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Socioeconomic Impacts of the Langdon Wind Energy Center

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  • Leistritz, F. Larry
  • Coon, Randal C.

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.

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Bibliographic Info

Paper provided by North Dakota State University, Department of Agribusiness and Applied Economics in its series Agribusiness & Applied Economics Report with number 37285.

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Date of creation: May 2008
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Handle: RePEc:ags:nddaae:37285

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Keywords: wind energy; renewable energy; economic impact; fiscal impact;

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Cited by:
  1. Coon, Randal C. & Hodur, Nancy M. & Bangsund, Dean A., 2012. "Renewable Energy Industries' Contribution to the North Dakota Economy," Agribusiness & Applied Economics Report 140122, North Dakota State University, Department of Agribusiness and Applied Economics.
  2. Leistritz, F. Larry & Bangsund, Dean A., 2009. "Economic Impact of Cankdeska Cikana Community College on the North Dakota Economy," Agribusiness & Applied Economics Report 55083, North Dakota State University, Department of Agribusiness and Applied Economics.

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