Today, the Iowa Wind Energy Association released The Economic Impact of Iowa’s Wind Potential to Meet Carbon Reduction Goals, a report showing an increase in the demand for wind energy – spurred by the Clean Power Plan – will translate to expanded job creation and economic development in Iowa.
Depending on the amount of wind installed in Iowa over the next 15 years, Iowa could create an average of 483 to 6,424 wind-related jobs each year, and as many as 10,992 jobs during the peak year of wind turbine installment.
The report, authored by Dave Swenson, an associate scientist in the Department of Economics at Iowa State University, lays out an economic impact analysis of four wind energy scenarios for using wind energy to comply with the Environmental Protection Agency’s Clean Power Plan, released earlier this week. By establishing state-specific carbon pollution reduction goals based on each state’s energy portfolio, the Clean Power Plan will cut 32% of carbon pollution from U.S. power plants by 2030 (from 2005 levels).
“The Clean Power Plan presents a huge economic opportunity for Iowa,” said Climate and Energy Policy Specialist Cindy Lane. “As a national wind energy generation and manufacturing leader, we have the resources and infrastructure to meet our own goal, and help other states meet their goals. This report provides a clear picture of how the Clean Power Plan can benefit Iowa by creating jobs and adding value to our economy.”
The final Clean Power Plan calls for Iowa to reduce its carbon pollution rate to 1,283 lbs/MWh by 2030, a slight increase from the originally proposed 1,301 lbs/MWh. At the end of 2014, wind energy accounted for 28.5 % of Iowa’s electrical generation – the highest of any state.
“Iowa’s early actions to transition to cleaner energy will be further encouraged under the final Clean Power Plan,” Lane noted. “In short, Iowa can get a jumpstart on meeting its carbon reduction goal by submitting a timely, state plan and investing early in 1) renewable energy projects and 2) energy efficiency projects implemented in low income communities. The sooner that Iowa submits a final state plan detailing its Clean Power Plan implantation strategy, the sooner Iowa can get credit for renewable energy and energy efficiency projects that are constructed/implemented after that date. These early credits can be banked, and counted toward carbon pollution reduction requirements during 2022-2029.”
Scenarios in the report evaluate wind installation levels starting at 2,320 MW and ending at 15,000 MW – all well within Iowa’s wind capacity; recent studies show 20,000 MW could be developed by 2030. Labor income totals could reach up to $114 million in the first year, and have the potential to grow to $594 million by 2030. Value added to the economy could hit $2.1 billion by 2030, bringing the final total output to as much as $3.56 billion in the final year.
“The Clean Power Plan will improve our economy, protect and support our communities, safeguard our working lands and strengthen our energy independence – Iowa really is in an ideal position,” Lane said.