Wind Energy for Municipal Power Systems

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Wind Energy for Municipal Power Systems

• Randy Manion
• 30 March 2003
• Jacksonville, Florida

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A Very Reliable Source of Power
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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 - 2MW)
• Central Station Wind Farms
• Distributed Power

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Growth of Wind Energy Capacity Worldwide
Jan 2002 Cumulative MW Rest of World
2,365 North America 4,543 Europe
16,362
Actual
Projected
Rest of World
Rest of World
North America
North America
Europe
Europe
MW Installed
Year
Sources BTM Consult Aps, March 2001
Windpower Monthly, January 2002
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What Causes Wind?
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Drivers for Wind Power

• Declining Wind Costs
• Fuel Price Uncertainty
• Federal and State Policies
• Economic Development
• Green Power
• Energy Security

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Wind Economics Determining Factors

• Wind Resource
• Financing and Ownership Structure
• Taxes and Policy Incentives
• Plant Size equipment, installation and OM
  economies of scale
• Turbine size, model, and tower height
• Green field or site expansion
• What is included land, transmission, ancillary
  services

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Wind Cost of Energy
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10
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Low wind speed sites
COE (/kWh constant 2000 )
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Bulk Power Competitive Price Band
High windspeed sites
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2
0
1990
1995
2005
2010
2015
2020
2000
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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 OM 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)

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Wind Powered Munis

• 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

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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-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
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Municipal Wind Power Pioneers

• Waverly Light and Power
• Project Location Northeastern, IA
• Capacity 2.4 MW
• Expected Generation 5 of the utilitys 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
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Municipal Wind Power Pioneers

• Moorhead Public Service
• Project Location Moorhead, MN
• Capacity 1.5 MW
• Expected Generation 1 of Moorheads
  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
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Municipal Wind Power Pioneers

• Municipal Energy Agency
• of Nebraska (MEAN)
• Project Location Kimball, NE
• Capacity 10.5 MW
• Expected Generation 2 to 3 of MEANs 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
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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
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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
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Utility Partnerships

• PMA Green Tags
• Transmission Analysis
• Public Power Workshops
• Coop Outreach
• Green Pricing Support
• UWIG brochure
• Wind-Hydro Analysis

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Carpe Ventem
www.windpoweringamerica.gov