(JEDI) Model: Offshore Wind User Reference Guide - NREL

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Note: Because of continuous updates and improvements to the JEDI model, it may not be possible to exactly reproduce the results of this model run. Figure 3. Project data summary and local economic impacts summary results from offshore wind JEDI run 4.2 Comparing Results Among JEDI Models Capacity factor and energy generation should be considered when comparing the economic development impacts from different power generation technologies. When comparing results from JEDI models for different power technologies (i.e. solar, wind, or fossil), it is recommended that users compare facilities with equivalent energy generation instead of comparing facilities with a similar nameplate capacity (e.g., compare jobs per kilowatt-hours generated per year, not jobs per kilowatts installed). This report is available at no cost from the National Renewable Energy Laboratory (NREL) at www.nrel.gov/publications. 10
4.3 Understanding the Caveats Several important caveats should be noted: The intent of the offshore wind JEDI model is to construct a reasonable profile of expenditures (i.e., development services, materials and equipment costs, construction labor, and operating costs) and demonstrate the magnitude of the gross economic impacts that could result, 6 assuming a project is built and operates during the stated period of analysis. Given the unique nature of offshore wind resources and the changing nature of the industry, including expected changes as development activity in the United States increases and offshore wind technologies mature, the analysis is not intended to precisely project expected impacts. Instead, the analysis should be viewed as an estimate of the overall magnitude of the impacts. JEDI is a static model. As such, it relies on inter-industry relationships and personal consumption patterns existing in the year of the multipliers. The model does not account for shifts in industry inputs or changes in consumption patterns that could result from changes in prices. Model results assume that all inputs—such as industry, materials, labor, and capital, among others—necessary to complete a project will be available. The model assumes that local resources and production and service capabilities are adequate to meet the level of local demand identified in the modeling assumptions. Similarly, the model does not automatically take into account industry productivity improvements that may occur over time or changes that may occur in the construction or operations processes (e.g., production recipe for labor, materials, and service cost ratios) for new offshore wind plants. Should users wish to examine the impacts as the wind industry changes or matures (e.g., lower costs in the future), such inputs must be developed external to the model and incorporated in the requisite model input locations. The model was not designed to project cash flow or to be used as a cash flow analysis tool. NREL offers financing models and tools that address cash flows in detail. 7 The analysis assumes that the output from the offshore wind system and the specific terms of a power purchase agreement generate sufficient revenues to accommodate the equity and debt repayment and annual operating expenditures. To the extent that additional revenues (i.e., profits and tax advantages above actual costs) accrue to the project owner, there will be added impacts, but these are not included in JEDI analysis. JEDI results are gross as opposed to net. JEDI does not incorporate potentially far-reaching impacts that may arise as a result of a project such as greenhouse gas emissions, changes in utility rates, property values, or displaced investment. 6 The JEDI models do not estimate the displaced energy or associated jobs, earnings, and output related to existing or planned energy generation resources (e.g., jobs lost in the operation of natural gas or coal plants because of diminished need for electricity production from these plants, given increased generation from wind) or increases or decreases in jobs related to changes in electric utility revenues and consumer energy bills, among other impacts. As a result, the estimates represent gross rather than net impacts. 7 The Cost of Renewable Spreadsheet Tool (CREST) is available for download at http://financere.nrel.gov/finance/content/crest-model. This report is available at no cost from the National Renewable Energy Laboratory (NREL) at www.nrel.gov/publications. 11
Page 1 and 2: Jobs and Economic Development Impac
Page 3 and 4: NOTICE This report was prepared as
Page 5 and 6: Acronyms and Abbreviations FTE full
Page 7 and 8: 1 Introduction The Offshore Wind Jo
Page 9 and 10: service providers, and any other en
Page 11 and 12: 3 Entering Data and Running the Mod
Page 13 and 14: Figure 2. JEDI model Project Data p
Page 15: 4 Interpreting the Results JEDI res
Page 19 and 20: 5. Format data contained in each of
Page 21 and 22: for their impact within their respe
Page 23 and 24: Generally, operations period activi
Page 25 and 26: parts and equipment will not be loc
Page 27: GWEC; Greenpeace International (GPI

(JEDI) Model: Offshore Wind User Reference Guide - NREL

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