A group of Midwestern governors signed a historic accord this week committing the region to work together over the next couple of decades on reducing global warming-causing emissions, a pact that includes a 30% renewables goal by 2030.

Meeting at the Midwestern Governor's Association (MGA) Energy Summit held this week in Milwaukee, Wis., the governors of Wisconsin, Illinois, Iowa, Minnesota, Michigan, Kansas, and the Canadian province of Manitoba all signed the accord, with the governors of Indiana, Ohio, and South Dakota signing on as observers to the process. “This is a momentous day in Milwaukee,” said Governor Jim Doyle (D) of Wisconsin, who serves as the current chairman of MGA and who, along with Minnesota Governor Tim Pawlenty (R), co-chaired the the summit.

Acknowledging the indisputable link between carbon dioxide (CO 2) emissions and global warming, the agreement represents a bipartisan convergence of the need to move forward on a regional basis to take action on the issue rather than wait for federal action from Washington, D.C. In addition, the agreement serves as a message to Congress that action needs to be taken on renewable energy and climate policy, said Iowa Governor Chet Culver (D). “If nothing else, we're going to get the attention of those in Washington, and we need our colleagues from across the nation, the other governors, to join us,” he said.

The plan addresses a broad range of actions on energy efficiency and other technologies to combat CO 2 emissions from the states in the region. Several elements of the plan focus on renewable energy, and the governors speaking at the event highlighted wind power in particular as a technology that is scalable, easily deployable, and ready to play a major role in the region.

The agreement calls for the Midwest to generate 20% of its electricity by the year 2020 and 30% by 2030. To achieve those ambitious goals, the agreement calls for specific issues to be tackled through various actions, including

• promoting passage of a multi-year federal production tax credit (PTC) extension (up to eight years) for renewable energy, effective once the current two-year extension expires on December 31, 2008;
• expanding collaborative regional transmission planning and siting to enable future development of renewable electricity generation;
• pursuing a multi-state transmission initiative to facilitate construction and delivery to market of a large amount of new renewable electricity generation, together with power from other lower-carbon generation facilities;
• developing and implementing comprehensive siting principles and policies for wind farms to encourage orderly development of the renewable resource;
• applying the findings of wind integration studies, such as the 2006 Minnesota Wind Integration Study (such studies show that higher percentages of wind power can be incorporated reliably into the electric power system given the Midwest’s tremendous wind resource); and
• developing economic incentives and workforce development policies to attract renewable energy component manufacturers and service providers to the region.

The accord can be accessed at http://www.midwesterngovernors.org/energysummit.htm

 

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Sierra Pacific Resources and Renewable Energy Systems Americas, Inc., (RES) are in discussions to jointly develop and operate a large wind-energy project that would straddle federal, state, and local land in northeastern Nevada and southern Idaho, the companies announced November 15.

Located at the Nevada-Idaho border, the proposed China Mountain Project is expected to have a capacity of more than 200 MW. “The area where this project would be located provides the combination of a good wind resource and the relatively gentle terrain needed for construction access,” said Tom Fair, executive for Sierra Pacific’s renewable energy program. “Preliminary wind resource analyses completed to date have found this site to be favorable for developing a utility-scale wind energy facility. RES is a very experienced wind development and construction company, with an excellent track record, including working closely with federal, state, and local agencies, as well as utility companies investing in wind energy.”

The project, which would send power onto Sierra Pacific’s power grid, will go through an environmental review process as required under the National Environmental Policy Act. An official notice for preparation of an environmental impact statement is expected in early 2008.

“The combined efforts of our two companies will enable the earlier development and construction of a cost-effective wind energy project that is sensitive to the environment and that brings significant economic benefits to the surrounding communities,” said RES Director of Development Scott Piscitello.

In addition to pursuing such renewable investment opportunities, Sierra Pacific also issued a request for proposals in early October to solicit proposals for long-term contracts from renewable energy project developers (see Wind Energy Weekly#1260).

“Expanding our renewable energy initiatives by adding wind energy to our growing portfolio of geothermal and solar energy resources is a key part of our strategy of providing clean, safe, reliable electricity to our customers at reasonable and predictable prices,” said Sierra Pacific CEO Michael Yackira. “Working with RES, we plan to expand the leadership position our company already has in renewable energy nationwide.”

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Filing its Colorado generation resource plan November 15, Xcel Energy announced it would seek to add approximately 1,050 MW of renewable generation and achieve 20% renewables penetration by 2015.

Xcel Energy’s Colorado resource plan (CRP) calls for an 800-MW increase in wind power resources by 2015, which would bring the utility’s total wind capacity in Colorado to approximately 1,900 MW. The plan would help reduce its greenhouse gas emissions by at least 10% by 2017, when compared with 2005 levels, the company said. Xcel further committed to file an expedited resource plan in 2009 which would provide options and make recommendations to put the company on a path to reduce the utility’s greenhouse gas emissions by up to 20% by 2020, a goal recently set by Colorado Governor Bill Ritter (D). Xcel Energy Chairman, president, and CEO Richard C. Kelly called the CRP “an important first step on the path of achieving the goals of the governor’s Colorado Climate Action Plan.”

Xcel Energy typically files its resource plan every four years with the Colorado Public Utilities Commission (CPUC). The current CRP identifies future generation needs and resources for the next eight years, through 2015. The planning process includes the utility, regulators, customer advocates, environmental groups, and other interested parties.

“This, along with transmission expansion through the Colorado SB 100 process, will be a key priority of the Interwest Energy Alliance in the months to come,” said Craig Cox, executive director of the alliance, an AWEA regional partner. “We also see increasing potential in the regional export market through large regional transmission projects such as the Wyoming-Colorado Intertie and the High Plains Express project.”

Xcel Energy’s next resource plan would address further reductions after 2015, with the expectation that federal and state environmental regulations will be better defined, and future technologies to reduce greenhouse gases may be further developed, the company said.

In addition to wind, the company plans to incorporate (subject to CPUC approval) efficient, utility-scale solar power, starting with the acquisition of approximately 25 MW of capacity from a central solar power plant, with plans to bring in a plant of up to 200 MW as technology develops. It also plans to pursue an additional 29 MW of on-site, customer-owned solar installations, as part of the company’s “Solar*Rewards” program. Plans also include power reductions through energy efficiency and replacing the output of four coal-burning units (at two power plants) with a natural-gas generating facility.

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Invenergy Wind, LLC, contracted with General Electric Co. to purchase an additional 800 MW of wind turbines for use in projects slated for construction in 2009 in North America and Europe.

Along with its previous purchases of 600 MW for 2007 and 700 MW for 2008 from GE, Invenergy now has 2,100 MW of wind turbines locked in for its 2007, 2008 and 2009 build programs. The turbines are slated for Invenergy's projects in the U.S., Canada and Europe, the company said.

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The Senate Environment and Public Works Committee (EPW) went to work holding a series of three hearings in mid-November on the greenhouse-gas capping legislation introduced on October 18 by Senators Joseph Lieberman (I-Conn.) and John Warner (R-Va.) with the support of five Democrats and three additional Republicans.

The hearings were in preparation for a committee markup of the bill currently scheduled for December 5. The bill could reach the Senate floor as early as March or April of next year.

The tri-partisan “America’s Climate Security Act” (S. 2191) caps greenhouse gas emissions beginning in 2012, gradually ratcheting down the cap so that emissions will be as much as 4% below 1990 levels (15% below current levels) in 2020 and 57% below 1990 levels by 2050. The bill, which applies economy-wide, creates a cap-and-trade system for pollution credits.

As for the means of credit distribution, S. 2191 calls for the electric power sector to receive 20% of the overall allocation for free, with individual generator distributions based on the historic emissions of each generator. Such a mechanism, however, means that non-emitting energy sources like wind are not eligible for this pool. Wind energy and other renewable energy advocates, including AWEA, have raised concerns about this approach, arguing that it creates a disincentive to invest in clean sources of energy.

Within the 20%, 5% is set aside for “new entrants,” defined as projects in operation after 2008. The new entrants set-aside is allocated based on a modified generation output formula rather than on historic emissions. However, currently only fossil generation is eligible.

Among other recipients, the bill provides 20% of the allocation free to the industrial sector, 10% to load-serving utilities, 4% for carbon capture and sequestration, and 5% to reward early actions to reduce emissions. Finally, the legislation provides for 18% of credits to be auctioned, with the revenue being used to help lower-income families, train workers, invest in zero or low-carbon energy technologies, and invest in carbon sequestration, biomass, and advanced vehicles. The free credits for utilities and industry are phased down to zero in 2036, and the amount devoted to auction gradually rises, increasing to 73% by 2050.

At the first hearing on November 8, proponents of renewable energy were gratified when several Senators—including Thomas Carper (D-Del.), Bernard Sanders (I-Vt.), Frank Lautenberg (D-N.J.), and Larry Craig (R-Idaho)—all expressed support for changing the overall allocation to ensure that at least a portion of the credits are distributed based on output rather than historic emissions; such a change would support the development of wind energy. During the December markup amendments are possible on this issue, as well as on other issues to ensure S. 2191 more explicitly supports renewable energy, such as making renewable sources eligible for new-entrant allocations.

The committee heard from a total of 15 witnesses, including utility executives, economists, environmentalists, and organized labor. Several witnesses noted the importance of using climate legislation to promote renewable energy, including wind energy.

“Investment in low-and zero-emission electric generation and other technologies is critical,” said Peter Darbee, chairman, president, and CEO of PG&E Corp. “Policies should lower barriers and create incentives for investment in renewable power. . . . Driving investment in these technologies. . . will reduce greenhouse gas emissions, enhance and improve the efficiency and reliability of the nation’s energy infrastructure, create economic opportunities for American business, reduce reliance on imported fossil fuels, and support overall U.S. energy independence and security.” Darbee went on to recommend several changes to the bill to benefit renewable energy, including changes to the new-entrants provisions and establishing an allocation set-aside for renewables equal to the set-aside for carbon sequestration.

“This bill represents a sincere effort to confront climate change, but in order to have a realistic chance at achieving the emission reduction mandates in the near term, any climate legislation is going to have to take full advantage of existing non-emitting technologies like wind power,” said AWEA Environment Legislative Manager Tom Vinson. “AWEA looks forward to working with the Senate to shape the final bill in a way that recognizes the value of clean, renewable sources of energy.”

Archived webcasts of these hearings and all witness testimony is available on the Committee’s website at http://epw.senate.gov .

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A recently released article from the Lawrence Berkeley National Laboratory (LBL) finds that a longer-term production tax credit (PTC) extension would encourage greater wind industry growth and possibly help to drive down the cost of wind power.

“Using the Federal Production Tax Credit to Build a Durable Market for Wind Power in the United States,” which was recently published in The Electricity Journal and is now being made available through LBL, highlights the strong case for a longer-term PTC. “Though the article is not intended to advocate any particular policy outcome, our analysis suggests that a longer-term extension of the federal PTC may provide a number of benefits, including accelerated wind deployment, reductions in installed wind project costs, and increased domestic wind turbine and component manufacturing,” said LBL scientist Ryan Wiser, one of three authors of the article.

“The PTC, coupled with the rising cost of conventional fuels, research and development advances, and a variety of state policies, has stimulated significant—though erratic—growth in the use of wind power over the last 10 years,” the article states.

A cause of the erratic growth, authors say, is the short-term, one- and two-year extensions of the PTC. According to the authors’ analysis, a longer-term PTC may be able to bring the cost of wind down by 5%-15%, “relative to a continuation of the present cycle of 1-to-2-year extensions.”

The article also suggests possible design considerations for the PTC that Congress may want to consider.

In addition to Wiser, the authors included LBL’s Mark Bolinger and Galen Barbose. For the article, go to http://eetd.lbl.gov/ea/emp/reports/63583.pdf .

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A new business-environmental coalition in Michigan known as MI Energy Future held news conferences across the state to urge quick legislative action on getting a renewable electricity standard (RES) passed in the state.

More than 75 companies and other organizations signed on to a statement of support for an RES of 10% renewables by 2015. Formation of the coalition was announced at a State Capitol gathering on November 15. “ Michigan cannot sit on the sidelines while everyone invests in renewable energy and creates jobs,” said Anna Giovinetto, vice president of public affairs for Noble Environmental Power, a member of the coalition that is developing the Noble Thumb wind farm in the state.

Renewables momentum continues to build in Michigan as the state, historically a manufacturing center that has lost thousands of jobs in recent years, seeks to use more clean, renewable energy and at the same time attract a new manufacturing industry that has the potential for huge future growth. As the coalition announced its plans and goals, Governor Jennifer Granholm (D) was in Milwaukee to sign an accord with other Midwestern governors to take action on global warming (see related story).

Signing on to the letter were representatives from organizations ranging from members of the wind industry such as Noble, AWEA, Wind on the Wires, Clipper Windpower, and Invenergy, to home builders.

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Hawaiian Utility Offers Free Data to Promote Wind Development

Hawaiian Electric Company (HECO) is making available, free of charge to any interested wind energy developer, data collected about wind conditions and bird activities in the Kahuku area of Oahu’s North Shore.

“While it is unusual for a package of valuable data to be offered for free, we want to do all we can to help encourage more renewable energy in Hawaii,” said Karl Stahlkopf, senior vice president of energy solutions and chief technology officer. “This is especially important on Oahu, where we have the most customers but lack availability of some of the renewable resources found on the Neighbor Islands—such as geothermal and run-of-the-river hydro. Hawaiian Electric has diligently pursued wind resource assessment on Oahu, and we want to share the data.”

The initial package includes wind data collected at different Kahuku sites in the 1980s and in 2007, along with an avian radar study. All information is made available on an “as is” basis without warranties. After signing a registration form and non-exclusive license, the interested developer will be sent the first of two CDs. The second CD, with additional wind data, will be offered in the spring of 2008. Detailed information on the offer is provided on HECO’s Web site at www.heco.com and www.hawaiisenergyfuture.com .

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Over 160 safety officials and others committed to creating a safe working environment at wind facilities met on November 8 in Atlanta, Ga., to discuss safety issues in the industry—from the design of safety lanyard anchors in wind towers, to strategies for fire avoidance and tower rescue, to OSHA processes for establishing standards for wind plant operations.

“Internal corporate meetings begin with a report on plant safety for good reason,” said Gary LeMoine, PPM Energy, at AWEA’s first Safety Seminar. “It’s the most important issue for the board.”

Safety practices must meet one basic principle, according to Graeme Cooper of the British Wind Energy Association: are the procedures you are following the best that you can do? Safe practices not only reduce trauma for employees and their families, said LeMoine, such practices “cost much less than experiencing an accident. Safety is good business practice.”

The Safety Seminar grew out of a need articulated within the AWEA Safety Committee. AWEA should, it was decided, provide a forum to talk about safety practices in wind turbines and to share solutions to ensure a safe working environment. Led by conference co-chairs LeMoine and Luke Tow of GE Energy, the seminar sought to highlight the importance of safety practices.

The event is only the beginning of things to come. The Safety Committee intends to develop a set of best safety practices for the U.S. wind industry that may be used both in company and institutional wind technology training programs; the plan is for the initiative to ultimately lead to creation of a wind technician safety certification program. The committee intends to also work with wind equipment manufacturers and suppliers to ensure that uniform safety equipment is used in the field.

As for further seminars, the Safety Committee will provide guidance in developing the program for another safety workshop in 2008. Committee membership is open to AWEA corporate and academic members. The next meeting will be held on January 16, the day before AWEA’s Asset Management Workshop in San Diego, Calif. See “Upcoming Events” at www.awea.org for the most current information on the workshop, or for information about the Safety Committee, contact John Dunlop at JDunlop@AWEA.org .

 

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An upcoming webinar on December 12 from the American Public Power Association and the National Rural Electric Cooperative Association will provide the latest information on siting issues important to the wind power industry’s future growth. Topics will include project permitting and wildlife and radar issues.

Among other topics, the wildlife segment will cover what is currently known about wind energy and wildlife, as well as what species a developer looks out for when developing a project. The segment will also take a look at some of the research efforts underway that the industry participates in, and touch on the kinds of studies a developer may conduct at a site before and after construction. On radar, the webinar will examine how wind turbines affect, or do not affect, different kinds of radar systems; the latest mitigation measures that are being tested and considered will also be covered. Finally, the ins and outs of permitting will be tackled.

For more information, go to www.repartners.org/pdf/Fallwebinars07.pdf .

 

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Announcement: Reminder--WINDPOWER 2008 Exhibitor Meeting on January 8, 2008 in Houston, Texas

AWEA is pleased to announce the 2008 Sponsorship Program covering all of the coming year's events including WINDPOWER 2008 and all of the educational workshops!

The AWEA 2008 Sponsorship Program offers one of the highest visibility packages focused directly at your target audience, the customer.  The program is widely acclaimed for its success in recognizing and branding the leaders in the wind industry. Due to the high statistics regarding the number of impressions gained as a benefit of this program, the perception of the program is that of a marketing tool, such as advertising, as opposed to just sponsorship dollars. Be recognized for your commanding position as a market leader in the wind industry or build brand recognition through the AWEA sponsorship program.

Visit http://www.awea.org/events/sponsorship/ for more information.

Would you like assistance creating a sponsorship package to meet your goals and budget? Contact Lori Rugh at lrugh@awea.org or (661) 821-2149.

Please note: To be a sponsor, you must be a current AWEA Business Member in good standing.

 

 

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• Rene Braud , Manager Environmental Affairs, BP Alternative Energy
• Mike Sloan , Managing Consultant, The Wind Coalition

• Regulations, Permits & Guidelines – from stormwater permits to siting guidelines
• Wildlife Issues and Research Results – the latest on today’s wildlife issues and on-going research
• Technical Issues – radar and military impacts, hunting impacts, and other considerations
• Community Relations – how to work effectively with communities and deal with opponents
• Transmission Siting – the Texas CREZ process and other regional transmission initiatives

• Attendees will gain an understanding of the latest wind project siting issues and developments
• Attendees will hear field research results on regional wildlife issues such as bats and prairie chickens
• Attendees will learn ways to work with advocates and address project opposition
• Attendees will have the opportunity to network with experts in the business
• Attendees will hear speakers addressing national and regional topics

New exhibition space is now available for WINDPOWER 2008 Conference & Exhibition taking place June 1 – 4, 2008 in Houston, Texas. Due to increased demand for space, the WINDPOWER 2008 floorplan has been expanded into the next exhibit hall. If you would like to check it out, go to www.windpowerexpo.org and click on WP08 Floor Plan to view the additional space.

Exhibition questions? Contact Lori Rugh at lrugh@awea.org or (661) 821-2149 or Mike Swinburne at mswinburne@awea.org or (202) 383-2502.

Visit www.windpowerexpo.org for more information about WINDPOWER 2008 Conference & Exhibition.

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