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Relief Programs for Displaced Oil and Gas Workers: Elements of an Equitable Transition for California’s Fossil Fuel Workers

By Robert Pollin, Jeannette Wicks-Lim, Shouvik Chakraborty, Caitlin Kline and Gregor Semieniuk - Political Economy Research Institute, August 2021

California’s oil and gas jobs currently offer significant compensation and benefits, providing workers in these jobs with security for themselves and their families. As California moves to meet its existing climate commitments—to cut greenhouse gas emissions by 50% by 2030 and to reach net zero emissions by 2045—the oil and gas industries will contract, and it is critical to invest in a strong, ongoing relief program to take care of displaced workers, their families and their communities.

An excerpt and fact sheet from A Program For Economic Recovery And Clean Energy Transition In California, by Robert Pollin, Jeannette Wicks-Lim, Shouvik Chakraborty, Caitlin Kline and Gregor Semieniuk.

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Alameda and Contra Costa Labor Climate Convergence 2021

US Energy Transition Presents Organized Labor With New Opportunities, But Also Some Old Challenges

By Delger Erdenesanaa - Inside Climate News, July 27, 2021

President Biden’s push for “good, union jobs” in clean energy has increased hope that organizing solar and wind workers can close the pay gap between them and fossil fuel workers.

President Biden’s push for “good, union jobs” in clean energy has increased hope that organizing solar and wind workers can close the pay gap between them and fossil fuel workers.

Two years ago, Skip Bailey noticed a lot of trucks from a company called Solar Holler driving around Huntington, West Virginia. A union organizer with the International Brotherhood of Electrical Workers, Bailey saw an opportunity.

“We want to get in on the solar business,” he said, predicting the industry will grow in his home region, which includes historic coal communities in West Virginia, Kentucky and Ohio.

Bailey talked to Solar Holler about unionizing its employees who install photovoltaic panels on homes. IBEW showed the company its local training facility for electricians, and explained the health insurance and pension plans it offers. 

“It wasn’t a hard sell in either direction,” said the company’s founder and CEO, Dan Conant. He was already interested in securing union protections for his employees when Bailey contacted him, he said. The move fit with Solar Holler’s dedication to West Virginia’s legacy of energy production and strong union membership.

“It was not just good business, but it just really spoke to our history as a state,” he said.

Conant and Bailey’s efforts paid off in March 2020, when IBEW Local 317 and Solar Holler signed a contract. It’s just a start—Solar Holler only has about 20 unionized employees—but the agreement is an early example of the future Joe Biden is promising. The president frequently pledges to create millions of jobs while transitioning the U.S. to clean energy. Every time he does, he’s quick to add that these will be “good, union jobs that expand the middle class.”

“It’s a great talking point,” said Joe Uehlein, president of the Maryland-based Labor Network for Sustainability, an advocacy group pushing to unionize green jobs. But he added that Biden faces a difficult balancing act to achieve his pledge. 

Combatting Climate Change, Reversing Inequality: A Climate Jobs Program for Texas

By Lara R. Skinner, J. Mijin Cha, Hunter Moskowitz, and Matt Phillips - ILR Worker Institute, Cornell, July 26, 2021

Texas is currently confronted by three major, intersecting crises: the COVID-19 public health pandemic and ensuing economic crisis; a growing crisis of inequality of income, wealth, race and power; and the worsening climate crisis, which continues to take its toll on Texans through hurricanes, major flood events, wildfires, debilitating heat waves and the significant economic cost of these extreme weather events. These crises both expose and deepen existing inequalities, disproportionately impacting working families, women, Black, Indigenous and people of color (BIPOC) communities, immigrants, and the most vulnerable in our society.

A well-designed recovery from the COVID-19 global health pandemic, however, can simultaneously tackle these intersecting crises. We can put people to work in high-quality, family- and community-sustaining careers, and we can build the 21st century infrastructure we need to tackle the climate crisis and drastically reduce greenhouse gas emissions and pollution. Indeed, in order to avoid the worst impacts of the climate crisis, it is essential that our economic recovery focus on developing a climate-friendly economy. Moreover, there are significant jobs and economic development opportunities related to building a clean energy economy. One study shows that 25 million jobs will be created in the U.S. over the next three decades by electrifying our building and transportation sectors, manufacturing electric vehicles and other low-carbon products, installing solar, wind and other renewables, making our homes and buildings highly-efficient, massively expanding and improving public transit, and much more.

Conversely, a clean, low-carbon economy built with low-wage, low-quality jobs will only exacerbate our current crisis of inequality. The new clean energy economy can support good jobs with good benefits and a pipeline for historically disadvantaged communities to high-quality, paid on-the-job training programs that lead to career advancement. Currently, the vast majority of energy efficiency, solar and wind work is non-union, and the work can be low-wage and low-quality, even as the safety requirements of solar electrical systems, for example, necesitate well-trained, highly-skilled workers.

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Shifting from Fossil Fuels to Renewables Would Add 8 Million Energy Sector Jobs Worldwide: Study

By Brett Wilkins - Common Dreams, July 23, 2021

Critics of a shift to a post-carbon economy often claim that a fossil fuel phase-out would leave millions of people unemployed. And while millions of fossil fuel industry jobs would indeed be lost under a robust climate policy, a study published Friday shows that overall energy sector employment would actually increase by over 40% by 2050 due to gains in renewable energy jobs.

The study—conducted by the RFF-CMCC European Institute on Economics and the Environment in collaboration with researchers from the University of British Columbia and Chalmers University of Technology in Sweden and published in the journal One Earth—concludes that "jobs in the energy sector would grow from today's 18 million to 26 million" under a climate policy aimed at keeping global temperature rise this century well below 2°C above pre-industrial levels, and even the more ambitious target of 1.5°C.

"Over 12 million people work in the coal, oil, and natural gas industries today," the paper states. "However, to keep global warming well below 2°C, a target enshrined in the Paris Climate Agreement, all three fossil fuels need to dramatically decline and be replaced by low-carbon energy sources."

"Such a shift in energy systems would have wide-ranging implications beyond meeting the climate target," it continues. "While this is technically possible, whether it can be done fast enough is a political question. One major factor influencing political support for climate policies, particularly in fossil fuel producing countries, is the impact they have on fossil fuel jobs."

Job Creation for a Clean Jumpstart

By Amanda Novello - Data for Progress, July 2021

Government stimulus is sorely needed: more than a year into the pandemic recession, nearly 10 percent of Black workers are unemployed, and over 6 percent of all workers are unemployed. There are still more than 7 million fewer jobs than there were last June, and nearly 40% of all unemployed workers are long-term unemployed. A majority of those out of work have no college degree. In addition, there are 5 million fewer people in the labor force than pre-pandemic, including 3 million women who left the labor force since last February, and 2 million men.

Decarbonizing the economy in tandem with a full, job centered green recovery, will require many different plans to be executed at all levels of government and society. That’s why, this March, Data for Progress and Evergreen Action released the Clean Jumpstart 2021 report that offers 39 policy priorities for how to carry out our existing commitments, while increasing ambition and creating good jobs that Americans desperately need, in communities that need them most. All components of this plan are popular with likely voters. The Clean Jumpstart 2021 plan represents how a bold climate investment package, like the American Jobs Plan, could tackle the climate crisis and build a clean energy economy.

The Clean Jumpstart 2021 plan would invest a total of $2.3 trillion over four years. Some investments would create jobs more or less immediately, while others will take longer to realize full job-creation effects. Therefore, in this memo, we estimate that the plan would create an average of 2.7 million jobs annually for the first five years. But the job benefits of the plan don’t end there. The policies in Clean Jumpstart would also create up to 960,000 jobs annually for five years following (year 6-10 after investments begin). Approximately 40 percent of all jobs created would be “direct” jobs, or employment working directly toward these policy goals, and the rest would be due to additional work generated along supply chains and in communities due to the multiplied impacts of increased demand.

Read the text (PDF).

‘It’s virtually impossible’: Transition to renewables at risk as oil and gas workers struggle to access green jobs

By Daisy Dunne - The Independent., June 22, 2021

The UK’s transition away from fossil fuels to renewable power could be put at risk by barriers facing oil and gas workers looking to move into green jobs, campaigners say.

A survey of 600 offshore workers found that those looking to move from the fossil fuel industry into green jobs in renewable power currently face costly training fees, discouraging them from making the transition.

Workers responding to the poll said they are routinely forced to pay out thousands of pounds of their own cash for training courses when moving between one employer and another in the offshore sector, some of which they have already paid to take part in for their current positions.

One 42-year-old who has worked in the oil and gas sector for 20 years said the cost of training could be putting workers off trying to move into green jobs.

“People really need help to make the transition because it’s just virtually impossible to do it yourself with the way things are at the moment,” he told The Independent. None of the oil and gas workers interviewed wanted to provide their names, for fear of losing work.

He added he was hoping to see more opportunities in renewable power as the country transitions away from using fossil fuels.

“For me, it’s about moving forward in my career and about moving forward for the environment at the same time. I’ve got two young children and I can see the changes that are happening to the climate, it’s obvious to me.”

One 43-year-old who has worked in the sector for 24 years said that he would “love” to see more opportunities in renewable energy.

“I was one of the people living in a bubble thinking ‘that might not be quite right’ when it came to climate change. But it’s really my kids that brought it home to me,” he told The Independent.

Clean energy jobs as a transition destination

By Elizabeth Perry - Work and Climate Change Report, June 15, 2021

Released on June 3, Responding to Automation: Building a Cleaner Future is a new analysis by the Conference Board of Canada, in partnership with the Future Skills Centre. It investigates the potential for clean energy jobs as a career transition destination for workers at high risk of losing their jobs because of automation. The clean energy occupations were identified from three areas: clean energy production, energy efficiency , and environmental management and the “rapid growth” jobs identified range from wind turbine technicians and power-line installers to industrial engineers, sheet metal workers, and geospatial information scientists. Based on interviews with clean economy experts, as well as the interview responses from over five hundred workers across Canada, the analysis identifies the structural barriers holding employers and workers back from transition:

  • Lack of consistent financial support for workers to reskill
  • Employer hesitancy to hire inexperienced workers
  • Current demand for relevant occupations which makes change less attractive
  • Lack of awareness around potential transition opportunities
  • Personal relocation barriers, such as high living costs in new cities, and family commitments.

None of the recommended actions to overcome the barriers include a role for unions, with the burden for action falling largely on the individual employee. Only summary information is presented as a web document, but this research is part of a larger focus on automation, so it can be hoped that a fuller report will be published – if so, the partner group, Future Skills, maintains a Research website where it will likely be available.

Other news about renewable energy jobs:

“Renewable Energy Boom Unleashes a War Over Talent for Green Jobs” appeared in Bloomberg Green News (June 8), describing shortages of skilled workers in renewable energy, mainly in the U.S.. It also summarizes a U.K. report which forecasts a large need for workers in the U.K. offshore industry, which is expected to be met by people transferring from the oil and gas sector.

A report by the Global Wind Energy Council forecasts a growth of 3.3 million wind jobs worldwide by 2025, and suggests that offshore wind energy jobs could offer a natural transition for workers dislocated from offshore oil and gas and marine engineering workers. According to the analysis, in 2020, there were approximately 550,000 wind energy workers in China, 260,00 in Brazil, 115,000 in the US and 63,000 in India. A related report, The Global Wind Workforce Outlook 2021-2025 forecasts a large training gap: the global wind industry will need to train over 480,000 people in the next five years to construct, install, operate and maintain the world’s growing onshore and offshore wind fleet. That report is available for download here (registration required), and is summarized in this press release.

And forthcoming: Clean Energy Canada will release its research on the clean energy labour market in Canada on June 17. Their last jobs report, The Fast Lane: Tracking the Energy Revolution, was released in 2019.

American Jobs Plan Can Accelerate Solar Power in West Virginia

By Autumn Long and Ted Boettner - Ohio River Valley Institute, May 25, 2021

As a recent article in Forbes noted, the ‘dam has broken’ in West Virginia for solar power. While solar energy comprises less than 0.2 percent of electricity production in the state today, the market for solar energy is marching forward. Despite not having a renewable energy portfolio standard – which would require that utilities get a certain percentage of the electricity they sell in the state from renewable resources – like 30 other states, West Virginia lawmakers have started opening more doors for solar power. For example, state lawmakers this year legalized purchase power agreements (PPAs) to allow third parties to own and operate solar installations for customers while charging them a fixed rate that is typically lower that what the customer pays for electricity. In 2020, the West Virginia Legislature created a utility solar program that allows the state’s investor-owned utilities (FirstEnergy and American Electric Power) to produce as much as 200 megawatts of solar electricity each.

A flurry of new solar projects is now under development in the state. Toyota announced plans to spend $4.9 million to construct a 2.6-Megawatt solar array at its manufacturing plant in Buffalo, West Virginia. In October 2020, the WV Public Service Commission approved plans for a $90 million investment to build a 90-Megawatt solar farm in Raleigh County. Earlier this year, a 100-Megawatt utility-scale solar project was announced at the former Dupont Potomac River Works manufacturing facility in Berkeley County. And earlier this month, Nitro Construction Services acquired local solar installation company Revolt Energy, with plans to expand operation throughout the state on former coal mine sites. Revolt had recently installed a 487-kilowatt rooftop solar array (1,200 solar panels) at Nitro Construction Services’ headquarters in Putnam County.

According to the Solar Energy Industries Association (SEIA), West Virginia ranks last (50th) in solar production in the nation with just 11.2 megawatts of installed solar power and less than $35 million in total solar investment in the state. Total solar jobs in the state were just 311 in the 4th quarter of 2020, with 18 solar companies operating in the state. Between 2012 and 2020, the number of solar jobs in West Virginia has grown by 241.

An October 2020 report by E2 found that jobs in solar pay close to what jobs in the coal, oil, and gas industries pay, $24.48 an hour (median) compared to $24.37 an hour (median), respectively. Approximately 10 percent of solar industry jobs are unionized, according to the Solar Foundation, which is above the national average and similar to levels found throughout the construction industry. Wage data for solar employment is not available for West Virginia, but it is likely below the national average.

There are a number of policy proposals at the federal level that could lead to significant acceleration in West Virginia’s solar industry. President Biden’s American Jobs Plan includes two key provisions, including a 10-year extension of the federal solar Investment Tax Credit (ITC), which currently offers a 26% tax credit for solar installations, and an expanded direct cash payment in lieu of the ITC that allows solar owners to receive money even if they don’t have taxable income, much like a refundable tax credit. A cash grant option would ensure equitable benefits of the ITC are accessible to low- and moderate-income households, people with low tax liability, and nonprofit institutions such as schools, churches, local governments, and rural electric cooperatives.

Covid-19 causes decline in solar, clean energy jobs in the U.S.

By Elizabeth Perry - Work and Climate Change Report, May 10, 2021

The 11th annual National Solar Jobs Census was released by the U.S. Solar Energy Industries Association on May 6, reporting that 231,474 people worked across all sectors of the industry in 2020 – a 6.7% decrease from 2019. The decrease in jobs is attributed to the impacts of Covid-19, as well as an increase in labour productivity – up 19% in the residential sector, 2% in the non-residential sector and 32% in the utility-scale sector. Thus, despite employing fewer workers, the solar industry installed record levels of solar capacity in 2020, with 73% of installations in “ Utility-scale installations”.

According to the 2020 Solar Jobs Census, 10.3% of solar workers in the U.S. are unionized, above the national average and compared to 12.7% of all construction trades. The report offers details about demographic, geographic, and labour market data – for example, showing an improvement in diversity in the workforce. Since 2015, it reports a 39% increase for women, 92% increase for Hispanic or Latino workers, 18% increase for Asian American and Pacific Islander workers, and a 73% increase for Black or African American workers. Wages for benchmark solar occupations are provided, showing levels similar to, and often higher than, wages for similar occupations in other industries.

The 2020 Solar Jobs Census defines a solar worker as anyone who spends more than 50% of their working time in solar-related activities. It is a joint publication of the Solar Energy Industries Association, the Solar Foundation, the Interstate Renewable Energy Council and BW Research Partnership. It uses publicly available data from the 2021 U.S. Energy and Employment Report (USEER), produced by BW Research Partnership, the Energy Futures Initiative (EFI), and the National Association of State Energy Officials (NASEO). Solar is included in their reports, which cover the broader energy industry (The U.S. 2020 Energy & Employment Report and the supplementary report, Wages Benefits and Change) .

The reported decrease in solar jobs is also consistent with the message in Clean Jobs America 2021 , published by E2 Consultants in April. That report found a decrease in total clean energy jobs from 3.36 million in 2019 to 3 million at the end of 2020, although despite the decline, the report states: “clean energy remains the biggest job creator across America’s energy sector, employing nearly three times as many workers as work in fossil fuel extraction and generation.” The report includes renewable energy, energy efficiency, and electric vehicle manufacturing in their coverage.

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