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:
- Create more jobs.
- Increase landowner revenue.
- Create a stronger tax base.
- Use less water.
- Summarizes Washington's energy industry.
- Suggests specific policies that would help Washington realize its efficiency and wind potential, including:
- Energy conservation standards.
- Renewable energy standards.
- Moratorium on issuance of fossil fuel-based power plant permits.
- Tax incentives.
Citation: Energy for Washington's Economy: Economic Development from Energy Efficiency and Wind Power in Washington (PDF 1.2 MB) Download Adobe Acrobat
Author(s): Brad Heavner, Robert Pregulman, Travis Madsen for WashPIRG Foundation
Report Date: June 2003
Project Size: 1,700 MW
Number of Turbines: n/a
Geographic Scope: Washington
Type of Study: Prospective
Timeframe of Data: through 2020
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.
|Direct||4,050||280 (jobs in 2020)||4,330|
|Indirect||4,650||320 (jobs in 2020)||4,970|
|Total||8,700||600 (jobs in 2020)||9,300|
|Jobs/MW||5.12||0.35 (jobs in 2020)||5.47|
|Local/State||$371,000,000 through 2020|
|Total||$371,000,000 through 2020|
Lease Payments: $103,000,000 by 2020 or $11,000,000/year
Conclusion: 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 efficiency and wind power would create jobs, generate landowner revenue, increase local tax revenues, and save water.