U.S. Department of Energy Office of Energy Efficiency and Renewable Energy U.S. Department of Energy Energy Efficiency and Renewable Energy
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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 1a)

Summary

  • 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.

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: 1,102.6 MW
Number of Turbines: n/a
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 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

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 Considerations: n/a

Jobs Construction Operations (jobs/year) Total
Direct     2,500
Indirect     2,900
Induced      
Total     5,400
Jobs/MW 1.3 0.06 1.36

 

Income Construction Operations Total
Direct     $75,000,000
Indirect      
Induced      
Total     $75,000,000

 

Taxes Direct Indirect Total
Local/State     $13,300,000
Income      
Property      
Sales      
Total     $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

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.