NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance for Sustainable Energy, LLC.

Economic Development from Gigawatt-Scale 

Wind Deployment in Wyoming

Analysis Performed by NREL for the Wyoming Infrastructure Authority

Eric Lantz, NREL

AWEA WINDPOWER 

Conference

Anaheim, CA

May 23, 2011

NREL/PR-6A20-51572
National Renewable Energy Laboratory Innovation for Our Energy Future

 Project context 

 Definitions & caveats

 Deployment scenario

 Modeling inputs

 Results

 Conclusions

2

Presentation Overview

Photo by Pat Corkery, NREL/PIX16569
National Renewable Energy Laboratory Innovation for Our Energy Future

Wyoming Wind Resource
National Renewable Energy Laboratory Innovation for Our Energy Future

The Crux

4

Source: NASA (http://www.nasa.gov/)
National Renewable Energy Laboratory Innovation for Our Energy Future

Wyoming Transmission Projects 

5

Source: WIA
National Renewable Energy Laboratory Innovation for Our Energy Future

Role and Scope of the NREL Study

6

• Building and siting new power generation and infrastructure, 

especially to serve out-of-state load, can be challenging.

• Decisions are best made with a full understanding of how a 

given project (or set of projects) will affect Wyoming and its 

communities.

• Jobs and economic development are variables that are 

important to state policymakers, local policymakers, and 

residents.

• This study considers the question: What if?

If deployment of new transmission allows for significant new power 

generation, what level of jobs and economic activity might result?
National Renewable Energy Laboratory Innovation for Our Energy Future

The JEDI Analysis Tools

Currently public

• Utility-Scale Wind

• Natural Gas

• Coal

• Geothermal

• Ethanol

• Solar (CSP, PV)

In process

• Transmission

• Water

• Biopower

• Offshore, Small 

Wind

7

JEDI is used by industry, government, 

academics, advocates, consultants, 

and others.

Jobs and Economic Development Impacts (JEDI) Model
National Renewable Energy Laboratory Innovation for Our Energy Future

Economic Development at Multiple Levels

2. Equipment production and 

supply chain

1. On-site labor and 

professional services

3. Induced economic activity (household purchases due to injection of income)

8

Photo from Klaus Obel, NREL/PIX16082

Photo from Gamesa, NREL/PIX16001

Photo from Ford Motor Company, NREL/PIX05556
National Renewable Energy Laboratory Innovation for Our Energy Future

JEDI Caveats

• Results are an estimate, not a precise 

forecast.

• Results are not a measure of project 

profitability or viability.

• Results report gross jobs as opposed 

to net jobs.

• Assumptions around local sourcing 

and procurement are fundamental in 

determining local economic activity. • Sensitivity scenarios are included in this analysis.

• Jobs are reported as Full-Time 

Equivalent (FTE) jobs.

9

Photo from First Wind, NREL/PIX16738
National Renewable Energy Laboratory Innovation for Our Energy Future

Infrastructure Portfolio for WIA

Infrastructure Type Units 

Installed

Total 

Installed

Cost

Annual 

Operating 

Expenditures

Wind Generation 9,000 MW $18 billion $225 million

Natural Gas Generation 1,800 MW $2.3 billion $42 million

500-kV HVDC Transmission Line 2 $2.2 billion $60 million

500-kV HVAC Transmission Line 2 $1.3 billion $35 million

230-kV HVAC Collector System Multiple $660 million $17 million

10
National Renewable Energy Laboratory Innovation for Our Energy Future

Infrastructure Deployment (2012 – 2021)

0

500

1,000

1,500

2,000

2,500

3,000

3,500

0

200

400

600

800

1,000

1,200

1,400

1,600

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

New HV Transmission Capacity (MW)

Annual Capacity Installed (MW)

Annual Wind Installations (MW)

Annual Natural Gas Installations (MW)

500 kV HVAC Line; 1,500 MW Capacity; ~ 310 miles (Right Axis)

500 kV HVDC Line; 3,000 MW Capacity; ~ 225 miles (Right Axis)

Collector System 230 kV Line; Variable Capacity & Length (Right Axis)

11
National Renewable Energy Laboratory Innovation for Our Energy Future

Basic Inputs

12

Installed Cost Annual O&M Cost Land Lease ($/MW) 

(Annualized NPV)

Property Tax ($/MW) 

(Annualized NPV)

$2,000/kW $25/kW $6,025 $6,080

0

200

400

600

800

1,000

1,200

1,400

1,600

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Installed Wind Power (MW)
National Renewable Energy Laboratory Innovation for Our Energy Future

Sample Detailed Inputs

13

Wind Construction Parameters Percentage of Total 

Installed Cost

Wyoming Local Purchase Coefficient

Base Case High Case Low Case

Turbine nacelle & drive train 43% 0%

Blades 10% 0%

Towers 11% 0% 50% 0%

Transportation 8% 0%

General site materials 10% 70%

Transformer 1% 0%

Electrical equipment 1% 20%

HV line extension 2% 10%

Foundation labor <1% 30%

Turbine erection 1% 20% 75% 20%

Electrical craft labor 1% 30%

Management/supervision <1% 10% 20% 0%

Misc. 4% 50%

Substation/interconnection materials 1% 10%

Substation/interconnection labor <1% 40%

Engineering 1% 10%

Legal services 1% 70% 70% 20%

Land easements <1% 100%

Site certificate/permitting <1% 70%

Sales tax 5% 100%

Total 100% 16% 22% 15%
National Renewable Energy Laboratory Innovation for Our Energy Future

Results

14

Photo from HDR, NREL/PIX14307
National Renewable Energy Laboratory Innovation for Our Energy Future

Base Case Employment Over Time and by 

Infrastructure Type

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Annual Employment (FTE)

Transmission

Natural Gas

Wind

15
National Renewable Energy Laboratory Innovation for Our Energy Future

Wind Base Case Results

16

Construction (Average Annual over 10 years) Total Jobs Earnings($M) Output ($M) 

Project Development and Onsite Labor 230 $14 $19

Equipment and Supply Chain Activity 1,600 $77 $210

Induced Activity 300 $11 $37

Total 2,200 $100 $270

Operations (Annual for 20 Years) Total Jobs Earnings($M) Output ($M) 

Onsite Labor 470 $27 $27

Local Revenue and Supply Chain Activity 860 $35 $220

Induced Activity 400 $14 $48

Total 1,700 $76 $290
National Renewable Energy Laboratory Innovation for Our Energy Future

Base Case for New Wind over Time

17

0

1,000

2,000

3,000

4,000

5,000

6,000

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Annual Employment (FTE)

Construction Project Development and Onsite Labor Activity Construction Equipment and Supply Chain Activity

Construction Induced Activity Operations Onsite Labor Activity

Operations Local Revenue and Supply Chain Activity Operations Induced Activity
National Renewable Energy Laboratory Innovation for Our Energy Future

Wind Power Sensitivities

Low scenario: project management during construction all out-of-state 

and only 20% of legal services provided by Wyoming firms.

High scenario: 50% of towers manufactured in Wyoming, 75% of tower 

erection labor in-state (instead of 20%), and 20% of project management 

during construction based in Wyoming.

18

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Employment (FTE)

High Case Base Case Low Case
National Renewable Energy Laboratory Innovation for Our Energy Future

Wind Direct Payments

to Government and Landowners

19

$0

$50

$100

$150

$200

$250

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Direct Payments (Millions)

Sales Tax - construction Sales Tax - operations Property tax

Generation tax Landowner revenue
National Renewable Energy Laboratory Innovation for Our Energy Future

Conclusions

• Averaged over the duration of the construction period, 4,000 to 5,900 workers per year are 

employed as a result of construction-related economic activity.

• Wages and benefits average $200 million - $330 million per year during construction.

• Wind = 45% of construction-period employment 

• Ongoing operation of this infrastructure is estimated to employ 2,300 - 2,600 Wyoming workers 

for at least 20 years.

• Wages and benefits average $100 million - $120 million per year during operations.

• Wind = 70% of operations period employment

• Wind land leases = $54 million per year

• Wind property tax = $55 million per year

• Economic output peaks at $1.2 billion in 2016 and $1.4 billion in 2019 before settling to about 

$380 million per year during operations-only years.

• Wind = $450 million per year between 2014 and 2020 (Construction-period average = $270 million)

• Wind = $290 million per year each year of operations (75%)

• Total Wyoming economic activity from these investments is expected to be ~$12 billion - $15 

billion (construction plus 20 years of operations).

• Wind = $8 billion to $10 billion

• Wind manufacturing could drive these values higher.

20
National Renewable Energy Laboratory 21 Innovation for Our Energy Future

Eric Lantz

Research Analyst

Strategic Energy Analysis Center

National Renewable Energy Laboratory

www.nrel.gov/analysis

www.windpoweringamerica.gov

1617 Cole Blvd.

Golden, CO 80401-3393

(303) 384-7418

Eric.Lantz@nrel.gov

Thank you

NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance for Sustainable Energy, LLC.

The Wyoming Infrastructure Authority and the Weatherization and Intergovernmental Program, 

Office of Energy Efficiency and Renewable Energy, U.S. Department of Energy funded this work 

by the National Renewable Energy Laboratory. The author would also like to acknowledge the 

U.S. Department of Energy for its ongoing support of the JEDI Analysis Tools under the Wind 

Powering America Initiative.