Landmark report shows economic benefits of wind farms

A typical 50 MW wind farm pays host farmers some $250,000 per year, is constructed by workers who spend up to $1.2 million locally and contributes up to $80,000 annually to community projects, according to a landmark study into the economic benefits of wind farms.

The Sinclair Knight Merz (SKM) study, commissioned by the Clean Energy Council, found that for every 50 MW of capacity (enough to power nearly 21,000 homes annually), the average wind farm creates up to 48 direct jobs during construction and then employs around five ongoing permanent staff.

“This independent report shows that wind farms have direct economic benefits for their local community, as well as major flow-on benefits for the state and the rest of the country,” Clean Energy Council Policy Director Russell Marsh said.

“More than $4 billion of investment has been generated by wind power in Australia since the technology started operating, and there is the potential to unlock another $17.8 billion locally based on currently proposed and approved wind farm projects.”

Marsh said much of the investment was going to rural and regional areas, many of which had missed out on the mining boom.

“Wind farming can help farmers earn vital extra income, make better use of farming land and insure against downturns in key commodities. The income from turbines is sometimes the difference between staying on the land and selling the family farm.

“The report also indicates how wind farms generate significant extra funds for local suppliers, contractors, shopkeepers, community facilities and more, with up to 12 extra ongoing jobs created as a flow-on effect of having a 50 MW wind farm locally.”

Marsh said wind farm companies reinforced these effects by making every effort to locally source materials like crushed rock, cement, sand and gravel, as well as transport and plant hire.

“But it’s not just the communities near the wind farms that benefit. The report shows that the construction of a 50 MW wind farm results in up to 147 direct jobs in the state and up to 238 in Australia.”

The Clean Energy Council launched the report in Sydney on 15 June to celebrate Global Wind Day, an annual event to promote awareness of wind energy across the world. The event is coordinated by the Global Wind Energy Council and the European Wind Energy Association and last year around 40 countries participated.

A recent poll by the Clean Energy Council found the technology was supported by approximately 77% of people, most of whom lived in areas with an operating or planned wind farm. In fact, Marsh said the SKM report was a chance to tell the stories of landholders, employees and business owners who have benefited from wind energy in their region. These benefits include extra income, tourism and, of course, doing something good for the environment.

“Every 100 MW of wind power also reduces around 246,200 tonnes of carbon emissions every year,” said Marsh.

Key findings of the study

• A total of $4.25 billion has been invested in Australia as a result of wind power projects, out of $7 billion total investment.
• Based on current projects, there is the potential for another $17.8 billion in local investment ($29.6 billion total).
• Typical components resulting in Australian investment include wind turbine towers, civil and electrical works, design and development, construction and staff.
• For every 50 MW of capacity, a wind farm generates:
  - direct employment of up to 48 construction jobs, with each worker spending approximately $25,000 in the local area in shops, restaurants, hotels and other services - a total of up to $1.2 million;
  - direct employment of around five staff - a total annual influx of $125,000 in personal expenditure locally;
  - indirect employment during the construction phase of approximately 160 people locally, 504 state jobs and 795 nationwide jobs;
  - up to $250,000 for farmers in land rental income and $80,000 on community projects each year.

The full report, as well as a summary document, is available at http://www.cleanenergycouncil.org.au/cec/misc/gwd.