Wind provides fewer economic benefits for smallest rural communities

EUGENE, Oregon, US, March 29, 2006 (Refocus Weekly)

Development of wind energy facilities in rural areas of the United States has less benefits for small communities than nearby larger communities, according to an analysis prepared for the National Renewable Energy Laboratory.

“Small communities with few large industries see greater leakage of revenue into nearby towns that provide more services,” concludes Meghan Pedden in ‘Economic Impacts of Wind Applications in Rural Communities; June 2004 - January 2005.’ “These small communities therefore experience less indirect and induced impact of a wind installation than a larger community with the ability to provide a greater number of services.”

The 54-page report analyzed studies on the economic impact of windfarms in rural communities and then compared the studies in a spreadsheet. The database “allows a greater understanding of the type of information gathered in an economic impact study, the type of information that is most helpful in using these studies to promote wind energy development in rural communities, and the limitations on collecting data for these studies.”

Most of the 13 studies were compiled from Internet searches, and assessed on project size and number of turbines, geographic location, area of impact considered, turbine ownership, and whether the study was based on predictions for a prospective wind installation, actual data for an existing wind installation or the estimated impact of installing a set amount of wind energy. The study examined direct, indirect, induced and total number of jobs created throughout the geographic scope of the windfarm, and the income and taxes created by the facility.

It did not include some notable industry studies, such as the ‘Wind Force 12' report from the European Wind Energy Association and Greenpeace.

“Wind installations create a large direct impact on the economies of rural communities, especially those with few supporting industries,” the report concludes, while noting the difficulty of drawing specific conclusions about the positive impact of windfarms due to the broad cross-section of data available from each study. “In communities in which farming is the only large industry, the installation of windfarms creates another industry that becomes a large percentage of the local tax base and contributes to local businesses.”

The number of local construction and operations jobs created depends on the skills available in the local community, and many developers try to hire local labour but must bring in construction companies and operators from outside the county or outside the state when this is not possible. Some local governments offer incentives to developers in return for the developer agreeing to hire local labour.

“When compared to fossil fuel development, the development of renewable energy creates a larger impact on the economy,” it concludes, largely because the additional income earned by local workers in the renewable energy industry “more than makes up for the cost increase required to invest in renewable energy.”


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