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| Title: | Socioeconomic Impacts of the Langdon Wind Energy Center |
| Authors: | Leistritz, F. Larry
Coon, Randal C. |
| Authors (Email): | Leistritz, F. Larry (f.leistritz@ndsu.edu)
Coon, Randal C. (randy.coon@ndsu.edu) |
| Keywords: | wind energy
renewable energy
economic impact
fiscal impact |
| Issue Date: | 2008-05 |
| Series/Report no.: | Agribusiness & Applied Economics Report No.
627 |
| Abstract: | The Langdon Wind Energy Center is the largest wind energy facility to be developed in
North Dakota to date and consists of 106 turbines with a generating capacity of 1.5 MW each,
mounted on towers 262 feet tall. The project is owned by FPL Energy and Ottertail Power
Company; FPL Energy was the project developer. Construction of the facility began in July,
2007 and was completed in January, 2008. The peak construction work force was 269 workers.
A force of 10 permanent employees will operate and maintain the energy center. Construction of
the Langdon Wind Energy Center is estimated to have resulted in payments of more than $56
million to entities within North Dakota. During operation, the facility will make payments of
about $1.4 million annually to North Dakota entities, including $413,000 in payments to
landowners with easement agreements. The $56 million in statewide direct expenditures during
the construction period were estimated to result in an additional $169 million in secondary
impacts for a total, one-time construction impact of $225 million. The $1.4 million in annual
direct impacts associated with project operation lead to an additional $3 million in secondary
impacts for a total annual impact of $4.4 million. During operation, the county is expected to
receive $191,000 annually in direct property tax payments and $194,000 in total increased
property tax revenues while having negligible increases in costs. The same pattern is repeated
for the Langdon school district, where an estimated $265,000 in property tax revenues will be
received annually from the project during the operations period. This case study shows that
commercial scale wind farms can benefit nearby communities by creating stable, well-paid jobs,
through lease payments to land owners, and by adding to the local tax base. |
| URI: | http://purl.umn.edu/37285 |
| Institution/Association: | North Dakota State University>Department of Agribusiness and Applied Economics>Agribusiness & Applied Economics Report |
| Total Pages: | 43 |
| Collections: | Agribusiness & Applied Economics Report
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| AAE627.pdf | | 109Kb | PDF | View/Open |
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