U.S. and Foreign Wind Energy Companies Creating Local American Jobs

solveclimate.com — Recently there have been some questions in the media (see Green Inc. and Washington Post articles) and in the U.S. Senate about stimulus grants for wind energy projects going to foreign countries. On March 3rd, a group of Senators called for the suspension of the renewables grant program until “Buy American” rules had been passed that made sure projects used American components and labor.

But there is more to that story than meets the eye.

Empirical evidence demonstrates that predictable support for wind power improves local manufacturing capacity and creates local jobs. Consistent support in the form of the stimulus and long term programs such as a Renewable Energy Standard will give investors the certainty they need to plan and create jobs in the United States.

In the United States, wind energy has received policy support in the form of federal tax credits and a number of state-level programs. As the state-level programs have grown more numerous and ambitious and the federal support has stabilized (the production tax credit has not been allowed to expire since 2005), the wind industry has experienced a period of rapid growth. In 2008 alone, 55 new facilities producing wind turbines and components opened and there are now a total of 85,000 jobs in the American wind industry, up from 50,000 in 2007, according to the American Wind Energy Association.

Of the 15 leading global wind turbine manufacturers, 11 operate production facilities in the US or plan to begin operating this year, as my colleagues and I have found in a working paper recently published by the World Resources Institute and the Peterson Institute for International Economics. As part of the Recovery Act, wind park developers can now apply for a cash grant instead of the tax credit. This grant program has funneled more than $2.2 billion
and has attracted $10billion in foreign investment as well.

Read Full Article »