Ohio attracts $1.3B in clean-energy investment

By Marc Kovac | January 14, 2015 at 12:00a.m.

COLUMBUS

Ohio has become a clean-energy leader nationally, but a recently instituted freeze on mandates could hamper future growth in the industry, according to a report released by a nonpartisan nonprofit group.

The Pew Charitable Trusts’ “Clean Economy Rising” noted in its Tuesday report the state already has “attracted $1.3 billion in private clean-energy investment from 2009-13,” with billions more anticipated over the next decade.

Lynn Abramson, a senior associate with Pew’s Clean Energy Initiative, said the state also ranks first in the country in the number of facilities making wind components, second in solar production and sixth in private investment in industrial energy efficiency.

But companies are shifting their attention to other states, thanks to a freeze on renewable and energy-efficiency mandates instituted last year and uncertainty over related state policies to be adopted over the next couple of years.

“There is still a large unmet potential for clean energy deployment in the state, which could be more fully harnessed with more stable, long-term policies,” Abramson said.

Last year, state lawmakers passed and Gov. John Kasich signed SB 310, which freezes renewable energy and efficiency mandates for two years pending review by a new study committee.

The legislation stemmed from law changes enacted in 2008 requiring power companies to generate a certain percentage of their energy from renewable sources and to institute efficiency initiatives.

The standards called for 25 percent of the energy to be created from advanced sources by 2024 and a reduction of electricity use by 22 percent by 2025, Abramson said.

Utilities are allowed to pass the costs of meeting the mandates onto their customers.

Statehouse Republicans, however, moved legislation last year to freeze the mandates and create a study committee to offer recommendations by September for future energy-related law changes.

Absent subsequent legislative action, the renewable energy and efficiency mandates in current law will restart in 2017.

Backers of the bill say current standards are higher than those in place in other states and will lead to higher energy bills for businesses and consumers.