In search of a clean-tech consensus

What happened?

Things were going so well. Gov. Bill Ritter had championed Colorado’s “New Energy Economy,” leading to some remarkable accomplishments.

The state had attracted a handful of large-scale manufacturing facilities from Vestas Wind Systems. Abound Solar Inc. occupied a vacant building in southwestern Weld County for manufacture of solar panels, using technology developed at Colorado State University and the National Renewable Energy Laboratory. Under Ritter’s successor, General Electric Co. had selected Aurora for its $300 million PrimeStar Solar plant.

Where do we stand in 2012?

More than 1,600 Vestas workers in Windsor, Brighton and Pueblo face an uncertain future, with the company threatening massive job cuts if a federal wind-energy tax credit is not extended at year’s end.

Abound Solar has filed for Chapter 7 bankruptcy liquidation, citing plunging prices for solar panels because of Chinese competition. And GE has delayed construction of its Aurora plant by at least 18 months.

On top of those announcements, ConocoPhillips’ plans for a renewable-energy research campus in Louisville were tossed into limbo as the company split into two. As of yet, we have no word on whether one of the successor companies — Phillips 66 — will proceed with the project.

Economics has driven some of these setbacks, but politics could also deal a devastating blow. While U.S. regulators have slapped tariffs on Chinese solar panels, alleging dumping of panels below cost, federal lawmakers are battling over extension of various renewable-energy tax credits and subsidies set to expire at the end of 2012. Some federal legislators have even proposed repeal of all renewable-energy tax credits.

The failure of companies such as Solyndra, costing taxpayers $535 million in a loan guarantee, has given ammunition to opponents of renewable energy.

But the facts are clear: Renewables have become a vital source of energy for U.S. consumers and businesses, and have generated hundreds of thousands of jobs, but the industry needs support — political support. (Navigant Consulting estimates that 37,000 jobs will be lost in the wind sector alone if Congress does not renew the production tax credit.)

Regulators should continue to address Chinese dumping, which has devastated the industry. They should continue to support tax credits and other incentives as the industry matures. At a state level, Gov. John Hickenlooper needs to take a more prominent role in promoting the sector and developing a plan for conversion to renewables.

Opponents need to realize that bashing renewable energy and undermining the sector’s growth represent bad policy that will cost jobs and cede a vital industry to other nations.

Christopher Wood can be reached at 303-440-4950 or via email at cwood@bcbr.com.

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