Job Jolt: The Economic Impact of Repowering the Midwest

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Job Jolt The Economic Impact of Repowering the
Midwest

• And
• The New Farm Energy Economy
• December 12, 2002

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(No Transcript)
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Business as Usual Case Midwest

• Electricity demand increases annually
• Large additions of natural gas capacity to meet
  demand price volatility
• Coal plants increase output

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The Clean Energy Development Plan Midwest

• Electricity demand decreases18 below projected
  BAU levels by 2010, 28 by 2020
• Replacing aging coal and nuclear plants with
  renewables and clean, natural gas generation

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Midwest Clean Generation Goals in the Clean
Energy Development Plan
Generator Type
2010
2020
Capacity (MW)
Generation ( of Total)
Capacity (MW)
Generation ( of Total)
Wind Turbines
6,698
3.0
24,510
11.3
Biomass1
4,874
4.9
11,385
10.5
Photovoltaics
161
0.0
482
0.1
Efficient Gas2
9,155
10.4
21,933
24.5
TOTAL
20,888
18.3
58,310
46.4
1 Includes CHP, Co-Firing and Gasification 2
Includes CHP, District Energy Systems and Fuel
Cells
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Potential Farm Income Adding Wind(land leases)

• Farm Income Data Source USDA ERS, NASS. Includes
  govt. payments.
• Excludes farms with gross revenues lt10,000/year
• Assumes conservative wind income of 3000/tower
  _at_10 towers/
• section for IL 2200/tower for IA, and
  1500/tower for ND

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Job Jolt Economic Impact of Repowering the
Midwest
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About the Regional Economics Application
Laboratory

• Joint project of Federal Reserve Bank of Chicago
  and University of Illinois
• Perform economic research for policy-makers on a
  variety of phenomena
• Steel and gas price increases
• Cultural events

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Job Impact by State
State
Net Job Growth-2020
Efficiency
Renewables
43,400
Illinois
13,500
15,500
Indiana
6,500
6,800
Iowa
5,700
29,100
Michigan
9,100
8,200
Minnesota
6,400
2,900
Nebraska
2,600
800
North Dakota
2,100
25,500
Ohio
13,500
1,200
South Dakota
2,600
7,400
Wisconsin
6,400
140,900
TOTAL
68,400
Source Regional Economics Application
Laboratory.
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How do we Get There?Policy Prescriptions to
Support the Clean Energy Development Plan

• Energy efficiency investment funds supported by
  system benefit charges
• Energy efficient building codes
• Renewable Energy Standards
• Equitable transmission access and pricing
  policies
• Maintain production tax credits and favorable
  depreciation for renewables

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The Environmental Law Policy Center is the
Midwests largest environmental legal advocacy
and eco-business innovation organization.
www.repowermidwest.org www.elpc.org