Jobs and Economic Impacts from Wind Power. Suzanne Tegen, NREL NCSL Advisory Council Meeting June 23, 2009

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1 Jobs and Economic Impacts from Wind Power Suzanne Tegen, NREL NCSL Advisory Council Meeting June 23, 2009

2 Overview NREL s existing information The Jobs and Economic Development Impacts Model (JEDI) 20% Wind by 2030 Wind and Coal Wind in your state: How we can help you

3 NREL s Existing Information Wind Powering America website: Reports, maps Fact sheets WWGs

4 The JEDI Model Input-Output model: Developed by Wind Powering America Keeps track of inter-industry relations: how the outputs from one industry serve as inputs for another Fiber glass Copper Steel Wind Farm Development Manufacturing Plant and Supply Chain National Renewable Energy Laboratory Great Lakes Wind Collaborative June 4, 2009

5 Jobs & Economic Impacts from the JEDI Model Wind energy s economic ripple effect On-site & Proj. Development Labor Construction workers Management Administrative support Cement truck drivers Road crews Maintenance workers Legal and siting Off-site and Supply Chain Labor and Materials Blades, towers, gear boxes Boom truck & management, gas and gas station workers Supporting businesses, such as bankers financing the construction, contractor, manufacturers and equipment suppliers. Utilities. Hardware store purchases and workers, spare parts and their suppliers Induced Impacts Jobs and earnings result from the spending supported by the project, including benefits to grocery store clerks, retail salespeople and child care providers.

6 On-site & project development labor Truck drivers, crane operators Earth moving, cement pouring Management and support Construction

7 Off-site and supply chain jobs, services, materials Utilities Blade and tower manufacturers Steel mill jobs, parts, services Photos: E.C.Levy, Inc, Detroit, MI Financing, banking, accounting Equipment manufacturing and sales

8 Induced jobs, services, materials Money spent on local area goods and services: sandwich shops, child care, grocery stores, clothing, other retail, public transit, new cars, restaurants, medical services.

9 Typical Results from a 100MW Wind Project Job Creation 100 Construction jobs* 6-8 Operations & Maintenance Jobs* Increased Local Revenues Land lease payments: ~$350,000 - $500,000 per year (3-6% of gross project revenue) Local property tax revenue: $500,000 - $1million per year Other Benefits Stimulate local industry (concrete, roads, environmental, siting, legal) Stimulate local manufacturing *Jobs are listed as full-time equivalents

10 JEDI based on actual projects: Iowa 240-MW Iowa wind project $640,000/yr in lease payments to farmers $2M/yr in property tax revenues $5.5M/yr in O&M income 40 long-term jobs 200 short-term construction jobs Manufacturing

11 20% Wind Energy by 2030 Actual installations 2008: 8,545 MW

12 12 20% Wind by 2030 Potential manufacturing jobs created by 2030

13 U.S. Manufacturing Map

14 Other resources: EDF Knoxville, TN Case Study: IdleAire Technologies Corporation Product and service mix IdleAire Technologies Corporation is a provider of idlereduction services to the long-haul trucking industry. Located at travel centers and truck stops where long-haul trucks congregate and typically leave their engines running, the company's technology delivery system provides power and a wide array of services to trucks so that the engines can be turned off. The services are delivered through an in-cab service module that connects to a console above parking spaces and fits in the driver's window. With connection to IdleAire's service module, drivers pay by the hour to use IdleAire's services, which include electricity, heat, air conditioning, Internet, movies on demand and television services. IdleAire's technology delivery system is deployed at 140 truck stops along interstate highways across the U.S. The average system has roughly 60 parking spaces that can each connect to the service modules. In total, the company has over 8,000 parking spaces in 34 states. By providing an alternative to idling, IdleAire's technology reduces the exhaust from trucks. In addition to the comfort to drivers and the environmental benefits, truck drivers and fleet operators save approximately one gallon of fuel for every hour of not idling.

15 15 Wind and Coal Source: NREL Source: USGS

16 Jobs and Economic Impacts National Renewable Energy Laboratory 16 Great Lakes Wind Collaborative June 4, 2009

17 17

18 18 Wind and Coal Power Impacts to the Michigan Economy (2004) Note: Dollars in millions. Model runs used an older version of JEDI.

19 What we need for your state analysis Basic JEDI inputs: construction year, location, size Better inputs make better outputs: Capital costs Local shares where are components from? where are workers from? Property taxes Land lease agreement Financing and ownership information 19

20 Download the JEDI Model 20

21 Sample wind power educational programs University of Maryland (aerodynamics) New Mexico State University (Southwest Technology Development Institute) Boise State University (Wind Application Center) Kansas State University (Power Systems Engineering) University of Arkansas (Supply Chain Management Research Center) Utah State University Washington State University Cloud Community College, Kansas Oklahoma State University High Plains Technology Center, Oklahoma 21

22 Thank you Suzanne Tegen, NREL

23 NREL Projects of Interest COMMUNITY WIND Economic Development Impacts of Community Wind Projects: A Review and Empirical Evaluation (Lantz and Tegen) SOCIAL ACCEPTANCE Aesthetics and property values Contribution to local economy Cost of energy Environmental considerations Energy security Human health and safety Land use Noise. Reliability Wildlife 23

24 20% Wind by