Title: JEDI Jobs and Economic Development Impacts National Renewable Energy Laboratory NRECA Webcast Presen
1JEDI Jobs and Economic Development
Impacts National Renewable Energy Laboratory
NRECA Webcast Presentation April 10,
2006Presented by Marshall Goldberg, MRG
Associates Suzanne Tegen, NREL
2Energy and economic development are closely
connected
3- New wind power or other new renewable generation
projects have economic impacts in rural
communities and strengthen the local economy. - Increased dollar flows provide direct benefits to
the rural economies.
4Economic Development Impacts
- Construction
- Operations and maintenance
- Property tax revenues
- Landowner revenues
- Manufacturing
- Multiplier effect
- Net economic development impacts of wind vs.
fossil fuels
5Dollar flow analysis
- Calculating the direct economic impacts of new
wind plants - in comparison to new coal and natural gas plants
- Construction of the plant (parts and labor)
- 20 years of operation (parts and labor)
- Fuel and fuel transport
- Property taxes
- Landowner revenues
- Project financing
6Dollar flow analysis Dollar flow into and out of
Colorado from new coal, gas and wind
7Dollar flow analysis
- How will coal, natural gas and wind power effect
your regions economy?
Colorado
8Dollar flow analysisin-state vs. out-of-state
- A new large wind project in Colorado will bring
benefits to the states economy. Direct benefits
are shown here.
9Economic Impacts of Alternative Generation
Colorado
Colorado
Arizona
Michigan
10JEDI
- Jobs and Economic Development Impact model
- Spreadsheet-based tool
- Calculates local economic impacts associated
with the construction and annual operations of
power plants
11JEDI Key Design Elements
- Tool to easily identify local economic impacts of
power plants (wind, natural gas and coal) - Available to a broad range of people
- Developers, utility personnel, policy makers
- User friendly format for all levels of
spreadsheet users - Adaptable to access via the Internet
- Online instructions
- Default data that can easily be overridden by
users - Flexible input options
- User Add-in location feature
12Project Analysis It all begins with a
specific project. The User inputs.....
- Minimum Information or
- Location (State or County)
- Year of construction
- Type of power plant
- Size of power plant
- requires additional input-output data
- More Detailed Information
- Construction Costs
- (materials and labor)
- Equipment Costs (turbines, rotors, towers, etc.)
- Other Costs (utility interconnection,
engineering, land easements, permits, etc.) - Annual OM Costs (personnel, materials, and
services) - Other Parameters (financial debt and equity,
taxes, and land lease)
13- To determine the total effect of developing a
power plant - Three separate impacts are examined for each
expenditure - Direct
- Indirect
- Induced
- Impacts depend on
- the structure of the local economy
- spending in the local area
-
14Results
- Project Data
- Project Construction Costs (total and local
share) - Annual OM Spending
- Debt and Equity Payments
- Property Taxes
- Land Lease Payments
- Impacts
- Construction Period
- Jobs, Earnings, Output
- Operating Years (Annual)
- Jobs, Earnings, Output
15- Some Important Points to Keep in Mind......
- The assumptions that are input greatly impact the
results. - Using the defaults gives a reasonable pattern of
costs and benefits for constructing and operating
a power plant in the United States, including the
portion of expenditures that is spent locally. - Project size, location, financing arrangements
and site-specific factors influence the
construction and operating costs. - The availability of local resources, including
labor, materials and locally manufactured
components, is another key driver in determining
local costs and benefits. - So, the more accurate the user is in providing
project information and local share
information, the better the model results will
be!
16JEDI Jobs and Economic Development Impact
ModelAvailable at http//www.windpoweringamerica
.govFor More Information ContactMarshall
Goldberg, MRG Associates530.432.9373
mrgassociates_at_earthlink.netSuzanne Tegen,
NREL303.384.6930 suzanne.tegen_at_nrel.gov
17Appendix
18Methodology
- Input-Output - Multiplier Analysis
- Input-output analysis can be thought of as a
method of evaluating and summing the impacts of a
series of effects generated by an expenditure
(i.e., input). -
19Direct EffectsThese are the on-site or
immediate effects created by an expenditure.
In constructing a wind plant, it refers to the
on-site jobs of the contractors and crews hired
to construct the plant. It also refers to the
jobs at the plants that build the turbines and
the jobs at the factories that produce the towers
and blades, among others.
20Indirect EffectsThis refers to the increase
in economic activity that occurs when a
contractor, vendor or manufacturer receives
payment for goods or services and in-turn is able
to pay others who support their business. For
instance, this includes the banker who finances
the contractor, the accountant who keeps the
contractors books, and the steel mills and
electrical manufacturers and other suppliers that
provide the necessary materials, among others.
21Induced EffectsThis refers to the change in
wealth that occurs or is induced by the spending
of those persons directly and indirectly employed
by the project.
22- State specific multipliers and personal
expenditure patterns are used to derive the
results. The state multipliers for - employment
- wage and salary income
- output (economic activity)
- personal expenditure patterns
- are derived using the IMPLAN Professional model.
- IMPLAN (Impact Analysis for PLANning)
Professional is a social accounting and impact
analysis tool. Minnesota IMPLAN Group (MIG, Inc),
Stillwater, Minnesota.
23Sensitivity Analysis
24Sensitivity ranges