World Wind Energy Conference Notes

1
World Wind Energy Conference - Notes

• Kingston, ON
• June 23-26th, 2008
• Kristina Donnelly, Great Lakes Commission

2
Conference Resolutions

• The World Wind Energy Association (WWEA), in
  association with the Ontario Sustainable Energy
  Association (OSEA) and the St. Lawrence College,
  acknowledges and welcomes the presence of those
  800 participants attending this Conference from
  wind and associated renewable energy technologies
  and especially from many community power
  organisations. The interests include all aspects
  of sustainable wind, solar, hydro, bioenergy and
  geothermal technology development, design,
  manufacturing, operation and implementation. 
• The Conference recognises the support of the
  governments, especially of the province of
  Ontario, Germany and Cuba, as well as UNESCO and
  all organisations supporting the Conference, and
  applauds their continued support and vision for
  the accelerated deployment of renewable energy,
  in particular wind energy, to tackle climate
  change, increase energy security and create new
  jobs.
• The Conference calls on governments and the
  private sector to recognise communities as key
  enablers and partners in the development of
  renewable energy and to give them the necessary
  support to achieve a smooth transition towards a
  renewable energy future.
• The Conference welcomes the proposal of a Green
  Energy Act in Ontario, of a national feed-in bill
  as presented today in the USA by Congressman Jay
  Inslee and of a feed-in bill in Michigan as well
  as the preparation of similar legislation in
  further states, provinces and countries which are
  based on the internationally proven successful
  feed-in principles.

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Conference Resolutions

• In addition to this, and in the pursuit of
  renewable energy resources, the Conference
  resolves to pursue the following objectives,
  policies and actions
• 1.  remove all subsidies and enforce the
  internalisation of all externalities to achieve a
  level playing field
• 2.  until this is achieved, pursue compensatory
  regulatory frameworks such as sufficient and
  effective feed-in tariffs that encourage
  renewable energy developments, and that provide
  sufficient financial security to promote
  long-term investment, especially for smaller,
  community-based investors
• 3.  raise the political and social awareness to
  foster the political will towards the inevitable
  use of renewable energy, especially by engaging
  and enabling individual citizens, community power
  proponents and the youth

4
Conference Resolutions

• 4.  create new human, industrial, administrative
  and financial capacities and strengthen
  appropriate supportive and dedicated structures
  and institutions for renewable energy
• 5.  increase energy supply security and system
  stability through a balanced supply mix of
  renewable energy and geographically distributed
  generation and increase interaction of local,
  national, regional and global networks and
  alliances that contribute to greater cooperation
  between renewable energy technologies such as
  International Renewable Energy Alliance
• 6.  reduce overall costs for energy supply
  through the increased deployment of renewable
  energy power as already proven successfully in
  various jurisdictions such as Brazil, Denmark,
  Germany and Spain

5
Conference Resolutions

• 7. call on all governments and the private sector
  to support the creation of a new independent
  international renewable energy agency IRENA as
  prepared by the German Government, already
  supported by numerous governments from around the
  world
• 8. develop, use and expand appropriate national,
  regional and international financing mechanisms
  for the exclusive realisation of renewable
  energy, like funds that are supporting community
  power investment such as a community power fund
• 9.  enhance developing countries to get easier
  access to technology transfer in order to realise
  the full benefits of renewable technologies such
  as sustainable jobs through local manufacturing,
  direct economic benefits through community based
  ownership and accessible energy for increased
  wealth and productivity

6
Conference Resolutions

• 10. take into account the key role of renewable
  energies and to create the long-term frameworks
  for their full deployment for the success of
  Post-Kyoto arrangements and goals on mitigation
  of climate change such new frameworks should
  especially be designed in order to support
  smaller scaled, decentralised and community based
  investment
• 11. note that the next International Governmental
  Renewable Energy Conference will take place in
  India in 2010, hosted by the Indian Government,
  and encourage governments and the private sector
  to proactively contribute to its preparatory
  process
• 12. note that the next World Wind Energy
  Conference will be held on Jeju Island, South
  Korea, in June 2009, and encourage all members of
  the Association, others involved in wind power
  and other renewable energy development, operation
  and financing as well as the exhibitors to
  further the cause of wind power development and
  the expansion of the role of Renewable Energy by
  participating in the Korean Conference.

7
How to pay for renewables

• Renewable Energy Certificates/Credits (RECs)
• Renewable Energy Certificates/Credits can be
  sold and traded and the owner of the REC can
  claim to have purchased renewable energy.
• AKA Renewable Obligation Certificates (ROCs),
  Green Tags
• Renewable Tariffs
• Capital Subsidies
• Production Subsidies
• PTC or WPPI

8
RPS

• uses a target or quota for renewable that is
  legislated and determined by policy regulations.
• In many cases, RPS is based on a system of
  tradeable renewable credits and bidding processes
  for companies, with the value of the credits
  determined by a wide range of factors.
• companies are less likely to invest in
  alternative energy technologies under the RPS
  system because it is impossible to know what the
  price for that energy will be in 20 years.
• There are high failure rates for companies in the
  RPS scheme, as the system favors large
  oligarchies, not small start-ups.
• While quotas set a minimum, then also
  inadvertently set a de facto cap, which needs
  political will and engagement to continually
  revisit.

9
RPSs in the Great Lakes

• MN
• Xcel Energy 30 by 2020Other utilities 25 by
  2025
• Technology Minimum Of the 30 renewables
  required of Xcel Energy by 2020, "at least" 25
  must be generated by wind power and "the
  remaining" 5 by other eligible renewables
• WI
• statewide goal of 10 by 2015
• IL
• 25 by 2025
• Technology Minimum75 wind
• PA (AEPS)
• 18 during compliance year 2020-2021 (8 Tier I
  and 10 Tier II)
• NY
• 24 by 2013
• LIPA25 by 2013
• OH (AERS)
• 25 alternative energy resources by 2025, at
  least half of which must be generated from
  renewable energy resources by 12/31/2024
• MI Lansing
• 7 by 2016

10
Feed-in Tariff

• specify a guaranteed price for renewable energy
  and are usually long-term, fixed rates that are
  not pegged to the retail price of energy.
• AKA StrG, ARTs, EEG, MPS, Renewable Energy
  Payments
• Contracts
• No program limits
• Costs are spread across all rate payers
• Are implemented when there is a political desire
  to make renewable energy a priority, combined
  with a willingness to share the cost of doing so
  until it becomes cost-competitive.
• Assumption that the benefits of renewable energy
  are worth paying for.
• The prospect of lower renewable energy costs in
  the future, coupled with the pricing of
  conventional energy sources to reflect their true
  environmental costs, will make feed-in tariffs
  unnecessary in the long run.

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A Good FIT Law

• Access
• Ensuring connection to the grid
• Extending and reinforcing the grid
• Who pays the costs of connecting and reinforcing?
  
• Transparency
• Price
• Technologies and plants to be covered
• Imposing a priority purchase obligation
• Getting the tariff (or price) right
• Financing the FIT law
• Combination with other support mechanisms
• Supplementary
• Combining with targets
• Progress reports
• Meeting technical and safety standards
• Local content
• Minimizing administrative barriers
• Law not a policy
• Legal nuts and bolts

13
FIT Policy Models

• Market Independent
• Minimum Price Model
• Minimum Price Model with Inflation
• Minimum Price Model with Stepped Tariff Design
• Minimum Price Model with Tariff Degression
• Market Dependent
• Premium Price Model
• Percentage Price Model

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FIT Policy Models

• Benefits of being Market Independent
• Community financing is easier
• Rate stabilization premium (good with fluctuating
  fossil fuel prices)
• Lower cost of RE deployment
• Purchase guarantee offers guaranteed grid access
• Facilitates small/medium projects

15
FITs in the Great Lakes

• Ontario Renewable Energy Standard Offer Program
• Michigan HB 5218
• September 17th 2007
• Kathleen Law, (Dem-23rd District)
• Minnesota HF 3537
• February 28, 2008
• David Bly, (DFL 25B)
• Illinois HB 5855
• March 14, 2008
• Illinois Renewable Energy Sources Act
• Karen May (D-Highland)
• Wisconsin Thinking about it
• HI, CA, FL, WA, RI also have existing legislation
  or are looking into feed-in tariffs for renewable
  energy (not necessarily wind).
• Federal H.R. 6049
• Renewable Energy Jobs and Security Act (Inslee
  Bill)
• June 27, 2008

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Ontario RESOP

• Commercial versus Community Participants
• Mid-size energy companies developing commercial
  projects instead of local proponents building
  community-based projects
• Some larger projects divided up to qualify for
  RESOP contracts
• Problem of grid access capacity
• Monopolization of Local Grid Capacity
• Commercial proponents have been successful in
  locking up grid capacity at the expense of
  smaller and community based projects
• In particular, this has been a challenge faced by
  farm-based biomass projects
• Over 95 of overall contract capacity to date is
  from commercial wind and solar facilities
• Not a subsidy support scheme
• In the process of being re-examined.
• Prices are not specific to production or
  technology.
• Review process should be over by the end of
  September
• Milestones to clense the queue, which ties up
  space on the grid
• Limit developers to 1 x 10MW project per transfer
  station, 5 projects in 10 years.
• Orange zone is frozen from lack of capacity. This
  capacity is lacking because of a recent
  commitment to a new nuclear plant.
• Yellow zones are moderately constrained. These
  are reserved for other energy sources first.

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RESOP OPAs current tasks

• Making the RESOP more efficient
• requiring that projects meet certain interim
  project deadlines.
• This will enable other project developers to move
  ahead in the standard offer program in order to
  get new renewable generation online more quickly.
  
• Making the RESOP open to more participants
• restricting proponents to a single 10 MW project
  per transformer station.
• The new procurements announced today create new
  opportunities for larger developers. 
• Encouraging broader participation in the RESOP
• limiting any proponent to a maximum of 50 MW
  under development per energy source at any one
  time. 
• Implementing a number of administrative revisions
  to the RESOP, to improve overall efficiency and
  simplify the program.

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Ontarios Green Energy Act 2008

• Ontario needs a policy framework that will
  eliminate the barriers and maximize conservation
  and renewable energy production that will
  enable the rapid deployment of renewable energy
  and conservation projects.
• The Ontario Power Authority (OPA) filed an
  application for approval of the Integrated Power
  System Plan (IPSP) Ontarios 25-year
  electricity system plan.
• Ontario is set to re-build its electricity
  industry and infrastructure with an expenditure
  of 60 billion.
• How we upgrade our grid will profoundly affect
  how Ontarians produce and use electricity, the
  cost in the long term, and whether or not local
  individuals and communities will have the choice
  to directly participate and benefit from their
  renewable energy resources.
• almost half of Ontarios budget for rebuilding
  our electricity sector (26 billion) is committed
  to building 14,000 MW of new nuclear generation.
• Ontarios Renewable Energy Standard Offer Program
  (RESOP) was the most progressive green energy
  initiative in North America for more than twenty
  years.
• Potential renewable energy producers are unable
  to access the grid in certain areas of Ontario.
• Communities are having difficulty obtaining
  financing to investigate the feasibility of
  renewable resource projects in their area.

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Ontarios Green Energy Act 2008

• The Green Energy Act campaign welcomes the
  participation of citizens, businesses and the
  public sector to
• Reinforce the commitment to conservation and
  renewable energy
• Establish a roadmap to conservation and green
  energy and address gaps in the present plans
  including removing barriers to ensure renewables
  get on line
• Take advantage of the clean slate that is
  Ontarios electricity system, which requires an
  estimated 60 billion to expand and reinforce the
  grid and bring on new generation
• Identify our opportunities and copy best
  practices to capitalize on them, just as we did
  with the RESOP

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Total Electricity Usage

• Canada
• 530 TWH/yr
• 33 million people
• 16 GWH/person/yr
• US
• 4,000 TWH/yr (3,000 TWH/yr in Fossil Fuels)
• 304 million people
• 13 GWH/person/yr

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Renewables by Country
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Installed Wind Power, 2007
24
Canada v. Germany
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Community Wind

• Distributed systems are more efficient
• Help build community independence
• Contribute to local economic development
• Benefits from community acceptance and political
  buy-in
• Controversy slows permitting
• Reduced cost of community impact study.
• Communities are frequently more maneuverable than
  large corporate partners
• They are not distracted by other projects and
  business matters
• There is a relatively low cost equity investment
  for capital funding.
• Minnesota
• 281 MW of distributed wind
• Represents 31 of wind capacity in the state.

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Community Choice Aggregation

• Following energy deregulation in Ohio, about 90
  of the residential and commercial customers who
  switched from their utility companies joined a
  community choice program.
• The Northeast Ohio Public Energy Council
  (nopecinfo.org) is the states largest public
  aggregation program, with 118 cities serving more
  than 600,000 customers.
• Their energy supply contract guarantees a
  discount ranging from 4 to 6 when compared with
  investor-owned utility rates.
• http//www.lgc.org/cca/docs/cca_energy_factsheet.p
  df
• NOPEC Extends Contract With Green Mountain Energy
  Company (GMEC) Through 2008 http//findarticles.co
  m/p/articles/mi_m0OXD/is_2005_March_30/ai_n1350344
  1

27
Grid Integration Process
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Software

• WindPRO
• design and planning of wind farm projects
• WAsP
• program for predicting wind climates, wind
  resources and power productions from wind
  turbines and wind farms.

29
GIS

• Two levels of analysis
• Macro-siting GIS consult travel, local
  conditions
• Candidate wind power project
• Development planning
• Government and business
• Micro-siting WAsP/WindFarmer cost
  construction
• Siting
• Construction
• Business

Renewable and Clean Energy
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GIS

• Siting Procedure
• Establish factor hierarchy model
• Determine factor weight
• FW analytic hierarchy process. Determine the
  relative importance between two factors
• Single factor assessment
• Integrated wind farm siting

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General Notes

• Measures of cost Should be calculating benefits
  as a of revenue, not /MW
• OM Cost information is private in the United
  States.
• Windenergieanlagen price manufactures, yearly
  publication
• World Wind capacity 90,000MW, 160 TWH/yr,
  110,000 units, 750 TWH cumulative generation.
• 2007 50 billion U.S.
• 64 project development
• 4 OM
• Convert heavy truck industry in the US to the
  manufacturing of wind turbines.
• Wind cannot efficiently time production to
  maximize .
• Overview of the development process Anntonette
  Alberti from TetraTech (ppt)

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Offshore Wind in Germany Live Learn

• Offshore wind in Germany likely to see increased
  MA activity. http//www.energy-business-review.co
  m/ARTICLE_FEATURE.ASP?GUIDBB0F73F3-4199-4604-92E8
  -B1BA62EE37E6
• Germany, Denmark and Sweden intensify cooperation
  in offshore wind energy deployment.
  http//www.bmu.de/english/current_press_releases/p
  m/40570.php
• European Policy Workshop on Offshore Wind Power
  Deployment. http//www.bmu.de/english/europe_and_e
  nvironment/downloads/doc/38773.php
• Europe is moving offshore member states discuss
  electricity generation from offshore wind energy.
  http//www.bmu.de/english/current_press_releases/p
  m/38782.php
• Amendment of the Renewable Energy Sources Act
  (EEG). http//www.wind-energie.de/en/news/article/
  amendment-of-the-renewable-energy-sources-act-eeg/
  166/

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Great Websites

• http//www.wind-works.org
• Paul Gipes website
• www.renewwisconsin.org
• Michael Vickerman
• www.onlinepact.org
• Policy Action on Climate Toolkit Assistance for
  those developing or advocating for FIT Laws
• http//www.irena.org/index.htm
• Information on the proposed International
  Renewable Energy Agency
• http//www.windstats.com/
• quarterly international wind energy publication
  with news, reviews, and wind turbine production
  and operating data
• http//www.dsireusa.org/
• comprehensive source of information on state,
  local, utility, and federal incentives that
  promote renewable energy and energy efficiency.
• http//www.ren21.net/pdf/RE2007_Global_Status_Repo
  rt.pdf
• Renewable Energy Global Status Report
• http//re.pembina.org/sources/wind
• Our Mission To advance sustainable energy
  solutions through innovative research, education,
  consulting and advocacy.
• http//www.canwea.ca/index_e.php
• Canadian Wind Energy Association
• http//www.canrea.ca/