The link between clean energy and economic progress is evident. The International Renewable Energy Agency said worldwide employment in renewable energy reached nearly 14 million jobs in 2022.
Public policies encourage investment in clean energy alternatives, prompting utilities to buy solar-and-wind-powered electricity — fuels that have dropped precipitously in price and are now increasingly economic. The public, meanwhile, has been demanding the change, contributing to the surge of modern and clean enterprises sprouting up globally and domestically.
"Earlier this month, the G20 leaders agreed to accelerate efforts to triple global renewables capacity by 2030 aligned with our recommendations ahead of COP28,” said Francesco La Camera, IRENA’s Director-General, in a press release. “I call on all policymakers to use this momentum as an opportunity to adopt ambitious policies that drive the needed systemic change.”
IRENA’s report found that renewable energy attracts increasing investment, leading to job creation in many countries. However, most jobs are concentrated in China, accounting for 41 percent of the global total. Brazil, European Union countries, India, and the United States were among the others. Together, they represent the majority of global capacity installations and play critical roles in manufacturing equipment, engineering, and associated services.
If the energy transition is accelerated, IRENA said the world economy will grow by 2.4% over the next decade. The agency’s 1.5 degree Celsius pathway predicts 122 million energy-related jobs in 2050. It says an annual investment equal to 5% of global gross domestic product is necessary to get there.
A Stanford University study generally agrees, saying that the benefits of this conversion will exceed the costs. It cites reduced global warming, less air pollution, stable energy prices, and new jobs.
Let’s look at the United States. Since the president signed the Inflation Reduction Act last August, the private sector has announced at least 210 significant new green energy and clean vehicle projects across the country. That will create 74,181 jobs and attract $86.3 billion, according to E2’s findings.
Under the IRA, the trade group said entrepreneurs announced more than 130 electric vehicles and battery factories. Meanwhile, renewable energy companies teed up 44 solar panel and equipment factories and at least 18 wind turbine plants and wind products.
“Energy transformation will drive economic transformation” and address poverty conditions, said La Camera.
Take Kansas. Panasonic is building a $4 billion electric vehicle battery plant to supply Tesla, creating 4,000 jobs in the town of De Soto. And that’s just a start for the manufacturer — if the EV industry continues to make inroads.
West Virginia is also attracting battery manufacturing plants, providing 21st-century jobs in a state where coal has historically fueled the economy. To that end, Sparkz Inc. and Form Energy will produce energy storage devices, creating hundreds of jobs. Sparkz chief executive Sanjiv Malhotra said the Inflation Reduction Act is the catalyst.
And, Kentucky is closing its biggest coal mine and converting to a solar energy center. In July, BrightNight, Rivian Automotive, and the Nature Conservancy said the Starfire Mine would become the BrightNight Starfire Renewable Energy Center — set to produce 800 MW of electricity and power 170,000 homes.
Rivian will buy the output to power electric transportation. Construction will start in 2025 and take place over four phases. During the first phase, Rivian will buy 100 MW from BrightNight, which will power up to 450 million miles of renewable driving annually. The Nature Conservancy will purchase 2.5 MW to complement its onsite solar arrays. When developers complete the $1 billion plant, it will be Kentucky's largest renewable power project.
“The Inflation Reduction Act is the greatest economic policy that this country and the world has seen in a very long time,” Bob Keefe, executive director of E2, told this writer. “It’s the equivalent of expanding the interstate highway system and going to the moon. America is getting back in the game.”
