Worcester Business Journal

www.wbjournal.com April 27, 2015 • Worcester Business Journal 29 M assachusetts and New England have brought themselves to a crossroads when it comes to the region's energy needs. Government incentives have ushered in a greater use of renewable forms of energy, such as solar and wind, and now, there is a pressing need to broaden pipeline capacity for natural gas, the region's dominant energy source. Despite the progress made in growing the use of alternatives, energy costs in the region remain high, and we pay the highest electricity costs in the continental United States, more than 70 percent above the national average. As five of New England's six governors prepared to meet last week in Connecticut to discuss regional energy resources, it's important that they reaffirm a regional commitment to solving energy problems that came out of a similar meeting in 2013; that is, to invest in more energy efficiency, renewables, natural gas pipelines and electric transmission. At the same time, some of the oldest power plants in southern New England have ceased operations or will by 2018, erasing more than 3,500 megawatts of oil-, coal- and nuclear- generated capacity. While we're abandoning the oldest, least efficient and most environmentally unfriendly energy-generation sites, we don't have a replacement plan to fill in that generating capacity at the rate that we're shutting down older plants. In Massachusetts, solar energy has already experienced tremendous growth over the last five years. It's difficult to drive for an hour and not see an array of solar panels, either on the roof of a home, a business or in the form of a large ground installation. The Massachusetts Department of Transportation, for one, recognizes the potential of solar and has leased an unused piece of land at Exit 13 on the westbound side of the Massachusetts Turnpike on the Framingham-Natick line to Framingham renewable energy firm Ameresco to build a solar farm. According to a recent report on WBZ TV, that will produce enough energy to power 1,300 homes. Ameresco will build other roadside solar farms around the state, and MassDOT will buy the electricity at less than half of its current costs, the report said, saving the state $15 million. This kind of low-impact, high-return project makes sense for the state on many levels, and there should be more of it in the coming years. And, of course, there's the added benefit of using less oil and natural gas that would otherwise be generated when this kind of renewable project gets off the ground. What's the next chapter in New England's energy story? It appears to be a combination of more solar and wind power and more natural gas pipeline capacity, along with the addition of imported hydroelectric power from Canada. Two years ago, five New England states — all but New Hampshire — announced an effort to explore the importing of more hydropower from Canada. Gov. Charlie Baker is a proponent of such an effort. But right now, New England must prioritize the building of another pipeline that will bring in more natural gas from Pennsylvania and New York. The pipeline proposed to run through Southern New Hampshire deserves full consideration. Failure to bring one online sets up the region for unnecessary spikes in natural gas prices, something that must be avoided given that fuel's dominant position in the region's energy mix and the abundant supply. A six-state energy strategy is a more complex undertaking than one state going it alone. But all of the New England states are united by common issues, and that provides a solid foundation for charting a course for our energy future. Here's hoping that the governors make real progress on this critical issue. Q Planning our energy future E D I T O R I A L The Worcester Business Journal welcomes letters to the editor and commentary submissions. Please send submissions to Rick Saia, editor, at rsaia@wbjournal.com. Letters can also be faxed to 508-755-8860. C entral Massachusetts has a long, proud history in manufacturing. While the products have changed, the region and state remain at the forefront of a new wave of manu f ac tu r i ng : "adv anc e d manufacturing." In Massachusetts, nearly 56 percent of all manufacturing jobs are now classified as "advanced." The age-old stereotype of manufacturing as being dark, dangerous and in decline has been replaced with a 21st-century model of advanced, advantageous and accelerating. To sustain this momentum and promote the new manufacturing brand, The New England Council and Deloitte Consulting recently released "Advanced to Advantageous: The Case for New England's Manufacturing Revolution." The report assesses the region's strengths and advantages, identifies opportunities for collaboration and investment, and provides a roadmap for more growth and competitiveness. The detailed report also offers six recommendations for manufacturers, educators, lawmakers and others that reinforce the importance of regional collaboration. New England is a small place. Stakeholders in all six states must work together to create comprehensive educational pathways that ensure lifelong learning and the transferability of learning credits. We must also focus on improving manufacturing's brand and attracting new workers by showcasing today's safe, innovative and well- paying advanced manufacturing jobs. This effort requires aligning both state and federal policies with industry needs. We urge state policymakers to ensure that advanced manufacturing is included in states' economic development and job creation plans. In Massachusetts, Gov. Charlie Baker has already created a Workforce Skills Cabinet, made up of the secretaries of labor and workforce development, education, and housing and economic development, to address the persistent skills gap. This offers an opportunity for other state leaders to follow the governor's lead. State officials should also begin a regular dialogue with their counterparts in the other five states to compare ideas, exchange best practices, and make each other aware of "islands of excellence" that can be adopted across state lines. Finally, leaders should work together to ensure New England secures federal funding for an advanced manufacturing hub under the National Network for Manufacturing Innovation initiative (NNMI). That could be a game changer, acting as an effective and responsive "teaching factory" to address the industry's challenges and train the skilled workforce New England needs. Central Massachusetts and all of New England can extend their advantage in manufacturing for decades. What we need is a collaborative revolution to see it through. Q James T. Brett is president and CEO of The New England Council, a nonpartisan alliance of public and private organizations that promotes economic growth throughout the region. Mark Price is a principal with Deloitte Consulting and a member of the NEC's board of directors. Forging a new age of manufacturing in Central Mass. BY JAMES T. BRETT AND MARK PRICE Special to the Worcester Business Journal V I E W P O I N T James T. Brett Mark Price 0 10% 20% 30% 40% '00 '14* '23** '00 '14* '23** '00 '14* '23** 0 10% 20% 30% 40% 50% 60% '00 '14* '23** '00 '14* '23** '00 '14* '23** New England's energy mix Economic and environmental factors have led to less reliance on oil and more on natural gas over the last 15 years. That's expected to continue for the next several years. NUCLEAR OIL COAL NATURAL GAS RENEWABLES PUMPED STORAGE (including hydro) * - As of mid-2014 ** - Projected Source: ISO New England 0 10% 20% 30% 40% 0 10% 20% 30% 40% 0 10% 20% 30% 40% 0 10% 20% 30% 40%

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