FROM COAST TO COAST, WIND POWER IS A BREEZE Clean energy has a bright future. Today a growing number of public utilities are harvesting a new source



Similar documents
U.S. Department of Energy Wind and Hydropower Technologies. Top 10 Program Accomplishments

Renewable Wind. Wind Basics. Energy from Moving Air. The Daily Wind Cycle. Wind Energy for Electricity Generation

Louis Woodward / PIX (Jim Lincoln / Courtesy of Farm Credit Bank of Texas)

Renewable Energy on Regional Power Grids Can Help States Meet Federal Carbon Standards

Two Oil Companies use wind farm tax breaks to shelter their profits from federal and state income tax

A Resource Guide to In State Hydropower Production

Where and Why Does the Wind Blow?

Commonly asked Question about Green Power, and Kit Carson Renewable Energy Program.

Banking on Renewables

Renewable Energy Research

Wind Energy in Texas: Developments & Trends

Fact Sheet: Siemens Energy in the US

Rethinking Variable Electric Rate Plans in Texas The case to get out of any fixed rate contract over.16 per kwh

Energy Strategic Plan Los Angeles Community College District Community College League Conference

Before the House of Representatives Committee on Science, Space, and Technology

Learning About Saving Energy CLEARINGHOUSE

Renewable Energy Certificates (RECs) What Does It Mean and How Do I Do It? Stephanie Vaughn, USEPA Region 2 Laura Knudsen, USEPA HQ, Superfund CIPIB

Renewable Energy Potential from California Agriculture

Emerging State Policies to Support Community Shared Solar

RENEWABLE ENERGY RESOURCES PROGRAM REPORT

What are the Top 5 items that our audience needs to know about renewable energy projects?

Google s Green PPAs: What, How, and Why

LADWP GREEN POWER PROGRAM

CANADIAN RENEWABLE ENERGY POLICIES. Matthew H. Brown InterEnergy Solutions 2007

The Vermont Legislative Research Shop. Wind Power

Oregon Renewable. Energy. Resources. Inside this Brief. Background Brief on. Overview of Renewable Energy. Renewable Portfolio Standard

New Jersey s Green Power Purchasing Program

CLEAN TECHNOLOGY. Chapter 17. Janet F. Jacobs INTRODUCTION

Communicating Your Commitment: Your Guide to Clean Energy Messaging

RENEWABLE ENERGY IN AUSTRALIA

CLEAN LINE ENERGY PARTNERS:

SOLAR PURCHASE POWER AGREEMENT (PPA) FREQUENTLY ASKED QUESTIONS. UPDATED: October 28, 2015

THE GEYSERS Renewable, Geothermal Energy. Mike Rogers, Senior Vice President Calpine Geothermal Operations

MAKING SOLAR ENERGY COST-EFFECTIVE TODAY IS A SNAP

Texas Wind: The New Oil. The earth is slowly, but surely, exhausting its resources. Fossil Fuels like coal and

Integrating 300 GW wind power in European power systems: challenges and recommendations. Frans Van Hulle Technical Advisor

LCRA-San Marcos Agreement

Norman Wells Wind Energy Pre-feasibility Analysis Summary

TEXAS RENEWABLE ENERGY. By: Glen Webb

The Economic Impact of Replacing Coal with Natural Gas for Electricity Production. William A. Knudson. Working Paper

GREEN MOUNTAIN ENERGY COMPANY

NEW COMMERCIAL Rates. Understanding the. Commercial Customers

Comparing Electricity Generation Technologies

The North American Process: Steps Toward Stronger Partnership A Working Symposium

Electric Cooperatives and Renewable Energy OUR COMMITMENT TO AMERICA

Renewable Energy Mandates Cost Texas Consumers. Bill Peacock Texas Public Policy Foundation

Financing Non-Residential Photovoltaic (PV) Systems

ENERGY EFFICIENCY AND RENEWABLE ENERGY TAX INCENTIVES FEDERAL AND STATE ENERGY TAX PROGRAMS JEROME L. GARCIANO

Expanding Renewable Energy Options for Companies Through Utility-Offered Renewable Energy Tariffs

Enough Solar Energy falls on New York in ONE DAY to power the state for ONE YEAR

Renewable Choice Energy

INVESTING IN A CLEAN FUTURE. Austin Energy s Resource, Generation and Climate Protection Plan to 2020 Update

Western Markets Overview

State Clean Energy Fund Support for Renewable Energy Projects

RENEWABLE ENERGY DEVELOPMENT STATE TAX POLICIES AND INCENTIVES IMPACTING

Energy Strategic Plan: Energy Independence and Carbon Neutral Campuses Los Angeles Community College District

Eugene Water Electric Board. Oregon Renewable Portfolio Standard 2015 Compliance Report. June 1, 2016

Wind Forecasting stlljectives for Utility Schedule and Energy Traders

Take it or leave it. (or somewhere in between) ENERGY

Update of Financial Incentives for Promoting New and Renewable Energy in the U.S. Cary Bloyd EGNRET-38 Wellington, New Zealand June 18-19, 2012

Solar Energy. Airports Going Green Aimee Fenlon

Government Program Briefing: Smart Metering

The Vast Potential for Renewable Energy in the American West

The Outlook for Nuclear Energy In a Competitive Electricity Business

Energy Policy for Montana Prepared by Sonja Nowakowski November 2009 Part VI of IX "Reducing regulations that increase ratepayers costs"

Clean Energy Trends in North Carolina.

A WIND VISION FOR NEW GROWTH IN TEXAS

Competitive Electricity Prices: An Update 1

The Economic Case for Energy Efficiency

NARUC International Relations Committee Meeting February 5, 2012 Washington, D.C. Jay Godfrey Managing Director, Renewable Energy

Frequently Asked Questions

THE FUTURE OF NUCLEAR POWER IN THE UNITED STAES. Richard A. Meserve Carnegie Institution 1530 P St., NW Washington, DC

Overview of Long Island Electric Service Territory

Renewable Energy: Essential terms terms and and concepts for citizens and a dvocates advocates

Increasing Costs in Electric Markets

THE IMPACT OF A RENEWABLE ENERGY PORTFOLIO STANDARD ON RETAIL ELECTRIC RATES IN COLORADO

THE CURRENT BALANCE. The Role of Cost, Reliability, and Environmental Impact in the Massachusetts Electricity Market

A Proposal for Solar Energy Power in the city of Boulder, Colorado

Update on Austin Energy Solar and Leasing

Outlook on Integrated Gasification Combined Cycle (IGCC) Technology

RENEWABLE ENERGY STANDARDS AND

ENERGY COST INDEX 2012: RANKING THE STATES

RENEWABLE ENERGY DEVELOPMENT STATE TAX POLICIES AND INCENTIVES IMPACTING

( ) Matjaž Grmek, ApE

Press Presse Press Presse

Borough of South River, New Jersey Alternative Energy & Conservation Committee

Tax Credit Extension: Impact on Renewables Investment and Emissions Outcomes

ASSOCIATION INC Geothermal Energy: New Zealand s most reliable sustainable energy resource

Financing Mechanisms and Financial Incentives

A Green Sector Overview

Clean State Energy Actions 2011 Update. connecticut

An Analysis of Siting Opportunities for Concentrating Solar Power Plants in the Southwestern United States

Towards a Safe and Clean Environment,TSCE 05

[SOLAR SUCCESS] Customer Benefits

RENEWABLE ENERGY...IT S ALL HERE IN IMPERIAL COUNTY, CA

Introduction to Ontario's Physical Markets

Delivering Clean Energy

States with In-State Resource RPS Requirements

Wind and Solar Renewable Energy Applications

July 6, SUBJECT: Electric Vehicle (EV) and Utilities a Win-Win investment?

Transcription:

FROM COAST TO COAST, WIND POWER IS A BREEZE Clean energy has a bright future. Today a growing number of public utilities are harvesting a new source of homegrown energy. From Massachusetts to California, more than two dozen municipal utilities have wind power in their energy mix. Wind energy is attractive for many reasons: Wind energy is clean and renewable. Wind energy is economically competitive. Wind energy reduces energy price risks. Unlike coal, natural gas, or oil, the fuel for a wind turbine will always be free. Wind energy is popular with the public. A RECORD YEAR Wind power is booming. Worldwide, a record 3,800 megawatts (MW) were installed in 2001. These sleek, impressive wind turbines have closed the cost gap with conventional power plants. Depending on size and location, wind farms produce electricity for 3 6 cents per kilowatt-hour (kwh). The nation s investment to advance wind technology will lead to even more competitive wind generated power. OLD AND NEW Wind power is one of mankind s oldest energy sources. The American experience with wind technology began during Colonial times. During the 1930s, half a million windmills pumped water on the Great Plains. Today s modern wind turbine is a far cry from the old water pumpers. Incorporating the latest engineering, these sleek, impressive machines produce affordable and reliable electricity. WIND RESOURCE POTENTIAL Our nation is blessed with an abundance of world-class wind resources. Harnessing the strong winds that sweep across America offers an excellent business opportunity for the nation s public utilities.

MUNICIPAL WIND POWER PIONEERS From Oregon to Maine, municipal utilities are beginning to harness the wind. Six of the early pioneers, ranging in size from small to large, tell their story below. Austin Energy Austin Energy purchases the wind power produced by 61 Bonus 1.3-MW wind turbines. The turbines are part of the King Mountain wind farm that began full-scale commercial operation in September 2001. Located in Upton County, 70 miles south of Odessa, Texas, the wind farm has a total capacity rating of 79.3 megawatts. The farm was developed by Cielo Windpower of Austin, Texas, and is owned and operated by FPL Energy. Eugene Water and Electric Board In keeping with a 90-plus-year history of renewable, sustainable resource development, Eugene Water & Electric Board (EWEB) Eugene, Oregon, pursued the development of wind energy as an integral part of the utility's 1992 Energy Resource Plan. In 1999, the utility introduced the EWEB Wind Power Program, enabling its customers to purchase wind energy generated by a 69- turbine project located in southeastern Wyoming. Since that initial investment in wind power, EWEB has purchased wind power from various other wind projects throughout the region. Hull Municipal Lighting Plant The Hull Municipal Lighting Plant (HMLP) installed its first wind turbine a Vestas 660-kW V-47 machine in December 2001. Located at the end of the peninsula in Hull, Massachusetts, the turbine is estimated to produce 1.5 million kilowatt-hours of electricity each year. One-third of the output provides electricity for Hull s streetlights and traffic signals. The remainder is fed back into the utility grid. Public reception to the installation has been strong and positive. The majority of citizens want HMLP to install more units. Moorhead Public Service Moorhead Public Service (MPS) in Minnesota began offering wind power to its customers through its Capture the Wind Program in 1999 with the installation of its first 750-kW turbine. In 2001, MPS installed its second 750-kW turbine. Output from the first turbine sold out to 427 customers in just two-and-onehalf weeks. Output from the second turbine sold out to more than 400 customers in less than four weeks. MPS now provides 1% of Moorhead s electricity needs with wind power.

Municipal Energy Agency of Nebraska The Municipal Energy Agency of Nebraska (MEAN) recently constructed a 10.5- megawatt wind project consisting of seven turbines, three miles northwest of Kimball, Nebraska. The wind project is expected to generate about 2% to 3% of MEAN s total energy requirements. Each turbine will generate up to 1,500 kilowatts and the project cost about $14 million to construct. The annual output of the project will provide energy for nearly 4,000 homes. Waverly Light and Power Waverly Light and Power is a municipally owned utility serving 4,300 customers in northeast Iowa. Waverly began its search for wind energy in 1991 with strong community support. Today, Waverly owns and operates three turbines (two 750-kW Zond turbines and one 900- kw NEG Micon) that provide 5% of the utility s annual system energy requirements. The utility s goal is to provide for 10% of its energy requirements using renewable energy. Waverly conducts a green pricing program through the sale of Iowa Energy Tags on the Internet. ECONOMICS AT A GLANCE Most municipal utilities start by installing one or two wind machines. The Turbine Cost table shows typical costs and income for a single turbine installation. A 750-kW wind turbine costs about $800,000 installed. Each year it produces electricity worth $80,000 to $100,000. Public power utilities also receive federal renewable energy production incentives worth approximately $350,000, payable over 10 years. Turbine Cost Annual Electricity Sales $80,000 to $100,000 Annual Renewable Energy $35,000 Production Incentive Gross Income in First $1,150,000 to 10 Years $1,350,000 Municipal Financing Because of the low-cost financing available to municipal utilities, moderate-sized wind projects can compete effectively with larger, privately financed projects. Cents/kWh (constant 2000 dollars) Cost of Energy (cents /kwh) 12 10 8 6 4 2 0 8.0 7.0 6.0 5.0 4.0 3.0 Low wind speed sites Independent Power Producer Financing 2 MW 10 MW 50 MW 50 MW Installed Wind Turbine Capacity Without Federal incentives (current $) With Federal incentives (current $) Cost of Wind Energy Bulk power competitive price band High wind speed sites 1990 1995 2000 2005 2010 2015 2020 The cost of wind energy has plummeted since 1980. Today wind power is one of the most competitive sources of new electricity.

The development of wind energy by Waverly Light and Power has been an important, environmentally correct step for our community, and continues to provide leadership for expansion of wind energy generation in the Midwest. We strongly believe that public power can play a significant role in the global reduction of greenhouse gasses by expanding and promoting wind energy and using programs like Iowa Energy Tags. Glenn Cannon, General Manager, Waverly Light and Power We at Austin Energy found that large wind energy projects are the least expensive new electric generation source. Not only is the price lower than other renewable sources, it's even lower than the fuel cost of our naturalgas-fired units. We're learning how to handle the non-dispatchable and somewhat unpredictable nature of wind energy. Mark Kapner, Manager, Conservation and Renewable Energy, Austin Energy Moorhead Public Service is a municipal utility owned and governed by our customers. When our customers expressed interest in a utility wind program, we felt it was our job to find a way to deliver it. Christopher Reed, Moorhead Public Service, Moorhead, Minnesota After the old high school wind turbine went out of service, the Citizens for Alternative Renewable Energy approached us about installing a state-of-the-art wind turbine. Once Hull Light got involved, the project became a reality within a relatively short time span. John MacLeod, Operations Manager, Hull Municipal Light Plant The governing bodies of our municipal members should be commended for making the commitment to provide their communities with an environmentally clean form of energy. The MEAN Wind Project at Kimball will be a great benefit to the environment and will be a costeffective source of renewable energy for these communities and their ratepayers. Richard Duxbury, Executive Director, NMPP Energy The Eugene community, through EWEB's elected commissioners, holds a very high standard when it comes to environmental issues. Clearly, wind power is a significant component in creating a sustainable energy future. We pursue renewable energy resources, such as EWEB Windpower, and energy conservation in an effort to limit the impact of less environmentally friendly generation sources, both locally and globally. Randy Berggren, General Manager, Eugene Water and Electric Board

PUBLIC POWER: AN AMERICAN TRADITION THAT WORKS There are more than 2,000 public power utilities in the United States. Together, they provide electricity to 40 million people in 49 states. Public power is both a big city and a small town phenomenon. Los Angeles, Phoenix, and Omaha have municipal utilities but so do hundreds of small towns. Public power is rooted in the American tradition of local people cooperating to meet community needs. Public utilities strive to deliver reliable, affordable power, or as they say, Keep the lights on and the rates low. INFORMATION RESOURCES U.S. Department of Energy Wind and Hydropower Technologies Program Forrestal Building 1000 Independence Ave., SW Washington, DC 20585 (202) 586-5348 www.eren.doe.gov/wind National Renewable Energy Laboratory National Wind Technology Center 1617 Cole Boulevard Golden, Colorado 80401 (303) 384-6979 www.nrel.gov/wind American Wind Energy Association 122 C Street, NW, 4th Floor Washington, DC 20001 (202) 383-2500 www.awea.org American Public Power Association 2301 M Street, NW Washington, DC 20037-1484 (202) 467-2900 www.appanet.org Utility Wind Interest Group 2111 Wilson Boulevard, Suite 323 Arlington, VA 22201-3001 (703) 351-4492 ext. 121 www.uwig.org Western Area Power Administration 12155 W. Alameda Parkway Lakewood, CO 80228-8213 (720) 962-7000 www.wapa.gov National Wind Coordinating Committee 1255 23rd Street NW, Suite 275 Washington, D.C. 20037 (202) 965-6398 www.nationalwind.org A NATURAL PARTNERSHIP Wind power and public power are natural partners. Clean, competitive, pollution-free wind energy is a good way to meet the economic and environmental challenges of the future. According to the American Public Power Association, Because the customers are the owners of public power utilities, it makes sense for public power to be a leader in using green energy. As of September 2002, 24 municipal utilities offered wind energy as part of their energy portfolios. Printed with a renewable-source ink on paper containing at least 50% wastepaper, including 20% postconsumer waste Public Power Locations Photo credits: Cover photos Lloyd Herziger, Enron Wind/PIX10654; Alan Van Ormer, East River Electric/PIX10637; Karen Kronner /PIX10363; Lloyd Herziger, Enron Wind/PIX10652; Jim Schroeder/PIX10362. Page 2 Jennifer Walz/PIX10562. Page 3 Cielo Windpower Corp./PIX11628; John Mitchell, EWEB/PIX11570; Doug Welch, Hull Municipal Lighting Plant/PIX11261; Christopher Reed, Moorhead Public Service/ PIX11602. Page 4 Vern Moore, NMPP Energy/PIX11062; Waverly Light and Power/PIX11515. Page 6 Waverly Light and Power/PIX11517. Produced for the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, by the National Renewable Energy Laboratory, a DOE national laboratory DOE/GO-102002-1633 October 2002