Energy study on Colorado's competitive position released

The Colorado Energy Coalition (CEC), an affiliate of the Metro Denver Economic Development Corporation (Metro Denver EDC), published its annual study measuring Colorado's competitive position in the wind, solar, coal, natural gas, and oil industries.

The second edition of Resource Rich Colorado compares Colorado to the 49 other states based on the presence of natural resources for energy generation.

"Colorado's competitive position in the energy industry has strengthened during the past year, but there remains work to be done for the state to continue to build upon its competitive advantages," said John Armstrong of Enserca LLC, and chair of the CEC's Competitive Analysis Committee.

The study states Colorado's abundant natural resources, growing energy employment, an aggressive Renewable Energy Standard (RES), a wealth of research and development capabilities, and a highly educated workforce make it an attractive state for new and expanding energy companies.

"We know that Colorado's favorable tax structure, moderate business costs, and entrepreneurial climate make the state competitive for industry expansion," said Tom Clark, executive vice president of the Metro Denver EDC.

Colorado's employment growth in the energy industry outpaced most other states from 2009 to 2010. The state's direct employment in cleantech grew by 8.9 percent, compared to 0.8 percent growth nationwide; and Colorado's direct employment in fossil fuels from 2005 to 2010 grew by 20.6 percent, compared to 11.9 percent growth nationwide.

In addition to the five natural resources highlighted in the study, Colorado has an abundance of resources for biofuels, geothermal, nuclear, and hydroelectric energy.

However, challenges exist that could hamper Colorado's ability to grow the energy industry. Strengthening Colorado's current education system is essential to the state's ability to attract and expand energy-based businesses, as well as its ability to retain important federal laboratories such as the U.S. Department of Energy's National Renewable Energy Laboratory (NREL).

The regulatory environment at the federal level coupled with Colorado's current system for building transmission infrastructure create uncertainty for businesses seeking to invest in the energy industry. Due to current economic constraints and Colorado's constitutional requirement for a balanced budget, its approach to incentives is conservative. Increasing Colorado's inventory of industrial space will also be an important driver to attracting and retaining energy businesses in the state.

The Colorado Energy Coalition (CEC), formed in 2006, is a diverse organization dedicated to strengthening the business climate in Colorado that supports all sectors within the energy industry-fossil fuels, cleantech, energy efficiency, and conservation. Members of the CEC represent the industry, finance, law, government, education, economic development, and the public workforce system. The CEC is housed at and staffed by the Metro Denver EDC.

The CEC's Competitive Analysis Committee conducts research on Colorado's competitive position in the national and global energy economies, results of which are published in the annual Resource Rich Colorado report. The committee also monitors climate legislation to identify business development opportunities for Colorado.