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NREL is operated by Midwest Research Institute ● Battelle Contract No. DE-AC36-99-GO10337 

Analysis: Economic Impacts 

of Wind Applications in Rural 

Communities 

June 18, 2004 — January 31, 2005 

M. Pedden 

Eugene, Oregon 

Subcontract Report 

NREL/SR-500-39099 

January 2006 
Analysis: Economic Impacts 

of Wind Applications in Rural 

Communities 

June 18, 2004 — January 31, 2005 

M. Pedden 

Eugene, Oregon 

NREL Technical Monitor: L. Flowers 

Prepared under Subcontract No(s). LEE-4-44834-01 

Subcontract Report 

NREL/SR-500-39099 

January 2006 

National Renewable Energy Laboratory 

1617 Cole Boulevard, Golden, Colorado 80401-3393 

303-275-3000 • www.nrel.gov 

Operated for the U.S. Department of Energy 

Office of Energy Efficiency and Renewable Energy 

by Midwest Research Institute • Battelle 

Contract No. DE-AC36-99-GO10337
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PURPOSE 

The purpose of this report is to compile completed studies on the economic impact of wind farms 

in rural communities and then to compare these studies. By summarizing the studies in an Excel 

spreadsheet, the raw data from a study is easily compared with the data from other studies. In 

this way, graphs can be made and conclusions drawn. Additionally, the creation of a database in 

which economic impact studies are summarized allows a greater understanding of the type of 

information gathered in an economic impact study, the type of information that is most helpful in 

using these studies to promote wind energy development in rural communities, and the 

limitations on collecting data for these studies. 

These studies were conducted in many different fashions, so it was sometimes difficult to use the 

same template for all studies. For this reason, some of the categories on each spreadsheet may be 

slightly different from others. 

METHODOLOGY 

The majority of the studies in this report were compiled via Internet searches, although some 

were obtained from Steven Clemmer of the Union of Concerned Scientists. Twenty-one studies 

were collected; however, only 13 were included in this report (some of which have multiple 

parts) because some of the studies lacked actual numerical data that could be entered into the 

cover page spreadsheet. These individual cover pages are intended to serve as a cover page for 

the study or as a stand-alone for the purpose of comparison to other cover pages. 

The studies included in this report were entered into a template spreadsheet consisting of a 

summary checklist, as well as the following categories: 

Citation: the full title of the report, including author(s) and date completed 

Online availability: the URL where the study can be located 

Description: project size and number of turbines, if applicable 

Location: geographic location of the project 

Geographic scope of the study: the area of impact considered (local or state) 

Turbine ownership: the company that owns the turbines, if applicable 

Type of study: indicates whether the study is based on predictions for a prospective wind 

installation (pre-project), actual data for an existing wind installation (post-project), or 

the estimated impact of installing a set amount of wind energy (prospective) 

Timeframe of data: the timeframe considered by the study 

Methodology: includes the model and data sources, as well as any assumptions 

Special considerations: any considerations that may impact conclusions drawn from the 

study 

Jobs: the direct, indirect, induced, and total number of jobs created throughout the 

geographic scope of the study by the wind installation under consideration. Also includes 

jobs per megawatt, if applicable. The construction jobs are generally one-time jobs, while 

the operations jobs are generally annual jobs 

1
Income: the amount of direct, indirect, induced, and total income created by the wind 

installation under consideration. Construction income is generally a one-time number, 

while operations income is generally an annual number 

Taxes: the amount of local/state, income, property, sales, and total taxes accruing as a 

result of the wind installation under consideration 

Developer incentives: incentives made available to the wind farm developer, if 

applicable 

Lease payments: indicates the amount paid to landowners leasing their lands to the wind 

project developer. This is generally an averaged number, as the amount of most lease 

payment contracts is confidential 

Other remuneration: lists remuneration other than lease payments to landowners 

Conclusion: the conclusion drawn from the study. 

Although none of the studies includes information for all the categories listed in the spreadsheet, 

these categories represent the wide range of information available in the many different studies 

compiled, and ideally, what elements would be included in future studies. 

TYPES OF STUDIES COLLECTED 

The studies collected for this report represent several different types of economic impact studies. 

Some of the studies were completed strictly to measure the actual economic impact of a 

particular wind installation in the county in which it is located. Others were completed to 

estimate the economic impact of investing in a set amount of wind power within a state or 

region. Still others compare a fixed investment in wind power to a similar investment in fossil 

fuels. Finally, some of the studies evaluate the economic impact of implementing a Renewable 

Portfolio Standard compared to the economic impact of continuing to invest in fossil fuel as a 

source of energy. 

The smaller, more concentrated studies, such as the ECONorthwest study completed for the wind 

installation planned for Kittitas County, predictably tend to have more specific information, 

while the larger, comparative studies, such as the Black & Veatch study on the economic impact 

of renewable energy in Pennsylvania, tend to focus more on the difference between investing in 

renewable energy versus investing in fossil fuels. Therefore, since the specific purpose of the 

studies was to discover the economic impacts of wind and is more narrowly defined, these 

studies generally contain more specific data and are more easily defined within the parameters of 

the template used in this report. The gaps in the data result from the generally proprietary nature 

of wind industry data, as well as the differing goals of the many different types of economic 

impact studies. 

All of the studies indicate that investment in wind power creates a positive impact on rural 

economies in the form of an increase in jobs, income, and taxes. 

2
OVERVIEW OF STUDIES 

The following paragraphs summarize the purposes and general findings of the economic impact 

studies. For more information, please refer to the cover sheets for each study. 

“Economic Impacts of Wind Power in Kittitas County: Final Report” 

• Estimates the effect of the increase in jobs and local spending on property values, 

economic impacts, and tax revenues. 

o Surveyed tax assessors in other counties. 

o Reviewed available literature on property value effects. 

o Used input-output model with data from two companies proposing wind projects 

in Kittitas County. 

• Findings: 

o Views of wind turbines will not negatively impact property values. 

o Wind plant construction will have significant economic benefits. 

o Wind plant operation will provide additional annual economic benefits. 

o Property tax revenues will increase. 

o Tax revenues to Kittitas County Government will increase. 

“Renewable Resources: The New Texas Energy Powerhouse: A Report on the Economic 

Benefits of Renewable Energy in Texas and How to Keep Them Growing” 

Part 1a 

• Estimates the increase in the number of direct and indirect jobs, payroll value of direct 

jobs, amount of tax revenue, and amount of landowner royalty income stemming from 

912 MW of wind energy installed in 2001 in response to the Texas Renewable Portfolio 

Standard and the 178 MW of wind energy installed before 2001. 

• Explains the benefits of price stability, energy security, and fuel diversity, as well as the 

public health and environmental benefits associated with wind energy. 

Part 1b 

• Details the requirements and successes of the Texas Renewable Portfolio Standard. 

• Estimates the positive impact of the Texas RPS between 2002 and 2009 in terms of direct 

and indirect jobs, payroll value of direct jobs, landowner royalties, and local taxes. 

Part 1c 

• Estimates the impact of requiring that 10% of Texas’ energy needs be met by wind power 

by 2020. 

• Includes estimates of the resulting increase in direct and indirect jobs, payroll value of 

direct jobs, increase in local taxes, and payments to landowners. 

• Suggests renewable energy policies to help make Texas a global leader in wind energy. 

“Economic Impact Analysis of the Cape Wind Off-Shore Renewable Energy Project” 

• Estimates the positive economic and fiscal impacts in mainland cities and towns in 

Barnstable County and in the Commonwealth of Massachusetts during the 

manufacturing/assembly (M/A), construction/installation (C/I), and operation phases of 

the Cape Wind Project. 

3
• Estimates an increase in several sectors during the M/A and C/I phases, including: 

o Direct, indirect, and induced full-time jobs, total state economic impact, value 

added, labor income, personal income tax revenues, property income, and 

corporate income tax revenues. 

o Indicates that in the long run, there should be no appreciable increase in the 

demand for locally or state-provided government services. 

• Estimates an increase in several sectors during the operation phase, including annual 

increases in: 

o Jobs, state economic output, labor income, personal income tax revenues, 

corporate income tax revenues, and Barnstable and Yarmouth County property 

tax revenues. 

o Estimates annual savings in wholesale power costs in New England, which would 

result in additional economic output and an increase in employment. 

“Wind Energy: Powering Economic Development for Colorado” 

• Estimates the economic impact of using wind power to meet one-half of Colorado’s new 

energy demand from 2002 through 2012 (part 1a) and three-quarters of Colorado’s new 

energy demand from 2002 through 2020 (part 1b). Compares economic impact of using 

wind to meet this demand as compared to natural gas. 

• Estimates positive impact from wind installations on employment during manufacturing, 

installation and operation and maintenance phases, indirect employment, landowner 

revenue, local tax income, avoided water use from displaced conventional energy 

generation, and electricity pricing impacts. 

• Summarizes other state policies supporting wind energy, including those in Texas, Iowa, 

and Minnesota. 

• Suggests implementation of renewable policies, including renewable purchase 

obligations, tax incentives for renewable energy equipment, and service charges to fund 

renewable energy development. 

• Details Colorado’s wind energy potential and summarizes Colorado’s renewable energy 

industry. 

“The Economic Benefits of Wind Farm Development in Vermont” 

• Estimates the economic impact of producing 10% of Vermont’s electric energy from 

wind energy over a 10-year period. 

• Estimates a capital expenditure and the resulting positive economic impact during the 

development, construction, and operations phases on jobs, earnings, landowner revenue, 

property tax, business tax, income tax, and sales tax. Includes direct, indirect, and 

induced impacts. 

• Concludes that these wind installations would help spur rural economic development, 

provide stability in power costs, and possibly attract tourists. 

“Strong Winds: Opportunities for Rural Economic Development Blow across Nebraska” 

• Analyzes the potential economic benefits and costs of expanding wind power in Nebraska 

compared to developing coal and natural gas. 

• Analysis is based on a policy goal of generating 10% of Nebraska’s electricity from wind 

power by the year 2012 through the implementation of a renewable portfolio standard. 

4
• Finds that developing wind power instead of coal and natural gas: 

o Benefits the state economy by $15 million per year over a 20-year period. 

o Creates more jobs. 

o Could produce an important source of rural economic development in Nebraska 

through landowner revenues and property tax revenues. 

“Energy for Washington's Economy: Economic Development from Energy Efficiency and 

Wind Power in Washington” 

• Compares the economic impacts of decreasing electricity consumption by 12% (or 1,700 

MW) by 2020, as well as installing enough wind turbines to produce 1,700 MW of power 

by 2020 (or 14% of Washington's power needs), as compared to meeting growing 

electricity demand with 3,400 MW of natural gas. 

• Finds that relying on energy efficiency and wind energy rather than natural gas would: 

o Create more jobs. 

o Increase landowner revenue. 

o Create a stronger tax base. 

o Use less water. 

• Summarizes Washington’s energy industry. 

• Suggests specific policies that would help Washington realize its efficiency and wind 

potential, including: 

o Energy conservation standards. 

o Renewable energy standards. 

o Moratorium on issuance of fossil fuel-based power plant permits. 

o Tax incentives. 

“Renewables Work: Job Growth from Renewable Energy Development in California” 

• Considers the positive economic impacts of adding 5,900 MW (3,700 of which is 

assumed to be wind) of renewable energy capacity by 2010, which would allow the state 

to generate 20% of its electricity from renewables. Compares these impacts to those of an 

equal amount of natural gas installation. 

• Finds that investing in renewable energy would create four times as many jobs as 

investing in natural gas. 

• Uses California Energy Commission job creation study to determine specific employment 

rates for wind, geothermal, solar PV, solar thermal, landfill/digester gas, and natural gas 

and separates employment rates for the construction and operation phases. Compared 

projections from CEC study to other job creation studies, as well as real-life experience. 

• Makes policy recommendations to encourage renewable energy, including establishment 

of tax equity, incentives for development and production, and incentives for consumers. 

“Pecos County Wind Farms: Local Economic Impact” 

• Estimates the positive impact of the wind farms in Pecos County on jobs, gross sales in 

the county during construction, increased tax base, increased tourism dollars, and 

development of an industrial park. 

• Includes a detailed look at the impact of the wind farms on schools. 

5
“Rural Economic Development Impacts of Wind Power: Foote Creek Rim Projects” 

• Analysis of the Foote Creek Rim projects by SeaWest. 

• Findings: 

o Wind power projects provide economic benefit to the local community through an 

increase in higher-than-average-wage jobs, employment diversification, increased 

property/sales tax revenues, low demand on local government services, and 

landowner benefits. 

o Gradual growth over time provides stabilizing effect on farming and ranching 

industries. 

“Economic Impact of Renewable Energy in Pennsylvania” 

• Estimates the economic impact of implementing a Renewable Portfolio Standard (RPS) 

requiring that renewable energy sources generate 10% of Pennsylvania's electricity by the 

year 2025, 65% of which is assumed to be wind power. The impact of the use of 

renewable energy is compared with the impact of a "business as usual" approach relying 

on the development of fossil fuel resources. 

• Findings: 

o The RPS portfolio has a significantly larger impact on jobs, income, and 

economic output when compared to the fossil fuel development scenario. This 

impact more than makes up for the small increase in electricity bills from 

investment in the RPS. 

o The cost of the RPS is 36% higher than the cost of the development of fossil 

fuels; however, “taken in context,” the increase in electricity costs would be small 

per household and more than recouped by the impact of the RPS on jobs, income, 

and economic output. 

o Renewable energy resources may lower fuel prices and could therefore save 

money by decreasing the demand for fossil fuels. 

 “Potential Economic Impacts of Commercial Wind Power Development in North Dakota” 

• Analyzes the potential economic impact of the Griggs/Steele Wind Power project and the 

statewide impacts of developing 1,000 MW of wind energy over the next 10 years. 

• Findings: 

o Wind energy development may provide substantial economic benefits to North 

Dakota’s rural areas and larger communities through creation of jobs, 

lease/royalty payments for landowners, increased tax revenues, and increased 

revenue through local purchase of supplies, materials, and services. 

“Assessing the Economic Development Impacts of Wind Power: Final Report” 

• Provides examples of thorough and consistent analysis and documentation of economic 

impacts from wind power development. Considers three case studies as examples, 

including Lake Benton I (Lincoln County, MN), Vansycle Ridge (Morrow and Umatilla 

Counties, OR), and Delaware Mountain (Culberson County, TX). 

• Analyzes the economic impact of each of the wind energy projects on employment, 

income, taxes, and provision of community services. 

• Findings: 

6
o The projects contributed to significant increases in employment, personal income, 

tax income, and landowner net revenues. 

o Tax effects, particularly property taxes, were important. 

o Non-market benefits may be important: wind power is a non-polluting, low 

impact, and non-extractive form of energy that provides large positive benefits to 

local economies but has a relatively light impact on communities and their 

infrastructure (schools, roads, and social services). 

o Wind energy development does not involve the “boom and bust” economic and 

social conditions associated with other energy development. 

o Considered possible negative impacts of wind energy development, such as bird 

kills, damages to roads, and impact on land values. 

 

CONCLUSION 

Due to the nature of this report and the broad cross-section of data available from each study 

summarized here, it is difficult to draw specific conclusions about the positive impact of wind 

installations on local and state economies. However, it is possible to draw several general 

conclusions: 

• Wind installations create a large direct impact on the economies of rural communities, 

especially those with few supporting industries. For example, in communities in which 

farming is the only large industry, the installation of wind farms creates another industry 

that becomes a large percentage of the local tax base and contributes to local businesses. 

• Small communities with few large industries see greater leakage of revenue into nearby 

towns that provide more services. These small communities therefore experience less 

indirect and induced impact of a wind installation than a larger community with the 

ability to provide a greater number of services. 

• The number of local construction and operations jobs created by a wind installation 

depends upon the skills available in the local community. Many developers try to hire 

local construction companies and local operators; however, when this is not possible, 

developers bring in construction companies and operators from outside the county or 

even outside the state. 

• Some local governments offer incentives to developers in return for the developer 

agreeing to hire local labor. 

• Local and state taxes may support sectors of the economy such as schools, hospitals, fire 

and rescue, or road improvement. 

• When compared to fossil fuel development, the development of renewable energy creates 

a larger impact on the economy. According to the Pennsylvania study, this is largely 

because of the additional income earned by Pennsylvanians working in the renewable 

energy industry, which more than makes up for the cost increase required to invest in 

renewable energy. 

The wind industry continues to grow, and economic impact studies like those summarized here 

are continually published on the Internet and elsewhere. Therefore, it is possible to continue 

building on these initial 13 studies to gain greater access to the information on the positive 

economic impacts of wind installations on rural communities throughout the United States. 

7
COLLECTED STUDIES 

Studies Included in Report 

Assessing the Economic Development Impacts of Wind Power: Final Report, Northwest 

Economic Associates, for the National Wind Coordinating Committee, 2003. 

The Economic Benefits of Wind Farm Development in Vermont, Doug Hoffer for Renewable 

Energy Vermont, 2002.

Economic Impact Analysis of the Cape Wind Off-Shore Renewable Energy Project, Global 

Insight for Cape Wind Associates, 2003. 

Economic Impact of Renewable Energy in Pennsylvania, prepared for the Heinz Endowments 

and Community Foundation of the Alleghenies by Black & Veatch, 2004. 

Economic Impacts of Wind Power in Kittitas County: Final Report: A Report for the Phoenix 

Economic Development Group, ECONorthwest, 2002.

Energy for Washington's Economy: Economic Development from Energy Efficiency and Wind 

Power in Washington, Brad Heavner, Robert Pregulman, Travis Madsen for WashPIRG 

Foundation, 2003. 

Pecos County Wind Farms: Local Economic Impact. 

Potential Economic Impacts of Commercial Wind Power Development in North Dakota, F. Larry 

Leistritz for Griggs/Steele Wind Power Development Group LLC, 2001. 

Renewable Resources: The New Texas Energy Powerhouse: A report on the economic benefits of 

renewable energy in Texas and how to keep them growing, SEED Coalition and Public Citizen's 

Texas Office and Virtus Energy Research Associates, 2002. 

Renewables Work: Job Growth from Renewable Energy Development in California, Brad 

Heavner and Susannah Churchill for CALPIRG Charitable Trust, 2002. 

Rural Economic Development Impacts of Wind Power: Foote Creek Rim Projects (PowerPoint 

presentation), Mike Azeka for SeaWest WindPower. 

Strong Winds: Opportunities for rural economic development blow across Nebraska, Steven 

Clemmer, Union of Concerned Scientists, 2001. 

Wind Energy: Powering Economic Development for Colorado, Travis Madsen, Stephanie Bonin, 

Matt Baker (Colorado Public Interest Research Foundation), 2002. 

8
Studies Not Included in Report 

A Brief Analysis of the Economic Benefits of Wind Power in Washington State, Washington State 

Office of Trade & Economic Development, 2003. 

The Economic Impacts of Wind Energy Use in Wisconsin, Steven L. Clemmer, Wisconsin 

Department of Administration, Energy Bureau. 

Fueling Wisconsin’s Economy with Renewable Energy, Steve Clemmer, Wisconsin Department 

of Administration, Energy Bureau, 1995. 

Job Jolt: The Economic Impacts of Repowering the Midwest: the Clean Energy Development 

Plan for the Heartland, Regional Economics Applications Laboratory for the Environmental 

Law & Policy Center. 

Montana Power Announces Agreement with Montana Wind Harness, LLC, Press Release, 2001. 

Top of Iowa Wind Farm Case Study, Iowa Department of Natural Resources. 

Utility Scale Wind on Islands: An economic feasibility study of Ilio Point, Hawaii, Keith M. 

Stockton, Environmental Energy Policy Program, University of Colorado at Boulder, 

July/August 2003 Refocus, www.re-focus.net

Wind Force 12: A blueprint to achieve 12% of the world’s electricity from wind power by 2020, 

EWEA and Greenpeace. 

9
10
Assessing the Economic Development Impacts of Wind Power Part 1 of 3 

Summary Checklist: 

Citation Geographic Scope Methodology Developer Incentives 

Available Online? Turbine Owners hip Jobs Lease Payments 

Des cription Type of Study Income Other Remuneration 

Location Timeframe of Data Taxes Conclusion 

Citation Assessing the Economic Development Impacts of Wind Power: Final Report 

Author(s) Northwest Economic Associates, for the National Wind Coordinating Committee 

Date of Report February 2003 

Available Online? http://www.nationalwind.org/pubs/economic/econ_final_report.pdf 

Description Project Size: 107 MW Number of Turbines: 143 

Location Lincoln County, Minnesota 

Geographic Scope Lincoln County, Minnesota 

Turbine Ownership GE Wind (previously Enron Wind) 

Type of Study Post-project 

Timeframe of Data N/A 

Methodology 

Model IMPLAN 

Data Sources Much of the information came from interviewing local officials or through other interviews. 

Community services in place adequate to meet the needs arising from the project because of its 

Assumptions 

relatively small impact. Property tax: from 2001; property tax fluxated between $71,800 and 

$352,600 between the years 1999 and 2002. 

Purpose of study is provide examples of thorough and consistent analysis and documentation of 

economic impacts from wind power development. Study provides three separate case studies as 

Special examples, including Lake Benton I (Lincoln County, MN), Vansycle Ridge (Morrow and 

Umatilla Counties, OR), and Delaware Mountain (Culberson County, TX). 

Considerations 

Jobs Construction Operations (jobs/year) Total 

Direct N/A N/A N/A 

Indirect N/A N/A N/A 

Induced N/A N/A N/A 

Total 8 31 39 

Jobs/MW 0.07 0.3 0.36 

Income Construction Operations (annual) Total 

Direct N/A N/A N/A 

Indirect N/A N/A N/A 

Induced N/A N/A N/A 

Total $98,000 $909,000 $1,007,000 

Taxes Direct Indirect Total 

Local/State N/A N/A N/A 

Income N/A N/A N/A 

Property N/A N/A $621,000 

Sales N/A N/A N/A 

Total N/A N/A N/A 

Developer Incentives Federal production tax credit. 

Lease Payments $508,125/year 

Other Remuneration N/A 

11�
Wind power provided a modest to moderate source of new economic activity and new family 

wage jobs. Additionally, leasing of land has an important economic effect on local areas, 

assuming the revenue goes to local families. This economic development is more important to 

Conclusion the counties in economic decline than it is to those with a stable economy. 

12�
Assessing the Economic Development Impacts of Wind Power Part 2 of 3 

Summary Checklist: 

Citation Geographic Scope Methodology Developer Incentives 

Available Online? Turbine Owners hip Jobs Lease Payments 

Des cription Type of Study Income Other Remuneration 

Location Timeframe of Data Taxes Conclusion 

Citation 

Author(s) 

Date of Report 

Available Online? 

Description 

Location 

Geographic Scope 

Turbine Ownership 

Type of Study 

Timeframe of Data 

Methodology 

Model�

Data Sources�

Assumptions 

Special �

Considerations�

Jobs 

Direct 

Indirect 

Induced 

Total�

Jobs/MW�

Income 

Direct 

Indirect 

Induced 

Total 

Taxes 

Local/State 

Income 

Property 

Sales 

Total 

Developer Incentives 

Lease Payments 

Other Remuneration 

Assessing the Economic Development Impacts of Wind Power: Final Report 

Northwest Economic Associates, for the National Wind Coordinating Committee 

February 2003 

http://www.nationalwind.org/pubs/economic/econ_final_report.pdf 

Project Size: 24.9 MW Number of Turbines: 38 

Morrow and Umatilla Counties, Oregon 

Morrow and Umatilla Counties, Oregon 

FPL Energy 

Post-project 

N/A 

IMPLAN 

N/A 

Community services in place adequate to meet the needs arising from the project because of its 

relatively small impact. Taxes fluctuated between $243,580 in 1999 and $229,680 in 2001. 

Landowner revenues based on $2,000 per turbine. 

Purpose of study is provide examples of thorough and consistent analysis and documentation of 

economic impacts from wind power development. Study provides three separate case studies as 

examples, including Lake Benton I (Lincoln County, MN), Vansycle Ridge (Morrow and 

Umatilla Counties, OR), and Delaware Mountain (Culberson County, TX). 

Construction Operations (jobs/year) Total 

N/A N/A N/A 

N/A N/A N/A 

N/A N/A N/A 

4 6 10 

0.16 0.24 0.4 

Construction Operations Total 

N/A N/A N/A 

N/A N/A N/A 

N/A N/A N/A 

$105,000 $103,000 $208 

Direct Indirect Total (in 2001) 

N/A N/A N/A 

N/A N/A N/A 

N/A N/A N/A 

N/A N/A N/A 

N/A N/A $229,680 

Federal production tax credit.�

$76,000/year�

N/A�

13�
Wind power provided a modest to moderate source of new economic activity and new family 

wage jobs. Additionally, leasing of land has an important economic effect on local areas, 

assuming the revenue goes to local families. This economic development is more important to 

Conclusion the counties in economic decline than it is to those with a stable economy. 

14�
Assessing the Economic Development Impacts of Wind Power Part 3 of 3 

Summary Checklist: 

Citation Geographic Scope Methodology Developer Incentives 

Available Online? Turbine Owners hip Jobs Lease Payments 

Des cription Type of Study Income Other Remuneration 

Location Timeframe of Data Taxes Conclusion 

Citation 

Author(s) 

Date of Report 

Available Online? 

Description 

Location 

Geographic Scope 

Turbine Ownership 

Type of Study 

Timeframe of Data 

Methodology 

Model�

Data Sources�

Assumptions 

Special �

Considerations�

Jobs 

Direct 

Indirect 

Induced 

Total�

Jobs/MW�

Income 

Direct 

Indirect 

Induced 

Total 

Taxes 

Local/State 

Income 

Property 

Sales 

Total 

Developer Incentives 

Lease Payments 

Other Remuneration 

Assessing the Economic Development Impacts of Wind Power: Final Report 

Northwest Economic Associates, for the National Wind Coordinating Committee 

February 2003 

http://www.nationalwind.org/pubs/economic/econ_final_report.pdf 

Project Size: 30 MW Number of Turbines: 40 

Culberson County Texas 

Culberson County Texas 

National Wind Power Partners 

Post-project 

N/A 

IMPLAN 

N/A 

Community services in place adequate to meet the needs arising from the project because of its 

relatively small impact. Texas does not assess income tax, but it does assess franchise and sale 

taxes on businesses. Additional taxes assessed: school taxes of $239,000 in 2000, Groundwater 

taxes of $6,962 in 1999 and $5,324 in 2000. 

Purpose of study is provide examples of thorough and consistent analysis and documentation of 

economic impacts from wind power development. Study provides three separate case studies as 

examples, including Lake Benton I (Lincoln County, MN), Vansycle Ridge (Morrow and 

Umatilla Counties, OR), and Delaware Mountain (Culberson County, TX). 

Construction Operations (jobs/year) Total 

N/A N/A N/A 

N/A N/A N/A 

N/A N/A N/A 

26 11 37 

0.87 0.36 1.23 

Construction Operations Total 

N/A N/A N/A 

N/A N/A N/A 

N/A N/A N/A 

$391,000 $346,000 $737,000 

Direct Indirect Total (per year) 

N/A N/A $143,000 

N/A N/A N/A 

N/A N/A N/A 

N/A N/A N/A 

N/A N/A N/A 

Federal production tax credit.�

$60,000/year�

N/A�

15�
Wind power provided a modest to moderate source of new economic activity and new family 

wage jobs. Additionally, leasing of land has an important economic effect on local areas, 

assuming the revenue goes to local families. This economic development is more important to 

Conclusion the counties in economic decline than it is to those with a stable economy. 

16�
The Economic Benefits of Wind Farm Development in Vermont 

Summary Checklist: 

Citation Geographic Scope Methodology Developer Incentives 

Available Online? Turbine Owners hip Jobs Lease Payments 

Des cription Type of Study Income Other Remuneration 

Location Timeframe of Data Taxes Conclusion 

Citation The Economic Benefits of Wind Farm Development in Vermont 

Author(s) Prepared by: Doug Hoffer for Renewable Energy Vermont 

Date of Report Ocotber 2002 

Available Online? http://www.revermont.org/windfarm_benefits.pdf 

Description Project Size: 228 MW Number of Turbines: 152 

6 locations to be determined, but may include Searsburg, Mount Equinox in Manchester, East 

Location Haven in the Northeast Kingdom 

Geographic Scope Vermont 

Turbine Ownership N/A 

Type of Study Prospective 

Timeframe of Data 10 Years 

Methodology 

Model RIMS II 

U.S. Commerce Department multipliers for Vermont were applied to the relevant industries to 

determine the expected changes in job creation and earnings; net state taxes calculated using 

Data Sources 

data from the state Tax Department, the average annual wage for each FTE job, and a program 

created for the Joint Fiscal Office. 

Assumptions 

Net state taxes: assumed for joint returns that both adults work, have a total income of $60,000 

and have 2 children. Sales tax data: the Consumer Expenditure Study used to calculate data. 

Cost of installed turbine (including raodways, power lines and development costs): $2.25 

million per turbine. Aggregate cost of project: $342 million (2002 dollars). 

Development/permitting phase: 5 years. Installation phase: 7 years. Professional services and 

much of the electrical and mechanical equipment can be purchased in Vermont; ideally local 

lenders. Expenditures inflated annually at 2.5%. Sales tax data from year one. Annual sale of 

600,000 MW at 5.6 cents/kWh is assumed. Lease payments are assumed to be 8% of gross 

revenues. Property taxes calculated as 6.5% of gross revenues. Tax profit of 9% assumed for 

annual state tax payments. 

Special 

Considerations 

Report analyzes the economic benefits of meeting 10% of Vermont's electric needs from wind 

power with a 10-year development period. Construction jobs and income include development 

phase and therefore the number of jobs is an average of the number of jobs created each year 

over the 10 year development period. 

Jobs Construction Operations (jobs/year) Total 

Direct N/A 40 N/A 

Indirect N/A N/A N/A 

Induced N/A 20 N/A 

Total 440 N/A N/A 

Jobs/MW 1.93 N/A N/A 

Income Construction Operations (per year) Total 

Direct N/A $1,900,000 N/A 

Indirect N/A $1,300,000 N/A 

Induced N/A $3,300,000 N/A 

Total N/A $6,500,000 N/A 

Taxes Direct Indirect Total (per year) 

Local/State N/A N/A $500,000 

17�
Income N/A N/A $107,000 - $245,000 

Property N/A N/A $2,000,000 

Sales N/A N/A $80,000 

Total N/A N/A $2,687,000 - $2,825,000 

Developer Incentives N/A 

Lease Payments $2,700,000/year 

Other Remuneration N/A 

Conclusion N/A 

18�
Economic Impact Analysis of the Cape Wind Off-Shore Renewable 

Energy Project (1a) Part 1 of 2 

Summary Checklist: 

Citation Geographic Scope Methodology Developer Incentives 

Available Online? Turbine Owners hip Jobs Lease Payments 

Des cription Type of Study Income Other Remuneration 

Location Timeframe of Data Taxes Conclus ion 

Citation Economic Impact Analysis of the Cape Wind Off-Shore Renewable Energy Project 

Author(s) Prepared by: Global Insight for Cape Wind Associates 

Date of Report April 2003 

Available Online? http://www.capewind.org/downloads/Economic_Impact.pdf 

Description Project Size: N/A Number of Turbines: N/A 

Location Horseshoe Shoal, off the coast of MA 

Geographic Scope Barnstable County, MA 

Turbine Ownership N/A 

Type of Study Pre-project 

Timeframe of Data N/A 

Methodology 

Model IMPLAN input/output model for Massachusetts (used with year 2000 structural matrices) 

Data Sources Annual labor rates from Global Insight's Pricing and Purchasing Service. 

Assumptions 

Construction/Installation period assumed to be 27 months; "construction" jobs includes full time 

jobs in manufacturing, assembly, construction and installation; most of the direct M/A and C/I 

and operation impacts will be concentrated in Barnstable County; impacts are stated in 2002 

dollars; 90% of O&M workers would be MA residents; scheduled reduction of MA personal 

income tax rate to 5% in 2003. 

Special N/A 

Considerations 

Jobs Construction Operations (jobs/year) Total 

Direct N/A N/A N/A 

Indirect N/A N/A N/A 

Induced N/A N/A N/A 

Total 391 (880 person-years) 50 441 

Jobs/MW N/A N/A N/A 

Income Construction ($/year) Operations Total ($/year) 

Direct N/A N/A N/A 

Indirect N/A N/A N/A 

Induced N/A N/A N/A 

Total $17,158,000 N/A $2,640,000 

Taxes Direct Indirect Total $/year) 

Local/State N/A N/A N/A 

Income N/A N/A N/A 

Property N/A N/A $279,678 

Sales N/A N/A N/A 

Total N/A N/A $279,678 

Developer Incentives N/A 

Lease Payments N/A 

Other Remuneration N/A 

19�
There will be a number of positive economic and fiscal impacts during the 

manufacturing/assembly and construction/installation phase of the project; these positive impacts 

will extend beyond the M/A and C/I phase. In the long run, there should be no appreciable 

increase in the demand for locally or state provided government services. Overall, the study 

forecasts that the operation and maintenance of Cape Wind Farm would have a positive effect on 

Conclusion the economy of both Barnstable County and Massachusetts. 

20�
Economic Impact Analysis of the Cape Wind Off-Shore Renewable Energy 

Project (1b) Part 2 of 2 

Summary Checklist: 

Citation Geographic Scope Methodology Developer Incentives 

Available Online? Turbine Owners hip Jobs Lease Payments 

Des cription Type of Study Income Other Remuneration 

Location Timeframe of Data Taxes Conclus ion 

Citation Economic Impact Analysis of the Cape Wind Off-Shore Renewable Energy Project 

Author(s) Prepared for: Cape Wind Associates; Prepared by: Global Insight 

Date of Report April 2003 

Available Online? http://www.capewind.org/downloads/Economic_Impact.pdf 

Description Project Size: N/A Number of Turbines: N/A 

Location Horseshoe Shoal, off the coast of MA 

Geographic Scope Barnstable County, MA 

Turbine Ownership N/A 

Type of Study Pre-project 

Timeframe of Data N/A 

Methodology 

Model IMPLAN input/output model for Massachusetts (used with year 2000 structural matrices) 

Data Sources Annual labor rates from Global Insight's Pricing and Purchasing Service; 

Assumptions 

Construction/Installation period assumed to be 27 months; "construction" jobs includes full time 

jobs in manufacturing, assembly, construction and installation; most of the direct M/A and C/I and 

operation impacts will be concentrated in Barnstable County; impacts are stated in 2002 dollars; 

90% of O&M workers would be MA residents; scheduled reduction of MA personal income tax 

rate to 5% in 2003. 

Special 

Considerations 

State income taxes would increase moderately, based on the share of the O&M purchases made in 

MA and the extent to which project related expenditures would be subject to the sales and use tax 

since virtually all of the project is located outside state waters. 

Jobs Construction Operations (jobs/year) Total 

Direct N/A N/A N/A 

Indirect N/A N/A N/A 

Induced N/A N/A N/A 

Total N/A 597 - 1,013 597 - 1,013 

Jobs/MW N/A N/A N/A 

Income Construction Operations ($/year) Total 

Direct N/A N/A N/A 

Indirect N/A N/A N/A 

Induced N/A N/A N/A 

Total $32,100,000 - $52,000,000 $6,900,000 $39,000,000 - $58,900,000 

Taxes Direct Indirect Total ($/year) 

Local/State N/A N/A N/A 

Income N/A N/A $4,800,000 - $7,800,000 

Property N/A N/A N/A 

Sales N/A N/A N/A 

Total N/A N/A $4,800,000 - $7,800,000 

Developer Incentives N/A 

Lease Payments see "Other Remuneration" 

21�
Other Remuneration 

Conclusion 

Project will produce annual savings in wholesale electric power costs in New England of $25 

million ($7.5 million residential; $15 million commercial; $2.5 million industrial); other property 

income (including rent, dividends and interest, and corporate profits): $9.2 million - $14.8 

million/year. 

There will be a number of positive economic and fiscal impacts during the manufacturing/assembly 

and construction/installation phase of the project; these positive impacts will extend beyond the 

M/A and C/I phase. In the long run, there should be no appreciable increase in the demand for 

locally or state provided government services. Overall, the study forecasts that the operation and 

maintenance of Cape Wind Farm would have a positive effect on the economy of both Barnstable 

County and Massachusetts. 

22�
Economic Impact of Renewable Energy in Pennsylvania 

Summary Checklist: 

Citation Geographic Scope Methodology Developer Incentives 

Available Online? Turbine Owners hip Jobs Lease Payments 

Des cription Type of Study Income Other Remuneration 

Location Timeframe of Data Taxes Conclus ion 

Citation Economic Impact of Renewable Energy in Pennsylvania 

Prepared for the Heinz Endowments and Community Foundation of the Alleghenies by Black & 

Author(s) Veatch 

Date of Report March 2004 

Available Online? http://www.bv.com/energy/eec/studies/PA_RPS_Final_Report.pdf 

Description Project Size: 3,640 MW Number of Turbines: N/A 

Location Pennsylvania 

Geographic Scope Pennsylvania 

Turbine Ownership N/A 

Type of Study Prospective 

Timeframe of Data 20 years (2006-2025) 

Methodology 

Model RIMS II Regional input-output model developed by the US Bureau of Economic Analysis 

Data Sources N/A 

1% of energy consumption would be met by new renewable energy generation each year until 

the 10% goal is reached. Only small amount of costs of manufacturing would stay in 

Assumptions 

Pennsylvania, since there are no wind turbine manufacturing facilities there, but there are a few 

component suppliers. 

Special 

Considerations 

Study estimates the economic impact of using renewable energy sources to generate 10% of 

Pennsylvania's electricity by the year 2025, 65% of which is assumed to be wind power. The 

impact of the use of renewable energy is compared with the impact of a "business as usual" 

approach relying on the development of fossil fuel resources; however, only the impacts of wind 

power are shown here. Dollars deflated to 1999 dollars. Construction and Operations jobs anda 

income are shown over the 20-year period. 

Jobs Construction Operations Total 

Direct N/A N/A N/A 

Indirect N/A N/A N/A 

Induced N/A N/A N/A 

Total 28,523 30,431 58,954 

Jobs/MW 7.84 0.6 16.19 

Income Construction Operations Total 

Direct N/A N/A N/A 

Indirect N/A N/A N/A 

Induced N/A N/A N/A 

Total $1,088,411,368 $1,115,598,406 $2,204,009,774 

Taxes Direct Indirect Total 

Local/State N/A N/A N/A 

Income N/A N/A N/A 

Property N/A N/A N/A 

Sales N/A N/A N/A 

Total N/A N/A N/A 

Developer Incentives N/A 

Lease Payments N/A 

23�
Other Remuneration�N/A 

Using renewable energy to provide electricity for Pennsylvania creates a significantly larger 

impact on the economy than does relying on fossil fuels. The additional income earned by 

Pennsylvanians working in the renewable energy industry more than makes up for the increase in 

cost required to invest in renewable energy. Additionally, renewable resources could potentially

Conclusion� save consumers millions of dollars per year. 

24 
Economic Impacts of Wind Power in Kittitas County: Final Report 

Summary Checklist: 

Citation Geographic Scope Methodology Developer Incentives 

Available Online? Turbine Owners hip Jobs Lease Payments 

Des cription Type of Study Income Other Remuneration 

Location Timeframe of Data Taxes Conclus ion 

Citation 

Economic Impacts of Wind Power in Kittitas County: Final Report: A Report for the Phoenix 

Economic Development Group 

Author(s) ECONorthwest 

Date of Report November 2002 

Available Online? 

http://www.econw.com/pdf/kittitas.pdf or 

http://www.kvalley.com/phoenix/Kittitas%20Wind,%20final.pdf 

Description Project Size: 390 MW potential Number of Turbines: 260 

Location Kittitas County, WA 

Geographic Scope Kittitas County, WA 

Turbine Ownership Zilkha Renewable Energy (110 turbines) and enXco (150 turbines) 

Type of Study Pre-project 

Timeframe of Data N/A 

Methodology 

Model Input-Output and IMPLAN (Impact Analysis for PLANning) 

Data Sources 

Surveyed tax assessors in other counties and reviewed available literature to determine potential 

effects of wind farms on property values; estimated local economic impacts using an input-output 

model based on construction and operations data obtained from the two companies proposing 

projects in Kittitas Co.; estimated tax revenues using input-output model results based on tax rate 

and spending information obtained from Kittitas Co. 

Assumed tax rates remained constant when estimating tax revenue; assumed value of each turbine 

Assumptions 

as $765,000; property tax rate used is 1.35%; construction period predicted to last approximately 

one year. 

Special 

Considerations 

Did not consider the increases in costs or the provision of county services that the wind power plant 

might require; local/state taxes collected by State and distributed to County. 

Jobs Construction Operations (jobs/year) Total 

Direct 95.2 22 117.2 

Indirect 30.3 3.1 33.4 

Induced 60 28.2 88.2 

Total 185.5 53.3 238.8 

Jobs/MW 0.48 0.14 0.61 

Income Construction Operations ($/year) Total 

Direct $9,835,000 $3,200,000 $13,035,000 

Indirect $1,113,000 $129,000 $1,242,000 

Induced $1,509,000 $938,000 $2,447,000 

Total $12,457,000 $4,267,000 $16,724,000 

Taxes Direct Indirect Total 

Local/State N/A N/A $17,244 

Income N/A N/A N/A 

Property $2,683,125 $201,971 $2,885,096 

Sales N/A N/A $7,103 

Total N/A N/A $2,909,443 

Developer Incentives N/A 

25�
Lease Payments 

Other Remuneration 

Conclusion 

30% of the turbines will be built on land managed by the Washington Department of Natural 

Resources, for which a rental fee will be paid to the State, then returned to schools throughout the 

State. Annual rental rate: $4,500/turbine. Total amount: $351,000/year 

$2,927 in all other taxes not mentioned above; $2,094 licenses and permits; $8,509 charges for 

services; $2,138 fines and forfeits. 

The survey of tax assessors and literature shows that views of wind turbines will not negatively 

impact property values. 

26�
Energy for Washington's Economy: Economic Development from Energy Efficiency and Wind 

Power in Washington 

Summary Checklist: 

Citation Geographic Scope Methodology Developer Incentives 

Available Online? Turbine Owners hip Jobs Lease Payments 

Des cription Type of Study Income Other Remuneration 

Location Timeframe of Data Taxes Conclus ion 

Energy for Washington's Economy: Economic Development from Energy Efficiency and Wind 

Citation Power in Washington 

Author(s) Brad Heavner, Robert Pregulman, Travis Madsen for WashPIRG Foundation 

Date of Report June 2003 

Available Online? http://www.washpirg.org/reports/WAenergyJune03.pdf 

Description Project Size: 1,700 MW Number of Turbines: N/A 

Location Washington 

Geographic Scope Washington 

Turbine Ownership N/A 

Type of Study Prospective 

Timeframe of Data through 2020 

Methodology 

Model N/A 

Data Sources U.S. Bureau of Labor Statistics, EPRI, Texas Comptroller's Office 

Assumptions 

Manufacturing: 20% of manufacturing assumed in-state. Construction jobs and income include 

manufacturing. Construction jobs are the cumulative total for the time period, while operations 

jobs are the number of jobs in the end year. Landowner revenues: 2.5% of gross revenue from 

the electricity produced by the wind farm. Contract price: 3 cents/kWh. Average plant lifetime: 

30 years. Avergae Washington property tax rate: 1.25%. Future dollar values do not include 

inflation. Capacity factor: 33% through 2010, 35% through 2015, and 37% thereafter. 

Special 

Considerations 

Study considers the economic impacts of decreasing electricity consumption by 12% (or 1,700 

MW) by 2020, as well as installing enough wind turbines to produce 1,700 aMW of power by 

2020 (or 14% of Washington's power needs). The study also considers an alternative plan to 

meet growing electricity demand with 3,400 aMW of natural gas. Only the impacts of the wind 

installations are considered here. 

Jobs Construction Operations (jobs in 2020) Total 

Direct 4,050 280 4,330 

Indirect 4,650 320 4,970 

Induced N/A N/A N/A 

Total 8,700 600 9,300 

Jobs/MW 5.12 0.35 5.47 

Income Construction Operations Total 

Direct $144,112,500 $12,367,600 $156,480,100 

Indirect $165,459,000 $14,134,400 $179,593,400 

Induced N/A N/A N/A 

Total $309,571,500 $26,502,000 $336,073,500 

Taxes Direct Indirect Total 

Local/State N/A N/A $371,000,000 through 2020 

Income N/A N/A N/A 

Property N/A N/A N/A 

Sales N/A N/A N/A 

27�
Total N/A N/A $371,000,000 through 2020 

Developer Incentives N/A 

Lease Payments $103,000,000 by 2020 or $11,000,000/year 

Other Remuneration N/A 

Energy efficiency and wind power would provide economic development benefits for 

Washington and would also ensure a reliable and affordable energy supply. Relying on energy 

Conclusion 

efficiency and wind power would create jobs, generate landowner revenue, increase local tax 

revenues, and save water. 

28�
Pecos County Wind Farms: Local Economic Impact 

Summary Checklist: 

Citation Geographic Scope Methodology Developer Incentives 

Available Online? Turbine Owners hip Jobs Lease Payments 

Des cription Type of Study Income Other Remuneration 

Location Timeframe of Data Taxes Conclus ion 

Citation Pecos County Wind Farms: Local Economic Impact 

Author(s) N/A 

Date of Report N/A 

Available Online? No. 

Description Project Size: 403 MW Number of Turbines: 474 

Location Pecos County, TX 

Geographic Scope Pecos County, TX 

Turbine Ownership Various 

Type of Study Post-Project 

Timeframe of Data N/A 

Methodology 

Model N/A 

Data Sources Texas Workforce Commission 

Assumptions N/A 

Special N/A 

Considerations 

Jobs Construction Operations (jobs/year) Total 

Direct N/A 30-35 N/A 

Indirect N/A N/A N/A 

Induced N/A N/A N/A 

Total 80 - 100 N/A N/A 

Jobs/MW N/A N/A N/A 

Income Construction Operations Total 

Direct N/A N/A N/A 

Indirect N/A N/A N/A 

Induced N/A N/A N/A 

Total N/A N/A N/A 

Taxes Direct Indirect Total (2002) 

Local/State N/A N/A $4,702,191.50 

Income N/A N/A N/A 

Property N/A N/A N/A 

Sales N/A N/A N/A 

Total N/A N/A N/A 

5 year property tax abatement: 100% abatement, 10% of abated taxes will be donated to 

Midland College's Williams Regional Rechnical Training Center, developers must follow local 

Developer Incentives spending and hiring policy guidelines. 

Lease Payments N/A 

Other Remuneration N/A 

Conclusion N/A 

29�
30�
Potential Economic Impacts of Commercial Wind Power Development in 

North Dakota Part 1 of 2 

Summary Checklist: 

Citation Geographic Scope Methodology Developer Incentives 

Available Online? Turbine Owners hip Jobs Lease Payments 

Des cription Type of Study Income Other Remuneration 

Location Timeframe of Data Taxes Conclus ion 

Citation Potential Economic Impacts of Commercial Wind Power Development in North Dakota 

Author(s) F. Larry Leistritz for Griggs/Steele Wind Power Development Group LLC 

Date of Report 2001 

Available Online? No. 

Description Project Size: 100 MW Number of Turbines: 71 

Location Griggs and Steele Counties, North Dakota 

Geographic Scope North Dakota 

Turbine Ownership N/A 

Type of Study Pre-project 

Timeframe of Data N/A 

Methodology 

North Dakota Input-Output Model (developed based on survey data from North Dakota firms 

and households; households are not included in the model). Model adjusted using community 

Model 

pull factors, which account for the types of goods and services available locally, thereby 

avoiding an overstatement of the secondary impacts. 

Direct effects of wind power development estimated based on attributes of the North Dakota 

development scenarios compared with those reported in recent studies of wind development in 

Data Sources Iowa, Minnesota, Nebraska and New Mexico. 

Assumptions 

1/2 of the $74,000,000 in expenditures for equipment estimated to accrue to North Dakota firms. 

63% of the $100,000,000 construction expenditures expected to accrue to North Dakota firms 

and households. All lease payments and operations/maintenance salaries expected to accrue 

locally. 60% of the $262,000 other operations/maintenance costs expected to be spent locally. 

626 of the indirect jobs during construction would occur locally. 26 of the indirect jobs during 

operations would occur locally. Income and sales taxes collected during construction period; 

additional $85,000 expected to accrue each year of operation from these two taxes. Property tax 

accrues annually. Construction occurs in 2002 or 2003. 1.2 of turbines, towers, and related 

components to be purchased within North Dakota. Royalties: $4,00/year/1.5 MW tower. 

Special N/A 

Considerations 

Jobs Construction Operations (jobs/year) Total 

Direct 125 N/A N/A 

Indirect N/A 44 N/A 

Induced N/A N/A N/A 

Total 2,270 N/A N/A 

Jobs/MW 22.7 N/A N/A 

Income Construction Operations (income/year) Total 

Direct N/A N/A N/A 

Indirect N/A N/A N/A 

Induced N/A N/A N/A 

Total N/A $926,000 N/A 

Taxes Construction Operations (annually) Total 

Local/State N/A N/A N/A 

31�
Income $926,000 $32,000 $958,000 

Property N/A $555,000 N/A 

Sales $1,350,000 $53,000 $14,004,000 

Total $2,276,000 $640,000 $2,916,000 

Developer Incentives N/A 

Lease Payments $285,000/year 

Other Remuneration N/A 

Conclusion 

Benefits from the development of wind power would continue to accrue locally and throughout 

the state for the life of the facility. 

32�
Potential Economic Impacts of Commercial Wind Power Development in 

North Dakota Part 2 of 2 

Summary Checklist: 

Citation Geographic Scope Methodology Developer Incentives 

Available Online? Turbine Owners hip Jobs Lease Payments 

Des cription Type of Study Income Other Remuneration 

Location Timeframe of Data Taxes Conclus ion 

Citation Potential Economic Impacts of Commercial Wind Power Development in North Dakota 

Author(s) F. Larry Leistritz for Griggs/Steele Wind Power Development Group LLC 

Date of Report 2001 

Available Online? No. 

Description Project Size: 1,000 MW Number of Turbines: N/A 

Location North Dakota 

Geographic Scope North Dakota 

Turbine Ownership N/A 

Type of Study Prospective 

Timeframe of Data From 2002 - 2011 

Methodology 

North Dakota Input-Output Model (developed based on survey data from North Dakota firms 

Model and households; households are not included in the model). 

Direct effects of wind power development estimated based on attributes of the North Dakota 

development scenarios compared with those reported in recent studies of wind development in 

Data Sources Iowa, Minnesota, Nebraska and New Mexico. 

Costs of development expected to decline over next decade. Transmission upgrades will be 

Assumptions necessary after development of first 150 MW, assumed to cost $120,000 per MW 

Considerations Study based on development of 1,000 MW of wind energy over the next 10 years. 

Jobs Construction Operations (jobs/year) Total 

Direct N/A 58 - 77 58 - 77 

Indirect N/A N/A N/A 

Induced N/A N/A N/A 

Total 20,986 386 21,372 

Jobs/MW 21 0.386 21.37 

Income Construction Operations (annually) Total 

Direct N/A $5,928,000 N/A 

Indirect N/A N/A N/A 

Induced N/A N/A N/A 

Total $397,000,000 $13,600,000 $410,600,000 

Taxes Direct Indirect Total 

Local/State N/A N/A N/A 

Income $8,918,000 $221,000 $9,139,000 

Property N/A $5,339,100 $5,339,100 

Sales $12,979 $350,000 $363,979 

Total $8,930,979 $5,910,100 $14,842,079 

Developer Incentives N/A 

Lease Payments $2,280,000 (over 10 years) 

Other Remuneration N/A 

Benefits from the development of wind power would continue to accrue locally and throughout 

Conclusion the state for the life of the facility. 

33�
34�
Renewable Resources: The New Texas Energy Powerhouse (Part 1a) Part 1 of 3 

Summary Checklist: 

Citation Geographic Scope Methodology Developer Incentives 

Available Online? Turbine Owners hip Jobs Lease Payments 

Des cription Type of Study Income Other Remuneration 

Location Timeframe of Data Taxes Conclus ion 

Citation 

Renewable Resources: The New Texas Energy Powerhouse: A report on the economic benefits of 

renewable energy in Texas and how to keep them growing 

Author(s) SEED Coalition and Public Citizen's Texas office; Virtus Energy Research Associates 

Date of Report September 2002 

Available Online? http://www.citizen.org/documents/Tx%20Energy%20Powerhouse.pdf 

Description Project Size: 1,102.6 MW Number of Turbines: N/A 

Location Texas 

Pecos (412.7 MW), Upton (292.3 MW), Crockett (61 MW), Taylor (100.5 MW), Nolan (49.5 

MW), Carson (80 MW), Culberson (65 MW), Howard (34.3 MW), Jeff Davis (6 MW), and 

Geographic Scope Hudspeth (1.3 MW) Counties. 

Turbine Ownership N/A 

Type of Study 

Post-project; based on 2002 statistics (for a prospective study based on the effect of 

implementation of a Renewable Portfolio Standard between 2002 and 2009 see "Renewable 

Resources: The New Texas Energy Powerhouse" Part 1b; for a prospective study based on wind 

energy in Texas supplying 10% of the energy needs in Texas by the year 2020, "Renewable 

Resources: The New Texas Energy Powerhouse" Part 1c). 

Timeframe of Data N/A 

Methodology 

Model N/A 

Data Sources 

Information reported by public authorities and industry experts as well as estimates derived from 

current industry trends. 

Assumptions 

Job figures based on: construction job intensity (1.3 man-years/MW) from FPLE detailed labor 

data for King Mountain and Woodward Mountain wind projects; operations & maintenance labor 

intensity (0.06 jobs/MW) based on: average value from survey of Texas projects; manufacturing 

job data based on: interview with major Texas companies; indirect wind-related job data based on: 

"first-cut" estimates made by Texas Comptroller for indirect impact of wind-related manufacturing 

and construction (1.15 indirect jobs for every direct wind job); all other wind-related jobs based 

on: interview and estimates by Virtus Energy of Texas Renewable Energy Industries Association 

members. Income figures based on: assumed value of $30,000 per year average annual wage 

(rooted in U.S. Department of Labor statistics for Texas construction trades and structural metal 

and fiberglass related manufacturing). Landowner royalties based on: 2.5% royalty, 35% capacity 

factor and 3 cent/kWh contract price. Taxes based on: data obtained from county tax offices and 

other supplemental sources. Assumed capacity factors: 35% in 2002; 3 cents/kWh contract price. 

Special N/A 

Considerations 

Jobs Construction Operations (jobs/year) Total 

Direct N/A N/A 2,500 

Indirect N/A N/A 2,900 

Induced N/A N/A N/A 

Total N/A N/A 5,400 

Jobs/MW 1.3 0.06 1.36 

Income Construction Operations Total 

Direct N/A N/A $75,000,000 

Indirect N/A N/A N/A 

35�
Induced N/A N/A N/A 

Total N/A N/A $75,000,000 

Taxes Direct Indirect Total 

Local/State N/A N/A $13,300,000 

Income N/A N/A N/A 

Property N/A N/A N/A 

Sales N/A N/A N/A 

Total N/A N/A $13,300,000 

Developer Incentives Partial tax abatements during the first 5 to 10 years. 

Lease Payments $2,500,000/year 

Other Remuneration N/A 

Renewable energy is providing great economic value for Texans. With clear and deliberate goals, 

Conclusion 

renewable energy can grow to a multi-billion dollar industry that puts Texans all over the state to 

work. 

36�
Renewable Resources: The New Texas Energy Powerhouse (Part 1b) Part 2 of 3 

Summary Checklist: 

Citation Geographic Scope Methodology Developer Incentives 

Available Online? Turbine Owners hip Jobs Lease Payments 

Des cription Type of Study Income Other Remuneration 

Location Timeframe of Data Taxes Conclus ion 

"Renewable Resources: The New Texas Energy Powerhouse: A report on the economic benefits 

Citation of renewable energy in Texas and how to keep them growing" 

Author(s) SEED Coalition and Public Citizen's Texas office; Virtus Energy Research Associates 

Date of Report September 2002 

Available Online? http://www.citizen.org/documents/Tx%20Energy%20Powerhouse.pdf 

Description Project Size: 2,000 MW Number of Turbines: 

Location Texas 

Pecos (412.7 MW), Upton (292.3 MW), Crockett (61 MW), Taylor (100.5 MW), Nolan (49.5 

Geographic Scope 

MW), Carson (80 MW), Culberson (65 MW), Howard (34.3 MW), Jeff Davis (6 MW), and 

Hudspeth (1.3 MW) Counties. 

Turbine Ownership N/A 

Post-project; based on 2002 statistics (For post-project study based on 2002 statistics see 

"Renewable Resources: The New Texas Energy Powerhouse" Part 1a; for a prospective study 

Type of Study 

based on wind energy in Texas supplying 10% of the energy needs in Texas by the year 2020, 

"Renewable Resources: The New Texas Energy Powerhouse" Part 1c). 

Timeframe of Data 1999 through 2009 

Methodology 

Model N/A 

Data Sources 

Information reported by public authorities and industry experts as well as estimates derived from 

current industry trends. 

Assumptions 

Landowner royalties assume: 2.5% royalty, 35% capacity factor and 3 cent/kWh contract price. 

Local taxes assume: total rate of 2.51%; no abatements; declining balance method; inflation 

equal to 2%. indirect wind-related jobs based on "first-cut" estimates made by Texas 

Comptroller for indirect impact of wind-related manufacturing and construction (1.15 indirect 

jobs for every direct wind job). Tax figures based on: future tax values represent what are 

considered to be upper values and are based on the following assumptions: total tax rate of 

2.51% with no abatements, 25 year asset declining balance schedule with inflation rate of 2% 

(approach taken to roughly mimic observed pattern of valuation of wind assets in several Texas 

counties), new wind installations assume a maximum sustained level of 1200 MW per year by 

2020. 

Special 

Considerations 

Jobs Construction Operations (jobs/year) Total 

Direct N/A N/A 3,200 

Indirect N/A N/A 3,700 

Induced N/A N/A N/A 

Total N/A N/A 6,900 

Jobs/MW N/A N/A N/A 

Income Construction Operations Total 

Direct N/A N/A $96,000,000 

Indirect N/A N/A N/A 

Induced N/A N/A N/A 

Total N/A N/A $96,000,000 

Taxes Direct Indirect Total 

37�
Local/State N/A N/A $26,400,000/year 

Income N/A N/A N/A 

Property N/A N/A N/A 

Sales N/A N/A N/A 

Total N/A N/A $26,400,000/year 

Developer Incentives Partial tax abatements during the first 5 to 10 years. 

Lease Payments $4,600,000/year 

Other Remuneration N/A 

Renewable energy is providing great economic value for Texans. With clear and deliberate 

Conclusion 

goals, renewable energy can grow to a multi-billion dollar industry that puts Texans all over the 

state to work. 

38�
Renewable Resources: The New Texas Energy Powerhouse (Part 1c) Part 3 of 3 

Summary Checklist: 

Citation Geographic Scope Methodology Developer Incentives 

Available Online? Turbine Owners hip Jobs Lease Payments 

Des cription Type of Study Income Other Remuneration 

Location Timeframe of Data Taxes Conclus ion 

Citation 

Renewable Resources: The New Texas Energy Powerhouse: A report on the economic benefits 

of renewable energy in Texas and how to keep them growing 

Author(s) SEED Coalition and Public Citizen's Texas office; Virtus Energy Research Associates 

Date of Report September 2002 

Available Online? http://www.citizen.org/documents/Tx%20Energy%20Powerhouse.pdf 

Description Project Size: 13,400 MW Number of Turbines: N/A 

Location Texas 

Pecos (412.7 MW), Upton (292.3 MW), Crockett (61 MW), Taylor (100.5 MW), Nolan (49.5 

Geographic Scope 

MW), Carson (80 MW), Culberson (65 MW), Howard (34.3 MW), Jeff Davis (6 MW), and 

Hudspeth (1.3 MW) Counties. 

Turbine Ownership N/A 

Type of Study 

Pre-project; based on Texas wind energy supplying 10% of Texas' energy needs by the year 

2020 (For post-project study based on 2002 statistics see "Renewable Resources: The New 

Texas Energy Powerhouse" Part 1a; for a prospective study based on the effect of 

implementation of a Renewable Portfolio Standard between 2002 and 2009 see "Renewable 

Resources: The New Texas Energy Powerhouse" Part 1b ). 

Timeframe of Data 2002 through 2020 

Methodology 

Model N/A 

Data Sources 

Information reported by public authorities and industry experts as well as estimates derived from 

current industry trends. 

Assumptions 

Job figures based on: assumption of robust, diversified in-state manufacturing; job intensity for 

Denmark; indirect jobs based on Texas Comptroller estimates; indirect wind-related jobs based 

on "first-cut" estimates made by Texas Comptroller for indirect impact of wind-related 

manufacturing and construction (1.15 indirect jobs for every direct wind job). Landowner 

royalties assume: 2.5% royalty, 35% capacity factor and 3 cent/kWh contract price. Local 

taxes assume: total rate of 2.51%; no abatements; declining balance method; inflation equal to 

2%. Tax figures based on: future tax values represent what are considered to be upper values 

and are based on the following assumptions: total tax rate of 2.51% with no abatements, 25 year 

asset declining balance schedule with inflation rate of 2% (approach taken to roughly mimic 

observed pattern of valuation of wind assets in several Texas counties), new wind installations 

assume a maximum sustained level of 1200 MW per year by 2020. 

Special N/A 

Considerations 

Jobs Construction Operations (jobs/year) Total 

Direct N/A N/A 8,500 

Indirect N/A N/A 9,800 

Induced N/A N/A N/A 

Total N/A N/A 18,300 

Jobs/MW N/A N/A N/A 

Income Construction Operations Total 

Direct N/A N/A $255,000,000 

Indirect N/A N/A N/A 

Induced N/A N/A N/A 

39�
Total N/A N/A $255,000,000 

Taxes Direct Indirect Total (per year) 

Local/State N/A N/A $216,000,000 

Income N/A N/A N/A 

Property N/A N/A N/A 

Sales N/A N/A N/A 

Total N/A N/A $216,000,000 

Developer Incentives Partial tax abatements during the first 5 to 10 years. 

Lease Payments $30,800,000/year 

Other Remuneration N/A 

Renewable energy is providing great economic value for Texans. With clear and deliberate 

Conclusion 

goals, renewable energy can grow to a multi-billion dollar industry that puts Texans all over the 

state to work. 

40�
Renewables Work: Job Growth from Renewable Energy Development in California 

Summary Checklist: 

Citation Geographic Scope Methodology Developer Incentives 

Available Online? Turbine Owners hip Jobs Lease Payments 

Des cription Type of Study Income Other Remuneration 

Location Timeframe of Data Taxes Conclus ion 

Citation Renewables Work: Job Growth from Renewable Energy Development in California 

Author(s) Brad Heavner ans Susannah Churchill for CALPIRG Charitable Trust 

Date of Report June 2002 

Available Online? http://www.calpirg.org/reports/renewableswork.pdf 

Description Project Size: 3,700 MW Number of Turbines: N/A 

Location California 

Geographic Scope California 

Turbine Ownership N/A 

Type of Study Prospective 

Timeframe of Data 30 years 

Methodology 

Model Renewable Energy Office of the California Energy Commission input-output model 

Data Sources California Energy Commission 

Employment rate: steadily decreasing over the next decade due to increased economies of scale 

and increasing experience of renewable energy companies (10% per year in construction 

employment rates and 5% per year in operation/maintenance employment rates). 

Assumptions 

The study looks at the economic impacts of adding 5,900 MW of renewable energy capacity by 

2010, which would allow the state to generate 20% of its electricity from renewables. 3,700 

Special 

MW of the 5,900 MW is assumed to be wind. The study compares these impacts to installed the 

same amount of natural gas; however, only the economic impact of wind power is shown here. 

Considerations 

Jobs Construction Operations (jobs/year) Total (over 30 years) 

Direct N/A N/A N/A 

Indirect N/A N/A N/A 

Induced N/A N/A N/A 

Total 21,574 740 43,774 

Jobs/MW 5.88 0.2 11.83 

Income Construction Operations Total 

Direct N/A N/A N/A 

Indirect N/A N/A N/A 

Induced N/A N/A N/A 

Total N/A N/A N/A 

Taxes Direct Indirect Total 

Local/State N/A N/A N/A 

Income N/A N/A N/A 

Property N/A N/A N/A 

Sales N/A N/A N/A 

Total N/A N/A N/A 

Developer Incentives N/A 

Lease Payments N/A 

Other Remuneration N/A 

41�
Conclusion Siginificant employment benefits result from new renewable energy development. 

42�
Rural Economic Development Impacts of Wind Power: Foote Creek Rim Projects 

Summary Checklist: 

Citation Geographic Scope Methodology Developer Incentives 

Available Online? Turbine Owners hip Jobs Lease Payments 

Des cription Type of Study Income Other Remuneration 

Location Timeframe of Data Taxes Conclus ion 

Rural Economic Development Impacts of Wind Power: Foote Creek Rim Projects (Power Point 

Citation presentation) 

Author(s) Mike Azeka for SeaWest WindPower 

Date of Report 2002 

Available Online? http://www.state.co.us/oemc/events/cwade/2002/presentations/Azeka,%20Mike.pdf 

Description Project Size: 84.8 MW Number of Turbines: 133 

Location Carbon County, WY 

Geographic Scope Carbon County, WY 

Turbine Ownership SeaWest WindPower 

Type of Study Post-project 

Timeframe of Data 1997-2000? 

Methodology 

Model N/A 

Data Sources N/A 

Assumptions N/A 

Special 85% of the development on private land, 15% on Bureau of Land Management land. 5% sales 

Considerations tax on turbines. Real property tax revenues increase slightly over time. 

Jobs Construction Operations (jobs/year) Total (full-time) 

Direct N/A N/A 18 

Indirect N/A N/A 9 

Induced N/A N/A N/A 

Total N/A N/A N/A 

Jobs/MW N/A N/A N/A 

Income Construction Operations Total 

Direct N/A N/A N/A 

Indirect N/A N/A N/A 

Induced N/A N/A N/A 

Total N/A N/A N/A 

Taxes Direct Indirect Total 

Local/State N/A N/A N/A 

Income N/A N/A N/A 

Property N/A N/A $9,433,000 (over 20 years) 

Sales N/A N/A $4,130,000 

Total N/A N/A $13,563,000 

Developer Incentives N/A 

Lease Payments $5,400,000 over 20 years 

Other Remuneration N/A 

Conclusion N/A 

43�
44�
Strong Winds: Opportunities for rural economic development blow across Nebraska 

Summary Checklist: 

Citation Geographic Scope Methodology Developer Incentives 

Available Online? Turbine Owners hip Jobs Lease Payments 

Des cription Type of Study Income Other Remuneration 

Location Timeframe of Data Taxes Conclus ion 

Citation Strong Winds: Opportunities for rural economic development blow across Nebraska 

Author(s) Steven Clemmer, Union of Concerned Scientists 

Date of Report February 2001 

Available Online? No. 

Description Project Size: 800 MW Number of Turbines: N/A 

Location Nebraska 

Geographic Scope Nebraska 

Turbine Ownership N/A 

Type of Study Prospective 

Timeframe of Data 2012 

Methodology 

Model IMPLAN input-output model. 

Data Sources EPRI; DOE 

Typical project size of 50 MW. Capacity factor: 37% for the year 2000, which would increase 

over time. Half of new wind facilities financed by public power entities, half financed by private 

Assumptions 

developers. All equipment, except half of towers, manufactured outside Nebraska. 

Analysis based on a policy goal of generating 10% of Nebraska's electricity from wind power by 

the year 2012, which is achieved through the implementation of a renewable portfolio standard. 

The study compares the economic benefits of developing wind rather than coal or natural gas 

(though only the numbers for wind are shown here). The study uses three cost scenarios; 

however, these scenarios do not affect the number of jobs or amount of income induced by the 

Special 

Considerations 

wind installations. If half of the turbines and all of the towers manufactured in Nebraska, an 

additional 250 jobs, $15 million in earnings, and $44 million in gross state product would be 

produced each year of the 10 year period. 

Jobs Construction (in 2012) Operations (in 2012) Total 

Direct N/A N/A N/A 

Indirect N/A N/A N/A 

Induced N/A N/A N/A 

Total 410 360 770 

Jobs/MW 0.51 0.45 0.96 

Income Construction Operations Total 

Direct N/A N/A N/A 

Indirect N/A N/A N/A 

Induced N/A N/A N/A 

Total $20,000 $16,000 $36,000 

Taxes Direct Indirect (by 2012) Total 

Local/State N/A N/A N/A 

Income N/A N/A N/A 

Property N/A $5,200,000 $5,200,000 

Sales N/A N/A N/A 

Total N/A N/A N/A 

45�
Assumed that the Production Tax Credit and Renewable Energy Production Incentive extended 

Developer Incentives through 2006. 

Lease Payments $2,200,000 total by 2012; $2,000 per year per turbine 

Other Remuneration N/A 

Economic impact of developing wind power instead of coal or natural gas would have a large 

Conclusion impact on farmers and rural communities. 

46�
Wind Energy: Powering Economic Development for Colorado 1a Part 1 of 2 

Summary Checklist: 

Citation Geographic Scope Methodology Developer Incentives 

Available Online? Turbine Owners hip Jobs Lease Payments 

Des cription Type of Study Income Other Remuneration 

Location Timeframe of Data Taxes Conclus ion 

Citation Wind Energy: Powering Economic Development for Colorado 

Author(s) Travis Madsen, Stephanie Bonin, Matt Baker (Colorado Public Interest Research Foundation) 

Date of Report November 2002 

Available Online? http://www.environmentcolorado.org/reports/windenergy11_02.pdf 

Description Project Size: 1,800 MW Number of Turbines: N/A 

Location Colorado 

Geographic Scope Colorado 

Turbine Ownership N/A 

Type of Study Prospective 

Timeframe of Data 2002 - 2012 

Methodology 

Model N/A 

Data Sources Electric Power Research Institute; 

Assumptions 

Wind turbines will be able to operate more efficiently over the next 20 years; capacity factors are 

assumed to increase one percent every two years, average capacity in 2002: 30%. Building 

cost/MW: $900,000. Manufacturing and installation: every MW of wind energy capacity installed 

creates 2.06 year-long manufacturing jobs; 10% of manufacturing will happen in-state; every MW 

of wind energy capacity installed creates 0.5 year-long local installation jobs; direct "construction" 

jobs are one-year jobs; 20% of these jobs are estimated to be installation and 80% to be 

manufacturing. Operations & Maintenance: "operations" jobs are long-term and include operation 

and maintenance; every 6.9 MW of capacity requirers one full-time employee to operate, monitor 

and service it. Indirect jobs: 1.15 indirect jobs are created for every direct wind energy job. 

Landowner income: estimated at 2.5% of the yearly sale of electricity at 3 cents/kWh, escalating 

with projected growth in wind power use. Future dollar values do not include inflation or discount 

estimates. Property tax: uses the average Colorado county property tax rate of 1.59%. 

Special 

Considerations 

Report is based on a conservative scenario in which Colorado wind power meets half of new 

demand through the next ten years (5,110 GWh or 10% of Colorado's total electricity needs) and 

then three-quarters of new demand in the following decade (12,600 GWh/year by 2020 or 20% of 

Colorado's total electricity needs; see "Wind Energy: Powering Economic Development for 

Colorado" 1b). 

Jobs Construction (1 year jobs) Operations (jobs/year) Total 

Direct 1,290 260 1,550 

Indirect 1,500 300 1,800 

Induced N/A N/A N/A 

Total 2,790 560 3,350 

Jobs/MW 0.717 0.144 0.861 

Income Construction Operations ($/year) Total 

Direct $48,000,000 $10,000,000 $58,000,000 

Indirect N/A N/A N/A 

Induced N/A N/A N/A 

Total $48,000,000 $10,000,000 $58,000,000 

Taxes Direct Indirect Total 

Local/State N/A N/A $74,000,000 

47�
Income N/A N/A N/A 

Property N/A N/A N/A 

Sales N/A N/A N/A 

Total N/A N/A $74,000,000 

Developer Incentives Varying tax rate for renewables (not yet implemented). 

Lease Payments $20,000,000 

Other Remuneration 

Conservation of 6.8 billion gallons of water (when compared with natural gas), with water rights 

worth more than $47 million at current Front Range prices; in-state manufacturing for wind farms 

could create 840 person-years of manufacturing employment through 2020 (payroll value of these 

jobs would be $33 million). 

Conclusion 

Meeting new electricity demand with wind power instead of natural gas would result in roughly 

twice the total economic benefit to Colorado over the next two decades. Wind power could 

provide 70% more one-year jobs and more than three times as many permanent jobs as natural gas. 

Wind power could also provide property tax payments to local governments distributed across a 

wider area of the state, conserve water that natural gas plants would otherwise consume, and pay 

royalties to farmers, ranchers and other rural landowners. 

48�
Wind Energy: Powering Economic Development for Colorado 2a Part 2 of 2 

Summary Checklist: 

Citation Geographic Scope Methodology Developer Incentives 

Available Online? Turbine Owners hip Jobs Lease Payments 

Des cription Type of Study Income Other Remuneration 

Location Timeframe of Data Taxes Conclus ion 

Citation Wind Energy: Powering Economic Development for Colorado 

Author(s) Travis Madsen, Stephanie Bonin, Matt Baker (Colorado Public Interest Research Foundation) 

Date of Report November 2002 

Available Online? http://www.environmentcolorado.org/reports/windenergy11_02.pdf 

Description Project Size: 4,100 MW Number of Turbines: N/A 

Location Colorado 

Geographic Scope Colorado 

Turbine Ownership N/A 

Type of Study Prospective 

Timeframe of Data 2002 - 2020 

Methodology 

Model N/A 

Data Sources Electric Power Research Institute; Texas Comptroller's office; 

Assumptions 

Wind turbines will be able to operate more efficiently over the next 20 years; capacity factors are 

assumed to increase one percent every two years, average capacity in 2002: 30%. Building 

cost/MW: $900,000. Manufacturing and installation: every MW of wind energy capacity installed 

creates 2.06 year-long manufacturing jobs; 10% of manufacturing will happen in-state; every MW 

of wind energy capacity installed creates 0.5 year-long local installation jobs; direct "construction" 

jobs are one-year jobs; 20% of these jobs are estimated to be installation and 80% to be 

manufacturing. Operations & Maintenance: "operations" jobs are long-term and include operation 

and maintenance; every 6.9 MW of capacity requirers one full-time employee to operate, monitor 

and service it. Indirect jobs: 1.15 indirect jobs are created for every direct wind energy job. 

Landowner income: estimated at 2.5% of the yearly sale of electricity at 3 cents/kWh, escalating 

with projected growth in wind power use. Future dollar values do not include inflation or discount 

estimates. Property tax: uses the average Colorado county property tax rate of 1.59%. 

Special 

Considerations 

Report is based on a conservative scenario in which Colorado wind power meets half of new 

demand through the next ten years (5,110 GWh or 10% of Colorado's total electricity needs; see 

"Wind Energy: Powering Economic Development for Colorado" 1a) and then three-quarters of 

new demand in the following decade (12,600 GWh/year by 2020 or 20% of Colorado's total 

electricity needs). 

Jobs Construction (1-year jobs) Operations (jobs/year) Total 

Direct 2,940 590 3,530 

Indirect 3,400 680 4,080 

Induced N/A N/A N/A 

Total 6,430 1,270 7,700 

Jobs/MW 1.57 0.31 1.88 

Income Construction ($/year) Operations ($/year) Total ($/year) 

Direct $108,000,000 $24,000,000 $132,000,000 

Indirect N/A N/A N/A 

Induced N/A N/A N/A 

Total $108,000,000 $24,000,000 $132,000,000 

Taxes Direct Indirect Total 

Local/State N/A N/A $230,000,000 

49�
Income N/A N/A N/A 

Property N/A N/A N/A 

Sales N/A N/A N/A 

Total N/A N/A $230,000,000 

Developer Incentives Varying tax rate for renewables (not yet implemented). 

Lease Payments $76,000,000 (or $9,400,000/year) 

Other Remuneration 

Conservation of more than 25 billion gallons of water (when compared with natural gas), with 

water rights worth more than $120 million at current Front Range prices. 

Conclusion 

Meeting new electricity demand with wind power instead of natural gas would result in roughly 

twice the total economic benefit to Colorado over the next two decades. Wind power could 

provide 70% more one-year jobs and more than three times as many permanent jobs as natural gas. 

Wind power could also provide property tax payments to local governments distributed across a 

wider area of the state, conserve water that natural gas plants would otherwise consume, and pay 

royalties to farmers, ranchers and other rural landowners. 

50�
F1146-E(12/2004) 

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PLEASE DO NOT RETURN YOUR FORM TO THE ABOVE ORGANIZATION.

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January 2006 

2. REPORT TYPE

Subcontract Report 

3. DATES COVERED (From - To)

June 18, 2004 - Janaury 31, 2005 

5a. CONTRACT NUMBER

DE-AC36-99-GO10337 

5b. GRANT NUMBER

4. TITLE AND SUBTITLE

Analysis: Economic Impacts of Wind Applications in Rural 

Communities 

5c. PROGRAM ELEMENT NUMBER

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NREL/SR-500-39099 

5e. TASK NUMBER

WER6 6006 

6. AUTHOR(S)

M. Pedden 

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1477 Mill Alley, Apt. #3 

Eugene, OR 97401 

8. PERFORMING ORGANIZATION 

REPORT NUMBER

LEE-4-44834-01 

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NREL 

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13. SUPPLEMENTARY NOTES

NREL Technical Monitor: L. Flowers 

14. ABSTRACT (Maximum 200 Words)

 The purpose of this report is to compile completed studies on the economic impact of wind farms in rural communities 

and then to compare these studies. By summarizing the studies in an Excel spreadsheet, the raw data from a study 

is easily compared with the data from other studies. In this way, graphs can be made and conclusions drawn. 

Additionally, the creation of a database in which economic impact studies are summarized allows a greater 

understanding of the type of information gathered in an economic impact study, the type of information that is most 

helpful in using these studies to promote wind energy development in rural communities, and the limitations on 

collecting data for these studies. These studies were conducted in many different fashions, so it was sometimes 

difficult to use the same template for all studies. For this reason, some of the categories on each spreadsheet may be 

slightly different from others. 

15. SUBJECT TERMS

wind energy; wind turbines; wind farms; rural; rural economic development; case studies; Kittitas County; 

Washington; Texas; Cape Wind; Massachusetts; Colorado; Vermont; Nebraska; California; Pecos County; Foote 

Creek Rim; Wyoming; Pennsylvania; North Dakota; Griggs County; Steele County; Lincoln County; Minnesota; 

Oregon; Umatilla County; Morrow County; Culberson County 

16. SECURITY CLASSIFICATION OF: 19a. NAME OF RESPONSIBLE PERSON 

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