Iowa’s clean energy jobs up 4.5 percent in 2023

Renewable and clean energy jobs in Iowa grew by 4.5 percent in 2023 and likely will come close the duplicating that number this year, as growth in that sector continues to outpace the state’s overall economy, according to a new report from Clean Jobs Midwest.

“Iowa currently is home to over 32,000 clean energy jobs,” said Micaela Preskill, the Midwest states advocate for E2, a nonpartisan environmental research group. “Not surprisingly, clean energy jobs, like in all Midwest states, are growing faster than the overall economy. It is a real bright spot in the economy.”

One of the biggest jumps Iowa saw in 2023 was with clean energy jobs, specifically within the electric vehicle sector, with an 8.7 percent increase from the previous year.

The 12-state Midwest region as a whole saw a 3.9 percent increase in clean energy jobs, according to the report.

Other findings include:

Across the United States, Iowa is ranked 30th in the nation in clean energy jobs, with the majority of the state’s clean energy workers employed in construction and manufacturing. Iowa ranked eighth in the Midwest region.

‘Churning’ industry

Between installing wind and solar projects on farms and in businesses and homes, the clean energy economy is “churning” in Iowa, said Andrew Johnson, the executive director for the Clean Energy Districts of Iowa.

“There is no question the clean energy sector represents an opportunity for continued job growth for a generation or more,” Johnson said. “Opposed to industrial energy developments, the clean energy future offers tremendous opportunity for local ownership of energy resources, and associated jobs.

“Growing local ownership and adoption of energy efficiency, renewable energy, and overall electrification will help every Iowa county and community prosper for generations.”

Clean energy jobs grew six times faster as the state’s overall economy in 2023, according to a supplementary Clean Jobs Midwest report. It also noted the number of jobs connected to electric vehicles increased by 8.7 percent in Iowa in 2023.

Preskill said E2 is anticipating clean energy jobs will see 6 percent growth in the Midwest this year, with a 4 percent increase in Iowa.

Preskill said the numbers in the report came from the U.S. Energy and Employment report and surveying clean energy business leaders.

Inflation Reduction Act

Preskill said E2 has been tracking the impact of the Inflation Reduction Act, which Congress passed in August 2022 as a way to jump-start the U.S. economy during the pandemic.

To date, E2 has tracked 90 large-scale clean energy projects in the Midwest that have been OK’d since then, Preskill said.

“We’re looking at the number of large scale clean energy projects that have come online, thanks to the investments and incentives in that law,” Preskill said. “We are seeing a huge amount of work coming to the Midwest.”

Johnson, of the Clean Energy Districts of Iowa, agreed.

“The IRA is clearly impacting continued growth of wind and solar at all scales, and this is clearly bringing good jobs throughout Iowa,” he said.

Kerri Johannsen, energy program director of the Iowa Environmental Council, said Iowa is in the “middle of the pack“ nationally when it comes to clean energy job growth.

“It makes sense in terms of the amount of investment that the Inflation Reduction Act is driving toward clean energy, giving it kind of an advantage over some other industries,” she said. “I think we’re seeing that start to take shape.”

The act aims to increase domestic energy production and manufacturing to reduce carbon emissions by about 40 percent by 2030.

Corporations also are taking advantage of the act’s federal tax incentives, including the Nordex Group, which is restarting its wind turbine production in West Branch.

“The historic policies and incentives created by the IRA are powering an American economic revolution across our energy industry, and workers and businesses across the Midwest are benefiting,” Preskill said.

“This report clearly shows clean energy is driving significant employment gains and outpacing traditional energy sectors, demonstrating the importance of data-driven policymaking to create jobs where they are needed most.”

Olivia Cohen covers energy and environment for The Gazette and is a corps member with Report for America, a national service program that places journalists in local newsrooms to report on under-covered issues.

Comments: (319) 398-8370; olivia.cohen@thegazette.com