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Haymore: Energy in the new Virginia economy

Haymore: Energy in the new Virginia economy

The Roanoke Times 
by Todd Haymore, Virginia secretary of commerce and trade

Since Gov. Terry McAuliffe came into office, his primary focus has been to build a new Virginia economy, one less reliant on federal dollars and more committed to private clean energy investment and entrepreneurialism.

This strategy was clear when Governor McAuliffe released his Energy Plan in 2014, and the results of his work will be laid out when the governor unveils the updated plan later this week.

The update shows that over the last three years he has delivered on his promise to make Virginia’s energy economy stronger, more dynamic and more sustainable for the long-term.

It also confirms that Governor McAuliffe has done more to grow the clean energy industry in the commonwealth than any governor in Virginia history.

When it comes to solar energy, Virginia is seeing astonishing growth.
According to the Virginia Energy Efficiency Council, revenue in the clean energy industry in Virginia has grown from $500 million to $2 billion during the governor’s term. That is a fourfold increase in less than three years.

In January of 2014, there were approximately 18 megawatts (MW) of installed solar energy generation in the entire commonwealth, 12 MW of which were net-metered solar.

Today, there are 25 MW of net-metered solar alone, a 108 percent increase in the last three years.

October will see the completion of an 80 MW solar farm in Accomack County, a partnership between Amazon and Dominion.

This will be the largest solar farm in the mid-Atlantic, nearly three times larger than the biggest solar facility in Maryland.

The governor himself has brokered innovative deals that will see a combined 38 MW come online in 2017.

The inaugural project is a first-in-the-nation public-private partnership with Microsoft.

The second is a facility that is part of the governor’s commitment to power 8 percent of state government operations with renewable energy in the next three years.

Today, there are nearly 800 MW of projects under development in Virginia, and by the end of this administration, it is estimated that there will be more than 400 MW of solar installed in the commonwealth. 

The governor is also driving progress in the energy efficiency industry.

He created Virginia’s first statewide Green Community Program that has provided nearly $40 million to lower financing costs for energy efficiency projects in the public and private sectors.

These projects are estimated to save nearly $30 million in energy costs for local public and private facilities, while also reducing annual water consumption by almost 22 million gallons, electricity usage by 10.7 million kilowatt hours and carbon emissions by more than 4,300 metric tons.

These projects will also create more than 500 clean energy jobs.

While Governor McAuliffe has recognized the tremendous potential of the clean energy industry for Virginia, his strategy is focused on all areas of the energy economy.

In Southwest Virginia, there are many businesses that have relied heavily on Virginia’s coal industry.

There is tremendous expertise within these companies that could benefit international markets if they simply had the tools to access these new potential clients.

This is why the McAuliffe administration partnered with the Virginia Coalfield Economic Development Authority and the Virginia Economic Development Partnership to help coal supply chain companies in the coalfields reach new customers.

This initiative, Go Global with Coal and Energy Technology Program, has paid dividends.

Cedar Bluff-based Ceramic Technology Inc. recently made more than $300,000 in new sales to Canadian customers as a result of the initiative.

Because of the importance of a reliable, cost-effective energy supply to the entire Virginia economy, the governor also supports infrastructure projects that will increase access to natural gas for electricity generation and economic development.

Not only will this additional supply provide a cleaner burning fuel source than coal for electricity generation, it will also attract new manufacturing businesses to Virginia and help existing Virginia companies expand by lowering energy costs.

As secretary of commerce and trade and former secretary of agriculture and forestry, I know that there are certain regions of the commonwealth that simply cannot provide the necessary supply of natural gas to handle both incremental usage growth and potential new, large industrial customers.

This must change if we are to build the new Virginia economy.

A study conducted by ICF International reported that the Atlantic Coast Pipeline has the potential to provide Virginia consumers and businesses a net annual average energy cost savings of $243 million over 20 years.

The Mountain Valley Pipeline, which partners with Roanoke Gas to provide local access in the Roanoke region, could provide consumers with more than $3.5 million in annual savings.

Both of these projects would create approximately 14,000 jobs during construction and more than 1,300 jobs once they are in service.

Governor McAuliffe is committed to building a new Virginia economy that is diverse, structurally sound and sustainable.

The energy industry, both directly and indirectly, plays a vital role in this work.

The governor is embracing a true, all-of-the-above approach to energy policy by growing new industries with tremendous potential, expanding the reach of existing businesses that need new customers and providing reliable, cheap and cleaner burning energy sources to consumers and businesses.

This was the governor’s commitment to Virginians when he released the 2014 Energy Plan, and he has delivered.

Read the full column in The Roanoke Times. This also appeared in the Martinsville Bulletin on 10/16/16. 

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Clean Energy | McAuliffe | Need | Virginia