Strategy/ Sector Renewable Energy

Green Building/Energy Efficiency

Recycling/Waste-to-Energy Transportation

Linking Strategies create connections between elements of sustainability strategies and economic or workforce development.

Transformational Strategies attempt to transform or “green” existing economic sectors or strength.

Leapfrogging Strategies attempt to build entirely new green sectors and jobs.

Where We Are: Policy• 2008 Global Warming Solutions Act mandates

a 10-25% reduction from 1990 GHG levels by 2020 and 80% by 2050.

• Green Jobs Act of 2008, established the Mass. Clean Energy Center, the nation’s first state authority devoted exclusively to creating jobs and economic development in the clean-energy sector ($68 million over 5 years).

• Member, Regional Greenhouse Gas Initiative (RGGI), the Northeast’s cap-and-trade system, which has generated $79 million in carbon credits for Massachusetts.

Where We Are: Policy• MA Renewable Energy Trust, funded by

0.05 cents/kilowatt-hour surcharge on utility customers

• Major source of clean energy investments in Massachusetts

• $28 million expenditures in 2007: $12.7 million for “large renewables; $9 million for affordable green housing

Where We Are: Technology

• 2nd in cleantech venture capital in 2009 ($356 million in 27 deals). Total of $1.8 billion since 2005.

• Top research universities. MIT alone has supported many recent successful ventures including Sun Catalytix, A123 Systems, and FastCAP Systems.

• Mass. received 16 of 123 awards from the DOE’s Advanced Research Projects Agency-Energy program (total= $62.8 million).

Where We Are: Jobs

• “Clean energy cluster” supports 14,400 jobs (.4% of empl) (Pollin, 2009)

• 6,300 jobs in energy efficiency • Mass. received 16 of 123 awards from the

DOE’s Advanced Research Projects Agency-Energy program (total= $62.8 million).

Evergreen Solar

WITH THE NEWS that the state’s premier solar energy company, Evergreen Solar, is facing financial struggles, many are questioning whether the state was wise to “bet’’ on solar energy by providing an unprecedented level of state loans, grants, and land deals. Indeed, the rationality of states bidding against each other to attract biotech, information tech, and now renewable energy companies by offering the biggest subsidy package is part of a decades-long debate.

A case could be made that Massachusetts is better positioned to develop a wind production industry than solar. But the bigger question is whether the United States will be a leading player in the production of renewable energy and other clean technologies -or cede that role to Germany, Japan, and increasingly China.In the absence of a coherent national renewable energy policy, states and cities have been moving forward on their own. The predominant strategy has been to require utilities to purchase a set percentage of their energy - known as a renewable portfolio standard - from renewable sources, invest in some research, offer subsidies to attract companies, and maybe provide some worker training.The payoff for any given state may be anywhere from a few hundred to a couple of thousand jobs. While we applaud each success, this approach does not add up to the United States becoming a leader in renewable energy.

Thursday, October 22, 2009

Even when states and cities do all the right things, success is not guaranteed. Consider Austin, a city that has a comprehensive strategy to develop a solar production industry in a state that has been a leader in renewable energy. All of its planning and investment has resulted in one company staying in the area, HelioVolt, a producer of thin-film solar power cells. Two other solar companies incubated in Austin moved to other states, taking advantage of attractive incentive packages. And Austin Energy’s new 30-megawatt solar energy farm will use Suntech modules made in China and assembled in the United States.

By Joan Fitzgerald

Image by: Clayton Hansen

Renewable Portfolio Standards

State renewable portfolio standard

State renewable portfolio goal

www.dsireusa.org / November 2009

Solar water heating eligible *† Extra credit for solar or customer-sited renewables

Includes non-renewable alternative resources

WA: 15% by 2020*

CA: 33% by 2020

☼ NV: 25% by 2025*

☼ AZ: 15% by 2025

☼ NM: 20% by 2020 (IOUs)

10% by 2020 (co-ops)

HI: 40% by 2030

☼ Minimum solar or customer-sited requirement

TX: 5,880 MW by 2015

UT: 20% by 2025*

☼ CO: 20% by 2020 (IOUs)

10% by 2020 (co-ops & large munis)*

MT: 15% by 2015

ND: 10% by 2015

SD: 10% by 2015

IA: 105 MW

MN: 25% by 2025(Xcel: 30% by 2020)

☼ MO: 15% by 2021

WI: Varies by utility;

10% by 2015 goal

MI: 10% + 1,100 MW by 2015*

☼ OH: 25% by 2025†

ME: 30% by 2000New RE: 10% by 2017

☼ NH: 23.8% by 2025☼ MA: 15% by

2020+ 1% annual increase(Class I Renewables)RI: 16% by 2020

CT: 23% by 2020

☼ NY: 24% by 2013

☼ NJ: 22.5% by 2021

☼ PA: 18% by 2020†

☼ MD: 20% by 2022

☼ DE: 20% by 2019*

☼ DC: 20% by 2020

VA: 15% by 2025*

☼ NC: 12.5% by 2021 (IOUs)

10% by 2018 (co-ops & munis)

VT: (1) RE meets any increase in retail sales by

2012; (2) 20% RE & CHP by 2017

29 states &

DC have an RPS

6 states have goals

KS: 20% by 2020

☼ OR: 25% by 2025 (large utilities)*

5% - 10% by 2025 (smaller utilities)

☼ IL: 25% by 2025

WV: 25% by 2025*†

Country

Emissions Control Financial Support

National Emissions

Target

National Renewabl

e Electricity Standard

National Long-term

Energy Efficiency Plan

National Feed-in

Tariff

Long-term Government-

based "Green Bank"

Tax BenefitsLong-term

Funding Programs

Long-term Grid

Improvement Plan

GermanyChinaUnited States

United States in more detail

Proposal of 17%

emissions reduction

target from 2005

levels by 2020

29 states have man-

datory RES

policies.

21 states have energy

efficiency resource

standards. ARRA will

also invest $28 billion

in efficiency programs

Few state & local FiT

policies

DoE's Loan Guarantee program provides low-cost

financing, and DOE-run ARPA-

E* supports earlier stage

innovation

Production Tax Credits

and Investment

Tax Credits-

subject to renewal

ARRA* has $6.3 billion

for research, including advanced batteries,

carbon capture

and storage,

and ARPA-E* that

develops new clean

energy technol-

ogies

ARRA* includes

$17 billion of grants and loans for trans-mission

and smart grid.

Source: DBCCA analysis, 2010; Center for American Progress, "Out of the Running?" 2010. *ARRA stand for the American Recovery and Reinvestment Act. ARPA-E

Source: Electronics, Design, Strategy News.

Top 10 Photovoltaic and Wind Turbine Manufacturers

Solar Wind

Company Country Of Origin

Cell Technology

Capacity 2008

 (announced)

Company Country Of Origin

Capacity 2007 (in MW)

Sharp Electronics

Japan Crystalline* 870 Vestas Denmark 4512

Q-Cells Germany Crystalline* 834 GE Wind US 3285

Suntech Power Holdings Ltd.

China Crystalline* 590 Gamesa Spain 3048

First Solar USA Thin-film 484 BEnercon Germany 2771

SolarWorld Germany Crystalline 460 Suzlon India 2078

Sanyo Japan Crystalline 365 Siemens Denmark 1405

BP Solar UK Crystalline 480 Acciona Spain 871

Kyocera Japan Crystalline 300 Goldwind China 831

Motech Industries Inc.

Taiwan Crystalline 330 Nordex Germany 673

Solarfun Power Holdings

China Crystalline 360 Sinovel China 673

Total (in MW)     8012 Total (in MW)

  19,791

Total for Top 10     5073 Total for Top 10

  20,147

On Clean Energy, China Skirts Rules (9/9/10)

Union Accuses China of Illegal Clean Energy Subsidies (9/9/10)

Pisano and Shih, 2009 Harvard Business Review