Permitting delays significantly hinder job creation in energy storage projects by stalling project timelines and increasing financial uncertainty. Here’s how these delays translate to employment impacts:
Direct job losses
The American Clean Power Association estimates 150,000 lost American jobs could result from delaying 100 GW of clean energy projects, including storage. For context, many energy storage projects require skilled labor for construction, engineering, and maintenance – positions left unfilled during permitting limbo.
Compounded economic effects
Every year of delay adds risk for investors and developers. The $1.5 billion Hydrostor CAES project in California exemplifies this – its conditional $1.76 billion DOE loan guarantee depends on 2025 permitting completion. Extended timelines jeopardize such financing, making workforce planning difficult and potentially scuttling projects entirely.
Sector-wide chilling effect
Average permitting timelines of 4.5 years for generation projects and 6.5 years for transmission create systemic underemployment. Developers become reluctant to announce new projects or hire personnel until permits are secure, suppressing job growth across manufacturing, construction, and professional services.
Skills stagnation risks
Repeated delays can lead to workforce attrition as trained personnel seek stable employment elsewhere. Projects like Willow Rock that pioneer new technologies (compressed air storage in this case) particularly need specialized workers who might migrate to other industries during prolonged waits.
The correlation is clear: slower permitting = fewer near-term jobs + reduced long-term employment potential across the clean energy storage value chain.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-permitting-delays-affect-the-job-creation-potential-of-energy-storage-projects/
