Recession Prompts Push for Alternative Energy

The recession is pumping new life into the nagging need to produce cheap, politically neutral power from renewable sources.

Wish lists from politicians and entrepreneurs for a piece of the estimated $50 billion of federal stimulus for "shovel ready" alternative energy projects, are growing like weeds in a cracked sidewalk.

Winslow Township's list, for example, includes $5.8 million to install solar panels on five township buildings and to build a solar field on township-owned land on Berlin-Cross Keys Road.

West Deptford wants $5 million to replace a seven-year-old roof on its Riverwinds Community Center.

New Jersey is a strong candidate for the federal windfall because it uses at least 25 percent more electricity than it produces to satisfy its dense population.

Opportunities Arise

Instead of bemoaning the steady creep of joblessness, people in and around the energy business are hailing alternative energy as a new frontier that will generate thousands of jobs in the state.

"The incentives are already in place in New Jersey and the momentum is huge. There are lots of opportunities and interest," said George Hutchinson, president of Hutchinson Business Solutions of Haddonfield.

Hutchinson knows his way around the sector from installing heating and cooling systems in the family business for decades, buying and selling energy on the deregulated market and now "packaging" deals for towns and counties so they can take full advantage of tax credits, accelerated depreciation and other financial incentives. "I get calls every day," said Hutchinson. "If I can show people that the cost of solar is revenue-neutral in a few years, they say, "Why wouldn't I do that?' "

Another incentive is New Jersey's master plan, which mandates that 20 percent of the state's energy comes from renewable sources by 2020.

Going green for socially responsible reasons seems to have been replaced by the need to reduce spending and put people back to work.

A recent survey conducted by an environmental law firm in Cherry Hill found that less than 10 percent of respondents in South Jersey would pay a premium price to build or rent space in a green building.

"The bottom line is people still look for the best deal. Companies that produce solar panels, wind turbines and other green technology will want to move to South Jersey if it's profitable here," said Bruce Katcher, partner in an environmental law firm with offices in Cherry Hill and Philadelphia.

"By revving up our profile in alternative energy, we will create a whole panoply of jobs, not just construction. All new businesses need secretaries and accountants and a sales force," Katcher said.

Projects Under Way

Money talks in education, too.

Recently, Palmyra agreed to solarize its Charles Street school, but Lumberton voters rejected a $15 million bond for the same purpose on four school buildings.

Coriell Institute in Camden opted to tweak its energy budget with less dramatic measures. Recently, it replaced small windows with large glass panels in its laboratories and installed more energy-efficient lighting.

Lockheed Martin plans to take solar power to the next level by producing energy on the scale of utility companies. The Moorestown defense contractor has been experimenting with solar beds longer than a football field since November, said Chris Myers, vice president of Lockheed's solar energy program and a former Medford Township mayor.

LS Power Development, an independent company based in New York, is planning to invest $1 billion to build a natural gas fired power plant on the West Deptford waterfront.

"The permit process is going faster than we anticipated. We hope to break ground on the first phase next year," said project manager Douglas Mulvey.

Fully built, the plant will cover 30 acres in a redevelopment zone owned by Gloucester County and generate approximately 1,200 megawatts of electricity per hour, making it the largest privately owned plant of its kind in New Jersey.

One megawatt of energy can supply sufficient power to run 500 to 1,000 homes, said Mulvey.

A national nonprofit organization that advocates clean energy and monitors states' practices recognized New Jersey's solar incentive program as a national model.

It is one of "the most effective vehicles to deploy the economic stimulus to produce green collar jobs in our economy," said Lewis Milford, founder and president of Washington, D.C.- based Clean Energy States Alliance.

Two of the state's largest utility companies have agreed to accelerate capital projects to create jobs and stimulate the economy, at the request of Gov. Jon S. Corzine.

Public Service Electric & Gas Co. is ready to go on $888 million in projects that will improve efficiency and conservation within the next two years, a push that would create 1,700 jobs. South Jersey Gas Co., a subsidiary of South Jersey Industries Inc., plans to fast track $100 million in projects.