!"#"$%&#'()*+,(-./0(1.#2(3*-"$!

Eric Lantz is an energy analyst at the National Renewable Energy Laboratory. His analysis

experience includes economic development impacts and state and federal policy. His primary

research interests include policy applications for expanding renewable energy markets, evaluating

economic and fiscal impacts of energy policy alternatives and social acceptance of renewable

energy infrastructure. Eric has a BA in biology from Eastern Mennonite University in Virginia and an

MS in environmental studies from the University of Colorado in Boulder.

 Using JEDI to Estimate Economic
Development from Wind Energy

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 Presentation Overview

Outline
!  NREL’s JEDI Tools
!  Methodology, definitions, &
caveats
!  Using JEDI
!  Example Results
!  Understanding variability/
sensitivity in results
!  Conclusions

Relevant Questions
! How does JEDI estimate EDI?
! How should I interpret the results?
! What factors influence the results?

National Renewable Energy Laboratory 2 Innovation for Our Energy Future

 The JEDI Analysis Tools

Currently public
•  Utility-Scale Wind
•  Natural Gas
•  Coal
•  Geothermal
•  Ethanol
•  Solar (CSP, PV)
In process
•  Transmission
•  Water
•  Biopower
JEDI is used by industry, government, •  Offshore, small
academics, advocates, consultants, wind
and others.
Jobs and Economic Development Impacts (JEDI) Model
National Renewable Energy Laboratory 3 Innovation for Our Energy Future
 Input Output Methodology
•  Aggregated economic data is used to recreate
inter-industry transactions throughout the economy
•  These data demonstrate how spending in one industry affects
spending in other industries

•  From inter-industry transaction data, industry

specific multipliers are derived

•  Multipliers are used to measure how changes in

demand for goods and services in one industry
result in changes in demand for goods and
services throughout the economy
National Renewable Energy Laboratory Innovation for Our Energy Future
 Basic JEDI Methodology for States

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regional multipliers; multipliers are grounded in empirical demand and
the resulting economic activity for a specific year.
National Renewable Energy Laboratory 5 Innovation for Our Energy Future
 Basic JEDI Methodology for Local/County
Analysis

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National Renewable Energy Laboratory 6 Innovation for Our Energy Future

 Economic Development at Multiple Levels

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National Renewable Energy Laboratory 7 Innovation for Our Energy Future
 Project Development & Onsite Labor

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National Renewable Energy Laboratory 8 Innovation for Our Energy Future

 Local Revenues, Equipment, & Supply Chain

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National Renewable Energy Laboratory 9 Innovation for Our Energy Future
 Induced Economic Activity

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National Renewable Energy Laboratory 10 Innovation for Our Energy Future

 JEDI Caveats
• Results are an estimate, not a precise
calculation.

• Results are not a measure of project

profitability or viability.

• Results report gross jobs, not net jobs

They do not consider whether a specific project
displaces development elsewhere nor do they
account for potential changes in electricity rates.

• Assumptions around local sourcing and

procurement are fundamental in
determining local economic activity.

• JEDI default data are based on national

industry data and trends for projects 50
MW to 200 MW.

National Renewable Energy Laboratory 11 Innovation for Our Energy Future

 The JEDI Model

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National Renewable Energy Laboratory Innovation for Our Energy Future

 Basic User Inputs

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National Renewable Energy Laboratory Innovation for Our Energy Future

 Detailed User Inputs
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National Renewable Energy Laboratory Innovation for Our Energy Future

 Results Summary

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National Renewable Energy Laboratory Innovation for Our Energy Future

 Interpreting the Results
JEDI reports jobs as full time equivalents or 2,080 hour
units
•  Projects may take more or less than a year to complete, in these cases
construction can be adjusted to reflect the impact during the actual period of
construction
•  Example: JEDI reports 100 Construction period jobs. This could be 25 workers
supported for 4 years or 200 workers supported for 6 months.
•  Operations period impacts are also FTE’s but because they are reported as
annual impacts you can interpret these as long-term jobs
Earnings reflect the salaries and benefits to laborers
Output is the sum value of all goods and services provided
at each layer of the supply chain
•  Example: For a wind turbine it is the cost of the iron ore, plus the cost of the
rolled steel, plus the cost of the assembly, plus the cost of the final project
•  This is in contrast to metrics like GDP or GSP which reflect only the sum of
the value added (i.e. sale price less material input prices) or the market value
of final goods and services
JEDI analyses are a measure of Gross Economic Impacts

National Renewable Energy Laboratory Innovation for Our Energy Future

 Total Economic Activity to Texas (1,400 MW)
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Assuming construction and 20 years of operations, this

equates to more than $1.7 billion in total economic activity.*

*$150M x 4+$56M x 20 = $1.7B

Preliminary Results
National Renewable Energy Laboratory 17 Innovation for Our Energy Future
Employment & Economic Activity to Texas by Year (1,400 MW)

Preliminary Results
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National Renewable Energy Laboratory 18 Innovation for Our Energy Future

 Total Local Results (100-Mile Radius) 1,400 MW
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Assuming construction and 20 years of operations, this

equates to nearly $950 million* in total economic activity to
communities within 100 miles of these projects.
*$33M x 4+$41M x 20 = $950M

Preliminary Results
National Renewable Energy Laboratory 19 Innovation for Our Energy Future
 Employment & Economic Activity to Local (100-Mile Radius)
Communities by Year (1,400 MW)
Preliminary Results
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National Renewable Energy Laboratory 20 Innovation for Our Energy Future

 Default and Project-Specific Local (100-Mile Radius)
Results (1,400 MW)
Preliminary Results
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National Renewable Energy Laboratory 21 Innovation for Our Energy Future

 Explaining variability in economic development
impacts

Size and cost of the project

•  Higher costs often results in
increased impact for both
construction and O&M
Size and diversity of the
local economy
•  Level of analysis
•  Multiplier effect
Developer preferences
•  Local share/local purchase
coefficient
Magnitude and allocation of
project revenues
•  e.g. community wind

National Renewable Energy Laboratory 22 Innovation for Our Energy Future

 Conclusions
The JEDI model is a user friendly tool to estimate gross
jobs, earnings, and economic output from wind power
projects
•  Download the model at: http://www.nrel.gov/analysis/jedi/

Results can vary significantly based on user/project specific

inputs and the level of analysis
•  Using data that accurately reflects your area and projects is critical
to generating robust results

Even rural, sparsely populated regions can experience

surprisingly high levels of economic development activity.
•  Economic development is a function of the ability to supply projects
with goods and services, not simply population.

National Renewable Energy Laboratory 23 Innovation for Our Energy Future

Dave Groberg
Vice President, Development - Eastern Region
Invenergy LLC

Mr. Groberg manages all new project identification, development and acquisition activities
for Invenergy’s wind energy business in the Eastern United States and Canada, including a
portfolio of projects with over 1,000 MWs of development potential. He has been developing
utility-scale wind energy projects for ten years. Since joining Invenergy in 2004, he has
managed the successful development of over 800 MWs of projects that are currently under
construction.

Before he joined Invenergy, Mr. Groberg held various management positions at Cielo Wind
Power and the Business Council for Sustainable Development - Gulf of Mexico Region.
Direct Local Spending at U.S. Wind Farms
Generating Jobs with Wind Power: SACE Webinar

April 1, 2011

Presented by David Groberg, Invenergy LLC

Invenergy
!  U.S. company, based in Chicago, IL
!  Over 350 employees worldwide
!  Independent developer of renewable energy and natural gas electricity
generation projects
!  Focused on development, construction management, financing, operations,
maintenance and long-term ownership
!  Largest independently-owned U.S. wind energy developer (6th largest U.S.
owner/operator of wind energy facilities)
!  2nd Largest U.S. Purchaser of General Electric Wind Turbines (over 2,000 GE
turbines placed into operation)
!  Six U.S. natural gas generation projects in operation or construction (2,810 MW)
!  Moving into utility-scale solar. 40 MW of projects under contract.
Invenergy

2
Invenergy North America
Wind and NG/Thermal and Solar Portfolio - Map

3
CONFIDENTIAL
Direct Local Spending
!  Wind farms produce an initial burst of intense direct local
spending during construction, followed by twenty years of
stable economic activity.
!  Wind farm construction creates significant numbers of
temporary jobs for skilled workers and high demand for many
local vendors.
!  During operations, wind farms provide good-paying, stable
employment for a modest number of local residents, along
with significant, reliable tax revenues for local governments.

Invenergy
Local Spending During Development
!  Development does not typically result in significant local
spending.
!  The Development process for wind projects can take 3 to 5
years before construction commences.
!  Total development spending typically amounts to
approximately $25,000 per MW or $4,000,000 per 100 MW.
Local spending typically covers up to 25% of these expenses.
!  In addition to lease or option payments to landowners, the
main opportunities for local business during development
include local legal representation, environmental consultants,
and surveyors.
Invenergy
Local Spending During Construction
!  For every wind turbine it builds, Invenergy typically spends approximately
$200,000 locally.
!  Locally sourced inputs include materials such as fuel, concrete, gravel and
other road materials.
!  Local services used include lodging, meals, vehicle/equipment rental.
!  A typical 100 MW, 67-turbine wind farm should generate 9-12 months of
employment for over 100 construction workers and support staff.
!  Construction workers typically involved in wind turbine construction
typically include carpenters, millwrights, operators, iron workers, laborers,
and high and medium voltage electricians.
!  As a result, a 100 MW wind project should result in $10,000,000 to
$15,000,000 of direct local spending.

Invenergy
Local Spending During Operations
!  Wind farms typically require one turbine technician for every 8 turbines,
plus a site supervisor and a site administrator. These positions are typically
full-time with benefits.
!  A typical 67-turbine, 100 MW project would have an annual payroll of
approximately $600,000 based on 10 full time employees, including
including a site manager, site administrator, and 8 turbine technicians.
!  Invenergy has been very successful hiring local candidates for wind energy
operations staff.
!  Additional local spending should exceed $100,000 per year (including locally
available parts, tools equipment, fuels, vehicle and office expenses).
!  Landowner payments should be approximately $10,000 per turbine per year
or $675,000 for a 100 MW project.

Invenergy
Taxes
!  Property taxes vary from wind state, but as a general rule, wind
energy projects typically end up being the highest, or one of
the highest property tax payers in their counties.
!  Nationally, a typical 100-MW wind farm generates $500,000 to
$1,000,000 per year in county property taxes for every year of
operation.
!  The 100-MW Beech Ridge Wind Farm in Greenbrier County,
WV will pay more than $500,000 per year in property taxes.
That amounts to more than $10,000,000 in direct additional tax
revenue for local government over the project’s 20-year life .

Invenergy
Annual Local Spending: 100 MW Project
Direct Annual Economic Benefits to Local Community

$ 500,000 Total Tax-Related Payments

$ 600,000 Operations Payroll
$ 100,000 Local Goods and Services
$ 675,000 Landowner Payments
------------------------------------------------
$1,875,000 Total Annual Direct Local Spending

Invenergy

9
Charles Goldizen
Former County Commissioner of Grant County, WV.
As an elected official, Mr. Goldizen oversaw the process of
developing the Mount Storm wind project (AES) in Grant
County, WV.
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