Competitive Power Ventures, Inc. (CPV) announced April 11 it has reached agreement for the sale of CPV Wind Ventures, LLC (CPV Wind) to Iberdrola Renewable Energies USA, Ltd. The transaction is expected to close by early May.

In CPV Wind, Iberdrola is getting a diverse portfolio of projects at various stages of development totaling 3,500 MW across 15 states. CPV Wind also has a contract for a large block of General Electric wind turbines to support that development portfolio. A relatively new company, CPV Wind was founded in 2005 and is a joint venture of CPV and affiliates of private equity firm ArcLight Capital Partners.

The deal came about after CPV Wind, whose most mature projects are on the brink of breaking ground, began seeking to raise capital to advance its portfolio toward construction, CPV Senior Vice President Sean Finnerty told Wind Energy Weekly. The company hired Marathon Capital to look for deals. “After we became involved in discussions with Iberdrola, those discussions narrowed into ones centered on a sales structure,” said Finnerty.

For Iberdrola, the announcement is the latest in a 12-month wind buying spree in the U.S. In May 2006, it announced plans to purchase wind energy marketing and development company Community Energy, Inc. (see Wind Energy Weekly #1190). In October, Iberdrola bought wind power developer Midwest Renewable Energy Projects, LLC, and its affiliate MREC Partners for $38 million (see Wind Energy Weekly #1213). Later the same month, it entered into an agreement for the acquisition of U.S. wind farms totaling 1,000 MW in capacity that are in Gamesa’s pipeline (see Wind Energy Weekly #1211). Finally, in November, the company announced a move to acquire Scottish Power, parent of No. 2 U.S. wind developer PPM Energy. PPM boasts 1,620 MW in wind capacity and has another 500 MW in near-term development. (That deal is still pending.)

CPV Wind finds itself being acquired in spite of its parent company’s usual business model. “ CPV’s strategy is to retain ownership of the assets it develops; [it’s] not a develop-and-flip strategy,” Finnerty pointed out.

The sale pairs CPV Wind’s project portfolio with a leading owner and operator of wind generation worldwide, CPV noted, and Finnerty also emphasized that if the company was going to sell, it wanted to sell to a top entity that would build out the projects CPV Wind had started. “Iberdrola brings a wealth of experience in getting plants constructed and operated efficiently, and making them as competitive as they can be,” he said.

It is expected that commercial operation of some of the projects will start as soon as 2008. “CPV Wind’s sale to Iberdrola—an established leader in the wind generation industry—will ensure these projects are commercially competitive and help meet this nation’s goal of increasing the supply of clean, renewable electric generation,” said Doug Egan, CPV chairman and CEO.

The management team, all of whom are employees of CPV, will remain with CPV; however, other employees, such as those on the ground at various projects, may go to work for Iberdrola, Finnerty said. CPV also develops natural gas-fired power plant projects (6,000 MW currently in development) and manages over 5,500 MW of natural gas fired generation for nontraditional owners such as investment houses and funds.

 

TOP 

The U.S. wind energy industry installed over 2,400 MW of new power generation in the country in 2006, an investment of about $4 billion, making wind one of the largest sources of new power generation in the country at a time of growing electricity demand, according to AWEA’s annual rankings of wind energy development in the U.S., released April 11.

Total installed U.S. wind power capacity is over 11,600 MW, or enough to serve the equivalent of 3 million average households, AWEA said.

Highlights of the rankings (as of December 31, 2006) include:

 

• Texas is firmly established as the state that generates the most electricity from wind, with over 2,700 MW installed at the end of 2006 and some 1,000 MW currently under construction. California ranks second with 2,361 MW installed; Iowa ranks third with 936 MW installed; Minnesota ranks fourth with 895 MW installed. Washington moves into fifth place (ahead of Oklahoma) with the addition of two large projects, Big Horn and Wild Horse, with 818 MW installed.
• Horse Hollow ( Texas) is the largest single wind farm operating in the world, followed by Maple Ridge ( New York).
• GE Energy remains in the lead as the largest manufacturer of wind turbines with Siemens carving out the second-largest market share, in terms of installed capacity.
• FPL Energy continues to dominate the U.S. wind energy market in terms of ownership with the construction of 777 MW of new wind power projects; about a third of all new installations in the United States in 2006.
• Xcel Energy uses the most wind power on their system with 1323 MW followed by Southern California Edison with 1026 MW.
• Texas’ 19 th district (Rep. Randy Neugebauer) ranks as having the most wind power with 1419 MW; followed by California’s 10 th district (Rep. Ellen Tauscher) with 920 MW; and third by Texas 11 th district (Rep. Mike Conaway) with 847 MW.

“These wind power rankings tell the story of a vibrant industry that is growing fast, competing hard, gaining market share, and all the while powering a cleaner, stronger America,” said AWEA Executive Director Randall Swisher. “Our new Congressional district rankings also serve as a reminder of the many benefits that wind power brings to local communities—new jobs, more local revenue, cleaner air, and an essential, home-grown contribution to fighting global warming.”

However, a long-term extension of the renewable energy production tax credit (PTC) is crucial to sustain this growth, AWEA said. Previous short-term extensions have led to a boom-and-bust cycle in the wind industry, increasing costs along the entire supply chain and preventing businesses from growing to their full potential.

AWEA’s annual rankings provide a standard reference for tracking the growth of wind power in the U.S.

For the full wind power rankings and additional industry information see

http://www.awea.org/newsroom/releases/Annual_US_Wind_Power_Rankings_041107.html . Detailed data on 2006 projects are accessible at http://www.awea.org/projects .

TOP 

EDF Energies Novelles (EDF EN) has made another turbine purchase in the name of U.S. expansion, and the supplier this time is a new entrant to the U.S. market.

EDF EN announced an order of 75 2-MW wind turbines from German manufacturer REpower for EDF’s “wind activity in the USA.” The order, which is for 2008 delivery, follows a series of orders undertaken for the U.S. continent, including one announced in late March for GE Wind turbines totaling 276 MW (see Wind Energy Weekly #1234).

REpower is one of EDF EN’s suppliers in Europe as well. The order consists of the confirmation of an option booked in 2006 for 38 MW (19 turbines) and a new contract for 112MW (56 turbines).

“We have an ambitious development plan throughout the U.S. continent, backed by our demonstrated ability to secure our supply in turbines. We are very pleased to pursue a partnership started last year in the USA with REpower” said EDF Energies Nouvelles CEO David Corchia.

Wind energy developer enXco is EDF EN’s U.S. subsidiary. Both orders are expected to be allocated to enXco’s Shiloh II project.

TOP

Plainly stating that the Bush administration’s $40.1 million fiscal year 2008 budget request falls far short of what’s needed at a time of growing demand for clean, renewable energy, AWEA on April 13 urged the Senate Appropriations Subcommittee on Energy and Water Development to provide $110 million in funding for wind energy research and development (R&D).

In spite of President Bush’s verbal endorsement of wind, the administration’s budget request for the renewable energy technology is actually $4 million less than the current budget of $44 million. In 2006 Bush said wind could potentially supply 20% of the nation’s electricity and proposed spending more on R&D, Legislative Director Jaime Steve noted in written testimony submitted to the committee. “[The 2008] funding request is not consistent with the president’s call for more R&D in this area and does not recognize the strong contribution that wind energy is making—and can make—to produce clean energy, new jobs, and significant reductions in global warming pollution,” he stated.

Wind energy, Steve noted, “is on the verge of becoming a major player in energy supply for the nation. However, a number of obstacles must be eliminated in order for wind to reach its full potential and become fully cost competitive with traditional energy technologies.”

According to the testimony, of the $110 million requested, the largest chunk, $50 million, would go toward utility-scale, land-based turbine technology. Funding for “market acceptance and transformation” activities (e.g., wildlife stewardship, wind integration work, and education of decision makers) at the U.S. Department of Energy would be $34 million, while reliability and testing and advanced applications would each receive $10 million. Small wind R&D initiatives would receive $6 million.

“We strongly believe that the funding provided by the subcommittee should reflect the important work conducted by the wind program and respectfully request that funding be significantly increased above the request level,” Steve stated.

TOP 

U.S. Senator John Thune took several occasions during the last week to call decision makers’ attention to wind energy and issues key to making the renewable resource reach its potential.

Thume met with officials of the South Dakota Public Utilities Commission (PUC) on April 10 to discuss the development of wind power generation in the state and discuss such issues as the ability of existing grid transmission lines to transport electricity generated from wind.

“The message is loud and clear that South Dakotans want to fully develop wind power in concert with cellulosic and corn-based ethanol, hydroelectric power generation, and other potential alternative energy possibilities the state of South Dakota enjoys,” said Thune. “The federal government needs to ensure that transmission bottlenecks that limit the development of wind power in rural areas are adequately addressed and eliminated. As I know from growing up in Murdo, South Dakota has an endless supply of wind.”

On April 3, Thune met with officials of the Western Area Power Administration (WAPA) in Watertown, S.D., to discuss transmission bottleneck issues and wind power development. He followed the visit up with an April 9 letter urging WAPA to study the potential to integrate hydropower and wind energy along the Missouri River. “[B]ecause reservoir levels are low and the ability to generate hydropower is limited, having an alternative power source such as wind farms would be especially helpful,” the letter stated.

In his letter, Thune also urged WAPA to address grid capacity issues in the state. “If large wind farms and integrated hydro-wind power are to be possible, it is essential to have the necessary transmission capabilities,” the letter stated.

Following the PUC meeting, Senator Thune traveled to Howard, S.D., to tour a recently opened Knight & Carver Company blade manufacturing and repair facility as well as Energy Maintenance Service’s wind turbine repair facility.

TOP

VienTek LLC (VienTek), a joint venture between Mitsubishi Power Systems Americas, Inc. (MPS) and TPI Composites, Inc. (TPI), announced it has launched plans to triple the capacity of their wind blade manufacturing operation in Juarez, Mexico from 400 MW to 1200 MW per year.

When the expansion is complete in October 2007, VienTek will have two plants on one campus with a total of 500,592 square feet of manufacturing space and 800 employees. VienTek has taken control of the complete 45 acre land site, providing space for even further expansion, the companies said.

Explaining that all of the factory output goes to markets where Mitsubishi projects are located, Steven Lockard, president and CEO of TPI and VienTek, told Wind Energy Weekly that the location of the plant is “suited really well for the Western half of the U.S.”

VienTek manufactures 30M class blades for the MPS MWT62 turbine and has begun to manufacture 45M class blades for Mitsubishi’s MWT92 and MWT95 turbines. VienTek also manages a 15-acre blade storage facility in Santa Teresa, New Mexico.

“MPS has launched a significant expansion plan for all of our key wind turbine components, including blades from VienTek, to provide for the growth of our wind business” said Ichiro Itoh, senior vice president of MPS. “We continue to be very pleased with the performance of the VienTek joint venture.”

TOP 

Vectren Energy Delivery of Indiana filed a request on April 9 with the Indiana Utility Regulatory Commission (IURC) seeking authority to buy 30 MW of wind energy from an Indiana wind farm.

If approved, the purchase would provide enough energy to power around 8,000 homes annually. In addition, the company has requested authority to implement a new green power program, which will permit its electric customers to purchase energy from this new wind energy source.

Vectren plans to buy nearly 95 million-kWh per year of renewable energy from Orion Energy Group’s 30-MW wind power expansion, which is planned for a 2008 completion in Benton County, Ind. The wind farm is owned and operated by an independently-owned power producer. This proposed 20-year power purchase agreement will be the first wind energy contract for Vectren. Until the wind farm is completed, Vectren will purchase renewable energy certificates to meet customer demand for those who opt into the green power program. Renewable energy certificates (RECs) represent the environmental attributes of the power produced from renewable energy projects and are sold separately from the electric commodity.

Residential and small commercial customers may subscribe to the green power program through the purchase of green energy blocks of 100 kWh at a fixed monthly rate. Although the official price tag has yet to be determined, subscriptions will likely be between $2 and $3 per block per month. This fee will be in addition to the customer's regular monthly electric charges. 100 kWh represents approximately 10% of a residential customer's average monthly usage. Customers can purchase as many 100 kWh blocks as desired.

All customers, regardless of whether they choose to buy green power, will have the option to contribute $1 or more monthly toward a renewable energy investment fund, which will be administered by a soon-to-be-formed nonprofit organization dedicated to expanding renewable energy projects in Southwestern Indiana. The optional monthly contribution will be tax-deductible.

Upon approval, a board of southwestern Indiana residents will be formed to oversee accumulated funds from the renewable energy investment fund. As sufficient funds become available, the board will annually issue grants to local nonprofit agencies and/or schools to install energy conservation or green power products or services and help offset their energy costs.

Pending regulatory approval, the green power subscription and option to participate in the renewable energy investment fund will be available to electric customers later this summer, Vectren said. Vectren is also planning to offer the green power program to large commercial and industrial customers through special, individualized contracts.

Vectren will use the funds collected from the program to purchase green power, educate the public, market renewable energy, and administer the program.

TOP 

First Community College Wind Energy Program on West Coast Getting Off Ground

A community college on the boundary of Oregon and Washington is offering the first training for wind energy technicians on the West Coast to help meet the demand for knowledgeable and skilled workers in the industry.

Columbia Gorge Community College, which has campuses in The Dalles and Hood River, Ore., is located in the center of the Columbia River Gorge, a focal point of wind power development in the region.

“Seeing all the wind turbine components being transported through the Gorge signaled the possibilities of jobs for our region,” said Susan Wolff, chief academic officer of Columbia Gorge Community College and a key architect of the new renewable energy training program. “Through our partnership with the Mid-Columbia Council of Governments, a five-county regional workforce investment system, a feasibility study was completed and resulted in the creation of a new program to provide a highly skilled workforce to this rapidly growing industry. This work has resulted in receipt of $93,350 from the Oregon Governor’s Strategic Training Fund.”

Nearly 1,000 MW of wind energy production is installed across Eastern Oregon and Eastern Washington. More than 4,000 MW of additional capacity are either under construction now or permitted for construction, and a total of 6,000 MW is projected. Based on those numbers, the college anticipates at least 300 new jobs generated in the region.

Industry partners provided assistance in curriculum development for a six-month pilot program that began in January, and for a credit one-year certificate and two-year degree that begins in the fall of 2007. The partners have also become members of the Science, Technology, Engineering, and Mathematics (STEM) advisory committee and are providing in-kind support. Examples of support include the assignment of an engineer to the development of the program and admission of students into the pilot program, donation of turbine components to the college, transportation of those components, and use of a training nacelle at a working wind farm.

Industry partners include AES, Black & Veatch Corp., Bonneville Power Administration, Cardinal IG, Clipper Windpower Inc., Cloud Cap Technology Inc., enXco, Intel Corp., Insitu Group, GE Wind Energy, Goldendale Wind Farm, North West Wind Partners, PGE, PPM Energy, Suzlon, UPC Wind Management, US Army Corps of Engineers, Vestas, Western Wind Power, and the Community Renewable Energy Association, a newly formed nonprofit organization that will serve as liaison with the college’s Renewable Energy Technician program.

In March, college officials met with key personnel at both the U.S. Department of Energy’s and AWEA’s headquarters in Washington, D.C. College officials also will be attending AWEA’s WINDPOWER 2007 Conference and Exhibition in June. In the meantime, the college is seeking federal funding support for its renewable energy training program. As it has with its healthcare program, the college will be looking to industry agreements for long-term program sustainability.

For information on Columbia Gorge Community College’s Renewable Energy Training Program, call (541) 506-6030 or e-mail swolff@cgcc.cc.or. The college is accepting enrollment applications for fall term 2007 until June 15. Potential students are asked to contact Kristen Kane, program adviser, at (541) 506-6023, or kkane@cgcc.cc.or.us .

TOP

Every year, the WINDPOWER Conference & Exhibition is a reflection of what’s happening in the industry, and WINDPOWER 2007, taking place June 3-7 in Los Angeles, Calif., continues that trend, with events and gatherings tailored to what’s happening now—a perfect venue for those new to the industry or considering entering it to learn about the business.

Against the backdrop of ever-increasing demand for new talent in the industry, two scholarship programs to WINDPOWER 2007 have been unveiled.

 

AWEA Educational Scholarship Fund

AWEA is pleased to announce the launch of its new AWEA Educational Scholarship Fund. In cooperation with the generous support of Suzlon Wind Energy Corp., and Vestas Americas, this new scholarship program was created to provide complimentary conference registration for individuals interested in enhancing their knowledge of the wind industry, including full-time students, faculty and staff of K-12 institutions among others.

CLICK HERE for more information on the AWEA Educational Scholarship Fund including the application form which is due by April 28, 2007.

For more information about WINDPOWER 2007 Conference & Exhibition, visit www.awea.org/wp07.html .

Women of Wind Energy

Women of Wind Energy (WoWE), meanwhile, is also addressing the state of affairs in the industry. The group is once again providing five scholarships to women who are considering entering the wind power industry, allowing them to attend WINDPOWER will all expenses paid by WoWE. The recipients will be recognized at WoWE’s annual WINDPOWER Luncheon, taking place in Los Angeles during the conference (Tuesday, June 5). In the program’s two-year existence, WoWe has granted 11 scholarships to women; thus far, nine out of those 11 women have obtained full- or part-time positions with companies and organizations focusing on wind power.

Additionally, for the second year in a row, WoWE will also be recognizing someone in the industry with its Woman of the Year award. Last year’s recipient: NRG Systems CEO Jan Blittersdorf, who was recognized for her years of dedication to advancing wind power and serving as a role model to other women in the industry.

“Women of Wind Energy believes that despite the growing number of women in the wind power field, we are still under-represented—especially at top management levels,” said Suzlon Wind Energy Marketing Manager Michele Montague, who is on WoWE’s steering committee. “Through WoWE and its scholarship program we are trying to encourage talented women to get involved, and also develop awareness that the industry can be stronger through a broader talent base.”

The application deadline for the Woman of the Year Award is May 1. The application deadline for the Rudd Mayer Scholarship has been extended a few days, to Wednesday, April 18. For more information on WoWE and its upcoming activities, go to www.womenofwindenergy.org .

 

TOP

Announcement: WINDPOWER Golf Open Now Available for Reservations

New for this year, AWEA has created a Scientific track taking place on Wednesday, June 6 during the main conference. This track will feature presentations that are each 30 minutes in length, giving selected authors an opportunity to further explain the technical details of their papers. The authors will also be invited to submit their final papers to a scholarly journal for consideration for publication. We believe this new addition will provide more in-depth presentations benefiting our technical attendees.

Topics to be covered within the Scientific Track include:

• Offshore Wind Energy Technology
• Resource Assessment
• Structures, Dynamics, Load & Control
• Grid Integration of Wind Energy

For more information about WINDPOWER 2007 Conference & Exhibition, visit www.awea.org/wp07.html - click on Conference Program for all of the session details and highlights.

 

TOP