ISAC Fall School November 30, 2012

Iowa’s Wind Energy Industry& Economic Impact

Presenter

• Harold D. Prior, PhD.

• Executive Director, Iowa Wind Energy Association

• Formerly President of Iowa Lakes Community College

• Retired K-12 School Administrator

Iowa: A National Leader in Wind Energy

• Support of the Governor• Support of the Iowa Legislature• State agencies• Iowa Wind Energy Association• The opportunity – raw material• The need – jobs and economic development• Both rural and urban benefits• Not much organized opposition

Iowa’s Opportunities

• Education• Manufacturing• Landowner benefits• Exporting energy• Energy jobs• Infrastructure improvement• Investment• Property tax base

IWEA’s History

• Discussions began in 2007

• Consultation with Advisory Committee

• Support of Iowa Lakes Community College

• Articles of Incorporation filed January 1, 2008

Goals of IWEA

• Inform the general public

• Lobby at the State & Federal level

• Represent wind energy interests in Iowa

• Support the growth of the industry

IWEA’s First Four Years

• Membership of almost 200• 5 successful State Wind Energy Conferences• Lobbying at Iowa Statehouse• Lobbying in Washington• Effective committee structure• Ever increasing visibility

Iowa Wind Energy Facts

• 4,536 MW Installed (#2 nationally)• Approx. 3,000 utility scale turbines• 20% of all Iowa electricity produced• 1st nationally in percent produced & jobs• 7th best wind resource• Total potential wind resource 570,000 MW• An additional 597 MW added by 12/2012

Billboard in Washington DC

National Wind Facts• 35% of all new generation since ‘07• Cost effective; less than coal & oil = to NG• Less subsidized than fossil fuel generation• 02-07 fossil fuel subsidies = $16 B• 02-07 renewable fuels subsidies = $ 3.5 B• 500 American wind component

manufacturers/wind related businesses• Potential wind resource = 10 times current use• 20% wind generation = 500,000 jobs created• Source AWEA

Potential Economic Benefits

• At 10,000 megawatts – Projected benefits

• 6,900 new jobs – Manufacturing & O & M• $178.6 million – Worker salaries• $15 million – Annual land lease payments• $3.9 billion – Added property tax AV

Economic Benefits Cont..

• At 20,000 megawatts

• 9,567 new jobs – Man., O & M• $248.8 million – Worker salaries• $23.8 million – Annual land lease payments• $6.1 billion – Added property tax AV

Transmission Projects

• Clean Line HVDC Project - $1.7 Billion• Wind Farm Development - $7 - $8 Billion• Land Lease Payments - $12.6 - $21 Million/yr.• O & M Employees – 420 - $14.7 Million/yr.• Property Tax Valuation Increase - $1.89 Billion

Transmission Projects con’t.

• ITC Midwest – 2,700 miles new transmission

• Duke Energy/ATM – Western Iowa project

• MidAmerican Energy – 345 kV line project

Direct County Benefits

• Pocahontas County Example

• 216 utility scale turbines• $23.5 million added to AV annually• $189 million added to tax base at full AV• Over $3 million added tax revenue• Currently 9% of county tax base

Direct County Benefits con’t.

• New O & M facilities

• New families & school enrollment

• $7,000 per mile per year in utility replacement taxes

Job Creation Benefits

• O & M• Transportation• Construction• Wind farm management (scada)• Manufacturing• Rural vs urban• Legal & other

Climate & Environmental Issues

• 2011 – US wind = 120 million Mwhs• 3% of total generation• Iowa Data• Wind powers over 1,100,000 homes• Removes 68 m metric tons carbon dioxide• Saves 26 billion gallons of water• Removes 137,000 lbs nitrogen oxide• Removes 91,000 lbs sulfur dioxide

For More Information

• Iowa Wind Energy Association• iowawindenergy.org• American Wind Energy Association• North American Windpower• Windustry• Iowa Utilities Board• Alliant & MidAmerican Utilities

Questions

• Thank you for the opportunity!