Big Benefits in Small Wind Projects for Iowa
Iowa Policy Project
Economic Advantages Seen in Local Wind-Power Projects
DES MOINES, Iowa – Megawatt for megawatt, small, locally-owned wind projects
deliver greater economic benefits in Iowa communities than do large
projects, a new report shows.
The Iowa
Policy Project (IPP) report reviewed three studies that compared the
economic development benefits of small and large projects. All showed
more dollars are more likely to stay in the local economy when
wind-projects are small-scale and owned by community members.
A bill
moving through the Iowa Legislature, SF390, would make a tax credit
available to owners of small-scale wind and other renewable energy
projects. It passed the Senate and has moved to the House.
“Iowa
has done good things to advance wind power, but it is important for the
state to stay competitive with policies that assure small-scale,
locally owned projects are feasible,” said David Osterberg, executive
director of the IPP.
IPP
Research Associate Teresa Welsh, who authored the report, noted one
analysis found nearly 10 times more economic activity at the community
and state level from small, locally owned wind generation than from
large, out-of-state companies. Specifically, the study found for every
1 MW of large-scale wind generating capacity owned by out-of-state
companies, $17,300 stays in the community and state annually and for
every 1 MW of small scale generating capacity owned by local community
members, $167,200 stays in the community and state annually.
“As Iowa
continues to promote wind energy, it is essential to consider the
benefits of doing this in a manner that doesn’t let much needed dollars
blow out of our economy,” Welsh said.
“Currently,
wind generated power accounts for a small portion of Iowa’s energy
consumption. Yet, our Hawkeye State has the 10th-highest wind potential
in the nation and if fully utilized this represents enough power
available to produce 4.8 times more energy than Iowans consume,” she
added.
Welsh
noted that some analysts believe state incentives are important to help
small operators install wind systems because the federal renewable
energy production credit is geared to large operators.
“Most don’t make enough from the small wind operation to make the federal credit pay off,” she said.
The
Iowa Policy Project, based in Mount Vernon, is a nonprofit, nonpartisan
organization that produces research reports for the public to foster
better-informed debate on issues of importance to Iowa citizens. IPP
reports are available to the public, free of charge, on the web at www.iowapolicyproject.org.
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