Foreign Investment in U.S. Renewables and Job Creation – By Guest Blogger Kathy
Suzlon Wind Energy Corp. announced on March 5th, 2010 that they plan to develop nine wind energy projects in the U.S., totaling 728 megawatts, including 351 installed wind turbines in Arizona, Idaho, Illinois, Kansas, Minnesota, Oregon and Washington.
Suzlon helped rebuild Greensburg, Kansas after it was destroyed by a tornado in May 2006. Says Greensburg mayor, Bob Dixson, “Suzlon and the wind farm provided a huge boost to this community after the tornado devastated the region and during our recent recovery. The town is making a remarkable comeback with our mission to be better, stronger and greener. Suzlon’s turbines are helping us achieve our green energy goals…” (PRNewswire, Chicago. March 4, 2010).
Suzlon is an Indian company, and provides an good example of foreign investment in the U.S. They are the third largest wind turbine manufacturer in the world, have a presence in 21 countries and run sophisticated research and development sites in India, Denmark, German and Holland.
The newly announced wind projects are going to create more than 50 U.S. permanent jobs involving maintenance. Further, the company estimates that it will add about $1.5 million to the nine project locations.
On March 11th, a consortium of Chinese-based A-Power Energy Generation Systems, U.S. Renewable Energy Group and developer American Nevada Company announced plans to build a large wind turbine manufacturing facility in Nevada. It would employ about 1,000, and is scheduled to be complete by the end of 2011. A-Power (shareholder in Shenyang Power) and U.S. Renewable Energy Group are two of the players in the controversial Texas wind power farm, planned with Cielo Wind Power.
Will the Schumer Legislation be Dropped?
Senator Schumer famously introduced legislation to block stimulus funding for projects that might create jobs abroad, and voiced ire over the Cielo project. The Texas project has not (or not yet) applied for stimulus funding, but Schumer has stirred controversy.
Referring to the question of stimulus funds and foreign companies, Secretary of Energy Steven Chu told reporters, “What these programs are doing is allowing companies all over the world to make investments in the United States.” (Wall Street Journal. “Lawmakers Call for Suspension of Wind-Energy Grant Program” by Corey Boles and Stephen Power. March 3, 2010). His assistant, senior adviser Matt Rogers, also defended stimulus plan funding to foreign renewable companies that create U.S. jobs. He said before a Senate Committee that $2.3 billion in tax credits will create more than 17,000 jobs.
Denise Bode, CEO of the American Wind Energy Association added that suspension of stimulus funds could cost 50,000 American jobs and would kill the momentum of growth. Schumer is concerned over U.S. jobs and has taken a protectionist stance.
Investments Expected to Grow
Foreign investors are active in the growing U.S. renewables world. They have capital and they have expertise since they are ahead in the game. Says a report from Hunton and Williams,“…the U.S. renewables industry is drawing in more foreign investors than any other sector of the electric energy industry and commentators expect the inflow of new participants in the U.S. market to more than double by 2012.” (Hunton and Williams LLP, Renewable Energy Quarterly. “Foreign investors descend on the U.S. renewables market”, February 2010.)
Factors for foreign investment and interest include:
Plentiful renewable resources in the U.S.
Wide open growth industry
U.S. capital market weakness creating a need for investment and capital
Current supportive political administration
Growing American openness to renewables
Established and experienced foreign companies looking for growth markets
Tomorrow, more examples of foreign investment.
