Oregon State University recently published a note-worthy report on the economic impacts of wind energy development in Umatilla County, Oregon. Umatilla County’s Economic Structure and the Economic Impacts of Wind Energy Development: An Input-Output Analysis can serve as a model of how to measure a county’s capacity to develop the levels of business activity necessary to optimize the economic benefits of wind energy development.

The primary purpose of this report is “to estimate the economic impacts of wind energy development in Umatilla County, consider ways that the local community can optimize impacts from current wind power development, and to discuss how the economic development impacts of wind energy projects may be evaluated using an input-output modeling system.” The study focused mainly on development by investors or corporations located outside of the region, but also includes a brief analysis of community wind ownership.

The results of the study show that a 50 MW wind energy project produces for the county a total of approximately $8,970,500 in output, 77 jobs, and $2,892,388 in earnings during the construction phase and $1,141,273 in output, 14 jobs, and $399,670 in earnings during operation and maintenance (using the IMPLAN Model). The study also used the JEDI Model and came up with similar results.

Researchers then analyzed the results using an “optimized” economic model which gives an approximation of the economic potential that wind energy holds for an area if the necessary support businesses like design, machining, and trucking businesses could be developed or expanded to provide a greater share of the goods and services in a wind project. Under this expanded model, a 50 MW wind energy project was found to produce for the county $9,099,348 in output, 80 jobs, and $2,980,661 in earnings during the construction phase, and $1,203,620 in output, 15 jobs, and $444,314 in earnings during operations and maintenance.

The study included a brief analysis of community wind projects, as well, and found that local ownership has the potential to increase earnings or income received within Umatilla County by a factor of 3.5 beyond non-locally owned wind farms.

This study can serve as a good model for other counties looking to assess the extent that wind energy projects can contribute to their economies, and help guide the way toward optimizing their local benefits.

See http://extension.oregonstate.edu/catalog/abstract.php?seriesno=SR+1067 for complete report.

For more information about wind energy in Oregon:
 Oregon Department of Energy: http://egov.oregon.gov/ENERGY/RENEW/Wind/windhome.shtml
 The Energy Trust of Oregon: www.energytrust.org