Advanced Energy Perspectives

Before the COVID-19 pandemic swept the states, California boasted over half a million advanced energy jobs. In just a few months time, the state lost more than 100,000 of those jobs. As policymakers now grapple with plugging a $54 billion budget deficit, keeping local communities afloat, and upholding the state’s marquee policies, the stakes could not be higher. Given uncertainty around any federal stimulus package, AEE is providing California decision makers with recommendations for actions they could take now to move the state to economic recovery, with advanced energy at its center. That’s because advanced energy is  a tried-and-true engine of economic growth, in California most of all.

Recently, the United States experienced a shortage of essential medical supplies needed to treat an influx of patients with COVID-19, including respirators, gloves, face shields, gowns, and hand sanitizer – a shortage that drew national attention to the subject of supply chains. Interconnected, global supply chains can present challenges, but they also present opportunities for companies to scale their businesses by tapping into the global marketplace. That is especially true for markets that are on the rise, like the one for electric vehicles (EVs) and supporting charging infrastructure. The emerging supply chain for these products offers the prospect of business and job growth that can be seen on the local level in places with strength in the required skill sets. And that’s exactly what we found in our recent study of the EV supply chain in Pennsylvania.

Automakers are particularly vulnerable to economic downturns; just think back to the 2008-2009 financial crisis. So it should come as no surprise that EV sales, along with all others, are expected to drop in the coming year due to the global COVID-19 pandemic. But in the long term, nothing has changed. Manufacturers are gearing up their EV offerings, EVs continue to grow their worldwide market share, and gas-powered vehicles have hit their peak. What’s next, especially in the United States, is for the charging station build-out to match the coming demand – and realize the job gains and global competitive advantage that could come from a federal charging-station investment.

Florida historically has been a difficult state for the advanced energy industry, despite the great potential for these resources there. Over the past five years, the biggest win for the advanced energy industry was passage of property tax exemption for solar energy in 2017. Other policy ideas to boost solar, storage, energy efficiency, and electric vehicles have been proposed infrequently and passed even more rarely. But as the legislature adjourned March 19, it showed that Florida is ready to move forward on advanced energy – starting with electric vehicles (EVs). Approved by the legislature and now ready for the Governor’s signature is a bill to put Florida in a position to encourage statewide investment in EV charging infrastructure.

From left to right: Josh Cohen (Greenlots), Dylan Reed (AEE), Gloria Li (AEE), Andrew Apgar (Schneider Electric), Adam Mohabbat (EVgo), Eric McCarthy (Proterra)

With January right around the corner, many states are gearing up for the 2020 legislative session by filing bills and holding preliminary hearings. As a state with major opportunity for advanced energy, Florida is a place where AEE has been actively engaged in preparation for next year. On October 23,  AEE and our member companies flew to Tallahassee to present to the House Energy and Utilities Subcommittee and meet with legislators to discuss the trends and opportunities of advanced energy, specifically in electric vehicles, solar, and energy efficiency. Our message was clear: Advanced energy offers many benefits to Florida, including increased consumer choice and economic opportunity through job creation.