EnergyInsights.net 
Green energy's growing pains 13-03-2010 7:54 am

 

While traditional energy companies boom in Charlotte, renewable firms chase financing.

By Bruce Henderson
bhenderson@charlotteobserver.com
greenjobs

Chris Salmon, center, co-owner of Argand Energy Solutions and instructor of the Business and Technology of Photovoltaics class through Central Piedmont Community College, points out some components of solar panels to students. T.ORTEGA GAINES - ogaines@charlotteobserver.com

More Information

  • Central Piedmont Community College offers classes leading to certificates in solar photovoltaics and LEED green-building design. The college may add more courses in alternative energy, environmental engineering, sustainable manufacturing and green building. For information, call the Center for Sustainability at 704-330-6756. For non-credit classes, call the Corporate and Continuing Education Department at 704-330-4223.

  • The N.C. Sustainable Energy Association identified 10,250 statewide jobs in renewable energy or energy efficiency in 2009, a 6 percent increase over the previous year. The report ranked Mecklenburg County second behind Wake in the number of companies, with 99.

    Nuclear energy directly employs 19,000 people in the Carolinas, according to a report last fall by an industry group. Building the six reactors proposed in the two states would add 17,000 more permanent jobs, it said.


Siemens Energy's 825-job announcement this week gave a big bounce to Charlotte's growing energy hub, which promises to help refocus the city's banker-intensive image.

Far fewer so far are the jobs in green energy, such as solar power and energy efficiency, that Gov. Bev Perdue and President Obama have touted. All but four of the 15 energy-jobs announcements the Charlotte Chamber has made in the past two years focused on nuclear or fossil-fueled power.

Small energy firms hire by the twos and fours, not the hundreds, and the jobs they create can be hard to track. North Carolina is a renewable-energy leader in the Southeast, and Charlotte's leaders have embraced the idea of new technology.

But some green-energy startups say state energy policy still favors big utilities over small firms, and nuclear plants over solar panels. While Siemens got tens of millions of dollars in incentives to create new gas-turbine manufacturing jobs, many small firms struggle to find the financing to grow.

"It seems to be big-company announcements about big companies creating jobs here, which is great," said Erik Lensch, president of Argand Energy Solutions, a Charlotte solar and wind installation firm.

"But from the point of view of an entrepreneur trying to go from 20 jobs to 100 jobs, it's a challenge here. I'm not really seeing entrepreneurs take off."

Duke Energy, Lensch pointed out, contracted with Maryland-based SunEdison to build and run a large solar farm in Davidson County. Smaller installations, he said, could have provided work for local companies.

Duke says far more solar companies are clamoring to do deals than the utility can accommodate. It uses local labor for its renewable-energy projects, a spokeswoman said, including 80 to 100 workers to build the solar farm.

Spurred by the state clean-energy law, Duke's own renewables portfolio is growing fast.

Apart from its solar farm and a solar rooftops program, the company has asked for state approval to burn waste wood in two coal-fired power plants. It has signed two deals to buy electricity made from landfill gas and will test wind power on the N.C. coast.

"The opportunities in the renewable space are huge," said Brett Carter, president of Duke Energy Carolinas. "I think we are on the very brink of not just renewables jobs but all types of energy jobs."

Advocates, however, say the state's lowest-cost energy ethos works against green energy, rewarding utilities for their huge investments in coal and nuclear plants. While consumers might pay more for solar or wind power, they argue, building new nuclear plants would also drive up electric bills.

North Carolina was the first state in the Southeast to make utilities use renewable energy in generating electricity. State tax credits are available to people who invest in renewable power or energy efficiency.

But neither is enough to create a market-driven green industry in the face of low energy prices based on nuclear and coal power, said Bob Kingery, co-founder of Southern Energy Management. The Raleigh-area sustainable energy company has an office in Charlotte.

"We have to create a business model that works, not deals," said Kingery, "so when the federal government gives us (stimulus) money and the state distributes it, one of the primary jobs is to make sure it grows."

Talk of Charlotte's energy hub, Kingery added, hasn't produced many green jobs.

People ready to learn more

Workers are interested in the industry. Central Piedmont Community College this week offered a class in solar photovoltaics and is exploring new offerings in alternative energy, environmental engineering, sustainable manufacturing and green building.

"We get calls just about every week about courses in renewable energy," said Ernie McLaney, executive director of CPCC's Center for Sustainability.

"They want to get on board either because they've lost their jobs or have some electrical or housing-construction background and see this as a way to add to their marketing picture."

Some green-energy entrepreneurs are thinking big. Charlotte's Forsite Development has proposed a 667-acre energy park, focused on a $300million power plant fueled by shredded garbage. The company says the park could one day produce 1,100 jobs and $900 million in investment.

"We're still very early in this process," said John Morrison, who became the state's first assistant secretary for energy in August. "None of the technologies are particularly mature, and the markets for them are not particularly well developed. You're not going to have the kinds of job announcements like (Siemens) had."

Financing topped the list of urgent concerns among companies the N.C. Sustainable Energy Association surveyed last year.

Many small companies fall into a financial black hole, Morrison said. They run out of family-and-friends backing but aren't big enough to attract venture capital. The state Commerce Department used $10 million in stimulus money to expand the N.C. Green Business Fund, which helps small startups. Total requests: more than $140 million.

"We know there's a huge, huge market," Morrison said.

Banks: No, but a 'nicer no'

Sencera, a Charlotte solar-panel maker, is awaiting word on a $24.5 million Department of Energy loan guarantee. The company has improved the efficiency of its panels but will need 130 people to produce them, double its original projection. The DOE guarantee would help secure financing.

For now, said Chief Operating Officer Britt Weaver, "The banks still say no. It's just a nicer no."

Michael Suess, an executive with 85,000-employee Siemens Energy, says Charlotte's energy hub has a lot going for it: Duke, energy courses at local colleges, a strong political commitment for energy, skilled workers and an established financial sector.

"What was attractive for us is attractive for others; we are not an exotic company," Suess said. "Then we are here, which makes this site more attractive for our competition because they are always wondering what Siemens is doing as well."

Patrick Scott contributed.

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