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Domestic Manufacturing Would Prosper from Pivot to Advanced Energy Technology

Posted by Adam Winer on Aug 5, 2021

Report findings to be presented during AEE’s ‘Made in America’ webinar, with appearance by U.S. Energy Secretary Jennifer Granholm

WASHINGTON, DC, August 5, 2021 – Federal policies proposed by President Biden and under consideration by Congress to invest in a decarbonized grid and electrified transportation would grow the U.S. advanced energy manufacturing sector by 365% in five years and create nearly 1 million additional jobs.

That’s the conclusion of a new analysis prepared by Guidehouse Insights for Advanced Energy Economy (AEE), which represents companies working to make the energy we use secure, clean, and affordable. The findings quantify U.S. manufacturing and jobs growth potential should Congress move forward with a Clean Energy Standard (CES) and many of the policies in the Biden Administration’s American Jobs Plan. The findings will be the focus of an online panel discussion today featuring an appearance by U.S. Department of Energy Secretary Jennifer Granholm.

“Advanced energy is already a significant part of the American industrial sector, and ramping up production of these technologies will have a big return on investment for our country,” said Harry Godfrey, an AEE director who leads AEE’s manufacturing policy work and is moderating Thursday’s panel discussion. “Now is the time for Congress to bolster domestic manufacturing in this growing industry and create nearly a million additional jobs across America.”

This analysis by Guidehouse Insights found that instituting a CES, investing in technologies supported by the American Jobs Plan, and providing support for domestic manufacture of products now mostly imported, could be significant drivers of growth of electric vehicles, renewable generation and energy efficiency technologies, like heat pumps and water heating – many of which are already largely produced in the U.S. – with the potential to triple the size of the advanced energy sector. 

The analysis focused on a subset of eight advanced energy technologies, complementing research by Princeton University economists finding that an increase in the share of domestic manufacturing in large-scale wind and solar development would support an additional 45,000 jobs. Princeton Associate Research Scholar Erin Mayfield is a panelist on today’s AEE webinar. 

“Policymakers should incentivize domestic production of the technology we are going to need to make our electricity and transportation systems more efficient and resilient,” added Godfrey. “Congress should reward consumers, whether they’re individuals or large developers, for choosing U.S.-made products.”

The report also found that the cost to increase the domestic share of ‘final assembly’ of two advanced energy technologies that are currently made mostly outside the U.S. – rooftop solar panels and smart grid communications devices – would result in an eight-fold return to the economy and an additional 56,000 jobs per year.

In the report – Advanced Energy & American Manufacturing: An Economic Impact Analysis – AEE makes the following recommendations: 

  • Pass a Robust Advanced Energy Investment Package
  • Support Demand for Domestic Production
  • Bolster Domestic Advanced Energy Manufacturing

Today’s webinar and panel discussion, titled “Made in America,” will focus on how investments in advanced energy can bolster U.S. manufacturing, create good-paying jobs, and expand business opportunities. A recording of the webinar will be available following the live event. 


Topics: Event, Advanced Energy Employment, Press Releases, Manufacturing