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Potential Economic Impacts of Commercial Wind Power Development in North Dakota (Part 1b)

Summary

  • 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:
    • 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.

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
Report Date: 2001

Project Size: 1,000 MW
Number of Turbines: n/a
Location: ND
Geographic Scope: North Dakota
Turbine Ownership: n/a
Type of Study: Prospective
Timeframe of Data: From 2002 - 2011

Model: North Dakota Input-Output Model (developed based on survey data from North Dakota firms and households; households are not included in the model).

Data Sources: 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 Iowa, Minnesota, Nebraska and New Mexico.

Assumptions: Costs of development expected to decline over next decade. Transmission upgrades will be necessary after development of first 150 MW, assumed to cost $120,000 per MW

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

Jobs Construction Operations (jobs/year) Total
Direct   58-77 58-77
Indirect      
Induced      
Total 20,986 386 21,372
Jobs/MW 21 0.386 21.37

 

Income Construction Operations Total
Direct   $5,928,000/year  
Indirect      
Induced      
Total $397,000,000 $13,600,000/year $410,600,000

 

Taxes Direct Indirect Total
Local/State      
Income $8,918,000 $221,000 $9,139,000
Property   $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:

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

Other Remuneration:

Conclusion: Benefits from the development of wind power would continue to accrue locally and throughout the state for the life of the facility.