Advanced Energy Perspectives

As we learned from the Advanced Energy Now 2021 Market Report, the U.S. market for advanced energy products and services proved remarkably resilient in 2020, despite the disruptions of COVID-19. Excluding Ethanol – a large but volatile slice of the domestic market that flipped from record 2019 revenue to 2020 crash – U.S. advanced energy revenue grew roughly 8% per year in both 2019 and 2020. But the COVID impact on employment was more severe, at one point accounting for the loss of more than 600,000 jobs. Still, at 3.2 million jobs nationwide at the end of 2020, advanced energy employs more U.S. workers than Food & Beverage Stores and twice as many as Commercial Banks. What’s more: advanced energy jobs are on the rebound, and ready to scale up for a national push for clean energy and jobs.

This is a guest post by Laura Sherman, president of Michigan Energy Innovation Business Council, an AEE state partner. The commentary was originally published by Energy News Network.  

Last month Gov. Gretchen Whitmer set a goal for Michigan to be carbon-neutral by 2050, a bold move that will bring more jobs and industry to the state. This executive order will continue to increase demand for innovative, business-driven solutions to reduce the impact of climate change. But three decades is a long time, so it may be difficult to imagine how achieving this goal will change Michigan’s economy.

Fortunately, though, we do not have to look out into the distant future to see how increasing the use of renewable energy, battery technology to store energy, electric vehicles (EVs) and energy efficiency—some of the advanced energy technologies that will be most important to achieving carbon neutrality—can deliver economic benefits. We can measure the economic growth and jobs that these energy innovations have already brought to Michigan and can continue to bring—not in 10, 20 or 30 years, but right now.

Whether the United States has “turned the corner” on the COVID-19 public health crisis or is looking at a long, cold winter of social distancing, at some point the conversation in Washington, D.C., is going to have to move from providing short-term relief to jumpstarting economic growth. When that time comes, advanced energy deserves to be high on the list for federal stimulus dollars. Public support is high: A recent New York Times/Siena poll shows that more than 70% of voters would support a $2 trillion renewable energy and infrastructure plan for economic stimulus. What would an infusion of stimulus funds like that mean for states? AEE, along with Texas Advanced Energy Business Alliance (TAEBA), asked Analysis Group, an international economics consultancy, to run the numbers for eight states. The results show a high ROI for public dollars put to work in advanced energy.

Recently, the United States experienced a shortage of essential medical supplies needed to treat an influx of patients with COVID-19, including respirators, gloves, face shields, gowns, and hand sanitizer – a shortage that drew national attention to the subject of supply chains. Interconnected, global supply chains can present challenges, but they also present opportunities for companies to scale their businesses by tapping into the global marketplace. That is especially true for markets that are on the rise, like the one for electric vehicles (EVs) and supporting charging infrastructure. The emerging supply chain for these products offers the prospect of business and job growth that can be seen on the local level in places with strength in the required skill sets. And that’s exactly what we found in our recent study of the EV supply chain in Pennsylvania.

The COVID-19 pandemic has been a tough time for the advanced energy industry, along with many others. With more than 600,000 jobs lost in the associated shutdown of the economy, the impact has been hard, and the difficulty of getting attention to it in Washington, D.C., even harder. But as states begin to open up, however slowly, and the focus of policymakers, state and federal, turns to jumpstarting economic activity, everyone who works in or cares about the transition to an advanced energy economy should take heart – and speak up.