Economic Contributions of the Electric Generation Sector in New England total 29,200 well-paying jobs and $16.65 billion in total economic output
Each direct job supports nearly three additional jobs in the broader economy. Average compensation of all supported jobs is $163,600/year.
The New England electric power generation sector is a major contributor to the region’s economy, according to a new study by the University of Massachusetts Amherst Donahue Institute and for the New England Power Generators Association, Inc. There is no aspect of modern life that could survive without electricity, and the power generation sector will play an increasingly important role in New England’s ability to meet its environmental and economic development goals going forward. Today’s report also highlights the challenges and opportunities facing the sector as New England transitions to cleaner energy in an increasingly electrified economy.
In this moment of extraordinary change, the report is a first-of-its-kind analysis of the macro-economic impacts of a sector that underpins and enables New England’s modern society. The findings offer a new, unique insight into the labor and economic development value that power producers bring in addition to their fundamental role in the electric grid.
The institute’s research included both quantitative economic contributions as well as qualitative input from a series of key players in the sector. The economic impacts relied on data from the U.S. Bureau of Labor Statistics (BLS) and modeling using the IMPLAN economic model. The data from the BLS is the best independent source of employment data available to researchers. These numbers provided the inputs for the IMPLAN software, which is among the most widely used impact models in the country.
Key Findings
- Economic Scale: In 2023, the sector generated $10.14 billion in direct revenue, supporting 29,200 jobs and contributing $16.65 billion in total economic output across New England.
- Broad Impacts: Each direct job in power generation supports nearly three additional jobs in the broader economy, with an average compensation of all supported jobs of $163,600/year.
- Tax Contributions: The economic activity attributable to generators supported $2.6 billion in taxes, with over half going to state and local governments—often making them the largest taxpayers in their host communities.
Interview Insights
- Electrification & Demand Growth: The electrification of heating and transportation, combined with the development of data centers, is driving up electricity demand. Some forecasts suggest demand could double by 2050, requiring massive investment in generation and transmission.
- Workforce Challenges: The sector faces an aging workforce, long training cycles, and difficulty recruiting skilled tradespeople. Coordinated regional training efforts are needed to build a sustainable talent pipeline.
- Policy Misalignment: Legacy assets—especially flexible fossil and existing clean energy sources—are undervalued in current market structures, despite their critical role in reliability, price stability, and emissions reduction.
- Permitting & Investment Barriers: Long development timelines, regulatory complexity, and community opposition hinder investment in new generation, including renewables and storage.
- Public Understanding: Confusion between utilities and electricity generators contributes to misinformed public discourse. Improved education and outreach are essential for informed policy support.
“The high productivity and high wages of the power generation sector led to job impacts that are much higher than is typically seen in economic impact analyses,” said Rod Motamedi, project lead and assistant director of the UMass Donahue Institute’s Economic and Public Policy Research group. “Nearly three jobs in other sectors for each job in power generation is not only notable in itself but also higher even than that observed in the manufacturing sector, which adds about half as many additional jobs.”
“Electricity generation is the engine that drives New England’s economy and is at the heart of our region’s way of life. Power producers keep the lights on, devices charged, and homes warm; but this report shows they do so much more,” said Dan Dolan, President of the New England Power Generators Association. “It quantifies how embedded power producers are in the fabric of the region. These impacts stretch from supporting nearly 30,000 jobs, to being the largest taxpayers in dozens of host communities and driving more than $16 billion in revenue to New England’s economy. Maintaining a strong, healthy power generation sector is not only necessary for electric reliability but fosters a critical economic foundation in every state in New England.”
December 02, 2025
