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REPORT: Potential for Federal Stimulus Investment Offers Hope for Nevada Economy Despite Grim Budget Projections

Posted by Monique Hanis on Dec 3, 2020

Analysis shows $10 billion in federal stimulus, invested in advanced energy technologies, would add $60 billion to Nevada’s gross state product, a six-fold return on investment; increase tax revenues; create jobs; and deliver annual savings to consumers

CARSON CITY, December 3, 2020 – This week, decision makers in Nevada are facing a grim reality, as the Economic Forum delivers its General Fund revenue forecast today. As Gov. Sisolak and state legislators prepare the biennial budget for FY 2021-2023, hope for a federal stimulus package has revived, with the incoming Biden administration making COVID-19 relief and rebuilding the economy among its top priorities.

With any federal dollars, Nevadans must make certain to invest in sectors that can leverage the stimulus for the greatest long-term impact. A report from national business group Advanced Energy Economy (AEE) quantifies significant economic benefits associated with investments in advanced clean energy deployment for the state of Nevada.

Investments in advanced energy technologies also align with the state’s policy goal of achieving net-zero emissions across the economy by 2050 and the state’s just-released Climate Action Plan, which highlights the need to “future proof” the state’s job sectors and economy for more and better jobs, increased opportunity, and greater prosperity for individuals and businesses.

Specifically, AEE’s report shows that a hypothetical $10 billion of public investment in Nevada, allocated across a range of advanced energy technologies that include energy efficiency, renewable electricity generation, electrification of buildings and transportation, energy storage, grid modernization and energy optimization system technologies, and transmission, would produce the following economic benefits:

  • Adding a total of $60 billion to Nevada’s economy (Gross State Product), a six-fold return on the investment.
  • Attracting $27 billion in complementary private investment, a contributor to GSP impact above.
  • Creating 400,000 new jobs, measured in job-years, resulting in a mix of short-term construction or installation employment along with ongoing positions;
  • Increasing tax revenues by $3.5 billion to local and state governments; and,
  • Saving consumers $2.8 billion in energy costs annually.

The full report “Economic Impact of Stimulus Investment in Advanced Energy: An economic assessment of applying stimulus funds to advanced energy technologies, products, and services in Nevada,” is available here.

“The incoming Biden administration’s commitment to working toward a fiscal relief package for states offers Nevada a lifeline in the face of a devastating budget outlook. Smart investment of those dollars in advanced energy technologies can create a lasting impact for residents, businesses, municipalities, and the state’s economy,” said Sarah Steinberg, policy principal at Advanced Energy Economy. “Such public investment will attract billions of dollars in private investment for a six-fold boost on the Nevada economy.”

Advanced energy companies are ready to do their part and invest in Nevada.

Schneider Electric’s Jeff Morris, Senior Director of State Government Operations, notes that “Schneider Electric’s innovation and efficiency work with the Las Vegas Convention Center, MSG Sphere, T-Mobile Arena, and Southern Nevada University has started the transformation in Las Vegas from Sin City to Smart City. With public-private partnerships like Energy as a Service, Schneider stands ready to work with the State of Nevada to accelerate the transformation across the entire State.”

“EVgo looks forward to continuing the expansion of its fast charging network in Nevada,” said Adam Mohabbat, Market Development Manager at EVgo, the nation’s largest public fast charging network for electric vehicles (EVs). “Through public-private collaboration, we can accelerate toward a fully electrified transportation ecosystem and bring the benefits of cleaner air to drivers and residents across the state.”

Suzanne Leta, Head of Policy and Strategy for SunPower Corp., which currently serves 910 residential projects representing about 9 MW of solar generating capacity, 16 commercial customers representing 232 MW, and supports seven dealers across the state, totaling 368 employees, notes how Nevada’s new Climate Strategy along with stimulus investment can benefit Nevada, “Scaling local, distributed solar and batteries will help Nevada achieve emissions reductions under its Climate Action Plan. Investment in clean energy delivers good jobs, state revenue, emissions reductions, and bill savings to homeowners, small businesses and corporations. Nevada is an important state for SunPower investment and we are committed to future growth in the area.”

“EDF Renewables is a committed partner in support of the great work Nevada has done to progress clean energy through its Climate Strategy,” said Hanson Wood, VP Development at EDF Renewables. “Our three Nevada utility-scale solar projects will help to accelerate Covid-19 economic recovery with hundreds of local construction jobs, tens of millions of dollars in investment, tax revenue to local municipalities and the purchase of goods and services from community vendors.”

The report, prepared for AEE by Analysis Group, a leading economic consultancy, found that energy efficiency investments would deliver the greatest overall boost to the Nevada economy, totaling $38 billion in Gross State Product, and the most jobs (210,000 job-years). The next biggest impact came from renewable energy generation (both solar and wind), totaling $7 billion, and 48,000 jobs. Investments in electric transportation – electric vehicles and associated charging infrastructure – would contribute $6 billion in economic activity and create 48,000 job-years of employment. Energy storage investments would generate $3 billion and 35,000 job-years.

In terms of consumer savings, energy efficiency investments produced the greatest benefits. For residential customers, energy efficiency would save $1.8 billion per year and residential rooftop solar $140 million annually. Commercial and industrial customers would save $660 million per year from energy efficiency upgrades and onsite solar. Switching from gasoline-powered vehicles to electric would save drivers $190 million in costs for fuel that would otherwise be imported from out of state.

The report notes that a greater or lesser level of stimulus investment would result in greater or lesser economic impact, but the modeling shows that advanced energy stimulus investments can generate important and positive economic benefits in the state of Nevada, adding substantial value to the Nevada economy, creating hundreds of thousands of jobs, and sending additional revenue to state and local governments.

About Advanced Energy Economy
Advanced Energy Economy (AEE) is a national association of businesses that are making the energy we use secure, clean, and affordable. Advanced energy encompasses a broad range of products and services that constitute the best available technologies for meeting energy needs today and tomorrow. AEE’s mission is to transform public policy to enable rapid growth of advanced energy businesses. Engaged at the federal level, in Nevada and more than a dozen states around the country, AEE represents more than 100 companies in the $238 billion U.S. advanced energy industry, which employs 3.6 million U.S. workers. AEE's PowerSuite online platform allows users to track regulatory and legislative issues in state legislatures, U.S. Congress, state PUCs, RTOs/ISOs, and FERC. Sign up for a free trial at powersuite.aee.net. Follow us at @AEEnet.

 

Topics: Press Releases