by Warren Harris, director of the Virginia Beach Department of Economic Development, recognized as one of the 10 best economic development groups in the nation by Site Selection magazine and one of only 25 economic development groups in the world accredited by the International Economic Development Council.

Going green is certainly not a new concept, nor is sustainability. But the two themes have emerged as hot topics because they present myriad economic opportunities for localities across the nation. In Hampton Roads, the alternative energy industry could be the next economic engine for the region. That means new jobs, opportunities for research and development, and of course, long-term sustainability, which means cost savings for local residents, as well as the environment.

According to the Virginia Coastal Energy Research Consortium (VCERC), one of the best locations along the Atlantic Coast for harnessing wind energy lies approximately 12 miles off the Virginia Beach coastline. It’s classified as a “Class Six” location with the capacity to support the production of 3,680 megawatts of wind energy, the second best level for manufacturing wind power in the world.

So what does this mean for the city and the region?

For one, preliminary projections estimate that the Beach could see an increase of 300 new jobs in the first year of offshore wind farm construction. That number increases to more than 1,100 in the third year. But those are merely initial figures. Besides construction-related jobs, the growing wind energy industry could mean the creation of new manufacturing positions, research and development-related careers, as well as transportation-oriented jobs.

In Virginia Beach, we’ve already seen the first signs of this emerging industry. The Carraro Group, an Italian manufacturing company, has announced that it will move its North American headquarters here. Virginia Beach’s strategic location –with the potential for a wind farm off shore – made perfect sense. Its plan is to manufacture component parts for wind turbines, and with the Port of Hampton Roads nearby, Carraro can easily ship its products overseas and around the world.

Along with wind energy, experts believe that Virginia Beach has excellent solar energy potential, some unique tidal and hydroelectric opportunities, and interesting biofuel possibilities. These natural resources represent billions of untapped dollars for the local economy and the ability to meet the region and the state’s future demand for energy.

As with any new industry, there are startup costs. Creating an off shore wind farm has a potential price tag of more than $1 billion. Research by the VCERC shows that with that investment, however, a farm could generate more than $150 million a year in local off shore service contracts after construction is complete. Through service contracts alone, the project essentially pays for itself in less than seven years. Wind energy also costs less to manufacture than either coal or natural gas because you eliminate the cost of fuel, thus decreasing overall hard costs.

Because of these exciting possibilities, research and development have already begun locally. A consortium of academics from across Virginia, along with representatives from businesses like Science Applications International Corporation (SAIC) are exploring future possibilities. Dominion Virginia Power estimates that there will be a 4,600 megawatt deficit in electric energy to meet the state’s needs by 2019. That means vital research and development needs to happen now if we are to meet the growing demands of families and businesses.

The “greening” of Virginia Beach also enables the city to embrace a series of residual economic returns that benefit the community as a whole. For starters, tourism officials have seen an increase in meeting planners booking exclusively at green venues. The Virginia Beach Convention Center is the first certified “Virginia Green” venue, built with environmentally-conscious materials and equipped with lights and faucets that are motion activated to conserve water and electricity. From February 2008 to January 2009, the convention center’s green initiatives saved taxpayers more than $204,000 in energy costs.

All of this is in the name of long-term sustainability – both for the environment and the economy. While there is an initial investment to launch this industry, that investment is a very small price to pay for the potential rewards the industry offers, both financially and environmentally. Imagine lower energy costs, an environment preserved for generations to come, increased growth because of the city’s “green” approach, new job opportunities and much, much more.

Virginia Beach and the Hampton Roads region have the ability to become what Detroit once was to the automotive industry, and what Silicon Valley is to the tech sector. It’s just a matter of embracing the opportunities and overcoming the challenges that lie ahead. Cities need to join together, pool resources, and explore the possibilities. With vision and working together, Hampton Roads could be the country’s first “green” region.

Originally printed in the Hampton Roads Business Journal, Inside Business, and reprinted here by permission of the author.

Extra:  Visit the Virginia Beach Convention Center blog.