U.S. Department of Energy Office of Energy Efficiency and Renewable Energy U.S. Department of Energy Energy Efficiency and Renewable Energy
  • Printable Version
  • Bookmark and Share

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 1c)


  • Estimates the impact of requiring that 10% of Texas' energy needs be met by wind power by 2020.
  • Includes estimates of the resulting increase in direct and indirect jobs, payroll value of direct jobs, increase in local taxes and payments to landowners.
  • Suggests renewable energy policies to help make Texas a global leader in 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: 13,400 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: Pre-project; based on Texas wind energy supplying 10% of Texas' energy needs by the year 2020 (For post-project study based on 2002 statistics see "Renewable Resources: The New Texas Energy Powerhouse" Part 1a; 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 ).
Timeframe of Data: 2002 through 2020

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: assumption of robust, diversified in-state manufacturing; job intensity for Denmark; indirect jobs based on Texas Comptroller estimates; 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). 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%. 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: n/a

Jobs Construction Operations (jobs/year) Total
Direct     8,500
Indirect     9,800
Total     18,300


Income Construction Operations Total
Direct     $255,000,000
Total     $255,000,000


Taxes Direct Indirect Total
Local/State     $216,000,000/year
Total     $216,000,000/year

Developer Incentives: Partial tax abatements during the first 5 to 10 years.

Lease Payments: $30,800,000/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.