Study Projects Jobs and Tax Windfall From Wyoming Wind Power, but Federal Permitting Slows Growth

A new paper from the University of Wyoming estimates that wind power could deliver a substantial economic boost to the state, while pointing to obstacles that are particular to Western states as demand for renewable energy rises.

The analysis was written by Dr. Christelle Khalaf, a faculty fellow at the university's Center for Business and Economic Analysis. Under her baseline projection, wind development in Wyoming would create more than 3,500 construction jobs, 500 of them permanent, and generate $30 million in annual tax revenue over the decades-long lifespans of the projects.

"We're talking about jobs and the associated wages, we're talking about this creation of value, which goes into GDP, and then we're talking more importantly about fiscal revenue," Khalaf said.

She also modeled an "aggressive" scenario in which permitting, siting and construction move faster. That version projects roughly 6,500 construction jobs, including 1,500 permanent positions, and $90 million in annual tax revenue.

Wyoming roughly doubled its wind capacity between 2019 and 2021 and has numerous projects waiting in the queue. Even so, it ranks only 14th in the nation for installed wind projects. According to Khalaf's report, the state has just 7 percent less wind potential than Kansas but 160 percent less installed capacity. New Mexico and Colorado sit slightly above Wyoming in the rankings and are also adding capacity, but all remain well behind the leading states, with Texas at the top.

Several very large projects are currently proposed in Wyoming. If they are completed in the next few years, they could bring the state in line with the aggressive scenario and make it one of the country's top wind producers. Khalaf added that turbine manufacturing within the region could create further jobs and economic activity in the Mountain West, though she said it is difficult to forecast the manufacturing potential beyond the next five years.

While renewables could help Mountain West states diversify their energy economies, Khalaf identified the permitting process for projects on public land as a key factor holding the region back relative to the rest of the country. "On private land, you can have sort of a permitting process that goes smoothly and you're ready to start construction within two years, versus on federal land, it's on average taking sort of double that – four years and sometimes even more," she said.

Khalaf said federal partners should work within the region to promote and streamline wind development in areas with large amounts of public land. The Interior Department recently created "Renewable Energy Coordination Offices" intended to support permitting and growth in renewable energy.

She also recommended local revenue-sharing arrangements and job creation programs in communities that host wind development, which she said could go a long way toward building local support for large projects.