The economic benefits of wind power in North Dakota can be substantial, according to a study by an economist in the North Dakota State University Department of Agribusiness and Applied Economics.

The research focused on the socioeconomic impacts of the Langdon Wind Energy Center. The Langdon Wind Energy Center consists of 106 turbines with each tower capable of producing 1.5 megawatts of power. Construction on the facility started in July 2007 and was completed in January 2008.

“Construction of the Langdon Wind Energy Center is estimated to have resulted in payments of $9.3 million to entities in the Langdon area and an additional $47 million to entities elsewhere in the state,” says F. Larry Leistritz, NDSU agricultural economist and principal investigator of the study. “The more than $56 million in statewide direct impacts during the construction period were estimated to result in an additional $169 million in secondary impacts for a total one-time construction impact of $225.7 million.”

DMI Manufacturing in West Fargo produced the towers, while LM Glasfiber in Grand Forks manufactured the blades.

During its operation, the facility will make payments of about $1.4 million annually to various entities, which includes payments of $413,000 in payments to landowners with easement agreements.

“The $1.4 million in annual direct impacts associated with the project’s operation lead to an additional $3 million in secondary impacts for a total annual impact of $4.4 million,” Leistritz says. “This includes $2.1 million of additional household sector gross receipts. This indicates that personal incomes of areas residents increased by about $2.1 million.”

During peak construction, 269 employees worked at the site, which created an estimated 1,656 secondary jobs statewide. Ten permanent employees work full time at the site, with most living in Cavalier County.

State and local governments also are financial beneficiaries of the project. State revenues increased by more than $2 million from sales, use and personal income taxes. During operation, Cavalier County is expected to receive more than $190,000 in added revenue, while the Langdon School District will see an increase in revenues of more than $270,000.

“Wind energy has been viewed with interest for a number of years, not only as a promising source of renewable energy, but also as an opportunity for rural economic development,” Leistritz says. “This study reveals just how large an economic impact creating wind farms can have.”

NDSU Agriculture Communication