1. Clean Energy Industry Trends and Workforce Development Clean Energy Industry Trends and Workforce Development Research Summary November 18, 2010 AlanHardcastle 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: 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-Sector Results 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. 8 Public-Sector Results 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.

9. 9

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 Clean energy investment was $17 billion in 2009, down 45% from 2008 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 Use by Source, 2007-2035 Source: DOE-EIA International Energy Outlook, 2010

17. Net Electricity Generation Estimates 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-6 th 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) Source: USDOE Weatherization Assistance Program 2008 = ˜13,000 Over 55,000

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