Offshore Wind to Generate Billions for North Carolina Economy

The state must actively pursue development of offshore wind projects to capture the maximum economic opportunity RALEIGH, N.C. – A new analysis shows that constructing 2.8-gigawatts of offshore wind off North Carolina’s coast by 2030 will result in a net economic benefit of up to $4.6 billion for the state’s economy. The North Carolina Offshore Wind […]

North Carolina Offshore Wind Cost-Benefit Analysis

Date: January 19, 2022

SUMMARY

Over the next decade offshore wind is expected to play a significant role in decarbonizing the U.S. electric sector, and especially along the East Coast. When states are considering offshore wind goals, they will certainly evaluate the myriad of associated costs and benefits.

This analysis was developed to help decision makers quantify some of the economic development and environmental benefits associated with offshore wind. This analysis calculates the costs and benefits associated with a single 2.8-gigawatt (GW) offshore wind project off the coast of North Carolina in operation by 2030. Both a base scenario, assuming a standard amount of local manufacturing/supply chain content, and a high local content (or “high”) scenario, were developed.

The high scenario assumes 100% local content for both the blades and offshore substations of a single 2.8GW theoretical project. Content assumptions are based on findings from the March 2021 offshore wind supply chain study conducted on behalf of the North Carolina Department of Commerce, which indicates these components being most likely to locate production in-state. While not within the scope of this calculation, it is important to highlight the compounded value that new or expanded offshore wind supply chain capabilities located in North Carolina will create. In addition to providing economic benefit to the state through projects developed off the coast of North Carolina, offshore wind manufacturers will also supply components for projects along the Atlantic coast or potentially across the country or the globe — generating continued economic benefit to the state, absent the cost of generating electricity.

RESULTS

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BACKGROUND

Recently codified in state-level legislation, North Carolina has asserted the carbon-reduction goal of 70% by 2030 and to achieve carbon neutrality by mid-century4 . To that end, the Governor’s administration, the North Carolina General Assembly, and Duke Energy have all endeavored to examine pathways to reliably and costeffectively decarbonize the state’s electric grid5,6,7,8. While offshore wind has occasionally been an element of these discussions, due to relative cost and nascency of the U.S. offshore wind industry, it hasn’t been evaluated as a primary tool for decarbonization.

Absent from any of the decarbonization modeling or stakeholder processes conducted in the state since 2018 is the consideration of the economic benefits that accompany offshore wind. According to the American Wind Energy Association (AWEA), now the American Clean Power Association (ACP), an estimated 30GW of offshore wind deployment in the U.S. by 2030 could generate as much as $57 billion in economic output9 . As such, the inclusion of these benefits is critical when understanding the full value of the technology.

This analysis determines both the costs and benefits of a theoretical 2.8-gigawatt (GW) offshore wind project developed off the coast of North Carolina in operation by 2030 using industry-standard practices, data, and modeling tools. The costs and benefits are measured against one another to determine the net economic impact.

PREVIOUS REPORTS

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Clean Jobs Colorado 2021

Date: December 13, 2021

The Promise of a Bright Future and Strong Economy

Summary:

Driven by the impact of the COVID-19 pandemic and resulting economic crisis, Colorado experienced its first decline in clean energy jobs in 2020 since E2 began tracking the industry with this methodology in 2017. Colorado’s clean energy economy employed more than 58,000 workers at the end of 2020, down from 62,400 the year before, according to an analysis of Bureau of Labor Statistics data and the findings of a national survey of more than 35,000 businesses across the U.S. economy.

By May of last year, more than 7,500 clean energy workers in Colorado had lost their jobs since the COVID-19 pandemic began spreading widely, according to monthly analysis of unemployment data by E2 and partners.2 Since the sector’s losses peaked at the end of May 2020, jobs grew back by 6 percent. In fact, by the end of 2020 more than about 40 percent of the clean energy jobs lost between March and May had been regained, leaving the sector down about 7 percent (about 4,200 jobs) since COVID-19.

Thanks to smart state climate policy leadership, Colorado’s clean energy economy has proven to be a core part of the state’s economy—representing more than 2 percent of overall state employment. It has been resilient and robust in the face of crushing economy-wide pressures.

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Findings

  • Colorado’s Clean Vehicles sector, made up of Hybrid Electric Vehicles, PlugIn Hybrid Vehicles, Electric Vehicles, Natural Gas Vehicles, and Hydrogen & Fuel Cell, grew almost 6 percent over the previous year, as automakers increasingly shift to cleaner and more efficient electric cars, trucks, and buses. With smart policies, Colorado can be a center for innovation and high-tech manufacturing in this sector.
  • The most significant sector decline was in the Energy Efficiency sector, where the pandemic curtailed in-person engagement with customers.
  • The total clean energy generation sector ended the year with a 3 percent loss. Wind and solar gained jobs, while geothermal, bioenergy/combined heat & power and low-impact hydro took the hit in job losses.

Colorado Clean Energy Employment, 2020

Energy Efficiency 32,595
Renewables 17,324
Clean Vehicles 3,392
Storage and Grid 2,912
Clean Fuels 1,959
TOTAL 58,182

Policies Matter

Colorado’s landmark bill that passed and became law in 2019, Climate Action Plan to Reduce Pollution (HB19-1261),4 and was strengthened during the 2021 legislative session, requires the state to reduce 2025 greenhouse gas emissions by at least 26 percent, 2030 greenhouse gas emissions by at least 50 percent and 2050 greenhouse gas emissions by at least 90 percent of the levels of statewide greenhouse gas (GHG) emissions that existed in 2005. In 2021, HB21-1266 defines disproportionately impacted communities, requires engagement of those communities, and creates staffing, task forces, and boards focused on addressing environmental justice. These two laws inform how agencies are required to meet the GHG reduction goals, in with equity and justice at the forefront.

Several agency commissions are continuing to promulgate rules. The Public Utilities Commission (PUC) is developing rules to affect utilities that provide retail electricity. The Air Quality Control Commission (AQCC) is developing rules to curb emissions in the oil and gas sector and together with the Colorado Department of Transportation Commission are designing rules to electrify transportation, increase transit, walking and biking options, and reduce individual Vehicle Miles Traveled (VMT).

The 2022 legislative session should continue to address GHG emissions, as well as reduce waste, improve recycling, support renewable energy and regional transmission, improve monitoring emissions of oil and gas operations, and other policies in support of the environment and the clean economy.

Background

This is the fourth annual Clean Jobs Colorado report produced by E2 based on analysis of the USEER, which was first released by the DOE in 2016. E2 was an original proponent of the DOE producing the USEER and was a partner on the reports produced by the Energy Futures Initiative (EFI) and National Association of State Energy Officials (NASEO) after the Trump administration abandoned it in 2017.

For additional insight into E2’s Clean Jobs Colorado or our other annual clean energy economic reports, visit e2.org/reports.

An FAQ is available at e2.org/reports/clean-jobs-america-faq.

Previous Reports

Clean Jobs Colorado 2021 is the 5th clean energy jobs report for California from E2. Previous reports can be accessed in the below links.

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Most Monumental Investment in US Economy’s Future Slated to Pass House

WASHINGTON, DC – The core of President Biden’s Build Back Better agenda is set up for a vote in Congress in the House as early as tonight. If passed and signed into law, the Build Back Better Act would represent the largest federal investment in the economy and combatting climate change. Statement from Sandra Purohit, […]

Lexington’s congressional district holds nearly 5,000 clean energy jobs, report says

Kentucky’s 6th Congressional District in Lexington currently hosts 4,760 clean energy jobs according to a new national report by a nonpartisan group advocating for more investment. E2, which bills itself as a business group advocating for policies both beneficial to the economy and the environment, released the study on Monday to show there’s nearly as […]

Clean-energy jobs split nearly equally between Republican, Democratic districts — this shows where the most jobs are

The nation’s more than 3 million clean-energy jobs are nearly evenly split across Republican and Democratic congressional districts, new research out Monday shows. Nonprofit E2, which tracks clean-energy initiatives, particularly jobs in renewable energy, electric-vehicle manufacturing and electric-grid modernization, conducted the research with outside firm BW Research. Democratic-led districts make up 54.3%, while Republican-led districts account for […]

Clean Jobs America 2021 | Jobs By Congressional District

Date: November 1, 2021
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Explore the Congressional District Map

Every Day, 3 Million Americans Across all 435 Congressional Districts Work Building Our Clean Energy Economy.

Clean energy is a critical job creator in every state – employing 1 in every 50 American workers. More Americans today work in clean energy than as lawyers, police officers, farmers, firefighters, kindergarten teachers, and mail carriers combined.

Clean Jobs America 2021 | Clean Energy Jobs By U.S. Congressional Districts is a  new searchable database of U.S. employment across clean energy sectors (renewable energy, energy efficiency, clean vehicles, clean fuels, and storage and grid modernization) across all 435 U.S. congressional districts.

KEY FINDINGS

435 Districts Are Home To Clean Energy Jobs

432 Districts Have >1,000 clean energy jobs
388 Districts Have >3,000 clean energy jobs
279 Districts Have >5,000 clean energy jobs
79 Districts Have >10,000 clean energy jobs

Residential Density

Suburban: 39.7% (1,211,306 clean energy job)
Rural or mostly rural: 38.6% (1,175,937 jobs)
Urban or mostly urban: 21.7% (661,360 jobs)

Party Affiliation

Democratic-led Districts: 54.3% (1,655,244 clean energy jobs)
Republican-led Districts: 44.9% (1,368,040 jobs)
Vacant Districts: 0.8% (25,320 jobs)

Top Districts by Total Clean Energy Jobs

State Current Rep  Total Clean Energy Jobs 
Calif. Ro Khanna (D) 33,109
Calif. Nancy Pelosi (D) 32,414
Texas Dan Crenshaw (R) 21,558
Utah John Curtis (R) 21,285
Calif. Katie Porter D) 19,813
Colo. Diana DeGette (D) 18,637
Ariz. David Schweikert (R) 17,989
Calif. Jared Huffman (D) 17,900
Ill. Danny K. Davis (D) 17,643
Calif. Mark DeSaulnier (D) 17,275

FULL REPORT

Download the complete report and explore the national map at at this link.

ABOUT THE REPORT

The analysis expands on Clean Jobs America 2021 and is based on preliminary employment data collected and analyzed by BW Research Partnership for the 2021 U.S. Energy and Employment Report (USEER) released by the Department of Energy (DOE). The USEER analyzes data from the U.S. Bureau of Labor Statistics (BLS) Quarterly Census of Employment and Wages (QCEW) to track employment across many energy production, transmission, and distribution subsectors. For more information on the methodology click here

Job Density

Clean energy job density calculations for congressional districts used the U.S. Census Bureau 2019 County Business Patterns and the Bureau of Labor Statistics (BLS) 2020 Q4 QCEW employment data, analyzed and extrapolated by BW Research.

Residential Clusters

This report uses the CityLab Congressional Density Index (CDI) by David Montgomery to define congressional district residential clusters. Methodology for the CDI is available here. To condense the definitions into three categpories, this analysis combines:

  • “Pure rural” and “Rural-suburban mix” clusters into “Rural/mostly rural”
  • “Dense suburban” and “Sparse suburban” clusters into “Suburban”
  • “Pure urban” and Urban-suburban mix” clusters into “Urban/mostly urban”

What Jobs We Include

This analysis defines clean energy employment as jobs in solar energy, wind energy, combined heat and power, bioenergy, non-woody biomass, low-impact hydro power, geothermal, clean vehicle technologies, clean energy storage, smart grid, micro grid, grid modernization, advanced biofuels, and energy efficiency including ENERGYSTAR and high efficiency appliances, efficient lighting, HVAC, renewable heating and cooling, and advanced building materials. Jobs in retail trade, repair services, water or waste management, and indirect employment or induced employment are not included.

 Note On Geographic Distribution Of Employment Numbers

District level jobs figures use zip codes to assign jobs to a primary geography. Because zip codes and state district boundaries do not correspond exactly, many zip codes span multiple districts while the jobs linked to them can only be assigned to one. Research relied on multiple public datasets to assign jobs for consistent accuracy, but these numbers inherently have a larger margin of error than state and county findings.

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The Trump administration is trying to halt offshore wind projects that are well-underway just two weeks after their initial attempt was deemed arbitrary and capricious by a federal judge.


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