Wind Energy for Local Governments

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Wind Energy for Local Governments

• Larry Flowers
• 24 March 2004

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WPA Utility Partnerships

• PMA Green Tags
• Transmission Analysis
• Public Power Workshops
• Coop Outreach
• Green Pricing Support
• Wind Energy Finance Tool
• Wind-Hydro Analysis

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Capacity Cost Trends
Cost of Energy and Cumulative Domestic Capacity
Capacity (MW)
Cost of Energy (cents/kWh)
Year 2000 dollars
Increased Turbine Size - RD Advances -
Manufacturing Improvements
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World Growth Market
Total Installed Wind Capacity
1. Germany 14000 MW 2. United States 6374 MW
3. Spain 5780 MW 4. Denmark 3094 MW 5.
India 1900 MW
World total 2003 37220 MW
Source WindPower Monthly
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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
• Green field or site expansion

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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 500K-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 Municipal Utilities

• American Municipal Power-Ohio
• Austin Energy, TX
• Cedar Falls Utilities, IA
• City of Bowling Green, OH
• City of Howard, SD
• City of Palo Alto, CA
• City Public Service of San Antonio, TX
• City of St. Charles, IL
• City Utilities of Springfield, MO
• Clark Public Utilities, WA
• Colorado Springs Utilities, CO
• Energy Northwest, OR/WA
• Eugene Water Electric Board, OR
• Hull Municipal Light Plant, MA
• Lamar Light and Power, CO
• Lenox Municipal Utilities, IA
• Lincoln Electric System, NE

• Los Angeles Dept. of Water Power, CA
• Missouri River Energy Services, SD
• Moorhead Public Service, MN
• Municipal Energy Agency of Nebraska, NE
• Oklahoma Municipal Power Authority, OK
• Omaha Public Power District, NE
• Pasadena Water Power, CA
• Platte River Power Authority, CO
• Princeton Municipal Light Department, MA
• Sacramento Municipal Utility District, CA
• Seattle City Light, WA
• Southern Minnesota Municipal Power Agency, MN
• Tacoma Power, WA
• Traverse City Light Power, MI
• Wall Lake Municipal Utilities, IA
• Waverly Light and Power, IA
• Wisconsin Public Power Inc., WI
• Supplies wind power to a number of municipal
  utilities

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Waverly Light and Power

• Municipal utility serving 4,300
• First public power system in Midwest to own and
  operate wind generation.
• Owns 2, 750-kW turbines and 1, 80-kW turbine
• Wind supplies 15 of its residential electricity
  needs
• Selling green tags to support new wind
  development (Iowa Energy Tags)
• Planning 1.8 MW new wind

Skeets 4 -- NEG MICON Waverly, Iowa
http//www.waverlyia.com/WLP/Wind/wind_IDX.htm
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Moorhead Public Service

• Launched green pricing program in 1998
• Installed 2, 750-kW wind turbines
• Tremendous response from community
• Sold out capacity of 2nd turbine in a few months
• 7 of its customers participate in Capture the
  Wind (highest in U.S.)

http//www.mpsutility.com/capture.htm
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Austin Energy

• 1999 Austin City Council resolution called for 5
  renewables by 2005
• 2000 launched green pricing program
• Installed 77 MW of wind in 2001 for green power
  customers
• Plans another 25 MW wind
• Fixed price for green power, exempts customers
  from fuel cost increases
• Green power was cheaper than conventional power
  for some time

http//www.austinenergy.com/greenchoice/sources.ht
m
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Eugene Water Electric Board

• Oregons largest public utility
• Partnered with Pacificorp to develop 41 MW wind
  in WY
• Able to spread risk by partnering
• Larger project more cost-effective
• 6.5 MW wind green priced by EWEB
• Exempts customers from price increases
• Green premium dropped by nearly 60
• Purchasing 25 MW wind from Stateline
• Purchasing 7 MW wind from BPA

Foote Creek Rim, Wyoming
http//www.eweb.org/windpower/
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Seattle City Light

• 2000 City Council resolutions to meet all future
  electricity needs with no net greenhouse gas
  emissions
• 2001 more stringent resolutions adopted
• 2001 City Council approved plan to have 5 of
  utility supply come from wind
• Seattle City Light is to purchase 100 MW from
  Stateline Project starting 8/02
• Wind purchase increasing to as much as 175 MW by
  2004
• Seattle City Light also has voluntary green
  pricing program

Pacificorp 263-MW Stateline Wind Project Along
the Washington-Oregon Border
http//www.ci.seattle.wa.us/light/green/greenpower
/
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Wind for Schools
Spirit Lake Community School

• Location Spirit Lake, Iowa
• Turbine Manufacturer NEG Micon
• Turbine Size 750 KW

Photo courtesy of Spirit Lake Community Schools
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In my 44 years in the municipal utility
business, no utility project has ever generated
more customer support and interest than our wind
turbine project. Nick Scholer, former manager of
Algona Municipal Utilities, Algona, Iowa
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Carpe Ventem
www.windpoweringamerica.gov