Foreign Investment in U.S. Renewables and Job Creation – By Guest Blogger Kathy – Continued

As suggested yesterday, here is a continuation.

Another Example of Foreign Investment

Danish company Vestas, world wind turbine leader, has been expanding its production base in the U.S. where it says it created more than 1,200 skilled jobs, and expects that number to climb to 4,000 or more by the end of 2010. Vestas was encouraged by the Obama administration’s commitment to develop renewable energy; they say it hopes Congress will pass a national renewable energy standard to stabilize the U.S. market in the long term.

This key point, much discussed and highlighted lately, needs to be understood. The renewable markets, including wind, have been relatively unstable because tax credits and other policies are short-term and lapse with no assurance of continued support. Further, there is no policy enabled by a Renewable Electricity Standard, ensuring purchase of renewable energy by utilities.

Where China provides the wind industry assurance of growth with a $440 – $660 billion clean energy bill and requirement to buy renewable energy generated power, there is no corollary in the US

Europe is the undisputed leader in wind energy. 60% of world capacity was installed in Europe by the end of 2007, says the European Wind Energy Association (EWEA. “Wind Energy – The Facts”, February 2009) — and political support continues for growth. The European Union adopted a 20% renewable target by 2020 and followed with legislation in 2008 to support expansion. EWEA projects 80,000 MW installed by end of 2020. Denmark has already reached 21% of electricity supplied by renewables, and Spain sits at about 12%. The following chart, courtesy of the Energy Information Agency, illustrates the place that wind holds for electricity generation in Europe:

Underlying key factors in supporting U.S. legislation and policies for the renewable energy industry include:

 job growth and economic opportunities abound;
 clean energy is good for the environment and our health;
 renewables are necessary long-term to wean us away from foreign dependence on fossil fuels

Key legislation, policies and credits are key factors for any country – the U.S or foreign – to invest. While The American Recovery and Reinvestment Plan (known as the stimulus funding) is a great boon to the new industries, it too is temporary and expires in 2012. Support will be needed from every quarter to continue the growth.