UMass Donahue Institute

The power generation sector in New England is a cornerstone of the region’s economy and infrastructure, underpinning modern life and enabling progress toward climate, economic, and technological goals. This report quantifies the sector’s economic contributions and highlights the challenges and opportunities facing the power generation sector as the region transitions to a cleaner, more electrified future.

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 3 additional jobs in the broader economy, with an average compensation 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 trades. 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, frozen interconnection queues, regulatory complexity, and community opposition hinder investment in new generation, including renewables and storage.
• Public Understanding: Confusion between utilities and generators contributes to misinformed public discourse. Improved education and outreach are essential for informed policy support.
• New England’s power generation sector is at a pivotal moment. The industry is looking for policymakers to use this opportunity to align market signals, regulatory frameworks, and workforce strategies to ensure the region’s energy system remains reliable, affordable, and environmentally sustainable.