Commentary: As veteran employment in energy declines, COVID-19 poses new challenge

At the beginning of the year, wind and solar energy
were poised to have record breaking growth in 2020 with an
additional 32 GW of capacity from the declining levelized cost of electricity,
sunsetting government tax incentives, and increased investments from private
industry to combat climate change. This growth represents a nearly 20% increase
in existing capacity, creating an increasing number of clean energy jobs.
However, the global spread of the novel coronavirus is challenging these
projections.

The research and consultancy group Wood
MacKenzie suggests that clean energy investment is likely
to take a hit: ​“all discretionary spend will be under review — that includes
additional budget allocated for carbon mitigation. And companies that haven’t
yet engaged in carbon reduction strategies are likely to put the issue on the
back burner.”

Energy demand, a key driver for renewable
energy investment, is also expected to level off in 2020. PJM Interconnection,
the transmission operator across 13 East Coast states, reports ​“noticeable” impacts on demand due to
the many shelter-in-place orders currently in effect. In China, energy demand
is beginning to rebound as factories come back
online, but subsequent outbreaks of the virus could cause demand to recede
again.

In response to these challenges, clean energy
advocates have spoken out for continued investment and
government support through the extension of tax credit deadlines. Fatih Birol, executive
director of the International Energy Agency, described the situation as a ​“test of governments
and companies’ commitment to clean energy transitions.” Unfortunately,
the U.S. is failing that test: clean energy support in the U.S. stimulus
package was stripped out by Republicans because Democrats dug in their heels to
stop a large purchase of oil for strategic reserves. This failure to promote
investment in renewable energy growth in the face of the coronavirus economic
depression is bad for jobs, veterans, and national security.

The clean energy transition strengthens U.S. national
security by diversifying energy supplies, reducing reliance on foreign fuels,
and mitigating the compounding effects of climate change. Military veterans
have the technical and leadership skills necessary to fill key positions being
created in the transition to clean energy. For these reasons, employment in
clean energy can help veterans continue their mission to serve their country —
as long as those jobs still exist.

The 2020 U.S. Energy & Employment Report shows that
the total number of US energy jobs has increased by 12% over the past five
years, but veteran employment as a fraction of those jobs has declined over the
same time period.

Despite growth in nearly every sector of the
energy industry, the number of jobs held by military veterans decreased in 2019
with higher losses in clean energy when compared to fossil fuels. Across
specific subsectors, veteran employment in the oil, natural gas, hydro, and
nuclear power generation industries increased relative to industry change,
whereas veteran employment in all other fuels, generation, transmission,
distribution, storage, energy efficiency, and motor vehicles declined relative
to industry trends.

The outlook for improving veteran employment
in the energy industry is grim when considering the impact the coronavirus will
have on the economy. Already, the Advanced Energy Economy reports that 30% of its members have reduced
their workforce and over 40% have stopped hiring. In response to 10 million
unemployment filings in March, former Secretary of Energy Ernie Moniz outlined a plan for an Energy Jobs Coalition
with widespread strategies to support infrastructure investment and the jobs to
make it happen.

Although the plan does not specifically call
for veteran support programs, Secretary Moniz is no stranger to the concept —
the U.S. Department of Energy launched both the Solar Ready Vets and Veterans
in Energy initiative during his tenure. The Energy Jobs For Our Heroes Act of
2019, introduced by Illinois Sen. Tammy Duckworth,
aims to continue this legacy with training platforms to prepare veterans for
jobs in emerging energy markets.

Future stimulus packages in response to the
coronavirus should not only include support for continued clean energy
investment, but also additional help to prepare military veterans for
employment in these growing sectors of the economy.

Dan
Misch is a U.S. Navy veteran, founder and co-director of the Veterans Advanced Energy Project,
and a senior fellow with the Atlantic Council Global Energy Center.