The renewable energy sector, with solar leading the parade, is one of the fastest growing industries in Kentucky. The demand for renewables is being driven by the corporate citizens and Fortune 500 companies that have chosen—or will choose—to locate in Kentucky and are demanding cleaner, greener energy.
Whether it’s an electric-vehicle battery plant, a data center or a hospital, there’s a direct relationship between the amount of clean energy generated in Kentucky and the state’s continued ability to create jobs, provide a high quality of life, and be a leader in advanced manufacturing.
Much of the rush for cleaner energy comes in the wake of the 2022 Inflation Reduction Act, which is regarded as the most significant action Congress has taken on clean energy and climate change in the nation’s history. Kentucky is undergoing a new era of innovation and ingenuity, fueled by investment programs and incentives aimed at lowering consumer costs and driving global clean energy forward.
A cultural heritage of energy production
In Martin County, which is situated on the Kentucky/West Virginia border, construction is underway on one of the largest solar energy facilities in Kentucky. The $231 million investment is an unprecedented coal-to-solar project atop the former Martiki coal mine that is creating between 250 and 300 construction jobs along with 11 full-time jobs.
Toyota Motor Manufacturing has agreed to take advantage of 100 megawatts of the green electrons generated, thereby reducing the company’s carbon footprint and supplementing the model it has created of environmental stewardship at Toyota’s largest vehicle manufacturing plant in the world. The model is inline with the company’s plans to make all its operations in North America carbon neutral by 2035.
For Brad Clark of the Kentucky Solar Energy Industries Association (KYSEIA), the new solar site represents a natural evolution for Kentucky’s rural workforce.
“Energy production is part of the livelihood and identity of a coal community like Martin County,” said Clark, who is serving as acting director of KYSEIA. “It makes sense for them to transition to an advanced energy model, because that’s part of the cultural heritage of those communities.”
“You have abandoned mine lands sitting dormant in eastern and western Kentucky that are perfect for solar, and those companies that might own those lands are able to generate revenue for the first time in a decade or two,” Clark said.
“Right now, we’re in the midst of a transition to clean energy, and of course you’re going to have a mix of coal in that. But over time, it can become a more diverse mix that’s not overly reliant on coal, because coal trading is at an all-time low today,” Clark said.
“During the construction of these solar projects, we can create as many jobs as possible that have local hiring requirements attached to them,” Clark said. “If these folks can earn wages that are above the median and develop skills and credentials that allow them to go to the next solar site, all the better. There are over 30 utility industry solar sites ready to break ground that have their construction certification.”
Sustainability commitments driving change
Edelen Renewables, with solar projects simmering in 15 states (including the $231 million Martin County solar project), is leading the way in Kentucky for renewable energy. From his headquarters on East Main Street in Lexington, CEO Adam Edelen explains why the time is now for solar.
“There’s no question, the customer demand is there,” Edelen said. “From the residential customers and small businesses that can play an important role in saving the planet and diversifying our economy to the big companies that have sustainability commitments, it’s an economic force.”
“Nearly every big company on the planet has a commitment to being 100% renewably powered by 2030, 2035 or 2050,” Edelen said. “That’s being driven by shareholders who are demanding it.”
“It’s a fact that renewables are now the cheapest form of power,” Edelen said. “Coal is the most expensive energy source, which is why the utilities are moving away from it. So, beyond the sustainability commitments leading the adoption of green energy, it’s the bottom line and a good business decision. In order to be relevant to the market, particularly to millennials and boomers, you must have a sustainability commitment when it comes to fighting climate change. The young people aren’t messing around, and they view their purchasing behavior as a value statement.”
Although there is a historical perception that coal provides Kentucky cheap electricity, Edelen points to rising energy costs, especially in eastern Kentucky.
“People are spending more on their power bills than they are on their mortgages or their grocery bills and that’s why the utilities fought so hard against a legislature that’s making it more difficult to retire existing coal-burning plants that are substantially more expensive than both gas and renewables,” Edelen said
