Wind Energy for Municipal Power Systems

Wind Energy for Municipal Power Systems Randy Manion 30 March 2003 Jacksonville, Florida A Very Reliable Source of Power Sizes and Applications Small (10 kW) • Homes • Farms • Remote Applications (e.g. water pumping, telecom sites, icemaking) Intermediate (10-250 kW) • Village Power • Hybrid Systems • Distributed Power Large (660 kW - 2+MW) • Central Station Wind Farms • Distributed Power Growth of Wind Energy Capacity Worldwide 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 86 87 Actual Projected Jan 2002 Cumulative MW Rest of World North America Rest of World North America Rest of World = 2,365 North America = 4,543 Europe = 16,362 Europe Europe 88 89 90 91 92 93 94 95 96 97 98 99 2000 2001 2002 2003 2004 2005 Year Sources: BTM Consult Aps, March 2001 Windpower Monthly, January 2002 What Causes Wind? Drivers for Wind Power • • • • • • Declining Wind Costs Fuel Price Uncertainty Federal and State Policies Economic Development Green Power Energy Security Wind Economics – Determining Factors Wind Resource Financing and Ownership Structure Taxes and Policy Incentives Plant Size: equipment, installation and O&M economies of scale • Turbine size, model, and tower height • Green field or site expansion • What is included: land, transmission, ancillary services • • • • Wind Cost of Energy 12 COE (¢/kWh [constant 2000 $]) 10 8 Low wind speed sites 6 High wind speed sites Bulk Power Competitive Price Band 4 2 0 1990 1995 2000 2005 2010 2015 2020 Economic Development Opportunities • • Land Lease Payments: 2-3% of gross revenue $2500-4000/MW/year Local property tax revenue: 100 MW brings in on the order of $1 million/yr • • • • • 1-2 jobs/MW during construction 2-5 permanent O&M jobs per 50-100 MW, Local construction and service industry: concrete, towers usually done locally Investment as Equity Owners: production tax credit, accelerated depreciation Manufacturing and Assembly plants expanding in U.S. (Micon in IL, LM Glasfiber in ND) Wind Powered Muni’s • • • • • • • • • • • • Austin Energy, TX Cedar Falls Utilities, IA City Public Service of San Antonio, TX City Utilities of Springfield, MO Clark Public Utilities, WA Colorado Springs Utilities, CO Estes Park Power & Light, CO Eugene Water & Electric Board, OR Fort Collins Utilities, CO Lincoln Electric System, NE Longmont Power & Communications, CO Los Angeles Dept. of Water & Power, CA • • • • • • • • • • City of Loveland Water & Light, CO Missouri River Energy Services, SD Moorhead Public Service, MN Municipal Energy Agency of Nebraska, NE Seattle City Light, WA Southern Minnesota Municipal Power Agency, MN Tacoma Power, WA Traverse City Light & Power, MI Waverly Light and Power, IA Wisconsin Public Power Inc., WI Municipal Wind Power Pioneers Hull Municipal Lighting Plant • Project Location – Hull, MA • Capacity – 660 kW • Expected Generation – 1.5 million kWh per year “After the old high school windmill went out of service, the Citizens for Alternative Renewable Energy approached us about installing a state-ofthe 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 Municipal Wind Power Pioneers Waverly Light and Power • • • Project Location – Northeastern, IA Capacity – 2.4 MW Expected Generation – 5% of the utility’s annual energy requirements Green Power Certificates – Iowa Energy Tags, 2500 kWh each Premium Cost – 2.0 cents/kWh ($50/2500 kWh) • • “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 Municipal Wind Power Pioneers Moorhead Public Service • • • • • Project Location – Moorhead, MN Capacity – 1.5 MW Expected Generation – 1% of Moorhead’s electricity needs Green Pricing Program – Capture the Wind, 900 participants (7%) Premium Cost – 1.5 cents/kWh “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 Municipal Wind Power Pioneers Municipal Energy Agency of Nebraska (MEAN) • • • Project Location – Kimball, NE Capacity – 10.5 MW Expected Generation – 2% to 3% of MEAN’s total energy requirements. More than 15 municipalities purchase power from the project. “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 cost effective source of renewable energy for these communities and their ratepayers.” – Richard Duxbury, executive director, NMPP Energy Municipal Wind Power Pioneers Austin Energy • • • • Project Location – Upton County, TX Capacity – 79 MW Green Pricing Program – Green Choice, 6500 participants (2%) Premium Cost – 1.1 cents/kWh, 10-year fixed rate “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 natural-gas-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 Municipal Wind Power Pioneers Eugene Water and Electric Board • • • Project Location – Wyoming Capacity – Owns 8.8 MW of 41-MW project Green Pricing – EWEB Windpower, 2500 participants • Premium Cost – 1.29 cents/kWh, fixed rate (premium has declined by about 60% over time) "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 Utility Partnerships • • • • • • • PMA Green Tags Transmission Analysis Public Power Workshops Coop Outreach Green Pricing Support UWIG brochure Wind-Hydro Analysis Carpe Ventem www.windpoweringamerica.gov