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Economic Impact
Wind Energy Development in Illinois
June 2009
Table of Contents
Authors ........................................................................................................................ 3 Acknowledgements ................................................................................................... 3Illinois Wind Working Group IWWG ................................................................... 4Center for Renewable Energy CRE ....................................................................... 5Executive Summary .................................................................................................. 7I. Introduction ........................................................................................................... 9II. Wind Energy Growth Factors .......................................................................... 10Illinois Unique Attributes.................................................................................... 11Wind Resource ..................................................................................................... 11Transmission ........................................................................................................ 12Demand ................................................................................................................. 12Overview of Illinois’ Current Policies ............................................................. 13Renewable Portfolio Standard ........................................................................... 13Enterprise Zones ................................................................................................. 13Property Tax Legislation .................................................................................... 13III. Economic Impacts of Wind Farm Development ........................................ 14Wind Energy Creates Skilled, HighPaying Green Jobs .................................. 14Building Trades, Construction and Installation .............................................. 14Operation and Maintenance .............................................................................. 14Landowner Bene
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ts ............................................................................................ 14Increased Tax Revenues ..................................................................................... 15School District Bene
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ts ..................................................................................... 15Road Improvements ........................................................................................... 15Environmental Bene
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ts ..................................................................................... 15IV. Analytical Method .............................................................................................. 16The JEDI Model .................................................................................................. 16Direct Impacts ...................................................................................................... 16Indirect Impacts ................................................................................................... 17Induced Impacts .................................................................................................. 18Research Data ....................................................................................................... 18 V. Analysis and Results ............................................................................................. 20Employment Impacts ........................................................................................... 20Property Tax Revenue Impacts ........................................................................... 21Landowner Revenue Impacts .............................................................................. 21Economic Activities Impacts ............................................................................... 21 VI. Illinois’ Future ...................................................................................................... 22Manufacturing Impact ........................................................................................... 22Workforce Development and Technical Training ............................................ 22Wind Energy Businesses ...................................................................................... 22 VII. Conclusion .......................................................................................................... 23References ............................................................................................................... 23Figures:1.— Impact of PTC Expiration on Annual Installation of Wind Capacity....... 102.—Turbine Sizes Over the Years ............................................................................ 113.—Wind Resource of Illinois .................................................................................. 12 Tables:1.—Illinois Wind Farm Projects ............................................................................... 192.—Illinois Wind Farm Projects ............................................................................... 193.—Economic Impacts from
1,1109 MW
of Wind Energy Development..... 20
This report is also available as a PDF on www.renewableenergy.ilstu.edu.
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Acknowledgements
We would like to acknowledge the research funding from the IllinoisDepartment of Commerce and Economic Opportunity that made thisstudy possible. Special thanks to Jonathan Feipel and Wayne Hartel for alltheir assistance. We would also like to thank Eric Lantz and Suzanne Tegen at theNational Renewable Energy Laboratory (NREL) for their researchassistance and NREL for giving permission to use their models andgraphics. We would like to thank Jeffrey Nemeth and the Illinois Institute for Rural Affairs at Western Illinois University for allowing us to use their Illinois wind maps in this report.Finally, we would like to thank Lon Carlson and Janet Niezgoda of Illinois State University for their hard work in making this reportpossible.
Authors
David G. Loomis, Ph.D.
David Loomis is an Associate Professor of Economics at Illinois StateUniversity where he teaches in the Master’s Degree program inelectricity, natural gas and telecommunications economics. Dr. Loomisis Director of the Center for Renewable Energy and Executive Directorof the Institute for Regulatory Policy Studies. As part of his duties, heleads the Illinois Wind Working Group under the U.S. Department of Energy. Dr. Loomis is part of a team of faculty that has designed a new undergraduate curriculum in renewable energy at Illinois StateUniversity. Dr. Loomis earned his PhD in economics at TempleUniversity. Prior to joining the faculty at Illinois State University,Dr. Loomis worked at Bell Atlantic (Verizon) for 11 years. He haspublished articles in the
Review of Industrial Organization, Utilities Policy,Information Economics and Policy, International Journal of Forecasting,International Journal of Business Research, Business Economics and the Journal of Economics Education.
Jennifer L. Hinman
Jennifer is a graduate student at Illinois State University studying Applied Economics with a focus in the Electricity, Natural Gas, and Telecommunications regulatory sequence. In 2004, Jennifer graduatedSumma Cum Laude from Armstrong Atlantic State University inSavannah, GA with the degree of Bachelor of Arts in Economics.
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