Clean energy economics 101

It’s not news. The actions of today shape tomorrow. If you’re a longtime reader of this blog, you know the environmental benefits of renewable energy cannot be understated. The transition to zero-emissions energy also supports local economies and the financial resiliency of communities across the globe. Let’s turn our attention to these economic benefits, and some roadblocks on the path to a clean energy economy.  

Clean energy opens a world of opportunities for job creation and economic growth. Industries like solar panel manufacturing, wind turbine installation and energy-efficient technology grow local economies and support job development. But upgrading a community’s infrastructure to support the transition to clean energy requires several considerations including expansion of electric vehicle (EV) charging and decreasing the cost of clean energy. 

EVs offer many environmental benefits and expanding charging infrastructure is a large part of a clean energy economy. It's the classic “Which came first the chicken or the egg?” debate. The build-it-and-they-will-come mindset argues that expanding charging stations nationwide will encourage more car owners to go electric. On the flip side, some argue attention needs to be concentrated on developing infrastructure where EV adoption has already boomed like large metropolitan areas.  

We must also consider the affordability of everything associated with clean energy. That means electric alternatives to fossil-fueled products, such as EVs. It also means access to electricity from renewable resources like wind and solar. Adoption and affordability are tied together. Programs like community solar, tax incentives for EV adoption and the Low-Income Clean Energy Connector are designed to lower costs for consumers and increase access to clean energy.  

Clean energy economies close to home have already taken shape. Dane County became the first county in Wisconsin to source 100% of its energy supply from renewable sources. Support from local legislators and members of the community made this happen – as did the local union laborers who constructed the solar projects in the county. This achievement serves as a great example for communities transitioning to clean energy across the nation.  

Want to learn more about clean energy economics? Check out this episode of the Industrial Advisors podcast that features Coleman Peiffer, Manager of Customer & Community Development at Alliant Energy.