Renewable energy is as important an economic driver as it is an environmental pursuit in Minnesota. Even oil and gas producers, who ship products to Minnesota and to the massive Pine Bend refinery in Rosemount, are helping to reduce carbon emissions.
NextEra Energy Resources is the country’s largest developer of wind energy. It is currently building six wind farms in order to supply power for Great River, Xcel, and other buyers. According to a University of Minnesota study, the company’s projects could bring $1.8 billion in economic benefits over 30 years. This includes up to 3,500 construction jobs.
David Gil, the executive director of development in the Midwest, stated that six projects are currently under development or permitted. He hopes to have them all completed by 2024.
NextEra had previously invested $500 million in three wind farms. The additional six will also result in $250 million in state-and local taxes over 30 year.
Another indicator of the industry’s value? Quanta Services of Texas acquired Blattner, a huge, Minnesota-based, construction firm that focused on wind energy in the fall for a massive $2.7 billion.
Quanta, an electric power contractor, stated that it was looking for a fast growing renewable partner to help it “collaborate [with our customers] to shape North America’s energy transition to a climate-neutral economy.”
Blattner CEO Scott Blattner declined comment last week but said that the company needed a larger capital partner in the past. The 20-year focus on renewable energies has been a success for the once-struggling Blattner. According to Quanta, Blattner reported operating earnings of $291 millions on revenue of $2.4billion in 2020.
Both environmentalists and businesses agree that we must accelerate investment to reduce carbon emissions and to mitigate the environmental impact of weather-related disasters.
Gregg Mast (executive director of Clean Energy Economy Minnesota) stated that businesses are striving to improve energy efficiency and green energy in order to save money, reduce risks and meet consumer demand. “Two thirds of S&P 500 businesses have set targets to reduce greenhouse gases emissions. Target, Ecolab, General Mills, and Ecolab are Minnesota-based companies that procure large amounts of low-cost solar and wind to help them achieve their goal of 100% renewable electricity.
Dan Juhl (71), a veteran of Minnesota’s wind energy sector since the late 1970s. He sold several of his larger wind farms to ConEdison so that he can focus on smaller wind-solar hybrids in rural Minnesota. Juhl was a rock musician who subsidized his incubating business.
Juhl spoke of the economic growth in renewable energy, saying “It feels great.” “When I first started, the largest windmill I could purchase was roughly as large as my arm. We had to work on it. [government]Technology, policy, computerization, economies of scale.
“Now, the sun drives our summer peak output and the wind drives our winter peak power output. Minnesota used to import all of its energy. The environment is given a free ride. [wind and solar]They are so much less expensive than fossil fuels. Everyone is jumping aboard.
Since 2010, the cost of scaling solar and wind systems has fallen by as much as 90%
According to the Clean Jobs Midwest report last year, Minnesota’s drive towards renewable energy has created almost 60,000 well-paying jobs. Mast predicted 100,000 workers by 2030, and the rate of growth was twice as high as in the overall state labor market.
Additionally, businesses are increasingly accepting the idea that the economy must be powered with a low-carbon engine, which is supported by growing public sentiment.
The Deloitte Economic Institute Reports from JanuaryThe U.S. could lose $14.5 trillion if it does not take action on climate change by 2070. The report found that the United States would gain $3 trillion if they took carbon-reducing measures over the next 50 year.
“The analysis shows that the fight to slow climate change, while a noble goal, is an economic imperative for the U.S.,” stated Alicia Rose, deputy CEO at Deloitte U.S.
According to the U.S Energy Information Agency, 55% of Minnesota’s electricity was generated by zero-carbon electricity (including renewables and nuclear energy) in 2020. This is up from 48% in 2019.
Here’s the breakdown: In 2020, renewable generation will grow from below 10% in 2005 to 29%; natural gas will increase from 5 to 20% and nuclear from 24-26%. Coal energy declined from 62% to 25%. The nuclear industry grew from 24 to 26%.
Minnesota regulators approved Xcel Energy’s long term plans. These included increases in renewables. The utility intends to reduce carbon dioxide, the main contributor of greenhouse gases that cause climate change, to zero in 2050.
Minnesota has reduced its imports of petroleum and coke since 2005, thanks to the completion of energy projects. In addition, it has increased renewable energy usage from 7 percent to 16% of total energy use. According to the Minnesota Department of Commerce, cleaner-burning natural gases rose from 20 to 27% to 27%. These trends are increasing.
The Minnesota ethanol Industry, a fuel additive that also makes other products Accounts account for 22,800 jobs, and $6.1 billionAccording to the Minnesota Biofuels Association study and a 2020 University of Minnesota research, there is a rise in economic activity.
Grace Arnold, Minnesota Commerce Commissioner said that businesses are combining ideas of carbon-reduction and job growth.
Minnesota is still far from its goal of reducing global-warming emissions by 30% by 2025, compared to 2005 levels.
The biggest users of carbon-based fuel are transportation and buildings, which is a huge opportunity.
According to Electrek.com, the number of electric cars sold in 2021 will surpass 6.6 million. This is close to 9% market share, according to the International Energy Agency. China and Europe topped the charts with 16 and 14% respectively, while the U.S. was at 4.5%. According to the Metropolitan Council in Minnesota, 1% of electric-vehicles were sold in 2020.
Commerce says Minnesota, which has both cold winters as hot summers, uses about 40% of total energy to power commercial buildings and housing.
The environmental challenge presents an economic opportunity through retrofits, next-generation building controls, and other products sold by outfits like 75F.
Gov. Tim Walz has proposed $900million over the next two financial years to combat climate changes, including to attract more private investment and matching federal funds.
“The clean-energy economy helps Minnesotans save money, grow businesses, and makes Minnesota a safer, healthier place.” Walz made the statement in a statement. Walz stated in a statement, “The time is now to act.”
Cadmus, a research company that studies energy, conducted a 2020 study and estimated the net economic impact of Minnesota conservation ROI at 3.75 cents per $1 between 2013-2018. This includes 48,000 jobs created locally and $11 Billion in economic activity.
