Strong Texas Wind Industry Bolsters Triple Bottom Line

Technicians work to install a wind turbine in West Texas. (Photo credit: New York Times)

Technicians work to install a wind turbine in West Texas. (Photo credit: New York Times)

Due to the economic difficulty of the past several years, much of our country has become enveloped by a sense of urgency to recover from recession. Obviously, the central focus of this urgency is to create jobs, and, as some might suggest, create them even at the expense of the environment. Indeed, economic recovery and environmental protection seem to be pitted against one another with astonishing frequency. However, an increasing amount of evidence suggests that we can accomplish one without compromising the other – and that we already are, to some extent. In fact, by simply looking within our own state, we see proof of a renewable energy industry – led by wind power generation – that is creating a wealth of economic opportunities for Texans.

Since the revision of the Texas Renewable Portfolio Standards (RPS) in 2005, which mandated an expansion of the state’s renewable energy capacity to 10,000 MW by 2025, there has been increased emphasis on fostering a strong renewable energy industry in Texas. This effort, aided by state programs and incentives, has enjoyed its share of success. In fact, Texas renewables blew the lid off of the aforementioned target in spectacular fashion – by 2010, wind energy capacity alone surpassed the 10,000 MW goal that was set for all renewables to achieve by 2025. Consequently, Texas has become the leading state for wind energy production and accounts for over 22% of the nation’s installed wind capacity. Accordingly, this large investment in Texas wind power has come to support many high-quality jobs for skilled workers. According to a report by the Governor’s office, wind energy-related employment in Texas accounted for 25,798 jobs as of the fourth quarter of 2011. Furthermore, the average annual wage was $61,908 – a figure that is well above the average income for Texans.

The prospect for continued growth in wind industry employment is promising, as well. According to a report by the Cynthia and George Mitchell Foundation, the wind and solar energy industries are projected to add 6,000 jobs per year in Texas through 2020 (with a strong likelihood that a larger proportion of these will be created by wind energy). Such strong growth in renewable energy employment goes hand-in-hand with the increasing competitiveness of renewables in the Texas energy market. According to a recent study by ERCOT (Electric Reliability Council of Texas), wind and solar energy in Texas will enjoy much more significant growth over the next 20 years than they had previously expected – a conclusion that was reached after recalculating wind and solar competitiveness using more recent cost and energy output measures.

ERCOT's updated capacity forecast is located on the right side of the graph. Their previous capacity assumptions are on the left side. (Illustration credit: EDF)

ERCOT’s updated capacity forecast is located on the right side of the graph. Their previous capacity forecast is on the left side. (Illustration credit: EDF)

If ERCOT’s assumptions about the Texas wind industry are correct, investors and employees alike will be pleased, but so will rural Texans, who will continue to benefit from the economic development that wind farms bring to their communities. Landowners, including farmers and ranchers, are able to lease their properties to wind developers for an extra source of income. Property values in rural communities that are suited for wind development continue to rise. Local businesses in rural Texas have received new customers to serve in businessmen and turbine technicians alike. Furthermore, increased tax revenues for previously cash-strapped rural governments have provided some financial flexibility.

This trend bodes well for the Texas workforce, which will benefit from an increase in well-paying jobs. Moreover, meeting new demand through drought-resistant energy resources will provide tremendous benefits to the state in saved water resources and curbed toxic emissions (both of which help prevent environmental and economic losses), and will also help prevent pollution-related health problems for our citizens. As renewable energy projects grow in numbers, our state’s capacity to positively affect the triple bottom line (economy, environment, social responsibility) will only grow larger, which should make renewable energy development a policy priority moving forward.

Written by Diego Atencio

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