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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 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.

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 (PDF 1.5 MB) Download Adobe Acrobat
Author(s): SEED Coalition and Public Citizen's Texas office; Virtus Energy Research Associates
Report Date: Sept. 2002

Project Size: 2,000 MW
Number of Turbines:
Location: TX
Geographic Scope: 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 Hudspeth (1.3 MW) Counties.
Turbine Ownership: N/A
Type of Study: 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 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

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     3,200
Indirect     3,700
Total     6,900


Income Construction Operations Total
Direct     $96,000,000
Total     $96,000,000


Taxes Direct Indirect Total
Local/State     $26,400,000/year
Total     $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

Conclusion: Renewable energy is providing great economic value for Texans. With clear and deliberate goals, renewable energy can grow to a multi-billion dollar industry that puts Texans all over the state to work.