Wind- Solar Power Gain Users- Supportive Policies Aid Greener Energy Sources- New Jobs in Thousands
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Politics & Economics: Wind, Solar Power Gain Users; Supportive Policies Aid Greener Energy Sources; New Jobs in Thousands
Two forms of renewable energy -- wind and solar power -- enjoyed substantial growth last year, spurred by federal and state energy policies and incentives that support green energy sources.
The U.S. wind-power industry grew in size by 45% last year, adding a record 5,244 megawatts of capacity that amounted to a third of all new generating capacity built in the U.S. in 2007, according to the American Wind Energy Association. General Electric Co. led the pack as nation's largest supplier.
The solar industry grew at a similar clip, though from a much smaller base, adding more than 300 megawatts of capacity last year, according to the Solar Energy Industries Association. Additions are expected to roughly double this year. Large commercial solar installations now exceed home installations in California, reversing a long-term pattern and likely a bellwether for other states.
The bulking up in the solar industry will become more pronounced as utility-scale projects get built. More than 3,000 megawatts of giant concentrating solar projects have been announced for vast stretches of the desert Southwest, to be completed between 2009 and 2014 with utilities buying the electric output.
The wind-power trade group said seven new factories opened in 2007, and it believes there are close to 20,000 jobs now in wind energy in the U.S., with nearly half added in the past year. The renewable- energy sector expects to add tens of thousands of jobs in the next decade.
The wind and solar industries are being lifted by federal policies that encourage clean energy sources and are backed by state and federal tax credits and other incentives. In half of the states, utilities are required to increase their purchases of renewable energy to lessen dependence on fossil fuels that contribute to climate change.
One worry for the sector is the expiration, at the end of 2008, of certain federal tax credits that have spurred development.
Although much of the wind and solar generating equipment installed in the U.S. is imported, more firms are building manufacturing and assembly facilities in the U.S.. "People see the U.S. as the next strong market," said Lisa Frantzis, managing director for renewable energy at Navigant Consulting Inc.
Germany's Schott AG said this week it will build a solar factory in Albuquerque, N.M., that will employ 350 people by 2009 and increase to about 1,500 workers in future years, a $500 million investment. The 200,000-square-foot plant will produce solar modules for giant, utility-scale solar installations. The company presently does production in Billerica, Mass.
New Mexico Gov. Bill Richardson said his state offered "close to $20 million" in incentives to attract Schott. "The Southwest is going to become the laboratory for clean tech jobs in renewable energy and energy efficiency," he said.
New Mexico has offered incentives to firms paying above-average wages. Mark Finocchario, president of Schott's U.S. division, said the Albuquerque jobs would pay "at least the prevailing wage" and would include health benefits.
