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Wind farm development spending pattern

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Ryan Knapp

Hey IMPLAN team!

I'm conducting an economic impact analysis of a new wind farm development. I'm trying to reconcile the anticipated operations expenditures that the client provided with the spending pattern for IMPLAN sector 43 - Electric power generation - Wind. The top operations expenditure within that spending pattern is commodity 3047 - Electricity transmission and distribution. Spending for this commodity is approximately 49.4% of the total intermediate input costs.

The client has not outlined that as a cost within their operations cost breakdown. Could you provide more context around why the share of expenditures is so high for that commodity?

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    Michael Nealy

    Hello Ryan!

     

    All of the electricity producing Industries in IMPLAN create a single Commodity, 3039 - Electricity. However, the demand for electricity is captured as spending on Commodity 3047 - Electricity transmission and distribution. Additionally, each electricity-producing Industry’s purchase of its own type of electricity is expressed as purchases of the transmission and distribution Commodity. If you have more detailed information about this new wind farm's operational expenditures, particularly on electricity (which again would be captured as a purchase of Commodity 3047), I would suggest that you reflect that known percentage within the Spending Pattern of Industry 43 in an Industry Impact Analysis (Detailed) Event. Read more about IMPLAN's electric power Industries in our support articles: 2017 Detailed Production Functions for IMPLAN's Nine Electrical Power Industries and Electricity Generation + Distribution FAQ. 

     

    Hope this helps! Let me know if you have any additional questions. 

     

    Best,

    Michael Nealy

     

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