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Contract No. DE-AC36-08GO28308

Estimated Economic Impacts of 

Utility Scale Wind Power in Iowa

Sandra Halvatzis and David Keyser 

National Renewable Energy Laboratory

Technical Report

NREL/TP-6A20-53187

November 2013
NREL is a national laboratory of the U.S. Department of Energy

Office of Energy Efficiency & Renewable Energy

Operated by the Alliance for Sustainable Energy, LLC

This report is available at no cost from the National Renewable Energy

Laboratory (NREL) at www.nrel.gov/publications.

Contract No. DE-AC36-08GO28308

National Renewable Energy Laboratory

15013 Denver West Parkway

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Estimated Economic Impacts of 

Utility Scale Wind Power in Iowa

Sandra Halvatzis and David Keyser 

National Renewable Energy Laboratory

Prepared under Task No. WE11.1121

Technical Report

NREL/TP-6A20-53187

November 2013
NOTICE

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Cover Photos: (left to right) photo by Pat Corkery, NREL 16416, photo from SunEdison, NREL 17423, photo by Pat Corkery, NREL 

16560, photo by Dennis Schroeder, NREL 17613, photo by Dean Armstrong, NREL 17436, photo by Pat Corkery, NREL 17721.

Printed on paper containing at least 50% wastepaper, including 10% post consumer waste.
iii

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Acknowledgments

I would like to thank the wind power developers, lawyers, county commissioners, and 

industry experts who participated in this project for taking the time to answer questions 

and review these results. This report would not have been possible without their support. 

I am grateful for the contributions from Frank Oteri (NREL) on Section 4 of this report and 

the valuable suggestions and thorough review from Suzanne Tegen (NREL), Eric Lantz 

(NREL), and Marshall Goldberg (MRG & Associates). Moreover, I would like to 

acknowledge the support of Wind Powering America and the U.S. Department of Energy 

Wind and Water Power Program.
iv

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Executive Summary

Iowa is ranked second (after Texas) in terms of cumulative wind energy capacity with 

4,524 MW of capacity installed (AWEA 2012). The scale of wind energy deployment in 

Iowa has spurred in-state supply chain development and various activities that contribute 

to a diversified energy economy. State and federal policies, market conditions, and 

economic development priorities support the addition of wind energy capacity.

It is important to better understand the economic development impacts of wind energy in 

Iowa. This report analyzes the jobs and economic impacts of the first 1,000 MW of wind 

power generation in the state. The impacts highlighted here can be used in policy and 

planning decisions and can be scaled to get a sense of the economic development 

opportunities associated with other wind scenarios. The analysis can also inform 

stakeholders in other states about the potential economic impacts of this scale of new 

wind power development.

According to this analysis, the first 1,000 MW of wind power development in the State of 

Iowa (projects built between 1999 and 2008): 

• Generated employment totaling nearly 2,300 full-time-equivalent (FTE) jobs 

within the State of Iowa during the construction periods

• Supports approximately 270 permanent Iowa jobs 

• Supported nearly $290 million in economic activity for Iowa during the 

construction periods

• Supported and continues to support nearly $38 million in annual Iowa economic 

activity during operating periods

• Generates more than $6 million in annual property taxes1

• Generates nearly $4 million annually in income for Iowa landowners who lease 

their land for wind energy projects.

Results above are provided in 2010 real (inflation adjusted) dollars.

 1 Because tax payments vary every year, the annual property tax calculation is based on the average annual 

payment over a 20-year period and later deflated using a rate of inflation of 3%. See Section 3.3 for more 

information. 
v

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Table of Contents

Executive Summary ...................................................................................................................................iv

List of Figures.............................................................................................................................................vi

List of Tables...............................................................................................................................................vi

1 Introduction ...........................................................................................................................................1

2 Methodology..........................................................................................................................................2

2.1 The Jobs and Economic Development Impact Model ...................................................................2

2.2 Research Data and Assumptions....................................................................................................5

3 Results .................................................................................................................................................11

3.1 Gross Economic Activity.............................................................................................................12

3.2 Employment Impacts...................................................................................................................13

3.2.1 Construction Jobs............................................................................................................13

3.2.2 Operation and Maintenance Jobs....................................................................................14

3.3 Property Tax Revenue Impacts....................................................................................................14

3.4 Landowner Revenue Impacts.......................................................................................................15

4 Manufacturing Potential .....................................................................................................................15

4.1 Iowa Wind Turbine and Component Manufacturing...................................................................16

4.2 Iowa Manufacturing Sensitivity Analysis....................................................................................17

5 Conclusion...........................................................................................................................................19

References .................................................................................................................................................20

Appendix ....................................................................................................................................................22
vi

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List of Figures

Figure 1. JEDI Wind model Economic development impact categories.......................................................4

Figure 2. Wind powered electricity generation capacity in Iowa..................................................................6

Figure 3. Assumed breakdown of construction cost......................................................................................9

Figure 4. Economic ripple effect from 1,000 MW of wind energy in Iowa................................................11

Figure 5. Estimated local spending supported by 1,000 MW of wind energy in Iowa during 

project construction...............................................................................................................................13

Figure 6. Manufacturing scenarios and associated job impacts during construction ..................................17

Figure A-1. Iowa average annual wind speed at 80 m ................................................................................22

List of Tables 

Table 1. Utility-Scale Wind Energy Projects Selected for this Study ...........................................................6

Table 2. Overall Cost Assumptions...............................................................................................................7

Table 3. Construction Cost Assumptions......................................................................................................8

Table 4. Operating Cost Assumptions...........................................................................................................9

Table 5. Other Parameters...........................................................................................................................10

Table 6. Iowa Summary Impacts from 1,000 MW of Wind Energy Development.....................................12

Table 7. Property Tax calculation ...............................................................................................................15

Table 8. Iowa Utility-Scale Wind Manufacturing Facilities (Not Exhaustive)...........................................16
1 

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1 Introduction

A growing population, increasing demand for energy, and energy price uncertainty have created 

public support for wind power development in several states. Iowa has sought to diversify its 

energy mix with wind energy, which can also address some economic development and 

environmental priorities. 

Numerous conditions drive wind energy development in Iowa. Iowa has excellent wind 

resources (see Appendix), supportive state and energy market policies, robust transportation 

infrastructure, and a trained workforce. As a result, utility-scale wind projects bolster jobs and 

generate tax revenue that is used to improve schools and provide other public services, which in 

turn improve the quality of life in rural areas. In addition, landowners receive income in the form 

of land-lease payments for wind turbines located on their land. 

Estimating the economic development impacts of power plants allows policymakers and decision 

makers to assess impacts on jobs and state economic growth (Lantz and Tegen 2008). This study 

captures the economic impacts of the first 1,000 MW of wind energy in Iowa. Specifically, we 

examine the impact of seven of the first utility-scale wind energy projects on the Iowa economy 

during construction and operation. We use 1,000 MW as a baseline because it can be scaled to 

get a sense of the economic development opportunities associated with other wind scenarios. It

also represents an important threshold because at 1,000 MW the nascent in-state wind industry 

has demonstrated viability. 

For the purposes of this study, state-level economic impacts include jobs, land-lease payments, 

property tax revenue, payroll, and business activity from wind project development. Results from 

this study do not include manufacturing impacts because during most of the period analyzed 

(1999-2008), utility scale wind component manufacturing did not exist in Iowa or was at an 

initial stage of development. However, a separate section of this report analyses manufacturing 

potential, particularly in light of the recent manufacturing development in the state. This section 

includes a sensitivity analysis of manufacturing activity in the state, with the purpose of 

informing policymakers of how purchases from in-state producers and suppliers could affect 

impact results. 
2

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at www.nrel.gov/publications.

2 Methodology

2.1 The Jobs and Economic Development Impact Model

This study utilizes the Land-Based Wind Jobs and Economic Development Impact (JEDI) 

model. The model is one element of a suite of JEDI input-output (I-O) models. JEDI models 

provide estimated economic impacts that are supported by investment in a number of different 

energy technologies. NREL and MRG & Associates developed the offshore wind JEDI model to 

incorporate the unique aspects of offshore wind development in to an economic impact tool that 

can be accessed and used by the public. 2 

I-O models are widely recognized tools that are used to estimate economic impacts associated 

with investments or expenditures. These models map how sectors in an economy such as 

businesses, households, workers, capital and governments interact with one another via 

purchases and sales at a single point in time. Because sectors are related to one another, an 

increase in demand for one can lead to an increase in demand for another. An increase in demand 

for steel towers, for example, results in increased demand for iron ore.

JEDI and other I-O models estimate economic impacts that are supported by changes in demand 

for goods and services produced by industries and households. 3 Goods or services produced by 

households include labor and property (such as land) that is sold or leased to industries. JEDI 

estimates changes in demand for these goods and services with data from the project scenario.

The JEDI project scenario is a set of data that describes a project. Each project contains two sets 

of line item expense categories such as equipment (blades, towers, turbines), materials and 

services, and labor. One set covers the construction of the project, the other covers operation and 

maintenance of a project. JEDI models contain default project scenario and cost data, but 

analysts with knowledge of project details can edit these defaults to better represent the scenario 

being analyzed. 

The JEDI model also allows a model user to specify what portions of expenditures are made 

within the region of analysis. For example, the model allows users to specify whether wind 

turbine blades were manufactured in the state where the project is being built, or outside the state 

(assuming the state is the region of analysis). JEDI uses expenditures made within the region of 

analysis, or “local expenditures,” to estimate economic impacts. The JEDI model does not 

estimate economic impacts outside the particular region of analysis (e.g., generator parts from 

China).

Economic impact estimates from JEDI take the form of a number of different variables at 

different times. Each data point represents a specific metric, that metric’s relationship to the 

project, and the phase of the project in which it occurs.

 2 The Land Based Wind JEDI model can be downloaded at http://www.nrel.gov/analysis/jedi/download.html. 

Accessed May 2012. 3 JEDI currently uses the IMPLAN input-output model. More information about IMPLAN can be found at 

http://www.implan.com.
3 

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JEDI reports economic impact estimates for two phases: construction and operations and 

maintenance (O&M). Construction phase results are one-time totals that span the equivalent of 

one year. 4

 O&M results are annual and ongoing for the life of the facility. 

All impacts are based on expenditures and local content data contained within the project 

scenario worksheet. JEDI organizes these effects in to different categories based on how the 

user-specified project scenario supports the impact. The workers who install a wind turbine, for 

example, are onsite. The workers who manufactured that turbine are part of the supply chain. 

Installers and manufacturers earn wages and spend money within the region of analysis, which 

supports further economic activity (e.g., the construction workers eat lunch at local sandwich 

shops). The three categories of impacts used by JEDI are5: 

• Project development and onsite labor impacts represent economic activity that is 

either directly involved with a project’s development and implementation or that occur 

onsite. These impacts typically occur in the construction, maintenance, engineering and 

professional services, and port staging sectors. These do not include impacts that arise 

from expenditures for inputs used in a project. 

• Turbine and supply chain impacts represent economic activity that is supported by 

inputs purchased for a project or business to business services. These include locally 

manufactured inputs such as blades and locally procured inputs used to manufacture 

those blades such as resin and fiberglass. 

• Induced impacts accrue as money circulates in an economy. Households spend earnings 

from project development and onsite labor impacts as well as turbine and supply chain 

impacts. The portion of these earnings spent within the region of analysis supports 

induced impacts. These effects commonly occur in retail sales, child care, leisure and 

hospitality, and real estate sectors. 

Figure 1 shows a graphical representation of the three types of impacts from JEDI.

 

4 If, for example, JEDI reports a construction phase impact of 50 workers to build a project that takes two years to 

complete, this is the equivalent of an average of 25 workers per year (50 / 2 = 25). If the same project took 3 years, 

the average would be 17 (rounded) workers per year.

5 Typically, I-O models organize impacts in to direct, indirect and induced effects. JEDI categories differ from these. 

Project development and onsite labor impacts include less than direct effects from project expenditures and turbine 

and supply chain impacts are more broad than the indirect effects from project expenditures. The Offshore Wind 

JEDI User Reference Guide (http://www.nrel.gov/analysis/jedi) contains more information about these differences.
4 

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Figure 1. JEDI wind model economic development impact categories 

JEDI reports three different metrics for each type of impact: jobs, earnings, and gross output. 

JEDI utilizes intuitive labels when reporting these metrics such as “jobs” and “earnings.” Each 

metric, however, has a specific definition that informs how it should be interpreted. 

• Jobs are expressed as full time equivalent (FTE). One job is the equivalent of one person 

working 40 hours per week, year-round. Two people working full-time for six months 

equal one FTE. Two people working 20 hours/week for 12 months also equal one FTE. 

An FTE could alternately be referred to as a person-year or job-year. Jobs, as reported by 

JEDI, are not limited to those who work for an employer – they could include other types 

of workers such as sole proprietors (self-employed).

• Earnings include any type of income from work, generally an employee’s wage or salary 

and supplemental costs paid by employers such as health insurance and retirement. It 

could also be other non-wage compensation for work performed such as proprietor 

earnings. 

• Gross output is the total amount of economic activity that occurs within an economy 

(within the region of analysis). It is the sum of all expenditures. A scenario in which a 

developer purchases a locally manufactured $500,000 blade that utilized $100,000 of 

locally procured fiberglass represents $600,000 in gross output. 
5

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As with all economic models, there are caveats and limitations to the use of JEDI. Input-output 

models in general utilize fixed, proportional relationships between sectors in an economy. This 

means that factors that could change this, such as price changes that lead households to change 

consumption patterns, are not considered. 

JEDI provides estimates of economic impacts given the user-specified expenditures and 

economic conditions when input-output data were compiled. Impacts that extend in to the future 

(such as O&M impacts) are assumed to do so if all else is constant. There can be any number of 

changes in a dynamic economy that JEDI does not consider, so these future results should not be 

considered to be a forecast. They simply reflect how a project might look if it was completed in 

the current economy under the user-specified cost and local content assumptions.

JEDI results are based on project inputs, and these inputs can change from project to project. 

This is especially true of nascent technologies or technologies that have not yet been widely 

deployed in the United States. If an analyst wishes to estimate impacts from a specific project, 

tailoring inputs to that project should produce more accurate results. JEDI does not evaluate 

whether or not inputs are reasonable, nor does it determine whether a project is feasible or 

profitable. 

Results from JEDI models are gross, not net. JEDI only calculates what economic activity would 

be supported by demand created by project expenditures. Other changes in an economy may take 

place that JEDI does not consider. These include supply-side impacts such as price changes, 

changes in taxes or subsidies, utility rate changes, or changes in property values. JEDI also does 

not incorporate far reaching affects such as greenhouse gas emissions, displaced investment, or 

potential side effects of a project such as changes in fishing, recreation, or tourism. 

2.2 Research Data and Assumptions

Lists of Iowa wind power projects were obtained from the American Wind Energy Association 

(AWEA) and DNV (Det Norske Verita)

6 databases. These lists contained information regarding 

wind project location, completion status, project size, turbine manufacturer, project owner, 

number of turbines, and turbine size. Using these lists, the first 1,000 MW (nameplate capacity) 

of utility-scale wind projects (those larger than 50 MW) developed in Iowa were selected for this 

study. These projects were chosen based on information obtained from public sources as well as 

from interviews with developers and other wind industry stakeholders. These wind projects are 

listed in Table 1.

 6 Formerly Global Energy Concepts (GEC).
6

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Table 1. Utility-Scale Wind Energy Projects Selected for this Study

Project Name

Storm 

Lake I

& II

Top of 

Iowa Hancock

Intrepid 

I Century Victory

Pomeroy 

I & II

Year of Construction 1999 2001 2002 2004 2005 2006

2007; 

2008

Nameplate Capacity

(MW) 188.3 80.1 97.7 161 185 99 198

Turbine Size (kW) 750 900 660 1,500

1,000;

1,500 1,500 1,500

Number of Turbines 251 89 148 107 135 66 132

Iowa reached its first 1,000 MW of installed wind capacity in 2007 (Figure 2), but given that not 

all the data for all those projects was available, we decided to include data and parameters 

pertaining to the second phase of the Pomeroy wind farm, built in 2008.

Figure 2. Wind powered electricity generation capacity in Iowa

Preliminary research for each project consisted of collecting media information and corporate 

press releases. This information provided an initial indication of the magnitude of the 

construction costs and the economic impacts of these projects in Iowa. This effort was 

complemented by a literature review. Extensive interviews were then conducted with developers, 

manufacturers, construction company workers, lawyers, county commissioners, farmers, 

farmer’s union members, industry experts, and other stakeholders to provide further depth to the 

analysis. Data obtained from interviews included construction cost, operation and maintenance

(O&M) cost, percentage of goods and services acquired in state, job generation during the 

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2Q
7 

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construction period, job generation during the operation period, land-lease payments, tax 

information, payroll parameters, and cost breakdown of different installation and operation 

categories. 

Utilizing the information derived from the sources noted above we developed specific 

assumptions including project cost (Table 2), detailed construction cost (Table 3), operating cost 

(Table 4), local share, and other relevant parameters (Table 5), which were used in the JEDI 

model to perform the analysis. 

Table 2. Overall Cost Assumptions

Overall Cost Assumptions

Installed Project Cost ($/kW) $1200–$1,7257

Operations and Maintenance Cost ($/kW-year) $16–$258

 

7 Range is provided in 2010 dollar figures

8 Range is provided in 2010 dollar figures 
8

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Table 3. Construction Cost Assumptions

Construction % of Total Cost Local Share

Equipment Costs

Turbines (excluding blades and towers) 44.9% 0%

Blades 10.5% 0%

Towers 11.6% 0%

Transportation 8.0% 0%

Equipment Subtotal 75.1%

Materials

Construction (concrete, rebar, equip, roads, site prep) 10.8% 60%

Transformer 1.2% 0%

Electrical (drop cable, wire) 1.3% 45%

HV Line Extension 2.4% 20%

Materials Subtotal 15.7%

Labor

Foundation 0.6% 70%–80%

Erection 0.6% 75%

Electrical 0.9% 25%

Management/Supervision 0.5% 25%–50%

Misc. 3.8% 0%

Labor Subtotal 6.4%

Other Costs

HV Sub/Interconnection Materials 0.7% 5%–10%

HV Sub/Interconnection Labor 0.2% 65%

Engineering 1.0% 50%

Legal Services 0.6% 50%

Land Easements 0.0% 100%

Site Certificate/Permitting 0.3% 100%

Other Subtotal 2.8%

Total 100.0%

Table 3 presents average calculations for the projects analyzed. Local share refers to the 

percentage of resources (e.g., labor, materials, supplies, and equipment) purchased or acquired in 

Iowa. As we can see from the above table, this analysis assumes that all wind turbine equipment 

(turbines, towers, blades) was manufactured outside of Iowa and imported into the state.

According to this table, wind manufacturing (Equipment costs) and related transportation 

represent about 75% of total project cost.
9

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Figure 3 provides a graphical representation of the assumed average cost breakdown used for this 

study. 

Figure 3. Assumed breakdown of construction cost

Table 4. Operating Cost Assumptions

Wind Farm Annual Operating 

and Maintenance Costs % of Total Cost Local Share

Labor

 Field Salaries 12.1% 100%

 Administrative 1.6% 100%

 Management 4.1% 100%

 Labor/Personnel Subtotal 17.9%

Materials and Services

 Vehicles 2.4% 100%

 Site Maintenance/Misc. Services 0.9% 80%

 Fees, Permits, Licenses 0.5% 100%

 Utilities 1.9% 100%

 Insurance 18.0% 0%

 Fuel (motor vehicle gasoline) 0.9% 100%

 Consumables/Tools and Misc. Supplies 6.9% 100%

 Replacement Parts/Equipment/Spare Parts 50.6% 20%

 Materials and Services Subtotal 82.1%

Total O&M Cost 100.0%

67%

8%

16%

6%

3%

Turbine Manufacturing

Tranportation

Materials

Labor

Other Costs
10

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Table 5. Other Parameters

Other Parameters

Financial Parameters

 Percentage Financed 80%

$ Years Financed (term) 10

 Interest Rate 10%

 Percentage Equity 20%

 Corporate Investors (percent of total equity) 100%

 Return on Equity (annual interest rate) 16%

Tax Parameters

Average Taxes Per MW $6,000 per year

Land Lease Parameters

Average Lease Payment Per MW $4,000 per year

Payroll Parameters (per hour)

 Construction Labor

 Foundation $16–$22 per hr.

 Erection $18–$20 per hr.

 Electrical $25–$28 per hr.

 Management/Supervision $35–$45 per hr.

 O&M Labor

 Field Salaries (technicians, other) $22–$24 per hr.

 Administrative $14–$16 per hr.

 Management/Supervision $35–$45 per hr.
11

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3 Results

We used the JEDI model to estimate the economic impacts of each of the Iowa wind power 

projects included in this study. Individual economic impacts were then aggregated to reflect 

combined impacts from 1,000 MW of wind energy development in Iowa.

Study results show significant economic impacts (see Figure 4). Impacts reported are centered on 

JEDI model results, which include employment, property taxes, landowner revenue, and local 

economic activity during the construction and operation periods (see Table 6). Although 

estimating all wind related impacts was beyond the scope of this analysis, it is important to note 

that new wind power installations provide many other tangible (e.g., use tax generation, sales tax 

generation, water savings, vendor profits, transmission line impacts, etc.) and intangible impacts 

(e.g., electricity price stability, and environmental benefits).

Project Development &

Onsite Labor Impact Local Revenue, Turbine, 

& Supply Chain Impact Induced Impact

Construction Phase: 

• Nearly 600 FTE jobs

• $75million to local economies

Operational Phase:

• 75 permanent jobs

• $6 million/year to Iowa

• $4 million/year in land owner 

revenue

• $6 million/year in 

property taxes

Construction Phase: 

• Nearly 1,150 FTE jobs

• $140 million to local economies

Operational Phase:

• 105 permanent jobs

• Over $22 million/year 

to local economies

Construction Phase: 

• Over 550 FTE jobs

• $75 million to local 

economies

Operational Phase:

• 90 permanent jobs

• Near $10 million/year to 

local economies

Figure 4. Economic ripple effect from 1,000 MW of wind energy in Iowa
12

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Table 6. Iowa Summary Impacts9 from 1,000 MW of Wind Energy Development

Iowa Economic Impacts

During Construction • Supported approximately 2,300 full-time-equivalent jobs (FTE)

within the State of Iowa during construction periods

• Supported over $290 million in economic activity for Iowa 

during the construction period 

During Operating Periods • Currently supports approximately 270 Iowa jobs annually

• Annually supports nearly $38 million in gross economic activity 

in Iowa

• Generates more than $6 million in annual property taxes10

• Generates nearly $4 million annually in income for Iowa 

landowners who lease their land for wind energy projects 

3.1 Gross Economic Activity

The construction and operation of wind power facilities can be a catalyst for much economic 

activity in Iowa. From rented accommodations that host the influx of construction workers to the 

suppliers and transportation companies that provide services to the wind farm, wind power 

development supports a significant impact to the state economy.

One thousand megawatts of wind power developed in Iowa generated 

approximately $290 million in economic activity during the construction phase 

and nearly $38 million in annual recurring local economic activity.

The impacts noted above include only the portion of transactions that took place in Iowa. For

example, equipment and components that were purchased from other states or other countries are 

treated as monetary leakages and are not included in these estimates. This study assumes that 

1,000 MW of wind energy represents approximately $1.5 billion11 in investment, which supports 

over $290 million at the state level (assuming no in-state manufacturing of wind system 

equipment). This represents approximately $75 million in on-site project labor, $140 million in 

construction materials and supply chain equipment, and $75 million in induced activities during 

the construction period (Figure 5).

 9 Results are provided in 2010 real dollars. 10 See Section 3.3 for more information. 11 2010 dollars.
13

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Figure 5. Estimated local spending supported by 1,000 MW of wind energy in Iowa during project 

construction

3.2 Employment Impacts

3.2.1 Construction Jobs

During the construction period12 construction workers, engineers, surveyors, turbine installers, 

electrical contractors, administrative employees, and managers move to town boosting local 

economic activity. Local workers may be employed directly on the new wind project, depending 

on the talent pool and skill set in the area. According to this research, approximately 65%–70%

of construction workers for the projects studied were Iowa residents. These workers boost Iowa

economic activity by spending their earnings on mortgage payments, insurance, childcare, 

education, utilities, tax payments, family entertainment and recreation, clothing, etc. Workers 

from out of state generate a different set of economic impacts to the state. These temporary 

workers support a smaller ripple effect in the Iowa economy because most of their earnings are 

spent outside of Iowa and thus do not circulate through the Iowa economy. Most of their impacts

are limited to spending on lodging, food, beverages and transportation, which is often subsidized 

by the construction company. Because it is difficult to track the spending of out-of-town 

workers’ earnings, they have not been included in this analysis.

13

The number of employees building a wind farm depends on the stage of construction of the 

project. The peak construction phase may require a significantly higher number of workers than 

the initial and final stages. Data were obtained on the number of employees and hours worked,

and these data were translated into FTE units.

This research suggests that the construction of Iowa’s first 1,000 MW of wind 

power development during 1999–2008 supported employment totaling

approximately 2,300 FTE jobs in the state during the construction period.

During the construction period, approximately 600 jobs were held by onsite workers (project 

development, engineering, construction, and electrical). Over 1,150 jobs were supported by 

 12 The JEDI model assumes that construction period takes a year. In fact, the construction period could take more or 

less than a year depending on the project size, location, and weather conditions. 13 By not including earnings from out of state workers in the analysis we avoid the risk of overestimating the 

impacts in Iowa.

Project 

Development and 

Onsite Labor

$75 Million Onsite Labor

Local Revenue, 

Turbine and Supply 

Chain

$140 Million Local 

Revenue

Construction 

Materials Supply Chain

Induced $75 Million Non- wind 

sectors
14

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.

supply chain and turbine impacts (including providers of construction materials, supplies, and 

transportation) and over 550 jobs were supported by induced effects.

3.2.2 Operation and Maintenance Jobs

Over the wind farm’s anticipated 20- to 30-year operating life, permanent employees operate and 

maintain the facility. Technicians can service approximately two to three wind turbines per day 

replacing components, troubleshooting electrical and mechanical malfunctions, repairing the 

hydraulic system, and changing fluids. The majority of these positions are filled by Iowans or by 

people who relocate to Iowa. 

According to this study, 1,000 MW of wind energy capacity in the State of Iowa 

supports approximately 270 permanent jobs14.

Of the 270 permanent jobs, approximately 75 were onsite positions, 105 were equipment and 

supply chain sector jobs, and nearly 90 were positions in other sectors (e.g., restaurants, hotels, 

and retail stores) resulting from the induced activity.

3.3 Property Tax Revenue Impacts

Wind energy projects also increase the property tax revenue base in local counties. This revenue

in turn is used to fund and improve local schools, parks, recreational facilities, community 

programs, fire departments, and other public services. 

The State of Iowa provides several tax incentives for wind energy projects. Wind farm owners

may opt to have their wind farm properties centrally assessed (at the state level) or locally 

assessed (at the county level). Estimating the tax revenue generated by a wind project over its 

lifetime requires county specific rates, detailed cost data, and an assessment of other project and 

location specific information. For instance, it is impossible to know with certainty what a given 

county’s mill levy will be 10 years from now. To discount future tax revenue cash flows to 

current dollars also requires an estimate of the inflation rate. To assess the tax revenue generated 

by the projects analyzed in this report, we relied on input from county tax assessors, project 

developers, and assumptions based on experience from other projects. This analysis assumes that 

the wind farm projects were assessed at the local level. Local tax assessors calculate wind farm 

property taxes based on a percentage of the net acquisition cost15 per tower. During the first year 

of wind farm operation, the assessed value of the property is calculated at 0% of the net 

acquisition cost, which means that the wind farm owner does not pay any taxes that year. During 

the second year of operation, the wind farm owner pays property taxes on 5% of the net 

acquisition cost, and this percentage increases 5% every year until it reaches 30%, at which point 

it stays the same for the life of the project (Iowa Code 427B.26). Table 7 provides an example of 

 14 Unlike the construction period, in which several temporary workers are hired, during the operations and 

maintenance period, permanent workers are hired at the state level. Thus the number of jobs reported during this 

period remains constant for every year that the wind farm is operating. In other words, 1000MW of wind project 

development in Iowa supports 270 jobs every year that the wind farms are in operation – approximately 20 years. 

Although in some cases temporary jobs were reported as part of the maintenance and repairs needed, in most of the

cases, these were out-of-state workers, and thus these small numbers were omitted from this study. 15 According to Iowa Code 427B.26, “net acquisition cost" means the acquired cost of the property including all 

foundations and installation cost less any excess cost adjustment. http://coolice.legis.state.ia.us/coolice/default.asp?category=billinfo&service=iowacode&ga=83&input=427B#427B.26. Accessed May 2012.
15

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.

the methodology used to calculate the tax revenue stream for the wind farm projects. In this 

example, the net acquisition cost per tower is assumed to be $1.5 million, and the mill levy is 

held constant at 2.56%.

Table 7. Property Tax calculation

Acquisition Cost 

(per tower) Year Assessment Assessed Value Mill Levy

Tax Payment (per 

tower)

$ 1,500,000 1st 0% $ - 0.0256 $ -

2nd 5% $ 75,000 $ 1,920.00 

3rd 10% $ 150,000 $ 3,840.00 

4th 15% $ 225,000 $ 5,760.00 

5th 20% $ 300,000 $ 7,680.00 

6th 25% $ 375,000 $ 9,600.00 

7th - up 30% $ 450,000 $ 11,520.00 

To ensure a consistent analysis, we held the county mill levy constant over a 20-year period and

future cash flows were deflated using an assumed inflation rate of 3% to obtain an estimate of all 

future cash flows in 2010 real dollars. Based on these assumptions and methodology, we 

estimated that:

One thousand megawatts of wind energy (nameplate capacity) generates over $6

million in property tax revenue per year.

3.4 Landowner Revenue Impacts

There are different types of legal agreements and payment schemes to reward those who give 

developers access to their land and wind resources. Most of the payments in Iowa are based on a 

percentage of revenue (royalty) from the electricity generated, and could range from $2,500/MW 

to $5,500/MW annually. This provides a stable source of income for the duration of the lease, 

which could last up to 20 or 30 years.

According to this study16, one thousand megawatts of wind energy in Iowa

generate more than $4 million annually in income for farmers and ranchers who 

lease their land to wind developers.

Generally, a utility-scale wind farm requires approximately 60 acres of land per MW installed 

(Shoemaker, et al 2007), but the actual footprint of land that is disturbed for wind power projects 

ranges from 2% to 5% of total land needed by the project (U.S. DOE 2008). Since the rest of the 

land remains free, farmers can usually continue to grow their crops and ranchers can graze their 

cattle while the turbines are in operation.

There are other economic opportunities for landowners in the form of road access payments 

(land easements), permits, licenses, and land-lease revenues for O&M buildings and substations. 

These could be one-time payments or annual payments, but are not accounted as part of this 

study given the wide range of possibilities and lack of reliable information.

 16 Based on interviews to stakeholders 
16

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.

4 Manufacturing Potential

Although there are currently seven utility-scale wind manufacturing facilities in Iowa, as shown

on Table 8, prior to 2007 there were not many wind manufacturing facilities in the state. Thus, 

given the period of projects selected for review, this analysis assumes the seven projects 

imported their turbines, blades, and towers from other states and other countries. Consequently, 

the results from this study do not account for local turbine manufacturing.

17 Nevertheless,

analysis of the potential economic impacts associated with the local production of wind turbines

and components provides further insight into the wind industry in Iowa. Future projects may 

utilize this Iowa-based manufacturing, resulting in an increase in jobs and other economic 

development impacts.

4.1 Iowa Wind Turbine and Component Manufacturing

Iowa is now a leader in wind energy manufacturing in the US, with wind turbine component 

suppliers supporting more than 2,000 manufacturing jobs in the state (Iowa Office of Energy 

Independence 2010). Table 8 provides information on some Iowa wind manufacturing facilities 

and their estimated number of employees. This is an example of how wind power is expanding

businesses and attracting companies to relocate to Iowa.

Table 8. Iowa Utility-Scale Wind Manufacturing Facilities (Not Exhaustive)

Company Component Category City Jobs

Clipper Windpower Turbines Turbine Cedar Rapids 310 (2009)18

Acciona Turbines Turbine West Branch 130 (2009)19

TPI Composites Blades Blade Newton 581 (2011)20

Trinity Structural Towers Towers Tower Newton 90 (2009)21

Goian North America

Elevation 

Systems Other Ankeny 10–12 (2008)22

Sector 5 Technologies Components Other Oelwein 12–50 (2008)23

Siemens Blades Blade Fort Madison 600 (2010)24

Data provided by Frank Oteri, NREL

In addition, Iowa is home to more than 200 turbine supply chain manufacturers (Iowa Office of 

Energy Independence 2010), producing bearings, mountings, bolts, switches, etc. These local 

manufacturing companies also benefit other in-state businesses that provide goods and services 

to them, thus boosting economic activities even further.

 17 Only material manufacturing (e.g., cement for foundations and electrical equipment) for wind plant construction 

was considered part of in-state impacts. Another reason that this analysis does not incorporate the manufacturing 

activities into the economic impacts is because it is difficult to attribute changes in in-state manufacturing activity to 

in-state project development if Iowa manufacturers also sell their products in other states. 18 Franzman 2009 19 Norfleet 2009 20 Hussmann 2011 21 Elliot and Glover 2009 22 Bzdega 2008 23 Kunkle 2008 24 Siemens Energy, Inc. 2010
17

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.

Local manufacturing incentives and the state’s recognition of the economic development 

opportunities from wind energy have boosted wind energy and manufacturing development in 

Iowa. (Lantz and Tegen 2008).

Economic Development impact depends in part, on the extent by which goods and services are 

acquired at the local level. Since wind turbines and component manufacturing frequently 

constitutes 65% to 85% of the total construction cost for a new wind farm (Lantz and Tegen 

2008), it offers the largest potential source of economic development benefits at the local level.

Furthermore, it supports permanent jobs during construction and operating periods. 

4.2 Iowa Manufacturing Sensitivity Analysis

Because this analysis assumes zero local wind turbine manufacturing for the first 1,000 MW of 

wind energy development in Iowa, we developed a sensitivity analysis that compares three 

manufacturing scenarios with the results from this study (Figure 6). All three manufacturing 

scenarios assume cost parameters indicated in Table 3, with the exception of equipment local 

share information, which we varied based on the manufacturing scenario. The first 

manufacturing scenario assumes that Iowa suppliers provide 25% of turbine parts and 

components needed to support the installation of 1,000 MW of wind energy in the state. This 

scenario also assumes 25% of local transportation. The second and third scenarios assume 50% 

and 75% of local turbine manufacturing and transportation services, respectively.

Figure 6. Manufacturing scenarios and associated job impacts during construction

As Figure 6 indicates, even a 25% level of in-state manufacturing can have a significant impact 

on potential job generation. This level of manufacturing not only increases the number of turbine 

manufacturing and supply chain jobs, but it also supports a higher number of induced jobs

because more wind manufacturing workers spend their income on activities that generate and 

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Induced Jobs

Turbine and Supply Chain Jobs

Onsite Jobs
18

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.

support additional employment throughout the economy. Hence, this first scenario more than 

doubles the magnitude of construction period jobs estimated in this study to approximately 

5,800. A 50% in-state wind manufacturing scenario more than triples the total number of jobs 

reported in this study during the construction period to more than 8,800 jobs, and a 75% in-state 

manufacturing scenario more than quadruples our initial job results, providing job opportunities 

to almost 11,800 Iowa residents. 

Wind development in Iowa has led to more in-state manufacturing, but a stronger wind 

manufacturing base could provide further economic opportunities. 
19

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.

5 Conclusion

One thousand megawatts of new wind power generation has myriad effects on the Iowa

economy. Economic impacts ripple through the state economy providing jobs, tax revenue, and 

land-lease payments to communities. Based on this analysis, the first 1,000 MW of wind energy 

development in Iowa supported 2,300 FTE jobs over the 1999-2008 period, and 270 ongoing, 

annual jobs to-date. It also supported nearly $290 million in gross economic activity for Iowa

during the construction period and approximately $38 million per year during the operating 

period. 

The rapid turbine and component manufacturing development in Iowa in 2008-2010, following 

the construction of 1000MW of wind energy capacity installed, contributed to a healthier and 

more diversified business climate in the state. It also marked the beginning of a strong wind

manufacturing industry, which now supports more than 2000 jobs. 

Wind energy manufacturing is the largest economic development driver in the wind industry. It 

has the potential to provide significantly more jobs and associated economic impacts compared 

to other wind activities. Supporting local ownership of manufacturing facilities, as well as use of 

local labor and materials, can provide further opportunities for economic diversification and 

economic growth.

The burgeoning wind sector also stimulates a secondary supply chain ripple effect as wind 

industry participants (developers, service providers, manufacturers, etc.) start up or relocate to 

the state. While outside the scope of this analysis, this second wave carries with it additional 

economic impacts associated with training workers, exporting goods outside of the state, 

fostering research and development facilities, and developing leading-edge technologies and 

capabilities.
20

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National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.

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21

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National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.

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Siemens Energy, Inc. (2010). “Fort Madison, Iowa: A Cornerstone of our Wind Power Presence 

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22

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.

Appendix

Figure A-1. Iowa average annual wind speed at 80 m

Source: Wind Powering America 2010