Poised for greater growth in clean energy

Talk in Massachusetts of late is that clean energy has the potential to bring about an economic bonanza at the same time that it improves the planet's well being. "If we get this right, the whole world will be our customer," Massachusetts Gov. Deval Patrick has said of his plans to make Massachusetts a hotbed of both innovation and implementation in clean energy.

Governor Patrick has identified clean energy as a key emerging industry for Massachusetts. But, as clean energy markets begin to develop rapidly around the world, few think about Massachusetts as a hub of such activity, except perhaps for the controversial proposal to develop a wind farm off Cape Cod. In fact, Massachusetts has strengths in at least four sectors related to clean energy production, according to an analysis by David Levy, a professor of management, and David Terkla, a professor of economics, at the University of Massachusetts Boston.

The four major clean energy sectors in Massachusetts — renewable energy equipment and generation, power electronics, energy efficiency, and clean energy research — are in some way associated with the development, production, distribution or use of renewable and/or clean energy, or the reduction in use of “dirty” energy sources. Together, these sectors have a substantial impact on the Massachusetts economy, employing almost 11,000 people in approximately 400 firms (based on the most conservative estimates), while undergoing very rapid growth rates as the promotion of clean energy continues to expand nationally and worldwide. One hundred sixteen companies have been founded since 2001.

The Levy and Terkla analysis, published in MassBenchmarks, reviews Massachusetts’ clean energy sector in the context of the industry nationally and worldwide. They also suggest policy options to enhance the sector’s potential for the Massachusetts economy.

Massachusetts ranks eleventh nationally in terms of the number of businesses involved in the clean energy sector and seventh nationally in total employment in the clean energy industry. Total employment in the Massachusetts clean energy cluster has the potential to grow to more than 20,000 within six years — if Massachusetts remains at the forefront in terms of both policy and technology in clean energy development, according to Levy and Terkla.

Many research-intensive companies, as well as some smaller manufacturing companies, are located in the state, but Massachusetts is not currently home for any of the top four or five largest manufacturers in any clean energy sector.

Late last month, the three most powerful leaders on Beacon Hill, the governor and the leaders of the house and senate, presented a united front on a bill to make targeted investments in clean energy companies and research institutions.

Adding impetus was a report that Levy and his colleagues authored, Clean Energy for the Commonwealth Powered by The University of Massachusetts, documenting investments by other states in clean energy. The report also identifies at least 120 faculty engaged in clean energy-related research and development, ranging from wireless self-powered sensor networks for large wind energy farms, ultra high-capacity solid-state batteries and inexpensive and efficient light-harvesting materials.

The full article by Levy and Terkla is available for download at MassBenchmarks. Their report was sponsored by the Massachusetts Renewable Energy Trust, which turned to them in its formative years in order to define the clean energy industry.

Levy has co-edited two books, titled “The Business of Global Environmental Governance”, published by MIT Press, Cambridge, Mass., 2005, and The Business of Climate Change, Sheffield, UK: Greenleaf Publishing, 2005.