Transcript Community Wind in KansasMaking it a Reality Jennifer States Managing Director JW Prairie Windpower, LLC Kansas Community Wind Workshop October 31, 2006 - Concordia, KS.

Community Wind in KansasMaking it a Reality
Jennifer States
Managing Director
JW Prairie Windpower, LLC
Kansas Community Wind Workshop
October 31, 2006 - Concordia, KS
Contents
Who we are
Why wind
Project development process
Wind power in Kansas
Importance of policy
Models of wind development
Community wind model
Advantages & benefits
Interconnection
juwi connection to community
wind
Cooperation with communities
Community wind policy needs
The juwi-Group
Workforce:
about 120 people (worldwide)
Activities:
development, construction, financing
and operation & maintenance:
wind turbines
- 35 projects
- 270 megawatts
photovoltaic systems
- > 400 installations
- ~ 17.000 kWpeak
bioenergy plants
Annual Revenue:
$100+ million
Activities in the US
JW Prairie Windpower (jwpw)
was founded in 2002
Opened Lawrence office in
February 2003
Current development efforts
include a large project in
Morris County, several
community wind projects in
KS and other areas
throughout the Midwest
Involved in renewable energy
policy and education efforts
Wind is Cost Competitive
Historical and Projected Cost of Wind Energy Compared
to Market Prices of Electricity from Fossil Fuels.
Tom Wind—Utility Wind Consulting
What a Turbine Can Produce
One
1.5 MW
Turbine
Creates
4-5 million
kilowatt
hours per
year
clean power.
This is
equivalent to:
450 Households
Or
1,800 people
Wind Energy Avoids Green House Gases
One 1.5 MW turbine produces in
20 years approx. 80-90 million
kilowatt hours of clean power…
and avoids approx.
90,000 tons of coal &
associated pollutants.
The Wind Project Development Process
Site Selection
Land Agreements
Wind Assessment
Project Layout
Environmental Review
Economic Modeling
Interconnection Studies
Financing
Permitting
Sales Agreements
Turbine Procurement
Construction Contracting
Operations & Maintenance
Excellent Wind Resource in Kansas
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Wind Power in the USA
Installed MW of wind power generation in the USA
USA 2005: 9,149 MW
USA 2004: 6,725 MW
Source: AWEA, January 2006
Wind Power Comparison
Germany:
Kansas is less than 2-times the size of Germany
Germany wind conditions poor compared to Kansas
BUT: more than 17,000 turbines for a total of 18,428 MW
Kansas:
Ranked 3rd or 1st in the US for wind resource
264 MW installed wind energy
Iowa:
Wind conditions less than Kansas (IA ranked 10th)
RPS, state PTC, grants/loans and other incentives in place
867 turbines with a total of 836 MW wind capacity installed
Minnesota:
Ranked 9th in wind resource, but have 744 MW installed
Variety of regulatory and public policy actions to support
wind development, especially community wind
Importance of Policy
Annual Megawatts Installed
Source: AWEA Wind Power Outlook 2005
Models of Wind Development in the USA
Large-scale wind model
• 20-200 MW projects
• Turbines located in one area
• Large grid connection & transmission needs
• Economies of scale achieved
Community-scale model:
• 1-20 MW Projects
• Dispersed clusters
• Simplified grid connection
• Local ownership
• More uniform average yield
Community Wind Model
Project development
– Land easement
– Power purchase agreement
– Turbine purchase & installation
Local landowner or “community” partners with
tax-motivated corporate investor to own utilityscale wind turbines & sell power to the utility.
Ownership of project LLC “flips” after 10 years.
First 10 Years
Corporate Investor (John Deere)
– Owns 90-100% of project
– Gets PTC, MACRS
– Gets electricity revenues
“Community”
– Gets lease payments
– Other payments
Next 10+Years
Corporate Investor (John Deere)
– Sells project to “community” at
fixed or low price
“Community”
– Owns project
– Gets electricity revenues
One example of a financing model: Modified Minnesota Flip
Advantages of Community Wind
Environmental:
Community wind projects are less intrusive on landscape and can
deliver easier permitting
Transmission:
More opportunities for interconnection locations
Local Participation:
Flexible ownership structure
provides greater opportunities for
local participation
Rural Economic Development:
Community wind projects deliver
greater economic benefits to the
rural economy
Interconnection
Scale of projects and
interconnection can be
adapted to customer
needs
Community wind projects
can be connected to lines
in the 12-69 kV range
Turbines distribute power
at 34.5 kV, so no step up
transformer is needed to
connect to a 34.5 line
COMMUNITY WIND: AN OREGON GUIDEBOOK,
Prepared for the Energy Trust of Oregon by Northwest
Sustainable Energy for Economic Development
Regulatory & Technical
Benefits of Community Wind
FERC Standardized Interconnection Rule for
“Small Generators”
Appropriately simplified interconnection
procedures for projects 20 MW or less
Potential Connection to Distribution System
Reduces interconnection cost
Provides more locations for
interconnection
Opportunity to work with utility for
advantageous siting of project to meet
grid and customer needs
Properly sited community wind projects
can help to relieve overloaded lines by
providing power to the load and
supporting line voltage
Wind Energy Benefits Remain in
Rural Communities
Economic benefits to local counties
Inward investment
Contributions to counties in lieu of taxes
New income for landowners
Contributes to securing future & livelihoods
Creates additional spending in local communities
New jobs & training opportunities
New local jobs for young graduates: Training through local colleges
On a per MW basis, wind power contributes more to job creation & economic
development in rural areas than any other type of electric power generation
Spin-off benefits for the local community
Procurement of goods & services
Tourism potential and associated start-up industries
Comparison of Development Models
Comparison of Development Models
The juwi Connection to Community Wind
juwi experience in small project
development (1 – 33 MW) and
cooperative ownership models in
Europe.
Cooperation for development of
projects on all levels: cities,
municipalities, rural electric co-ops,
utilities and farmers.
Strong network of contacts and
policy expertise.
Wind ranging expertise in taking a
project from initial concept through
construction to O&M.
Working Closely With Local Communities
Energy Landscape in Morbach
: A highlight in juwi’s history
Location: Germany, Rhineland Palatinate,
around 100 km southwest of Mainz
Total investment: 35 million Euro
Wind turbines: 14 Vestas V80/2.0 MW → 28 MW
(rotor diameter: 80m / hub height: 100m)
annual energy production: 45 million kWh
Solar power plant: 500 kWpeak (4,000 m²)
(Sharp C 160 / Kyocera KC 158)
annual energy production: 450,000 kWh
Bioenergy plants: (under development)
- Wood fired heating plant
- Biogas installation
Co-operation with Local Utilities
50 % - 50 % Partnership between:
juwi GmbH / Pfalzwerke AG (regional utility)
•Date of foundation:
May 2003
•Installed wind turbines:
5 x E-66; 1 x V80; 9 x GE 1.5sl and
6 x Fuhrlaender MD77
•Prospects:
Around ten turbines each year
Construction of a 1.5-MW turbine (GE Wind
Energy 1.5sl) in Rhineland-Palatinate
Co-operation with Local Municipality
Partnership between:
juwi GmbH (50%) / Municipal Works of Mainz City (50%)
Founded in June 2005
4 solar installations are already set up (46 kW peak)
Further solar projects planned in and around Mainz
Planned wind farm in Summer 2006:
2 wind turbines in Mainz-Hechtsheim (4MW)
Financial Incentives: CREBS or PTC
Production Tax Credit (PTC)
Designed for private investment to own wind projects
Enacted in 1992, provides 1.9-cent /kWh credit during first 10 yrs of operation
PTC tied to production as a factor of wind resource
Clean Renewable Energy Bonds (CREBs)
Designed for not-for-profit utilities to own projects
Alternative to Renewable Energy Production Incentive (REPI)
Zero % interest bond financing
$800 million authorized for next 2 years—expect full subscription
Application were due April 26, bonds may be available through lenders
CREB value not tied to wind speed or resulting energy production
Community Wind Policy Needs
Federal policy provides valuable
support that is critical to the viability
of most community wind projects
The tax-based nature of federal
support requires innovative
ownership structures to capture
federal and state incentives
Community wind requires stable
policies that reduce costs &
encourage utility purchase
Provision in power supply
agreements are required to bring in
community wind energy – all
requirements contracts do not allow
for wind
What You Can Do
Contact your utility and encourage them to use wind energy
Attend hearings and voice your support for wind at the KCC, KEC
and KDHE
Policy proposals
Permitting of new coal plants
Rate cases
KS State Legislature
Testify at legislative hearings in Topeka
Call, write and visit your representatives to support pro-wind bills, and oppose
bad wind bills
US Congress
Call and write your representatives to voice your support for renewables and
the long term extension of the PTC
Buy Green Tags, Green E Certificates
Participate in the Green Pricing programs of your utility, or
encourage them to implement Green Pricing
Learn More
Visit KS Energy Information Network (KEIN) www.kein.org
Conclusions
Wind Works!
Kansas could be home to many
more wind projects
The Community Wind model
delivers many benefits, especially
to the rural communities
Policy drives the market
You can take action to promote
wind energy in KS
Careful planning and policy can
make Community Wind a reality
for you
Wind Power
Harvest Clean Energy
For further information:
Jennifer States
Managing Director
JW Prairie Windpower LLC
2721 West 6th Street, Suite E
Lawrence, Kansas 66049
phone. 785.856.5997
fax. 785.856.5894
e-mail. [email protected]