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Virginia C apitol C onnections, Fall 2014
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The energy industry is an important
component of the new Virginia economy.
Energyconsumption,reliability,accessibility,
and cost drive the Commonwealth’s
economic growth. Energy policy in the
Commonwealth, therefore, must strive to
grow the energy sector and enhance its role
in the overall economy.
The 2014 Virginia Energy Plan
(VEP) sets benchmarks and provides
recommendations that can be achieved
through administrative and legislative action
at all levels. It will also foster collaborations between the public and
private sector. To do this, the VEP focuses on four strategic areas:
growth, infrastructure, alternative technology and workforce.
Strategic growth of the energy sector
Presently, energy generated in Virginia comes from four sources:
36 percent from nuclear; 30 percent from natural gas; 29 percent
from coal; and the remainder from renewables. Increasing the amount
of energy generated from non-traditional sources will diversify the
Commonwealth’s fuel mix. By growing the amount of energy generated
from non-traditional sources, Virginia can lessen its dependence on
imported sources and guard against volatility in source markets. This
will contribute to a continued environment of competitive energy costs
for businesses and lower energy bills for consumers.
Additionally, Virginia has the opportunity to create tens of
thousands of jobs and generate hundreds of millions of dollars through
growth of “clean energy jobs.” It is estimated that aggressively pursuing
energy efficiency policies in Virginia can increase employment by
38,000 jobs and contribute $286 million to the state’s Gross Domestic
Product by 2030.
The implementation of technology and practices that promote
energy savings can increase jobs in manufacturing, marketing, retail,
installation, maintenance, environmental management, and renewable
energy development.
In the long-term, the Commonwealth also has tremendous growth
potential in offshore energy development which includes wind, gas
and oil. Full development of Virginia’s Wind Energy Area off
the coast has tremendous growth potential to attract an entire
industry that has minimal presence on the East Coast. Virginia
is well positioned to be the East Coast hub for the offshore
wind supply chain. The Commonwealth’s world-class port,
geographic advantages, and talented workforce can power this
industry. These assets can also prove beneficial as Virginia
pursues the exploration and development of offshore gas and
oil reserves.
Expand Best-in-Class
Energy Infrastructure
Access to low-cost power in every corner of the
Commonwealth is a critical tool in promoting economic
development, particularly in areas of high unemployment and a
shrinking economic base.
Virginia must support the continued development of a
transmission and distribution infrastructure that delivers the
energy to the areas where it is needed most. Last winter was
a stark reminder of how costs for consumers can sky rocket if
energy cannot get to the businesses and residents that need it.
The polar vortex in the winter of 2014 put a tremendous strain
on Virginia’s transmission infrastructure and nearly led to
rolling brown outs.
Businesses need reliable energy access and Virginians must
know that the power is available when accessed.
Advanced Vehicle Technology
and Alternative Fuels
Creating a strategy to promote alternative fuel and advanced
technology vehicles makes economic sense, diversifies the
transportation fuel mix, utilizes domestic resources and has the
potential to substantially reduce air emissions. The needed diversity
promotes growth in emerging sectors of the economy and can create
a welcoming business environment for entrepreneurs with innovative
ideas and business models.
As a leader in public private partnerships (P3), Virginia must
also look to previous P3 successes for best practices and apply that
knowledge to the alternative vehicle fuels space. Combining resources
can reduce costs for both the public and private sectors and send a
signal that Virginia is finding creative solutions to reducing fuel-costs
and greenhouse gas emissions.
Talent Development in the Energy Sector
The emerging energy sector must collaborate with higher
education institutions, research laboratories and technical centers
to build the talent pipeline for current and anticipated employment
demands. With an aging workforce and the creation of new positions,
a long-term, comprehensive plan to equip the workforce with in-
demand skill sets will help retain and attract energy businesses
here in the Commonwealth. With the increase in veterans and the
transitioning employment landscape, significant opportunities for
retraining the current workforce with energy sector skills will be a
priority. Community colleges’ credit and noncredit programs will help
accelerate potential workers into an energy career.
There are also significant opportunities for current workers to
transition to the energy industry from areas where employment is
declining. Having the necessary assets to re-train parts of the current
workforce will make our economy more dynamic and able to adapt to
the ever-changing landscape.
Energy is one of the growth sectors for the Commonwealth. The
Virginia Energy Plan aims to catalyze growth in this strategic sector
and maximize the opportunities for businesses, families and individuals
in this area.
Energy and the Virginia Economy By Maurice A. Jones
As of October 31, 2014, 201 economic development deals have been
closed in Virginia with over $4.76 billion in capital investment, the
largest amount of capital investment brought to the Commonwealth
in any Governor’s first nine months in office.
V