Renewable-energy standard could spark manufacturing growth

Strickland proposal could help lure industries

The Plain Dealer
December 23, 2007
By John Funk
Plain Dealer Reporter

Four months have passed since Gov. Ted Strickland announced he would steer Ohio away from unregulated electric prices and spark a manufacturing renaissance by requiring the state`s utilities to generate a portion of their power with green technologies.

Wind turbines and solar arrays are green, the governor reasoned. Building them takes the kind of manufacturing know-how that has historically made the state an industrial powerhouse. A perfect fit?

Yes. Business acumen put some of Northeast Ohio`s largest manufacturing compa nies years ahead of the political vision. Big industry has been manufacturing parts and pieces and whole subsystems for the wind industry for years. But not usually here.

With the governor signaling the making of new public policy, smaller manufacturers are also clamoring to get into wind and solar, which are both growing at more than 25 percent per year.

World-class European solar and wind companies are pounding on statehouse doors around the nation - Ohio included - looking for the best deals to build factories and the best parts companies to supply them.

"Ohio is missing the boat," said Andrew Redinger, managing director and segment leader of utilities and alternative energy for KeyCorp. The Cleveland-based company is the leading U.S. domestic bank in financing the purchase of wind turbine farms in the more than 20 states that already set "renewable portfolio standards" requiring green power generation.

"There are plenty of turbine manufacturers out there looking to develop U.S. facilities," he said. "But there has been no coordinated effort by the government. I am glad that someone in Ohio has proposed a renewable portfolio standard. I think they may be getting their act together."

On Friday, KeyCorp closed a deal on a $140 million turbine supply and construction loan for a 26-turbine farm southeast of Pittsburgh to be developed by EverPower Renewables Corp. of New York. The turbines will be supplied by Nordex AG, a German company with offices and subsidiaries in 18 countries, including China. The power generated will be fed into the national electric grid through FirstEnergy Corp.`s high-voltage lines. Pennsylvania is one of the states with a renewable portfolio standard. 

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