Unlocking Economic Growth Through Clean Energy: How Renewable Projects Drive Local Economies

By Dan Roscoe, CEO of Roswall Development

The global shift towards renewable energy has become more than just an environmental necessity—increasingly, it’s an engine for economic growth. 

As communities around the world transition away from fossil fuels, clean energy projects like solar and wind farms are reshaping local economies, creating jobs, attracting investment, and fostering sustainable development.

Communities all around the world are discovering that renewable energy projects are catalysts for economic prosperity, as more and more successful examples provide insights into overcoming the not insignificant challenges and maximize the considerable benefits.

The Economic Impact of Renewable Energy Projects: Jobs, Investment and Sustainable Growth

One of the most immediate and visible impacts of renewable energy projects is job creation. The renewable energy sector employs people across a wide spectrum of roles—from construction and installation to long-term maintenance and operations. According to a 2023 report by the International Renewable Energy Agency (IRENA), the renewable energy sector currently employs 13.7 million people globally, and this number is expected to rise significantly as more countries commit to net-zero carbon goals. In Canada, the clean energy sector is projected to create an additional. 419,000 jobs by 2050.

These jobs are often highly localized, meaning that the benefits stay within the community. A rural town that becomes the site of a new wind or solar farm will see a meaningful boost in local employment, from skilled labor during construction to ongoing jobs in operations, monitoring, and maintenance. In many cases, these projects also lead to increased demand for local services such as housing, retail, and dining, further stimulating the local economy.

Renewable energy projects attract significant investments from both the public and private sectors. In 2023, global investment in renewable energy projects reached an all-time high of USD 495 billion, according to Bloomberg New Energy Finance. Governments in the developed world and emerging economies are offering tax incentives, grants, and subsidies to encourage the development of clean energy infrastructure, while private investors are increasingly viewing renewables as a stable, long-term investment.

These investments have a ripple effect on the broader economy. As renewable projects require significant upfront capital for equipment and infrastructure, they create demand in sectors such as manufacturing, engineering, and construction. The economic multiplier effect of these investments can be substantial, especially in underdeveloped or rural areas that may not otherwise see significant economic investment.

In addition, clean energy projects help attract further investment by positioning regions as leaders in sustainable development. Companies seeking to align with environmental, social, and governance (ESG) criteria are more likely to invest in regions with strong renewable energy credentials, making areas with significant clean energy infrastructure attractive destinations for corporate investment and expansion.

The long-term benefits of renewable energy projects extend beyond immediate job creation and investment. By reducing reliance on fossil fuels, communities can insulate themselves from the volatile price swings of traditional energy sources. This stability helps foster sustainable economic growth by reducing energy costs and improving energy security.

These projects can help sustainably revitalize local economies that may have been struggling due to the decline of traditional industries such as agriculture or manufacturing. By providing a new source of economic activity, renewable projects can create a foundation for long-term economic development.

Renewable energy projects are also widely recognized for their contributions to broader sustainability goals by reducing greenhouse gas emissions, preserving natural resources and mitigating costs associated with air quality-related health issues.

Successful Clean Energy Projects: Wind, Solar and Access to Capital

In Southwestern Ontario, the Southgate Solar Project brought not only clean energy to the region but also significant economic benefits. The 50 MW solar PV project generated over 200 jobs during the construction phase and has provided ongoing revenue for the local government through property taxes and land lease payments. Furthermore, the project has spurred interest in additional renewable energy developments in the area, creating a hub for clean energy innovation.

Wind energy has also proven to be a powerful driver of economic growth, particularly in coastal and plains regions. In Nova Scotia, the Mersey River Wind project, developed by Roswall, will contribute 148.5 megawatts of new capacity beginning in 2025. Projects like Mersey River Wind will not only provide renewable energy to consumer-facing clean energy providers like Renewall Energy, but also offer significant economic benefits, including increased local tax revenue that can be reinvested in community infrastructure projects.

Public-private partnerships have been instrumental in driving the growth of renewable energy projects around the world. These partnerships allow communities to leverage private capital and expertise while retaining public oversight and ensuring that projects align with local priorities. In the United States, the Prairie Breeze Wind Energy Center in Nebraska is a successful example of a public-private partnership that has delivered clean energy, created jobs, and generated millions of dollars in tax revenue for local communities.

Overcoming Challenges and Maximizing Benefits: Community Concerns and Long-Term Sustainability

While renewable energy projects offer numerous economic benefits, they are not without challenges. Communities often raise concerns about land use, environmental impact, and how these projects will affect local industries such as agriculture or tourism. Engaging with communities early in the project planning process is critical to addressing these concerns and building local support. Conducting public consultations, offering community benefit agreements, and ensuring that projects are designed to minimize environmental disruption can help alleviate concerns and ensure that renewable energy projects meet the needs of local residents.

To maximize the economic benefits of renewable energy projects, it’s important for communities to prioritize local hiring and procurement where possible. By working with local contractors, suppliers, and service providers, renewable energy projects create a multiplier effect that benefits the broader local economy. Reinvesting revenue from renewable energy projects into local infrastructure, education, and social services helps ensure that the benefits are felt by all members of the community.

Gaining support from the community, while important, does not guarantee long-term success. Rigorous planning is essential to ensure the sustainability of renewable energy projects. In addition to community engagement, overcoming regulatory hurdles, and completing the initial infrastructure, there are ongoing responsibilities of maintenance, technological upgrades, and workforce development. By investing in training programs and developing a skilled workforce, communities can better position themselves to benefit from the growing clean energy economy.

Resilience Through the Transition to Renewable Energy

The transition to renewable energy offers a unique opportunity to unlock economic growth and build sustainable, resilient communities. By creating jobs, attracting investment, and fostering long-term economic development, renewable energy projects are not just helping to power our future—they’re building the foundations of a prosperous and sustainable economy. As we move towards a net-zero future, it’s clear that clean energy is not just an environmental imperative, but an economic one as well.