Volume 26, Issue 1249 20 July 2007
Pelosi: Anticipate an RPS Vote First Week of August

U.S. House of Representatives Speaker Nancy Pelosi (D-Calif.), in a recent meeting with a group of wind industry members and other RPS (renewable portfolio standard) advocates, made clear that the House is likely to vote on an RPS the week of July 30.

Speaker Pelosi has underscored the importance of passing an RPS so that the nation can move forward on addressing global warming. It is expected that the RPS will be the most high-profile floor amendment to broader energy legislation expected to move forward this summer. The issue will arise in the form of an amendment offered by Reps. Tom Udall (D-N.M.) and Todd Platts (R-Pa.), sponsors of the leading House RPS bill, H.R. 969.

As part of its outreach surrounding RPS advocacy, AWEA will be placing advertisements in the Washington Post and the Capitol Hill newspaper Roll Call and running strategically placed television advertisements in Washington, D.C., as well as other media markets around the nation that are home to key swing voters in the House. AWEA urges its members to contact their Members of Congress and call on them to support RPS legislation. For more information go to http://capwiz.com/windenergy/issues/alert/?alertid=9544071&type=CO .

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Texas PUC Calls for Eight Renewable Energy Zones for 10,000-25,000 MW of Wind

In a much-anticipated decision following intense efforts by the wind industry, the Public Utility Commission of Texas selected eight “competitive renewable energy zones” (CREZ) for the Electric Reliability Council of Texas (ERCOT) territory, directing ERCOT to develop transmission plans for wind capacity in the range of between 10,000 MW and 25,000 MW.

The decision’s implications are hard to overstate: For reference, as of March 31, 11,699 MW in capacity were installed in the entire U.S. The ruling is particularly important because it decides the amount of capacity that can go in the zones. The verdict: wind is limited only by the amount that can be placed onto the ERCOT system.

CREZ designation allows for areas with significant renewable energy resources to be connected to the transmission grid through transmission lines that will be planned by ERCOT and paid for by all consumers across the Texas grid. The ruling was immediately hailed by wind energy advocates as a landmark and even historic decision. “Santa paid a visit to Texas today, and left a CREZ in just about every stocking,” said Mike Sloan, managing consultant of the Wind Coalition in a note to his membership.

“It is, frankly, an astonishing testament to the wind resources available in our state to have aggregate expressions of interest in constructing 24,511 MW of wind generation before the commission,” wrote Chairman Paul Hudson in a July 20 memo prior to deliberation on the issue.

While the ruling is the biggest milestone in the CREZ process, further regulatory details still need to be worked out. CREZs are viewed as a model for other regions to solve the “chicken-or-the-egg” transmission dilemma in which wind power developers are reluctant to build projects in areas that have strong wind resources but lack transmission, while transmission developers do not want to put in lines to such wind-rich areas without any generation facilities present. Colorado recently initiated a process that will also ultimately establish renewable energy zones for transmission planning purposes.

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Little Rock Wind Blade Facility to Employ 1,000

LM Glasfiber announced plans to open a new wind turbine blade production facility in Little Rock, Ark.—a plant that will employ over 1,000 people within five years. The facility is scheduled to begin operations in the first quarter of 2008.

“We are very pleased to announce our new facility in Little Rock,” said CEO Roland M. Sundén. “The Little Rock plant is key to enabling us to serve our growing portfolio of customers in North America. The facility will help secure our customers’ long-term blade supply, thereby enabling their ambitious growth strategies while also increasing the robustness and visibility of LM Glasfiber’s North American sales.”

The Little Rock plant will be LM Glasfiber’s third North American production facility, effectively doubling the capacity of the existing factories in Grand Forks, N.D., and Gaspé, Quebec. This latest capacity expansion reflects an overall strong market demand coupled with optimism for continued stability in the U.S. market, the company said.

“We couldn’t be happier with the location,” said Sundén. “Not only is the site ideally located to serve some of the central U.S. demand for wind development, but Arkansas was able to accommodate our aggressive ramp-up schedule . . . . The site itself offers excellent logistical options, whether by road, rail, air, or marine. And when we considered the kind of amenities that are conducive for LM Glasfiber to attract and retain the people and talent we need, Little Rock was a natural choice for us.”

Arkansas Governor Mike Beebe (D) applauded the good news for his state. “LM Glasfiber adds another industry-leading company to Arkansas, and specifically to Little Rock,” he said. “Not only does LM Glasfiber offer a global presence, but it will supply skilled and technical jobs to our citizens. LM Glasfiber also elevates Arkansas’s presence among the growing state and national interest in the renewable energy industry. This development is another step forward for our state’s economy in today’s global marketplace.”

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NARUC Meeting Tackles Global Warming

Climate change and related policy took center stage at the summer meetings held by state public utilities commissioners in New York City this week, indicating that the state-level regulators consider carbon constraints to be the most pressing of issues for the nation’s electric utilities.

Central to the operation of the electric industry, state public utilities commissions (PUC) authorize new power source construction, cost recovery, and siting, as well as oversee telecommunications, water, and other utilities. Speakers at the National Association of Regulatory Utility Commissioners (NARUC) event included leading climate change expert James Hansen, director of NASA’s Goddard Institute for Space Studies, who said coal-fired power needs to be phased out unless the carbon can be captured and stored. Environmental Defense President Fred Krupp, meanwhile, pointed to energy efficiency and renewable energy as global-warming solutions and said carbon regulation is a virtual certainty.

Taking in such information, utilities and state regulators were characteristically cautious, asking questions about one of their perennial priorities: rate impacts. A number of speakers responded by saying it is likely rates will rise under any future scenario.

In response to the dialogue, NARUC’s Electricity Committee passed a resolution aimed at gaining a place at the table in the Congressional debate on climate legislation. “Any climate change legislation should be implemented economy-wide as part of a comprehensive national energy and energy security policy…,” the resolution stated. “Any climate change legislation should minimize the cost impact on electric and natural gas ratepayers. To that end, the majority of any compliance-related revenues from the electricity sector should be dedicated to reduce ratepayer energy costs… Any climate change legislation should refrain from usurping the States’ traditional responsibility for making generation resource decisions.”

AWEA Transmission Committee Chair and board member Don Furman of PPM Energy spoke on the federal renewable portfolio standard at the conference. The session was intended to build upon and inform the work of NARUC’s Task Force on Climate Policy, which holds regular discussions on climate-policy developments and hosts educational sessions for the Association’s membership. NARUC President Jim Kerr of North Carolina formed the climate-policy Task Force to ensure that the concerns of State regulators and the ratepayers they serve are adequately addressed as Congress moves forward.

 

 

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Rocky Mountain Power Proposes Wind Power for Reclaimed Wyoming Coal Mine

PacifiCorp subsidiary Rocky Mountain Power (RMP) is proposing to use part of a restored surface coal mine as the site for a new 99-MW wind project it plans to build in the coming year.

The company requested a certificate of public convenience and necessity from the Wyoming Public Service Commission July 3 as part of its efforts to move the project forward. The utility plans to locate 66 General Electric 1.5-MW wind turbines in an area where more than 40 years of surface coal mining took place. The U.S. Department of Energy lists Wyoming as one of the best states for wind power development in the nation, based on wind frequency and dependability.

"We are pleased to announce plans for a new Wyoming wind energy facility that will benefit customers by adding new cost-effective renewable energy to our electrical system, as part of a comprehensive strategy to achieve a more balanced mix of resources used to generate electricity," said RMP President Richard Walje.

Located approximately 12 miles north of Glenrock, in Converse County, Wyo., the former Dave Johnston Coal Mine operated from 1958 to 2000, supplying the primary source of fuel for the company’s nearby Dave Johnston Power Plant. Full-scale final reclamation efforts to restore the nearly nine-mile stretch of land used for mining began in 1999, and reclamation work was completed in late 2005. Providing long-term grazing land and habitat for livestock and wildlife was a central part of the award-winning reclamation, which was recognized for excellence by both the state of Wyoming and the U.S. Department of the Interior’s Office of Surface Mining.

The company plans to begin construction as soon as all necessary permits and approvals are in place and hopes to be able to complete the project by October 2008. The project will provide significant tax revenue to state, county and local jurisdictions, RMP said.

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Puget Sound Energy Enters 20-Year Contract with PPM for Wind

Puget Sound Energy (PSE) moved another step closer to meeting its long-range renewable-energy goals by securing a 20-year purchase of wind power.

Under a contract signed with PPM Energy, PSE is acquiring 50 MW of power output from the Klondike III Wind Project being built near Wasco in north-central Oregon.

"This contract gives our customers more clean, renewable power, and it comes at a very competitive price," said Kimberly Harris, executive vice president and chief resource officer for PSE. "Our Klondike agreement, together with the 380-MW output of our own Hopkins Ridge and Wild Horse wind farms, takes us a considerable way down the path toward our renewable energy goals."

PSE set a voluntary goal in 2003 of meeting 10% of its customers' power needs by 2013 with renewable resources. Washington voters last fall approved a new law requiring the state's largest utilities to secure 15% of their power supply from renewable sources by 2020.

With the additional wind power obtained under the Klondike III contract, PSE will have more than 5% of its power supply coming from renewable resources. By 2020, the utility intends to have about 1,400 MW of renewable power in its portfolio.

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Iowa Utility Buys Two Wind Turbines from Americas Wind Energy

Iowa public power utility Waverly Light and Power purchased two AWE54-900 kW wind turbines from Americas Wind Energy, Inc., in a $3.4-million investment.

The 900-kW turbines are scheduled to be in operation by summer 2008 and together will provide over 4 million kWh of electricity for the community, said Waverly Light and Power. The units will be located on local farmland as well as a 70-acre site purchased by the utility east of Waverly.

“We searched to find extremely durable units featuring direct-drive technology new to this country,” said Glenn Cannon, general manager of Waverly Light and Power. “We’re excited about pioneering this technology in the Midwest and the United States.”

The modest utility has 5,000 meters on its system. Its board has set a goal of getting 20% of its electricity from renewables by 2020. “We’re advancing toward our goal,” Cannon told Wind Energy Weekly. The 70-acre site was purchased, he said, with the intent of adding more turbines in the future. The farm site, meanwhile, will be leased by the utility from the local farmer while it continues to produce crops. “It’s still going to remain farmland,” said Cannon.

Cannon is a past president of the American Public Power Association and has been a leading voice for renewable energy within the municipal utility sector.

 

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Colorado Renewable Energy Mapping Task Force Members Named

AWEA Western Regional Representative Ron Lehr and Craig Cox, executive director for AWEA regional partner Interwest Energy Alliance, are among those appointed by Colorado Governor Bill Ritter (D) to the state’s Renewable Resource Generation Development Area Task Force.

In addition, eight other members of the task force were designated or appointed by Senate President Joan Fitz-Gerald and House Speaker Andrew Romanoff, and one member was designated by Energy Office Director Tom Plant.

The panel will produce maps detailing the opportunities for renewable energy development in Colorado. The maps and supporting materials will be delivered to the governor’s office and the General Assembly by Dec. 31. The governor’s energy office will provide staffing services to the task force.

“We are thrilled to have AWEA’s Western Representative Ron Lehr and Craig Cox from our regional partner Interwest Energy Alliance appointed to this task force,” said AWEA Policy Director Rob Gramlich. “This is a critical step to conduct proactive transmission planning to connect the best wind locations to the grid.”

The first meeting of the task force is scheduled for Aug 6. For additional information about the task force, contact Morey Wolfson, utilities program manager in the governor’s energy office, email morey.wolfson@state.co.us .

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Study: U.S. Dominates in Small Wind Sales

AWEA’s newly released 2007 Small Wind Turbine Global Market Study finds that U.S. manufacturers continue to dominate the world market share of small-turbine sales globally.

According to the study, roughly half of all U.S. manufacturers’ sales are made overseas, with jobs remaining within U.S. borders. Approximately 7,000 Americans, meanwhile, purchased small wind turbines last year for their homes, farms, or small businesses, showing increasing demand for on-grid residential-scale systems.

Demand for small wind, defined as systems having 100 kW in capacity and less, is being driven by concerns about global warming, volatile and rising costs of fossil fuel energy, energy security, and the desire or need for local and independent power. While demand is high and the industry is growing, the AWEA study indicates that the high purchase price of a small wind system is the single largest market barrier. A residential-scale turbine can cost $10,000 to $55,000 installed, which is simply out of reach for many consumers.

“The industry remains strong, but without a federal investment tax credit to help consumers buy these systems, small wind could be hard pressed to keep up with the solar industry,” said Ron Stimmel, AWEA’s small-wind advocate. “Small wind remains the only renewable energy technology without a federal-level tax credit.”

A 30% federal-level tax credit would allow the industry to tap a far larger segment of the market. Production volumes would then increase, and costs would in turn come down even further.

Though technological advancements play an important role, the study confirmed that state and federal policy are the main drivers of the small wind market. Policies such as state rebate programs, net metering, fair zoning and grid-interconnection rules, and streamlined permitting processes are all critical for sustaining and growing the market.

The study is now available online at www.awea.org/smallwind or http://www.awea.org/smallwind/documents/AWEASmallWindMarketStudy2007.pdf .

 

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RFP: Nebraska Public Power District Seeks Wind

Nebraska Public Power District (NPPD) issued a request for proposals (RFP) for the development of future wind-powered generation projects.

The RFP is for a total of up to100 MW of capacity, to be located near NPPD transmission facilities, as well as the associated energy and renewable energy credits. The target operational date is December 31, 2008. A successful proposal will require the negotiation of a power purchase agreement for NPPD to purchase electricity from the proposed facility over a 20-year period. NPPD will seek to enter into one or more power purchase agreements based upon the proposals and subsequent negotiations.

The deadline for submitting a proposal is August 20 at 5 p.m. (CDT). NPPD expects to make a final decision in the October-November time-frame, which it said will allow time to compare the proposals and complete detailed negotiations.

Due to the interest in the development of wind-powered energy for Nebraska, NPPD designed the RFP process to encourage Community Based Energy Development (C-BED) projects and other private developers to submit formal proposals. “We are interested in adding an initial 100 MW of wind-powered generation, and more in the future,” said NPPD President and CEO Ron Asche.

The complete RFP is available on the NPPD web site at www.nppd.com .

“NPPD looks forward to exploring wind-powered generation opportunities and encourages parties to use the recently enacted C-BED legislation as a structure for responding to the RFP,” said Asche. “We feel that the request for proposal process will advance wind-powered generation development in Nebraska.”

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RFP: NREL Seeks Proposals for Small Wind Turbine Testing

Through its National Renewable Energy Laboratory (NREL), the U.S. Department of Energy (DOE) released a request for proposals (RFP) for commercially available small wind turbines to be tested at NREL’s National Wind Technology Center (NWTC).

The objective of the RFP is to provide high-quality, detailed, and independent test results for a number of small turbines, allowing manufacturers an opportunity to earn a certification granted by an independent certification body. That organization is being formed by the Small Wind Certification Corp., a nonprofit organization led by the Interstate Renewable Energy Council with support from DOE’s Wind and Hydropower Technologies Program, AWEA, state energy offices, and wind turbine manufacturers.

NREL will evaluate turbines based on testing protocols and by the latest draft AWEA standard for small wind turbines. Tests will include duration, power performance, acoustic noise emissions, safety and function, and power quality.

The RFP targets commercially available small wind turbines that have a high probability of success in the U.S. market over the next several years. Up to eight small turbines will be selected for testing, for which DOE is expected to contribute up to $800,000. The value of each award will depend on the size of the turbine and the installation requirements. Each award recipient is expected to deliver a complete system to NWTC and assist with installation and maintenance.

For the full RFP, got to www.nrel.gov/business_opportunities/solicitations_rfps.html .

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AWEA Event Calendar
AWEA Wind Resource & Project Energy Assessment Workshop
September 18-19, 2007
P
ortland, Ore.

AWEA Wind Power Finance & Investment Workshop
October 10 – 11, 2007
New York , N.Y.

AWEA Wind Energy Fall Symposium
November 1 – 2, 2007
Carlsbad , Calif.

WINDPOWER 2008 Conference & Exhibition
June 1 – 4, 2008
Houston , Texas
www.windpowerexpo.org

For more info:
www.awea.org/events

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 _____________________________________________

AMERICAN WIND ENERGY ASSOCIATION
1101 14TH Street NW, 12th Floor
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Phone: (202) 383-2500
Fax: (202) 383-2505

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American Wind
Energy Association
1101 14th Street NW
12th Floor
Washington, DC 20005
Tel: 202.383.2500
Fax: 202.383.2505
eMail: windmail@awea.org

AWEA Board of Directors

Robert Gates , President
Clipper Windpower

David Blittersdorf, Treasurer
NRG Systems, Inc.

Edwin T.C. Ing, Secretary
Attorney at Law

Ed Zaelke , Past President
Chadbourne & Parke, LLP

Jim Walker, President-Elect
enXco

Victor Abate
GE Energy

Paul Bonavia
Xcel Energy

John Calaway
Babcock & Brown

Karen Conover
Global Energy Concepts, Inc.

David A. Drescher
Deere & Co.

John M. Eber
J.P. Morgan Capital Corp.

Don Furman
PPM Energy

Jay Godfrey (Advisor)
American Electric Power

Dean Gosselin
FPL Energy

Jerry Grundtner
M.A. Mortenson Co.

Ned Hall
AES Wind Generation

Robert Lukefahr
BP Alternative Energy

Craig Mataczynski
RES America

Brian McNiff
McNiff Light Industry

Lars Moller
DMI Industries

Michael Polsky
Invenergy, LLC

Harold Romanowitz
Oak Creek Energy Systems, Inc.

Michael Skelly
Horizon Wind Energy

Jens Soby
Vestas Americas

 

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Wind Energy Weekly editorial contact: Carl Levesque, email clevesque@awea.org

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Copyright 2007 American Wind Energy Association. All rights reserved.