By Marlene Motyka, Deloitte’s US Renewable Energy Leader, Kate Hardin, Managing Director, Deloitte Services, LP and Kevin McGovern, New England Managing Partner, Deloitte LLP

What will it take for Massachusetts (MA) to achieve its 35% renewables by 2030 target and its 2050 net-zero ambition? The Massachusetts Business Roundtable convened educators, energy companies, engineering companies and policy makers in early April to discuss the successes and the challenges the state is experiencing in its transition to lower carbon energy. Though Massachusetts is increasing power generation from renewable sources, the state still relies heavily on imported fossil fuels. For example, in early 2023 hydro generation and other renewables accounted for 21% of power generation, while the rest was natural gas.[1] This dependency on natural gas is due to the state’s high heating demand and need to secure a stable energy supply given its production constraints.

The meeting’s participants noted that the shift from fossil fuels to low carbon energy sources is only one part of the equation, and Massachusetts is addressing the different drivers impacting its progress towards a more sustainable future. The Roundtable members landed on three central themes shaping the evolution of the Massachusetts energy landscape:

Workforce Development: Equipping the state’s energy workforce with the right skillsets – both engineering and digital skills – is paramount. Today, most employers are seeing the impact on their workforce of growing competition for core skill sets (e.g., electricians, engineers), rising cost of living, and a misalignment between our education and workforce development systems and the market. Roundtable participants exchanged views on the importance of introducing these career pathways in high schools, higher education institutions, and the state’s workforce development system through apprenticeships and other avenues. In addition to upskilling, timing this developing workforce in tandem with upcoming projects would need to be well thought out. Given current challenges with siting and permitting, it can be difficult to anticipate the timing of employment levels necessitated by these projects and match them with the right workforce.

Policy and Community Impacts: Roundtable members shared their experiences withsiting and permitting, both in Massachusetts and across New England. To garner support across state lines and at the community level, decarbonization should be put into the context of other regional or community priorities. The group compared notes on how developers could be more connected with local communities during the project timeframe, and how sharing detailed information up front on the impacts and benefits of infrastructure improvements and renewable developments could help bring communities into the climate conversation. Members have experienced the consequences of the “not in my backyard” phenomenon, even when it pertains to existing infrastructure upgrades. To maintain progress, project developers and policy makers should be mindful of including all voices, and not just those of a vocal minority. This will likely require a paradigm oriented towards progress as well as the people affected by this transition to net zero. The appointment of MA Climate Chief Melissa Hoffer is a step in this direction, and Hoffer plans to work  with state leaders to assess progress and challenges across the state.[2] And Secretary of Energy and Environmental Affairs Rebecca Tepper similarly is focusing on these issues, having recently announced the establishment of two commissions to review clean energy siting and permitting, and an interagency council focused on offshore wind development.

Energy Economics:  An equitable transition hinges on the ability to transition from a fossil fuel-reliant energy mix towards one that can draw on cost-effective low carbon energy, while keeping households and jobs in focus. Massachusetts has not been immune to the impacts of Russia’s invasion of Ukraine, high global gas prices, global inflation, and supply chain disruptions. Costs of components for renewable energy technologies have risen along with increasing material costs. These larger trends have impacted the economic viability – at least in the short term – of some proposed projects. When coupled with supply chain disruptions, there have been greater delays in these renewable projects coming online.[3] As noted in the Deloitte 2023 Renewable Energy Outlook, these are meaningful trends worth watching.

As Massachusetts continues to prioritize its plan to deliver reliable and affordable energy to its residents, additional policy levers may be needed to help mitigate price risk as materials costs and energy costs are expected to remain volatile. The Roundtable participants agreed that achieving the convergence of Massachusetts’ climate goals with the state’s energy needs necessitates a balanced, long-term approach that bridges the feasibility of today with the progress of tomorrow.

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[1] https://www.eia.gov/state/?sid=MA#tabs-4

[2] https://news.northeastern.edu/2023/03/15/melissa-hoffer-massachusetts-climate-chief/

[3] https://www2.deloitte.com/us/en/insights/industry/power-and-utilities/supply-chain-resilience-electric-power-sector.html