Economic Benefits of Solar and Renewable Energy

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Economic Benefits of Solar and Renewable Energy
PRESENTED BY BARRY BROOME, GPEC PRESIDENT AND CEO
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Greater Phoenix Economic Council The Regions
Economic Development Organization

• A true regional model where public and private
  members collaborate to promote Greater Phoenix as
  a great place to grow business.
• Supported by Maricopa County, 18 cities and
  towns, and more than 140 private-sector
  businesses.
• The catalyst that strengthens the regions
  economic base, ensuring it is both
  diversifiedand competitive.

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Recent Economic Trends in Arizona Dramatic
Decline in Job Growth
19
49
Source U.S. Bureau of Labor Statistics
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Single Industry Model is Not Sustainable Arizona
vs. Michigan Jobs Lost by Industry Nov 2007-Nov
2008
Arizonas Dependence on Construction Construction
Job Loss 37
Michigans Dependence on Auto Industry Manufactur
ing Job Loss 31
Motor vehicle manufacturing represents about
6.2 of all private industry employment in
Michigan. (2007)
Construction represents about 8.6 of all
private industry employment in Arizona. (2007)
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Solar a Fast-Growth Industry Global Solar
Investment Trends

• Total investment in solar energy reached 12B in
  2007, from 66M in 2001.
• Between 2004-2007, total investment increased by
  almost 20-fold.

Excluding government RD and project finance
investments
Source NEF / NREL / FACC
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Solar a Fast-Growth Industry Global Solar
Investment Trends

• Public offerings of solar companies grew rapidly
  (2005-2007), with 45, 64 and 88 offerings,
  sequentially.
• 1.1B was raised (Q1-08) in 17 completed
  public-equity offerings.

Source NEF / NREL / FACC
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Solar and Renewable Energy are Important for the
U.S. National Factors Driving Industry Growth
Source Navigant Consulting
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Opportunity to Capture Solar Arizona
Strategically Positioned for Full Economic Upside
AZ missing economic opportunities for high-wage
jobs
Consuming technology
Producing power
MAKING SOLAR REAL
STRATEGICALLY POSITIONED
PV distribution to housing Net-metering APS
SRP distributive technology
Solana 85 jobs 1B investment
Schott Lost to New Mexico 1,500 jobs and 586M
investment Supplier to APS SRP
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GPECs Solar Pipeline Current Solar Projects

• Includes PV and thin-film manufacturing, utility
  scale power generation, distributed generation,
  and supplier projects.
• 11 projects in the pipeline, worth 5.2 billion
  in capital investment and 5,260 jobs, are
  eligible for the proposed tax credit program.

Number of Projects Number of Jobs Capital Investment (Mil) Average Annual Wage Average Facility Size (SF)
29 6,532 8,444 46,670 479,059
Source GPEC Jan 15, 2009
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What are the Economic Benefits? Sample Project
Comparisons
Based on actual projects from GPEC pipeline
except for headquarters, which is a composite of
past headquarter projects.
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What are the Economic Benefits? PV Manufacturer
Over 10 years
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What are the Economic Benefits? Thin-Film
Manufacturer
Over 10 years
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What are the Economic Benefits? Glass Manufacturer
Over 10 years. This project does not meet
jobs-to-capital investment criteria.
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What are the Economic Benefits? Solar Headquarters
Over 10 years
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What are the Economic Benefits? Electrical
Generation
Over 10 years
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Final Thought Renewable Energy Economic
Development
For the same amount of land
or
Over 10 years
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Questions Thank You for Your Time!
Barry Broome President and CEO Greater Phoenix
Economic Council bbroome_at_gpec.org 602.256.7700