Wind farm proponents often refer to the permanent and temporary jobs the development would create, but there also could be an economic sleeping giant in the form of untapped U.S. manufacturing opportunities.

The Renewable Energy Policy Project conducted studies into the supply chain issues, locations for wind turbine manufacturers in the U.S., and how existing manufacturing can help address the supply shortage of wind turbines. George Sterzinger, REPP executive director, described the group’s findings during his opening address of the Advancing Wind Power in Illinois Conference.

The report first identified 90 companies in 25 states already active in manufacturing wind turbine components. However, the report noted, a large national investment in wind would likely spread beyond those active companies.

The second step of the report identified the number of companies with technical potential to enter the wind turbine market. Of the manufacturing firms with the technical potential, many were concentrated in the most populous states and states that have suffered the most from loss in manufacturing jobs.

The study also projected the potential economic boost by calculating the impact of a national energy policy toward climate stabilization. It was determined, based on a study from Princeton University, that 18,500 megawatts of new renewable each year would be necessary to stabilized U.S. emissions.

"That’s a lift. It is even a heavy lift, but it is not an impossible lift," Sterzinger said. "To give you an idea of the magnitude, the installed capacity of wind in the United States right now is about 16,000 megawatts. So you have to do more than that each year — wind, photovoltaic, geothermal, biomass. It is very doable."

This goal would translate into about a $400 billion order for new goods and equipment, he added. Economic impacts per state are featured on the REPP Web site.

The study also provides specifics on how many manufacturers are potentially available in each state to provide products. "

We feel like we’ve gotten off to a good start. That’s something that I think honestly builds appetite," Sterzinger said. "If we’re going to go from zero to even 35 miles an hour on climate stabilization efforts, there is going to be a huge demand for these projects, there’s going to be a huge demand for these parts, and right now there’s not anybody really thinking about where those parts are going to come from, who is going to supply them, and so forth."

There are about 47 firms in Illinois that the study determined had the potential for supplying renewable energy products. "Some of them are not going to be eligible. Some may not be interested," Sterzinger said. "Some may be interested, but then the question is what do you do next, and that’s what I’d like to really have you concentrate on, because if you don’t do anything, the jobs won’t just show up."

"This is one of the things I think is kind of saddest part of renewable right now in the United States is that we went from being the world leader in these technologies to just being completely asleep at the switch."

"In very broad terms, when you get to the end of our study and the names of all the firms, one of the first things you’ll find, particularly for wind, is that you can go to one of the firms and say do you want gear boxes for wind turbines."

"They will ask what are the standards and specifications. The amazing answer to that right now is nobody knows. There are commercial firms in Europe that will get the components on the basis of the quality manufacturing, the tolerances, and standards of that manufacturer."

"They will either warrant or not warrant that, but for a U.S. firm, we don’t yet know what that is.  So the economic development people in particular are at a disadvantage because they can’t go to a business and say you can do this, but here’s what you have to do."

"You need that standards and specifications at the state level. You need a concentrated effort. You need to assemble what you have, and that all builds to the point where you can begin to work with these businesses and make this transition and capture some of these manufacturing jobs."

Sterzinger opined that the federal government should step in to provide an equivalent support for the supply-chain manufacturers at it does for the commercial deployment of the projects. Support could include low interest loans and other financial assistance.

"If an established company is going to retool, make investments in a new line that will provide parts for certified renewable technology, that becomes an important role for the federal government to play," he said.

Sterzinger said he also believes a loop should be established between the component manufacturers, universities, national labs and other “think tanks to have the intellectual horsepower” to resolve any problems. "Gear boxes right now in wind turbines are under performing."

"The European specifications are not that good for North American specifications, so how do you solve that problem?" he said, adding such a problem could be resolves through the efforts of a "think tank." Sterzinger said he also believes research and development should be commercialized to benefit the industry.

"We are having our lunch eaten by Germany on solar because Germany is taking a lot of technology that has been developed in the United States and putting the factories
in Germany," he said.

"I think U.S. industry’s advantage in the world market is cycles of technology innovation. If you think about it as global technology, it has a great competitive advantage over clean coal and nuclear going forward is that it evolves at 10 times what nuclear and five times what coal can."

"That’s the nature of the beast, so the way you keep ahead in the domestic industry is to constantly improve and constantly be engaged in solving those problems."