Wind-power support pays off for homeowners, businesses

Colorado made an early decision to embrace renewable energy, and today homeowners and businesses alike are reaping the rewards as a result. The state is a strong example of how federal and state policies can work together to create far-reaching benefits for all citizens.

Colorado’s early clean-energy leadership is paying off in many ways. With strong state policies in place such as its “30 percent by 2020” renewable portfolio standard, the state now ranks 10th in the country in installed wind power, and has attracted nearly $6 billion in economic investments. Colorado’s bold move in being an early adopter paid off; it’s one of just nine states to generate at least 12 percent of its electricity with wind.

This leadership is saving consumers money. The Colorado Public Utilities Commission has noted that a single wind purchase by Xcel Energy “will save ratepayers $100 million over its 25-year term.” It further explained that wind purchases would “lock in a price for 25 years,” protecting consumers from conventional fuel price spikes.

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Wind energy also creates well-paying jobs for Coloradans. It now supports 7,000 jobs in the state and 23 factories that build wind-related parts and materials. This opens opportunities for people to embark on new careers and can help them reach aspirations such as homeownership or the ability to send their children to college.

In Colorado, environmental savings include elimination of carbon emissions from the equivalent of 2.6 million cars every year, and there is the potential to save more than 6.5 billion gallons of water each year by 2030, an enormous benefit to a state that at times struggles with drought.

By staying ahead of the curve, Colorado will be well-positioned to continue improving air quality and reducing greenhouse gas emissions while also seeing increased cost savings and enhanced revenue streams. According to the Department of Energy, wind power could reliably supply 20 percent of America’s electricity by 2030, and 35 percent by 2050. If that scenario comes to fruition, it could save Coloradans a combined $2.7 billion. That’s on top of saving an additional $5.86 billion through 2050 by wind’s effect on lowering natural gas prices.

There are numerous other economic benefits from wind power in Colorado. Every year, land lease payments from wind farms in the state total $7.8 million for rural landowners, while increased property tax revenue from wind development could top $18 million each year by 2030. Overall, wind has attracted $4.8 billion in capital investment to Colorado. These are resources communities can use to build schools, fix roads and improve health-care facilities.

The evidence shows Colorado’s decision to employ a renewable-energy standard is a smart, effective way to grow renewables. The Lawrence Berkeley National Laboratory and the National Renewable Energy Laboratory recently found that economic investments, made to fulfill renewable-energy standards in the 28 states that have them, already have resulted in billions of dollars in economic and environmental savings, while creating more than 200,000 jobs along the way.

December’s long-term extension of the Production Tax Credit gives U.S. wind energy the policy stability it needs to continue growing. This incentive has been one of the primary drivers in wind’s 66 percent cost reduction over the last six years, spurring technological innovation and improved domestic manufacturing.

We’re now seeing how this tax credit has helped drive wind’s growth across the country. In 2015, wind was the largest source of new electricity generation, accounting for more than 35 percent. There’s now enough wind energy in the United States to power 19 million typical American homes, or drive 26 million electric cars around the world.

Wind power also represents the biggest, fastest, cheapest way to comply with the Environmental Protection Agency’s Clean Power Plan, the nation’s first rule to reduce harmful carbon pollution. According to the Energy Information Administration, wind makes up 57 percent of the economically optimal mix for compliance with the new rule.

Although this rule currently is stayed by a legal challenge, it is prudent for Colorado and other states to remain forward thinking with continued investments in renewable energy. This smart, “no-regrets” strategy spurs economic investment, saves consumers money, improves air quality and will leave the state well-positioned to making forward progress towards a cleaner grid.

Tom Darin is western state policy director for the American Wind Energy Association.