Economic Impact Report 2026 - 2045

Economic Impact Analysis Disclaimer

This economic impact report was prepared by the Northern Nevada Development Authority (NNDA) and assesses the projected economic and fiscal effects of the EDF Power Solutions project proposed in Lyon County.

The findings, conclusions, and data presented herein are estimates based on the assumption that the project will meet the statutory requirements for participation in the State of Nevada’s incentive programs. These estimates are preliminary and for planning purposes only. Final determinations regarding incentive eligibility, abatement values, and tax revenue impacts will be made by the Nevada Department of Taxation, contingent upon formal application, company submissions, and approval by the appropriate governing bodies.

This analysis utilizes the Regional Project Assessment System – Economic and Revenue Impact Modeling Tool, developed by Applied Economics (2024). The model was designed specifically for use in Nevada to estimate economic and fiscal impacts of new or expanding projects in the state.

All projections in this report are based on currently available data, current tax policy, and the existing economic structure of the region. As with any forecast, actual results may vary due to unforeseen events or changes in assumptions. Nonetheless, the analysis represents the best available estimates at the time of this report and is intended to assist the Governor’s Office of Economic Development (GOED) and local development partners in evaluating potential impacts of economic development projects.

Economic Impact Analysis of EDF power solutions Project in Lyon County

Executive Summary of Economic Impact (2026 – 2045)

Introduction

EDF power solutions has engaged the Northern Nevada Development Authority (NNDA) to conduct an independent third-party economic analysis of its proposed solar and battery storage facility in Lyon County, Nevada. Located in the Sierra Way area, the project represents a significant investment in renewable energy infrastructure and regional development.

With a planned capital investment of approximately $1.1 billion, this project includes land acquisition, construction, and equipment procurement for a large-scale solar and battery installation. The construction phase is expected to span two years and use 400 temporary construction jobs, including electricians, equipment operators, and general laborers. Upon completion, the facility will provide five permanent, full-time positions, contributing long-term value to the local economy. The company will apply for Nevada Department of Energy Tax Abatements that include Sales & Use tax abatement, reducing the rate to 2.6% for 3-year period, and Property (real and personal) tax abatement reducing their tax obligation to 55% for the period of 20 years.

This report outlines the projected value of these applicable tax abatements as well as economic and fiscal impacts of the EDF power solutions project over a 20-year period.

Project Data

Based on the data provided by the company, Table 1. details the anticipated labor and capital investment by project. The project is expected to create a total of 5 new permanent employees who will be employed at an average wage of $52.90. Additionally, 400 construction jobs will be utilized during the 2-year construction period. The average wage of construction jobs is estimated at $62.03 per hour including benefits, contributing approximately $51.6 million in annual spendable income. This analysis assumes that the company will make more than $101.4 million investment in construction, and a $942.9 million investment in equipment over the two-year period. Shown economic impact and revenue impact results in this analysis will be based on the presented input data for the period of 20 years.

Economic Impact Overview (2026 – 2045)

• Construction Impact. Construction jobs are not permanent and should therefore be viewed as a “person-year” equivalent. An estimated 400 direct construction jobs are required for this project with the labor income of $51.6 million over a 2-year period. This level of construction activity could result in a one-time direct economic impact of $101.4 million, or a total construction impact of $209.0 million when included suppliers and induced jobs in the service sector. 
• Total Economic Impact. In total, this project could create an economic impact estimated at $84.1million over the next 20 years. The projects’ operation could directly and indirectly support an estimated 10 new jobs (based on 5 direct jobs + 5 indirect/induced) and 16.7 million in labor income over the 20-year period, and support 4 households with a total of $11.8 million in household spending. It is estimated this project will be operational for 40 years providing long-term tax revenue benefits. Following the abatement period, the project will contribute full tax revenues to local and state governments for an additional 20 years, further strengthening regional economic resilience. 
• New Tax Revenue Impact - State and Local Tax Impact. Assuming a capital investment of $1.1 billion in land, buildings and equipment, and its employees, this project could generate an estimated $89.8 million in net tax revenues after abatements over 20 years. An estimated $85.6 million will be generated in local tax revenues, and $4.2 million in State tax revenues. It is estimated that a total of $28.7 million will be generated in sales & use taxes over a 20-year period; $60.9 million will be generated in property revenues over the 20-year period. Also, it is estimated that the project will generate $131,799 in modified business taxes over 20 years. In addition to company taxes, direct employees, and indirect and induced employees could generate lodging tax revenues in the amount of $25,289.

Economic Impact Analysis

The economic benefits resulting from this operation in Lyon County can be measured in terms of both theone-time construction impacts and on-going operational impacts. These impacts include direct, indirect andinduced jobs. Indirect and induced impacts are the result of the multiplier effect and capture supportedsupplier and consumer businesses and employees in the county, region, and statewide, that could benefitfrom this operation.

Construction Impacts

Based on the estimated construction cost of this project, provided by the company, we estimated theconstruction impact. Although this impact is nonrecurring, it is still significant in the years of the constructionperiod and, therefore, should be considered. The construction required for this project could result inexpenditures estimated at $101.4 million over the 2-year period 2026 - 2028. Direct output in this case isequivalent to construction costs. The multiplier effect of this spending could result in a total increase ineconomic activity of $209.0 million. The estimated 400 direct jobs needed for this project by constructionactivity could result in an estimated $60.5 million in total labor income. Through local supplier purchases andservice providing purchases, this operation could create an estimated total impact of $182.6 million at theend of the project.

Operation Impacts

On-going economic impacts from the operations over the next 20 years include direct output, employmentand labor income, and the corresponding level of indirect and induced impacts that could be supported bythis project.

The EDF power solutions operation plans to hire 5 people directly employed by the project, creating$550,160 in annual payroll, up to $11.0 million over the 20-year period. The project could indirectly createan additional 5 jobs over the next 20 years through its suppliers and consumers at other local companies, dueto increased demand for products and services needed to finish this project. Ten jobs and $16.7 million inlabor income will be created by 2045. The project will support 4 new households with $11.8 million inhousehold spending. Through local supplier purchases and employee spending, this operation could createan estimated total economic impact of $84.1 million at full operational level.

The new jobs generated directly and indirectly by this project could support a local population estimated at11 people or 4 families, with an expected $11.8 million in household income spending, and almost all thoseworkers expected to live in Lyon County. This includes families of direct employees, as well as families ofemployees at related supplier and consumer businesses supported through the multiplier effect.

The secondary or indirect impacts described here are called multiplier effects. Multiplier effects are a way ofrepresenting the larger economic effects on the state’s economy. The multiplier effects translate into anincrease in output (loosely defined as labor cost, plus cost of inputs plus profits) into a correspondingincrease in jobs and labor income. In essence, the multiplier effect represents the recycling of local spending.

‍

Tax Revenue Impact

In addition to supporting jobs, income and output at related businesses in the region and state througheconomic multiplier effects, The EDF power solutions operation would generate state and local tax revenuesto Lyon County and the State of Nevada. The EDF power solutions operation will apply for NevadaDepartment of Energy for Energy Tax abatements which consist of Sales and Use Tax abatement on eligibleequipment purchases that will reduce tax rate to 2.6% from 7.1% on all purchases they will make within 3years of operations, and 55% reduction in property tax obligations for the period of 20 years.

The estimated value of tax abatements over the 20-year period is $116.4 million. This project could generatean estimated $89.8 million in new net tax revenues (after the abatements) over the next 20 years. In total, theproject could generate an estimated $4.2 million in state taxes and $85.6 million in local taxes over 20 years.

Sales & Use Tax Abatements and Net Tax Revenues

State and local sales and use taxes generated by the company on equipment purchases in the amount of$942.9 million would be abated for the first 3 years down to a rate of 2.6%. The company is planning topurchase the equipment needed within the first 2 years of operation. The value of anticipated total sales anduse tax reimbursements is estimated at $42.4 million; $23.6 million is the local value of tax abatements and$18.9 million is state portion of the tax abatement value.

Direct Revenue Impact:

The direct revenue impact includes only revenues generated directly by the business es purchase ofequipment and new construction purchases. Estimated direct net tax revenues collected after abatement are$28.5 million; where $27.4 million goes to local governments, and $1.1 million represent State portion of therevenues. (Table 5. Sales & Use Tax Abatement and Net Tax Revenues)

Total Revenue Impact:

Along with the sales taxes paid directly by the company, there could also be indirect retail sales generated bythe employees and supported population living in the region. These indirect sales tax revenues are driven bydisposable labor income and the share of employees living in the region.

Estimated total indirect sales tax revenues are $251,110 and when combined with the direct sales taxrevenues, the project will have a total revenue impact on the state and local government in the amount of$28.7 million.

‍

Property Tax Abatements and Net Tax Revenues

Property taxes are abated at a rate of 55% for the first 20 years. The estimated value of property taxabatements for the 20 years period is $74.0 million based on the capital investment assumptions used in thisanalysis; $70.5 million is the local value of tax abatements and $3.5 million is state portion of the taxabatement value. Following the abatement period, the project will contribute full tax revenues to local andstate governments for an additional 20 years, further strengthening regional economic resilience.

‍

Direct Revenue Impact:

Estimated direct net tax revenues collected after abatements are $60.5 million; of which $57.7 million goesto local governments, and $2.8 million represent State portion of the revenues. (Table 7. Property TaxAbatement and Direct Net Tax Revenues).

The project will be in Sierra Way, Lyon County, so we are using Mason Valley Fire Protection District tax ratesfor our projections to determine distribution of local government collected net tax revenues. Model estimatesthat of $57.7 million, Lyon County will receive $15.4 million, School District will be receiving $22.2 million,and Special District.

Real Property Tax abatement is estimated at $21.4 million and direct net property tax revenue collected afterabatements is estimated at $17.4 million. Local government will be collecting $16.6 million in revenues, and$811,524 will be a portion of revenues going to the State.

Personal Property Tax abatement is estimated at $52.7 million, and direct net property tax revenue collectedafter abatements is estimated at $43.1 million. Local government will collect $41.1 million in revenues, and$2.0 million will be State revenue portion.

Total Revenue Impact:

The direct revenue impact results include only revenues generated directly by the project based on the dataprovided such as equipment purchase, construction cost, land value and leas agreements. Additionalrevenues generated by supplier and consumer jobs are calculated as an indirect revenue impact. Modelestimated that the total indirect revenue impact is $354,322, and when combined with direct revenue impactwill generate total revenue impact of $61.0 million.

State Modified Business Tax (MBT) is not abated, and the model estimates that State could receive $131,799in revenues within the estimated 20-year period. Projects’ tax and fee impact also include an estimated$24,427 in indirect Lodging tax revenues. (Table 8. Total Tax Revenue Impact).