An Investigation into the Feasibility of a wind farm in Southeastern Connecticut

Transcription

1 An Investigation into the Feasibility of a wind farm in Southeastern Connecticut By Bill Farrell An Engineering Project Submitted to the Graduate Faculty of Rensselaer Polytechnic Institute In Partial Fulfillment of the Requirements for the degree of MASTER OF ENGINEERING Approved: Ernesto Guiterrez-Miravete, Engineering Project Advisor Rensselaer Polytechnic Institute Groton, Connecticut December,

2 Copyright 2010 by Bill Farrell All Rights Reserved 2

3 CONTENTS LIST OF TABLES... 4 LIST OF FIGURES... 5 ACKNOWLEDGMENT... 6 ABSTRACT Introduction Purpose Methodology Fossil Fuels Coal Solar Geothermal Hydropower Wind Environmental Impacts Visual Impacts Theory and Methodology Results and Discussion Conclusion References Appendix

4 LIST OF TABLES Table 1: Net Electricity Generation [6] Table 2 Electricity Rates per KwH [6] Table 3 Freedom Wind LLC Projects [22] Table 4 GE 1.5 MW Wind Turbine Specs [29] Table 5 Payback Period

5 LIST OF FIGURES Figure 1 Wind Farm in Rural Europe [4] Figure 2: Concentrating Solar Resource of the United States [9] Figure 3 United States Wind Potential [9] Figure 4 [7] Figure 5 [21] Figure 6 Map or Proposed location [36] Figure 7 Aerial photo of proposed location [35] Figure 8 Aerial photo of proposed location [35] Figure 9 Aerial photo of proposed location [35] Figure 10 Aerial photo of proposed location [35] Figure 11 Geothermal Energy potential [9] Figure 12 Installed Wind power capacity for 1999 [9] Figure 13 Installed Wind power capacity for 2009 [9] Figure 14 Wind power density and wind speed at 80m [9] Figure 15 CT's current power plants [6]

6 ACKNOWLEDGMENT The author wishes to thank Dr. Ernesto Gutierrez-Miravete for his guidance. The author would like to thank his family and friends for their help. Lastly, the author would like to thank Electric Boat for their support. 6

7 ABSTRACT The purpose of this project is to conduct an investigation on the feasibility of a wind farm in Southeastern Connecticut. A hypothetical wind farm design could be developed on a suitable location in Connecticut. Analysis will be performed focusing on economic, legal, operational, market / real estate, and power output. Traditional calculations will consist of potential output capacity and payback period. Results will be analyzed and compared to existing successful wind farms. The ever increasing demand for electrical generation has put a strain on the United States power grid. Gas turbine power plants generate hundreds of megawatts (MW), nuclear power plants can provide thousands of megawatts and hydroelectric plants can generate giga Watts (GW). Wind turbines can generate 1 or 2 MW. For this reason many windmills are grouped together into wind farms. This report covers a feasibility study for wind power project in Southeastern Connecticut. A potential site for a wind farm is located at 79 Wintechog Road in North Stonington, CT. This location is currently on the market for $3,600,000 consisting of roughly 210 acres. This report will investigate the limitations of a wind farm at this site. The electrical generation capacity available based upon current wind turbine models and possible configurations upon the site. The local wind resource will be based upon average CT wind data at various heights to maximize power production. Environmental constraints will be taken into consideration. Finally, an economic feasibility study is done to determine whether it is profitable to design, build and maintain a wind farm in Southeastern Connecticut with the current technology. Important factors such as electrical grid, geographical location and 7

8 maximum capacity are crucial to a successful wind farm. The most ideal location for a wind farm is offshore or a high elevation. CT currently has a average wind speed of 5 m/s which may be sufficient for consideration. The maximum capacity of the wind farm is calculated at MW and will be compared to other power producing alternatives on the same space and cost. The payback period is calculated in years. Tax credits and other green energy incentives are critical to an alternative energy power plant to be successful. If a wind farm is not financially successful, then there will be no investors to make it possible. Other factors are the environmental benefits of the wind farm which are estimated in terms of avoided emissions. This study concludes that a wind farm at the chosen site is technically and financially feasible. 8

9 1. Introduction 1.1 Purpose The purpose of this project is to conduct an investigation into installation of a wind farm in Southeastern Connecticut. A hypothetical wind farm will be developed on a suitable location in Connecticut; 79 Wintechog Road in North Stonington, CT. See Figures 6-10 in the Appendix. Analysis will be performed focusing on economic, legal, operational, market / real estate, and power output. Traditional calculations will consist of potential output capacity and payback period. Results will be analyzed and compared to existing successful wind farms. Southeastern Connecticut was chosen because of Rensselaer s location in Groton Connecticut. Southeastern Connecticut has a history of providing power to New England. Millstone nuclear power plants are located in Waterford and currently provide 2000 MW of power to New England. In Haddam Neck there used to be another operating nuclear power plant, called Connecticut Yankee which was retired in The Hess oil station takes oil from tanker ships in the Thames River and distributes it. Speaking of the Thames, there is also a trash burning power plant in Groton. Considering the vast industrial base and the infrastructure in place, Southeastern Connecticut is a great location for an additional power producing means. The electrical grid is in place and ready to support another load. Southeastern Connecticut is also expanding which will mean an increased energy demand. What better way to power this expansion than with clean wind power. Published studies identify that an offshore wind farm produces much more power than a wind farm on land. However the logistics for Connecti- 9

10 cut to create an offshore wind farm are difficult. Wind turbine placement needs to be carefully considered as to not disturb vital economic shipping lanes or to disturb pleasure craft in Long Island Sound. Also, how do you get the power to the shore side of things? Although Connecticut does not experience hurricanes with the same damages that the state of Florida receives, putting many large wind turbines in the ocean almost seems to be putting them in harm s way. [1] A suitable location is determined based upon a number of things. One is that the location needs to be out of the path of airplanes on their final approach to the runway. Another hurdle is the path of migrating birds. The location needs to have a sustainable wind speed to keep the turbine producing power. The location needs to be adjacent to a power grid which can supply the energy produced at the wind farm to where the energy demand is. There is an estimated 72 terawatts of wind power on earth. Capacity factors are usually 20-40% [2] compared to a 90% capacity factor for nuclear power. In a 2008 study released by the U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy, the capacity factor achieved by new wind turbines reached 36%. [3] An increase to the capacity factor is one of the biggest hurdles for wind power. Wind farms are designed to maximize the capacity factor by investigating many variables. The biggest choice for a wind farm is the location. A steady wind is desired, although if the wind speed is too fast the windmills can free wheel, producing no power. Some windmills can change the angle of attack to adapt to varying wind conditions. On the other hand too little wind will not turn the blade of the windmill due to the friction. Wind power is a green energy and produces no carbon, with the exception of the manufacturing of the wind- 10

11 mill itself. This is an excellent choice for power production to reduce the current dependence on the combustion of fossil fuels for energy, and the cows seem to like the turbines. Figure 1 Wind Farm in Rural Europe [4] 1.2 Methodology The two biggest factors on whether a project is successful are schedule and cost. [5] We will take schedule out of the scope of this project and this study will just focus on cost. There are many drivers to cost. All power plants are expensive. All have development fees and maintenance costs. A power plant does not make money when it is being serviced or if the mechanical equipment breaks down. As wind turbine technology grows in leaps and bounds wind turbines are becoming more efficient, more reliable and cheaper to procure. There are many federal and state tax credits and alternate energy grants. Any business, even a wind farm needs to be profitable. Some companies never quite reach the point of profitability. Some 11

12 developments become tax shelters. A key indicator for investors is a payback period - how long after an initial investment will the investor be paid back. As the price of crude oil and natural gas rise, politicians are applying pressure to businesses to seek alternative means. The oil embargo crisis of 1973 still remains fresh in many American s minds. The rationing of gasoline put life at a standstill. Another implication is national security. The armed forces need fossil fuel to support all of their operations. If there is another oil shortage, or gas prices climb above current prices there could be greater implications. With all of this taken into consideration, the cost of wind power becomes more competitive. [6] This study will investigate Connecticut s current power usage. It will investigate Connecticut s current power generation. The study will also match the proposed wind farm up against all current power producing means in Connecticut. This study will investigate wind turbine usage around the world. It will investigate why some countries have a solid portion of their energy produced from alternate means such as wind and why America does not. It will investigate what America needs to do to become energy independent. This will be part of America s energy plan for the next 50 years and beyond in an attempt to produce more power than it consumes. A small wind farm in Southeastern Connecticut will be an essential case study as to the feasibility of using wind and other alternative energies to power America. This study will describe the basic theory behind wind power. It will explain the differences between types of wind turbines. For the feasibility study various configurations using production wind turbines will be used. There 12

13 are many amazing wind turbine concepts. For the interest of this project only a wind turbine with a good track record will be utilized. Another aspect of this study is the amount of pollution and greenhouse gasses that wind power will offset. A potential outcome of this project is the awareness of the other feasible power options. If every business had a wind turbine to offset its peak energy demand or if every neighborhood had a wind turbine to offset home energy consumption, or if every new construction house had a small wind turbine to power the refrigerator this would be a tremendous step in the right direction. Any of the possibilities listed above would take some of the load off of the overloaded coal power plants, or the overload unstable electrical grids. This could possibly reduce the demand from fossil fuels and take a solid bite out of the greenhouse gases produced. With the increasing cost of energy from the grid, alternate sources of energy are becoming more common and the cost has dropped significantly. Some alternate sources of energy are solar power, geothermal power and wind power. All alternate forms of energy have their pluses and minuses. [7] 1.3 Fossil Fuels The United States imports almost two thirds of its oil. Canada, our neighbor to the north supplies twenty percent of the imports, and our neighbor to the south, Mexico contributes ten percent. There is over thirty percent of the oil import from unfriendly countries so to speak. These countries are as follows; Saudi Arabia, Venezuela, Nigeria, Angola, Iraq, and Algeria. Fossil 13

14 fuels currently provide more than eighty five percent of all the energy consumed in the United States, including two thirds of our electricity, and almost all of our transportation fuels. It is possible that the United States dependence on fossil fuels will increase over the next few decades despite the shift to go green. [6] 1.4 Coal One quarter of the world s coal reserves are found in the United States, and the energy content of our coal resources exceeds the world s known recoverable oil. With the substantial amount of coal remaining and the finite amount of oil, coal may take over fossil fuels dominance in the future. Coal supplies much of the required energy to developing nations because of it is inexpensive and developing nations are not always concerned with emissions. [8] 1.5 Solar Using the sun as a source of power is an amazing concept. As long as the sun is shining power can be captured using photovoltaic cells. The cells transform the solar energy into usable electricity. Solar cells can be used residentially to heat water or even spaces. Covering 4% of the world's desert area with photovoltaic could supply the equivalent of all of the world's electricity. The Gobi Desert alone could supply almost all of the world's total electricity demand. The use of solar power as an energy source produces no air pollution or emissions. There are some nasty elements used in the manufacturing process of the photovoltaic cells. The solar cells are 14

15 made of silicon and the manufacturing process requires the use of fossil fuels. The storage of energy produced by the solar cells is stored in lead acid batteries. Batteries are required because the amount of sunlight varies greatly during the day and even day to day. Batteries are used to store excess power and essentially save it for a rainy day. As you can see in Figure 1 the vast majority of the solar power capacity is located in the South Western United States. [9] Figure 2: Concentrating Solar Resource of the United States [9] 1.6 Geothermal The United States leads the world in electricity generation with geothermal power. In 2008, U.S. geothermal power plants produced 15 billion kilo- 15

16 watt-hours, or 0.4% of total U.S. electricity generation. Seven States have geothermal power plants: California has 34 geothermal power plants, which produce 90% of U.S. geothermal electricity.[8] See Figure 11 in the Appendix for United States Geothermal capacity. One would note that most of the capacity is in the Western United States. Geothermal is a great form of alternate energy and seems to be a general contractor s choice of green power. The reason for this is the digging up of the lawn to run the underground pipes. Drilling is an expensive option, which is why geothermal is primarily done during new construction. [11] 1.7 Hydropower Of all the renewable energy sources hydropower produces the most electricity in the United States. In 2008, it accounted 6% of total U.S. electricity generation and 67% of generation from renewables. Hydropower is one of the oldest sources of energy. It was used thousands of years ago to turn a paddle wheel for purposes such as grinding grain. Over half of U.S. hydroelectric capacity for electricity generation is concentrated in three States: Washington, California, and Oregon. Approximately one third of the total U.S. hydropower is generated in the state of Washington. The Grand Coulee Dam generates 7000MW which makes it the Nation's largest hydroelectric facility. Most hydropower is produced at large facilities built by the Federal Government. Most dams were not built for power, they were constructed solely to provide irrigation and flood control. [7] 16

17 1.8 Wind Wind is simply air in motion. It is caused by the heating and cooling of the Earth's surface. The Earth is heated by the sun's heat at different rates. The uneven heating causes wind. Generation from wind in the United States nearly doubled between 2006 and In 2008 wind power produced 52 billion kilowatt hours or enough to power the state of Colorado. [9] Most of the wind power plants in the world are located in Europe and in the United States where government programs have helped support wind power development. As of 2008, the United States ranks first in the world in wind power capacity, followed by Germany, Spain, and China. Denmark ranks ninth in the world in wind power capacity, but generates about 20% of its electricity from wind. Conditions are well suited along much of the coasts of the United States to use wind energy. However, some people oppose putting turbines just offshore, near the coastlines such as the Cape Wind Project, located south of Cape Cod in Massachusetts. Wind is a renewable energy source that does not pollute, and is seen as a good alternative to fossil fuels. In the 1970s, oil shortages pushed the development of alternative energy sources. In the 1990s, the push came from a global warming concern for the environment. Wind energy is an economical power resource in many areas of the country. Wind is clean energy; wind power plants or wind farms produce no air or water pollution because no fuel is burned. Rising costs for fossil fuels especially natural gas, oil and coal have helped wind power capacity in the United States grow substantially over the past 10 years. [9] 17

18 Figure 3 United States Wind Potential [9] The benefits of wind power are that: It requires less land area per kilowatt-hour (kwh) of electricity generated. It generates the energy used in its construction within a short time (months) of operation. Greenhouse gas emissions and air pollution produced by its construction are small. There are no emissions or pollution produced by its operation. Modern wind turbines have slow rotary speeds; they are rarely detrimental to wild-life. 1.9 Environmental Impacts The environmental impacts from windmills are controversial. Some concerns are that people have are the following; noise, visual impact, and danger to birds. Wind turbines produce some noise when they operate. Most 18

19 of the turbine noise is masked by the sound of the wind itself, and the turbines only runs when the wind blows. Modern developments to reduce noise as wind turbines have become more efficient due to technological developments; more of the wind is converted into rotational torque and less into acoustic noise. Additionally, insulating materials can be used to minimize noise impacts. Aerodynamic noise has been reduced by changing the thickness of the blades' trailing edges. A small amount of noise is generated by the mechanical components of the turbine. A wind turbine 300 meters away is almost unnoticeable. [11] 1.10 Visual Impacts Wind turbines are often highly visible. An example of the public outcry can be seen with the proposed moderately sized wind farm off the coast of Cape Cod. The Cape Wind Project would cover approximately 24 square miles with 130 turbines. The 440 foot tall turbines, 1.5 miles offshore would appear to be one half inch tall above the horizon. [12]When a wind turbine's moving blades can cast a moving shadow on a nearby residence, this is called shadow flicker. Depending on the time of the year and time of day, it is possible to calculate whether a flickering shadow will fall on a given location near a wind farm. Wildlife impacts bird deaths are one of the most controversial biological issues related to wind turbines. The cause of bird fatalities per 10,000 deaths is less than 1 for wind turbines compared to 250 for communication towers. [13] 19

20 2. Theory and Methodology Windmills have been around since Don Quixote was riding a horse. They have helped man to harness the power of the wind and turn it into something useful. Wind power was used to sail ships thousands of years ago as well as used to pump water in China. During that same time frame in Persia, windmills were used to grind grain. The Dutch used the windmill as a pump to drain low laying areas. The first windmill to generate electricity in the rural U.S. was installed around It was later used in the late 19 th century to move water for irrigation purposes. With the advances in technology windmill was no longer considered as a source of power. The combustible engine took over. The engine did not depend on the wind; it produced power all the time. This fact coupled with discoveries of vast oil fields led to cheap fuel. It was not until the oil shortages of the 1970s that began to open consumer s eyes. During the 1980s wind turbines resurfaced as an option and were used extensively in California. This behavior was encouraged by State Policies. [6, 14] There are two types of wind turbines, one that uses drag and one that uses lift to create rotation. Drag dependent or vertical axis wind turbines are easier to operate because they have less moving parts. The gear box is located close to the ground and therefore routine maintenance is easier to perform. Yet due to the amount of wind friction the vertical axis turbine is typically not efficient and has a longer return on investment. Lift dependent or horizontal axis wind turbines do not collect wind energy throughout the entire rotation of a blade and are thus more effective than the drag dependent wind turbine and have a better return investment than the vertical axis turbine. The gear box for the horizontal axis turbine is on the rotor s housing unit, thus making the maintenance more difficult to perform. The proposed project in North Stonington, CT will investigate the horizontal axis turbines only because they are ideal for a wind farm because of their rated power. It is important to understand the site of the proposed Wind Farm. See the Appendix, figure 6 for map, and figures 7-10 for aerial photographs of the proposed site. The state of Connecticut has a population of 3.5 million residents and is ranked 48 th in size. This translates into the 4 th most densely populated state. While the state of Connecticut s population is not rising at an alarming rate the amount of energy usage per person is increasing. This is due in part to the increase in the use of electronic devices. Every 20

21 portable device needs to be charged daily, some more often depending on use. Televisions are enormous and while they use technologies such as LCDs and LED lights to reduce power consumption there is still a large energy appetite. Heating and cooling homes to a comfortable temperature puts a large strain on the power grid. This is evident during rolling blackouts and brown outs. Not too long ago in 2003 there was a large blackout in New England. This left almost a quarter million people without power. [16] The power companies have terms which describe energy use. Current Demand is the real-time amount of electricity that Connecticut uses. Peak demand is the highest point of customer demand. According to historical data Connecticut s peak demand occurs between noon and 8 p.m. on weekdays. The highest peaks typically occur on hot, humid summer days. This is due to the increased use of air conditioning, pool pumps and washing machines. This typical occurs during the summer peak from the months of June through September. The power grid is the transmission system for electricity from the power plant to the customer. The voltage changes through the use of transformers. Depending on the demand the power produced in Connecticut can be distributed all over New England. The local distribution systems are operated by the Connecticut Light and Power Company and others. A schematic is provided from the Department of Energy below. [7] Figure 4 [7] One megawatt is equal to one million watts of electricity and provides enough electricity to power 300 houses for approximately one year. The reason for this range is because a household s demand can vary throughout the day based on time of year. The household usage is recorded over time is measured in kilowatt hours. This is measured on the meter 21

22 outside your house. An average American uses 900 kwh of electricity per month, with appliances accounting for 65% of electricity consumption. [6, 7] For the purpose of this project the assumption is made that fossil fuel based energy costs the consumer roughly $2.50 per gallon. In recent months the cost to the consumer has increase due to the increase of cost per barrel of crude oil. The table below compares the state of Connecticut with its percent share of the United States. As you can see the biggest sources of energy in Connecticut is Natural Gas and Nuclear. If you reference appendix of the map of CT power plants can see the locations of all power producing sites. It is important to notice that other renewable energy sources make up 2% or 65 thousand MWh of the 3,200 thousand MWh total. [6] Table 1: Net Electricity Generation [6] Another important consideration for a project of this nature is the cost of energy per kwh. Connecticut has some of the highest energy rates in the nation. Most of the energy used in Connecticut is by the residential and commercial sectors. The Residential cost is almost 19 cents/kwh compared to 12 cents/kwh for the US average. The Commercial rates are cents/kwh vs cents/kwh for the US average. This high premium that Connecticut residents pay for energy enables wind produced energy to be more competitive than other energy markets. This is why a wind farm maybe economically possibly even with the lack of high average wind speeds in the State of Connecticut. [6] Table 2 Electricity Rates per KwH [6] 22

23 A proposed wind farm in Prospect, Connecticut is looking to build two wind turbines on 67 acres of land. BNE Energy has been monitoring wind and climate conditions from a small, temporary tower for the last two years. The proposed project is estimated to generate approximately $150,000 in tax revenue, making it one of Prospect s largest tax payers. This project will also provide 25% of the towns power needs. [16] A proposed wind turbine in Fairfield, CT chose the site of a landfill. The Connecticut Clean Energy Fund has contributed $50,000 for the study of the turbine. The one year study is conducted by Johnson Controls. The project costs $2 million dollars and the energy generated would power the sewage treatment plant. The payback period is three years. [17] In New Haven Connecticut, Phoenix Press plans to install a 150-foot 100 kilowatt wind turbine adjacent to the Quinnipiac River. The wind turbine project is being supported with a grant from the Connecticut Clean Energy Fund. The turbine will cover about onethird of Phoenix Press energy bill. [18] In Old Lyme, a 3 megawatt wind turbine project called the Huntley Wind Cooperative is in the works. This will consist of two 300 foot tall wind turbines in a salt marsh. [19] The total project cost is estimated to be almost $8 million. The site is on 27 acres of land and adjacent to Long Island Sound. Studies have indicated the recorded wind speeds will sustain the turbines. Currently the project is seeking approval from the State of Connecticut. The amount of power anticipated from this site is 9 million megawatt hours a year. The town of Old Lyme has committed to the 20% clean energy by 2010 initiative [20] If you have ever been to Atlantic City then you have seen the Jersey Atlantic Wind farm which consist of five 1.5 MW GE wind turbines. These turbines stand almost 400 feet tall. The wind farm produces enough power for over 2500 homes and the wastewater plant it is built around. The farm has been operating for over five years. There is also a 500 kilowatt solar project on site to help supplement the turbines. Below is an aerial 23

24 photo of the existing wind farm around a water treatment plant in Atlantic City. The turbine arrangement is a possibility for the site in Southeastern CT. [21] Figure 5 [21] Below is a table from Freedom Wind LLC which specializes in wind farms ranging from 1 MW to 10MW. As you can see from Table 3, one can expect about 10MW off of 200 acres of land. [22] 24

25 Table 3 Freedom Wind LLC Projects [22] According American Wind Energy Association; the rule of thumb for onshore wind farms is 60 acres per megawatt. [13] So one can expect somewhere in the range of 3.5 to 10 megawatts of power to be produced. For the purpose of this study the iterations are as follows, 1.5, 3, 4.5, 6, 7.5 and 9 MW capacities along with a range of capacity factors for the selected turbine and conditions. The above data will covered a wide range of potential output. When real data is sampled one can then use the actual wind speeds to pick out an appropriate wind turbine. Then the turbine placement can be optimized. For the purpose of this study the cost analysis will focus on 7.5 MW wind farm with MW turbines similar to the Atlantic City Wind farm. The 36% capacity factor is based on U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy [3] The next step is to compare to the cost feasibility. Since no actual wind data is available at this time, the table will be marked to show the optimal ranges required to make a successful wind farm. The average capacity factor for the United States according to 2004 data is 28.8 percent. The average capacity factor for the world is 19.6%. [23] 25

26 3. Results and Discussion More detailed data collection is necessary to validate assumptions. Wind monitoring devices will be installed at appropriate heights to monitor wind speeds for approximately one year. This data will then be plotted to determine the available wind durations to power the wind turbine. Once the data is collected and analyzed the best turbine can be selected to meet the environmental conditions. There is the choice between horizontal and vertical wind mills. One study suggests that a farm of smaller windmills at tall hub height produces more energy than larger turbines. [24] This is due in part to the complicated natures of the computational fluid dynamics associated with wind turbines. A thorough CFD model using technologies such as Fluent is required to determine the best set up for the wind farm. The style of turbine is just as import as the number and placement of the turbines. Some upstream turbines can create a wake which could potentially disrupt downstream turbines and cause a reduction in power generated for all wind turbines. Wind turbine spacing is important due to the potential wind disruption from the wakes of a turbine upstream. Suggested spacing is anywhere from three to ten rotor diameters apart depending on the orientation of the wind. Once the best wind turbine for the site is selected and the placement is optimized, only then can negotiations with the state of Connecticut can begin. Connecticut has a goal of twenty percent green energy by the year 2020 according to the Connecticut Renewable Portfolio Standard. With the growth of alternate energy power in America in recent years it is safe to say that in a few years from now the incentives can be much greater than those currently available. There are tax credits, green energy credits, carbon credits, and renewable energy credits. In the United States, wind power receives a 2.0 cent per kwh tax credit. [13] This may even increase with the Obama-Biden goal of 10% renewable energy production by 2012 as a part of the New Energy for America plan. [25] Another benefit is the Federal Accelerated Depreciation. This is a complex accounting method to shelter income in special formula to calculate depreciation for tax purposes. Some states such as Kansas tax alternate energy production at a rate of 7.4% versus the normal 15-35% corporate tax rate. [26] One incentive which you may be directly involved in is an option on your electrical bill where you ask for a renewable energy source. When you check this option you may pay a slightly higher kwh rate for 26

27 green energy. [13] In 2008 Governor Rell signed The Global Warming Solutions Act which requires greenhouse gas emission reductions of 10% below the 1990 levels by 2020 and 80% below the 2001 levels by This is a competitive goal in greenhouse gas reductions and one can expect more incentives to subsidize wind energy further to meet these requirements. [26] There is also the possibility of Federal money as in the case of Shepard s Flat Wind Farm in Oregon. The department of Energy has secured $1.3 Billion in financing to complete the project. [27] Wind turbines are becoming more efficient as well as less expensive. A permit will then need to be obtained to be able to build the proposed wind farm. During this process all the details regarding the actual site will be considered. There is the potential to still be labeled as agricultural land and taxed accordingly. Perhaps the State of Connecticut can buy the land. This public land would increase the cost effectiveness of the project and start a trend across the nation in that the State owns the land that the wind farm is on to assist in the profitability. The current price of power in Connecticut is cents per Kilowatt hour. [6] Based upon our analysis the cost of wind power generated at this proposed site will be comparable to other means of energy production. The payback period varies depending on the capacity factor and the size of the wind farm. With the current trend of fossil fuels rising in cost and wind technologies incentives and technology, the per kilowatt cost of wind power will decrease in the upcoming years. As this continues the payback period for this site becomes truncated. According to many studies it is safe to assume that the wind turbines will not be producing power all the time. The percentage of time that the windmill produces power is essential for investors to determine the payback period for their investment. There are however options available to supplement the wind turbine, one such method is a battery or an energy storage device. These options increase the cost of the development project but result is more energy being produced. The aforementioned power units will also alleviate any reduction in power due to scheduled maintenance. According to G.M. Joselin Herbert., one can anticipate a 1% of maintenance over the course of the wind turbines life. [28] 27

28 The feasibility study, expected to take a minimum of three months after a minimum of one year data sampling, would cover the permit necessary for the wind turbine, wind speeds at different altitudes, a cost-benefit analysis of acquiring a wind turbine, public response, and the turbine's effects on the environment. The public response can be the nail in the coffin for a project of this magnitude. In the case of the Cape Wind Project public outcry has delayed the project many years and has cost the developers money while the project is tied up in the court system. Without a detailed wind study to document the wind speed over the period of a few months it is impossible to select a turbine. For the purpose of this study the most commonly used turbines will be investigated for their feasibility in this proposed wind farm. General Electric wind power has a 1.5MW model. This is the same model proposed in the Old Lyme proposed project. While the amount of acreage required depends upon a variety of factors we can use a rule of thumb. The rule of thumb is the turbine should have anywhere from 3 to 10 rotor diameters clearance from another turbine. The GE 1.5 MW model has 116 foot blades and a 212 foot tall tower, for a total height of 328 feet. If the turbine is positioned perpendicular to the wind it would require 82 acres per turbine. In the case of the proposed Old Lyme wind farm two 1.5 MW turbines will be placed upon 27 acres of land. The reason for this is the shape of the plot of land and the attack angle for the wind. In practice, the area varies, averaging about 50 acres per megawatt of capacity. Because of this the proposed wind farm is estimating a range of 3 megawatts to 10 megawatts. Again without detailed wind speed readings from the site it is impossible to select turbines and optimize their placement. The calculations for the feasibility study range for a wind farm producing 3 to 10 megawatts. [29] 28

29 Table 4 GE 1.5 MW Wind Turbine Specs [29] In M. A Elhadidy s study he determined that for a 6 MW wind farm with 50 m hub heights, 150 kw wind turbines yield 48% more energy than the much larger 600 kw wind turbines. [30] This would be something to consider once the actual wind data is returned. Going on the assumption that the site is similar to the Huntley Wind Cooperative, 1.5 MW GE turbines were selected. There are currently over 13,000 turbines of this particular model out harnessing wind making this model the world s most widely used wind turbine; tough to argue with that. According to M. A Elhadidy s study which demonstrates that the taller the hub also increase energy production. It is known that smaller turbines have a higher capacity factor than larger turbines. Wind speeds increase at higher altitudes. Due to this capacity factors increase with taller hub height. [31] The difference between a 30m hub and a 50m hub is 12%. [32] Now for the meat and potatoes part of any project; cost. Kenisarin s study indicates the real cost of a wind powered turbine is 1.3 times the actual cost of a wind turbine. [32] According to Driega s research based on a wind farm in Poland the number is twice the cost of the turbine. [33] The tables provided below are per Kenisarin s and Driega s studies respectively. One should note that the tables do not factor in any state or federal incentives. They are calculated using the assumption that a 1.5 MW GE turbine costs $750,000. The total cost according to Kenisarin is 1.3 times the cost of the turbine. The kwh of energy produced is a simple calculation using the 36% capacity factor times 24 hours a day times

30 days in a year. Next the price per kwh of energy is just the cents per kwh times the amount of kwh of energy produced. Finally the payback period is calculated by dividing the Cost by the dollars per year of energy produced. One important thing to note is that Driega s study concludes that the cost is twice the turbine cost which explains the variance in the payback period. Kenisarin Driega $ Per year of energy produced MW Turbine Cost Cost in millions kwh of energy Payback Period 1.5 $750,000 $975, $78, $1,500,000 $1,950, $157, $2,250,000 $2,925, $236, $3,000,000 $3,900, $315, $3,750,000 $4,875, $394, $4,500,000 $5,850, $473, $ Per year of energy produced MW Turbine Cost Cost in millions kwh of energy Payback Period 1.5 $750,000 $1,500, $78, $1,500,000 $3,000, $157, $2,250,000 $4,500, $236, $3,000,000 $6,000, $315, $3,750,000 $7,500, $394, $4,500,000 $9,000, $473, Table 5 Payback Period 30

31 Based upon the information above the most realistic possibility are 4 GE 1.5 MW wind turbines at a cost of $3,000,000. This is based above an average acreage of 50 acres per turbine. One can imagine a wind farm very similar to Jersey Atlantic Wind Farm in a setting of the Huntley Wind Cooperative. The payback period at a capacity factor of 36% is between 12 and 19 years. Considering the lifespan of a wind turbine is around 30 years and that tax incentives were not factored in to the payback period; this results in a feasible wind farm in Southeastern Connecticut. If the wind analysis demonstrates the potential to add more turbines then the cost analysis changes accordingly. Ideally investors should consider multiple smaller wind turbines at tall hub heights to maximize efficiency. 31

32 4. Conclusion Wind power was chosen as the cleaner, cheaper, and more manageable energy production method for a private residence located close to the Southeastern CT coastline. The southeastern CT area has sufficient wind speeds available year round to support a wind turbine. This study concludes it is feasible to design and build a wind farm on the chosen site in Southeastern Connecticut because of the aforementioned factors. The site chosen in Southeastern Connecticut has enough data to continue the investigation to the next level. A more detailed data collection is necessary to validate assumptions. This detailed sampling analysis will be performed to collect wind data. Wind monitoring devices will be installed at appropriate heights to monitor wind speeds for approximately one year. This data will then be plotted to determine the available wind durations to power the wind turbine. Once the data is collected and analyzed the best turbine can be selected to meet the existing environmental conditions. Just as important as the wind itself is the public s reaction to wind turbines placed in their sight lines. The wind can be plentiful and even provide one-third of the energy needed to power the area and there could be opposition. The time required to payback wind farm would be between 12 and 19 years. This payback period does not take into account the current Federal and State tax incentives as well as special accounting formulas utilized for accounting depreciation purposes. This study concludes that a wind farm in Southeastern Connecticut is feasible. 32

33 5. References [1] Dominion power, Millstone Nuclear Plant, CT [2] National Wind Watch; [3] U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy [4] Photo: [5] Project Management: A Managerial Approach. Jack Meredith. Wiley [6] The U.S. Energy Information Administration, Independent Statistics and Analysis [7] The U.S. Department of Energy [8] Center for American progress [9] National Renewable Energy Laboratory [10] DOE Source: U.S. Department of Energy, Energy Efficiency & Renewable Energy [11] Noise from wind turbines; the facts [12] Wind Farm Off Cape Cod Clears Hurdle [13] American Wind Energy Association [14] Patel, 11]., [15] 2003 Blackout CBS News; [16] Wind Farm Proposed in Prospect, WFSB News; [17] Fairfield considers plan to save energy with turbine.; [18] Phoenix Press breaks Ground on CT s first Commercial Wind Turbine ; [19] Wind Turbines rising 300 feet proposed for Old Lyme Marchhttp:// [20] Old Lyme & Lyme, CT, Online community newspaper; [21] New Jersey Wind [22] Freedom Wind L.L.C.; [23] The capacity factor of wind power; [24] Wind resource assessment of eastern coastal region of Saudi Arabia M. A Elhadidy [25] Organizing for America; [26] Database of State Incentives for Renewables and Efficiency; [27] GE to supply world s largest wind farm ; [28] Performance, reliability and failure analysis of wind farm in a developing country G.M. Joselin Herbert. [29] GE Energy Wind Turbines; [30] Wind resource assessment of eastern coastal region of Saudi Arabia; M. A Elhadidy [31] Wind Energy resources assessment for Yanbo, Saudi Arabia Shafiqur Rehman [32] Wind power engineering in the world and perspectives of its development in Turkey; Kenisarin s [33] Economic and technical issues affecting the development of the wind-power industry in Poland, Driega s [34] Wind electric power in the world and its perspectives of its development in India Neeraj Golait [35] Coldwell bankers [36] Google maps; 33

34 6. Appendix Figure 6 Map or Proposed location [36] 34

35 Figure 7 Aerial photo of proposed location [35] Figure 8 Aerial photo of proposed location [35] 35

36 Figure 9 Aerial photo of proposed location [35] Figure 10 Aerial photo of proposed location [35] 36

37 Figure 11 Geothermal Energy potential [9] 37

38 Figure 12 Installed Wind power capacity for 1999 [9] 38

39 Figure 13 Installed Wind power capacity for 2009 [9] 39

40 Figure 14 Wind power density and wind speed at 80m [9] 40

41 Figure 15 CT's current power plants [6] 41