Advanced energy 101: The basics of Tennessee’s advanced energy economy

The Tennessee Advanced Energy Business Council champions advanced energy as a job creation and economic development strategy. To accomplish this mission, we educate public officials and business leaders about Tennessee’s advanced energy assets, establish strategic partnerships to connect assets with opportunities and inform policy that expands and strengthens the industry.

Last year, TAEBC hosted numerous events that emphasized the importance of transportation electrification and others that highlighted the benefits of advanced energy for local power companies (LPCs) across the Tennessee Valley. This year, TAEBC will continue to advance our priorities and focus on cultivating our state’s advanced energy economy, inviting stakeholders from West, Middle and East Tennessee to participate in this conversation. 

To celebrate and bring more awareness to Tennessee’s advanced energy economy, TAEBC has launched a short Advanced Energy 101 series. Part One will focus on the “basics,” which includes the what, why and how of advanced energy in our state.

What is advanced energy?

Advanced energy is a relatively new term but refers to any technology that makes energy cleaner, safer, more secure and more efficient. It includes manufacturers and companies that use advanced energy technologies, as well as professional service providers, researchers and entrepreneurs.

Rather than favoring specific technologies, the term advanced energy is technology neutral. Any technology that makes energy cleaner, safer, more secure and more efficient is in the bucket. Some examples include:

  • electric and plug-in hybrid cars
  • lightweight composites for the automotive industry
  • natural gas fueled trucks
  • pollution control equipment
  • bioenergy
  • high-performance buildings
  • more efficient industrial processes
  • power reliability
  • smart grids
  • combined heat and power
  • the latest wind, solar and nuclear technologies

Want to learn more? Check out this video where some of our members define advanced energy and discuss what the sector means for our state.

Why is advanced energy important?

According to TAEBC’s 2018 Tennessee Advanced Energy Economic Impact Report, advanced energy represents a $1.4 trillion global market. As the advanced energy economy continues to grow, it is more critical than ever for Tennessee to grow its share of this $1.4 trillion global market. 

In Tennessee, the industry represents a $39.7 billion contribution to state GDP, employs 358,360 jobs, and includes 18,170 businesses across the state. Advanced energy injects billions into the state economy, creates high quality jobs for Tennesseans, fuels growth for existing businesses, and attracts new corporate investment in the state. 

Since 2013, employment in the sector grew by 10.3 percent, a rate higher than the state’s overall growth rate of 8.3 percent. Meanwhile, these jobs pay Tennesseans an average wage of $59,665, significantly more than the state’s economy-wide average of $44,317. Even better, these high-quality jobs aren’t just in urban areas. The advanced energy economy can enhance economic development in rural areas as well.

Learn more about the impact of advanced energy on our economy by downloading the 2018 Tennessee Advanced Energy Economic Impact Report.

How can Tennessee lead the way in the advanced energy sector? 

Tennessee is already leading the way in the advanced energy sector, but TAEBC believes it’s vital to continue to support this important sector of our economy. As Cortney Piper, TAEBC’s Executive Director wrote in a recent guest column for the Knoxville News Sentinel, “The future is promising for advanced energy in Tennessee and the Southeast.”

There have been major victories in the advanced energy sector in the past year, particularly in the area of transportation electrification. Some of these include General Motors’ $2 billion plan for its electric vehicle plant in Spring Hill that will build Cadillac’s SUV and VW breaking ground on a $22 million Chattanooga lab to test EV batteries.

Even earlier this month, the Tennessee Valley Authority and the Tennessee Department of Environment and Conservation announced their partnership to develop a statewide electric vehicle fast charging network. This move will support the continued adoption of electric vehicles throughout the state and reduce barriers to the sector’s growth. 

Tennessee’s advanced energy economy is truly thriving. Over the next year, TAEBC is looking forward to releasing an updated economic impact report in 2021 and pursuing more collaborations and partnerships with Tennessee elected leaders, major institutions in the state and other TAEBC members.

Want to learn more or stay connected? Register for our bi-monthly newsletter and event notices today.