Kayla Schultz | YES! Magazine | Reader Supported News | October 25, 2014
t last month’s People’s Climate March, among the most popular signs were ones supporting renewable energy like wind and solar as the best way to avoid a climate catastrophe. And because of the urgency of the situation, it’s easy to think that we should be building up renewables as much as we can.
But, from an economic point of view, it turns out that not all renewable energy is created equal.
One main difference is between energy generators that are locally owned and ones owned by some faraway entity, and a new report from the Institute of Self-Reliance presents the details. The report, written by Senior Researcher John Farrell, makes two main points: Locally owned renewable energy projects create more economic benefits than absentee-owned projects, and they are less likely to encounter community opposition. By enacting policies to support local renewables, Farrell argues, states and counties stand to gain thousands of jobs and millions of dollars.
Farrell’s report presents striking data from an earlier study by the National Renewable Energy Laboratory, which showed that wind power projects often provide twice as many jobs when they are locally owned. Farrell provides this example:
A 20-megawatt wind energy project built in Minnesota but owned by Spanish firm Iberdrola would add $20 million to the state’s economy and create about 10 long-term jobs. But if that same project were owned by Minnesota farmers or Kandiyohi Power Cooperative, it would create 20 long-term jobs and generate as much as $68 million in economic activity for the state.
The benefit to a local economy depends on various aspects of a project, such as its size, location, and the amount of local labor and materials used.
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