transition from coal to renewables: a path forward for u.s. workers

With the global economy transitioning away from fossil fuels towards renewable energy technologies, workers in the coal industry face significant challenges. However, a new study

understanding the coal industry's decline

Profitability for U.S. coal-fired power plants has been declining steadily since 2007, a trend that is expected to continue. This decrease in profitability has directly contributed to the retirement of numerous coal plants. According to the U.S. Energy Information Administration (EIA), between 2010 and 2012, 14 gigawatts (GW) of coal-fired capacity were retired. By 2020, an additional 60 GW is projected to be retired. These closures have had profound impacts on coal workers and their families, as coal mines have closed and major coal companies have filed for bankruptcy. Notably, the world’s largest private-sector coal company, Peabody Energy, filed for bankruptcy in April of the past year.

This shift from coal has left many coal workers without stable employment and with significant debt burdens, as they face the reality of pink slips and mortgages on houses that have few buyers in blighted coal regions.

the rise of the solar industry

While the solar industry has long battled against substantial government subsidies for coal, the dramatic drop in the cost of solar technology has led to rapid adoption. In 2016, the American solar industry had a record-breaking first quarter, and for the first time, it drove the majority of new power generation. The U.S. solar industry is also a major employer, with over 208,000 solar workers as of November 2015, significantly more than the approximately 150,000 jobs remaining in the domestic coal industry.

Moreover, the solar industry is hiring at a rate significantly higher than the overall economy. According to Bloomberg, the U.S. solar industry is creating 12 times more jobs than the rest of the economy. This growth makes the solar industry a potential lifeline for workers displaced by the decline of coal.

retraining programs: a solution for coal industry workers

Recent research conducted by Oregon State University offers hope for coal industry workers. Our study, published in the journal Energy Economics, quantified the costs and benefits of retraining coal workers for employment in the rapidly expanding solar photovoltaic (PV) industry. This research explores various methods of funding such retraining programs.

First, we must acknowledge the current state of the coal industry. Retraining programs must address the challenges faced by workers as mines close and coal companies declare bankruptcy, providing pathways to new, promising careers in the solar industry. These programs can take many forms, from apprenticeships to full-fledged education and training courses.

the economic impact of retraining coal workers

Our study found that retraining coal workers for solar industries would have significant economic benefits. It quantifies the costs of such programs, which include providing education and training, as well as the costs of lost income during the retraining period. On the other hand, the benefits include the creation of new jobs, the potential for higher salaries in the solar industry, and the overall economic growth that can be achieved by transitioning workers to new industries.

Further, retraining programs can have a positive impact on community stability. As coal regions grapple with job losses and economic decline, solar industry jobs can provide a much-needed economic cushion. These programs can help reinvigorate local economies, supporting small businesses and community initiatives.

challenges and opportunities for the future

While retraining programs offer a promising solution, there are several challenges to address. Firstly, the availability and funding of these programs are critical. Governments, nonprofit organizations, and private sectors must work together to provide the necessary resources and support. Additionally, the quality of the training must be high to ensure that retrained workers are fully prepared for the demands of the solar industry.

Secondly, there is a need to address the negative perceptions and biases that exist around coal industry workers. These workers are not simply resistant to change; they were often working with outdated technologies under poorly regulated conditions. Providing support and understanding is essential to help them make the transition to the solar industry.

In conclusion, the shift from coal to renewables presents both challenges and opportunities. Retraining programs offer a viable path for coal industry workers to transition to new, sustainable careers. By leveraging the growth of the solar industry, we can ensure that workers are not left behind in this critical period of economic transition. This transition not only promotes economic stability but also contributes to a more sustainable and equitable future for all.