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Green Growth The impact of wind energy on jobs and the economy

Green Growth - the impact of wind energy on jobs and the economy

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Green Growth examines the impact of wind energy on jobs and the economy in the EU. The wind energy industry increased its contribution to the EU’s gross domestic product (GDP) by 33% between 2007 and 2010. In 2010, the industry’s growth was twice that of the EU’s GDP overall, with the sector contributing €32 billion to an EU economy in slowdown. Contents: The sector created 30% more jobs from 2007 to 2010 to reach nearly 240,000, while EU unemployment rose by 9.6% . By 2020, there should be 520,000 jobs in the sector. The sector was a net exporter of €5.7 billion worth of goods and services in 2010. The sector avoided €5.71 billion of fuel costs in 2010. The sector invested 5% of its spending in R&D – three times more than the EU average. Wind turbine manufacturers commit around 10% of their total turnover to R&D.

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Page 1: Green Growth - the impact of wind energy on jobs and the economy

Green GrowthThe impact of wind energy on jobs and the economy

Page 2: Green Growth - the impact of wind energy on jobs and the economy

Key findings for 2010• The wind industry contributed

€32.43 bn to EU GDP– 33% increase since 2007– The sector generated 0.26%

of the EU’s GDP• The wind industry paid €3.59 bn

in taxes– Over 50% increase since 2007

• The wind industry avoided €5.71 bn in fuel costs from coal, oil, gas, biomass and waste

Page 3: Green Growth - the impact of wind energy on jobs and the economy

Key findings for 2010 continued• The wind energy sector exported

products and services worth €8.8bn – 33% increase since 2007

• The wind industry directly and indirectly employed 238,154 people in the EU– 30% increase since 2007

• The wind industry spent over 5% of its turnover in R&D – three times more than the

economy-wide average• Over 48% of EU wind energy

companies had activities outside the EU

Page 4: Green Growth - the impact of wind energy on jobs and the economy

Key findings for 2020 • The wind industry will contribute

€94.5 bn to EU GDP– An almost three-fold increase

over the next ten years– The sector generating 0.59%

of the EU’s GDP• The wind industry will continue

to be a driver for economic growth over the next ten years

• The number of jobs will increase to 520,000 by 2020– A rise of more than 200%

over the next 10 years

Page 5: Green Growth - the impact of wind energy on jobs and the economy

Key findings for 2030• The wind industry will contribute

€173 bn to EU GDP, generating almost 1% of the EU’s GDP– A five-fold increase over the

next 20 years.• The number of jobs will increase

to 794,079 – An increase of 233% over 20

years

Page 6: Green Growth - the impact of wind energy on jobs and the economy
Page 7: Green Growth - the impact of wind energy on jobs and the economy
Page 8: Green Growth - the impact of wind energy on jobs and the economy
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Page 14: Green Growth - the impact of wind energy on jobs and the economy
Page 15: Green Growth - the impact of wind energy on jobs and the economy

EU wind energy sector director contributions to GDP from 2007 to 2010 (constant prices)

2007 2008 2009 2010

5

10

15

20

12.4414.11

16.91 17.61

€ bi

llion

- cur

rent

pric

es

Source: Deloitte

Page 16: Green Growth - the impact of wind energy on jobs and the economy

Growth of wind energy sector direct contribution to EU GDP

2008 2009 20100.00%

5.00%

10.00%

15.00%

20.00%

25.00%

13.4%

19.8%

4.1%

Annu

al g

rowt

h

Source: Deloitte

Page 17: Green Growth - the impact of wind energy on jobs and the economy

Wind energy’s direct contribution to EU GDP and EU GDP growth

2008 2009 2010

-10%

-5%

0%

5%

10%

15%

20%

25%

0.5%

-4.3%

1.9%

13.4%

19.8%

4.1%

∆ EU27 GDP ∆ EU27 Wind Energy contribution to GDPSource: Deloitte

Page 18: Green Growth - the impact of wind energy on jobs and the economy

Relative weight of the wind industry’s sub-sectors in terms of direct GDP

2007 2008 2009 20100%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

39.90% 39.10% 39.70% 42.80%

24.40% 25.20% 25.80% 23.70%

15.80% 14.90% 14.10% 13.10%

19.90% 20.80% 20.30% 20.50%

Developers Wind Turbine ManufacturersComponent Manufacturers Service providers

Source: Deloitte

Page 19: Green Growth - the impact of wind energy on jobs and the economy

Total normalised wind energy productions (TWh)

2007 2008 2009 2010

50

100

150

200

118.5

136.4

159.0

181.7

Onshore wind energy production (TWh) Offshore wind energy production (TWh)

TWh

Source: Deloitte

Page 20: Green Growth - the impact of wind energy on jobs and the economy

Average growth of wind energy selling prices compared to fossil fuel prices

2008 2009 2010

-60%

-40%

-20%

0%

20%

40%

60%

80%

Wind Energy average revenue per MWhOil price - Brent barrelNatural Gas - ZeebruggeNatural Gas - Henry HubOECD Coal Imports Source: Bloomberg - World Energy Outlook (IEA)

Page 21: Green Growth - the impact of wind energy on jobs and the economy

Geographical distribution of new wind capacity installations in 2010

China 48.8%

EU2723.7%

North America14.9%

India5.5%

Other7.1%

Source: Global Wind Energy Council (GWEC)

Page 22: Green Growth - the impact of wind energy on jobs and the economy

Share of sub-sectors in wind industry exports

2007 2008 2009 20100

5

10

11% 11% 12% 13%

67%69% 67% 68%

19%17%

18%16%

3%3%

3%3%

Wind Energy ProducersWind Turbine ManufacturersComponent Manufacturers

Win

d en

ergy

exp

orts

€ bi

llion

cons

tant

201

0 pr

ices

Source: Deloitte-EWEA

Page 23: Green Growth - the impact of wind energy on jobs and the economy

EU wind industry imports in € billion (constant prices 2010)

Page 24: Green Growth - the impact of wind energy on jobs and the economy

Share of sub-sectors in wind industry net exports

2007 2008 2009 20100.0

1.0

2.0

3.0

4.0

5.0

6.0

17% 16% 18% 18%

72%74% 70%

72%

9%

8%10%

9%

2%

2%2%

2%

Wind Energy Producers Wind Turbine ManufacturersComponent Manufacturers Services

Net e

xpor

ts o

f win

d po

wer

€ bi

llion

in c

onst

ant 2

010

price

s

Source: Deloitte-EWEA

Page 25: Green Growth - the impact of wind energy on jobs and the economy

Taxes paid by EU wind industry

2007 2008 2009 20100.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

€ bi

llion

Source: Deloitte

Page 26: Green Growth - the impact of wind energy on jobs and the economy

Wind energy avoided fuel costs

2007 2008 2009 2010

2

4

6

8

3.51

5.86

5.105.71

Coal Oil Gas Biomass and waste

TWh

Source: EWEA

Page 27: Green Growth - the impact of wind energy on jobs and the economy

Indirect added value generated by the wind energy in the rest of the economy (€ billion)

Others

Research and development

Post and telecommunication

Rubber and plastic products

Construction

Fabricated metal products

Basic metal

0.0 0.5 1.0 1.5 2.0 2.5 3.0

€ billion

Source: Deloitte

Page 28: Green Growth - the impact of wind energy on jobs and the economy

Indirect employment key findings

• The wind industry’s indirect contribution to EU GDP was €14.8 bn in 2010– Increasing by 24% since 2007– It now represents 0.12% of total EU GDP

• Every Euro generated directly by the wind industry generates around €c90 in other sectors of the economy

• The metal, electric and electronic sectors benefit the most from investment in the wind industry, followed by transport and construction

• Employment generated by the wind industry in other sectors of the economy was 102,300 posts in 2010 – A 31% increase since 2007

Page 29: Green Growth - the impact of wind energy on jobs and the economy

Wind energy sector’s share of total EU GDP

2007 2008 2009 20100.00%

0.05%

0.10%

0.15%

0.20%

0.25%

0.30%

0.18%0.20%

0.25%0.26%

Source: Deloitte

Page 30: Green Growth - the impact of wind energy on jobs and the economy

Evolution of total employment of the wind energy sector in numbers of jobs

2007 2008 2009 20100

50,000

100,000

150,000

200,000

250,000

300,000

182,628198,647

230,970 238,154

153,793 154,476

196,632 189,096

Current Analysis Pure Power (2011)

Empl

oym

ent

Source: EWEA - Deloitte

Page 31: Green Growth - the impact of wind energy on jobs and the economy

Evolution of wind energy sector R&D expenditure per sub-sector in € million

2007 2008 2009 20100

100

200

300

400

500

600

700

800

900

1,000

192 223 276 319

283349

42741957

65

7372

58

72

8490

€ m

illion

Source: Deloitte

Page 32: Green Growth - the impact of wind energy on jobs and the economy

R&D key findings

• Since 2007, the sector’s R&D expenditure has constantly been above 5% of its GDP– 2.5 to three times more than economy-wide

expenditure• In 2010, the wind energy sector spent €900 mn

on R&D• Wind turbine manufacturers commit the most

to R&D– around 10% of their GDP

Page 33: Green Growth - the impact of wind energy on jobs and the economy

Forecast of direct and indirect employment in wind energy sector in 2020 and 2030 in numbers of jobs

2010 2020 20300

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

238,155

520,659

794,079

Source: Deloitte - EWEA

Page 34: Green Growth - the impact of wind energy on jobs and the economy

EU wind energy sector key findings

• Over 48% of European wind energy sector companies have activities outside the EU

• Of the 10 biggest wind turbine manufacturers in the world, four are EU-based

• Five of the ten biggest wind energy developers in the world are EU-based

• EU wind energy companies employ some 20,000 EU professionals in non-EU countries

Page 35: Green Growth - the impact of wind energy on jobs and the economy

About the European Wind Energy Association

EWEA is the voice of the wind industry, actively promoting wind power in Europe and worldwide. It has over 700 members from almost 60 countries making EWEA the world's largest and most powerful wind energy network.

Rue d'Arlon 80B-1040 BrusselsBelgiumwww.ewea.org

Page 36: Green Growth - the impact of wind energy on jobs and the economy

To download the pdf version click here

To download the infographic click here

If you want to see more statistics, reports, news and information about wind energy event please visit EWEA’s website www.ewea.org or contact us at [email protected]