Trends in Wind Energy Development

Project Development

While wind-generated electricity continues to grow as a premier source of renewable energy in the U.S., project developers are being asked to find more efficient, cost-effective, and profitable ways to harness this resource.

In 2010, the U.S. wind industry installed 5,116 MW, a nearly 50% decrease from the previous year’s record 10,000 MW. However, much of the wind development in 2009 was initiated by momentum from 2008, when wind project developers were placing huge turbine orders in anticipation of continued exceptional growth. As the world financial markets fell in 2009, so did orders and new developments.

However, as 2010 came to a close and Congress seemed unwilling to extend the successful 1603 cash grant program, many developers chose to begin “substantial construction” on their projects in order to qualify for the grant before it was too late. The looming incentive deadline pushed the nations “Under Construction” projects to an all-time high of nearly 5,600 MW as of Dec. 31, 2010—roughly 3,000 MW of which came in the fourth quarter.

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Under Construction

The largest project currently under construction is owned by Puget Sound Energy (PSE) in Washington state. The proposed 1,432-MW Lower Snake River Wind Project is scheduled for three phases, the first of which consists of 149 Siemens 2.3-MW turbines for a total capacity of 343 MW. This facility will be PSE’s third wind project with RES Americas expecting to complete construction in 2012.

Not too far away, in Oregon, Caithness Energy is developing the Shepherd’s Flat Wind Farm. This project’s 338 GE 2.5XL turbines will provide 845 MW of wind-generating capacity to the Bonneville Power Administration’s portfolio. The project is expected to produce about 2 billion kWh’s per year and will have 35 permanent employees once operational.

Also, while not one of the larger projects under construction, another notable project is Texas’ Ralls Wind Farm owned by Ralls Corp. This 10-MW wind project will use five of the first Sany 2.0-MW wind turbines in the United States. This development expands on the growth of Chinese turbines in the U.S. market that started when Goldwind USA installed three 1.5-MW turbines in Minnesota back in 2009.

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New Turbine Manufacturers

One trend that continues to pick up steam is the broad range of turbine manufacturers that developers are choosing for new projects in the United States. As mentioned above, Sany is currently in the process of installing their first 10 MW. French manufacturer Alstom Power is also joining the mix with the 19.8-MW Danielson Wind Farm. Two Korean manufacturers are making their mark too. Unison recently built their North American headquarters in Colorado and has its first installation under construction. Hyundai Heavy Industries is joining in with a 3.3-MW project in New York.

Lately, emphasis has been placed lately on the Chinese manufacturers and their central bank’s willingness to offer financing along with the purchase of a Chinese wind turbine. This arrangement has made for some competitive offers from manufacturers such as Sany Electric, Goldwind USA, A-Power, and others. However, while these manufacturers have had a competitive advantage recently, it would not be prudent to omit the current concerns regarding trade regulations and U.S. accusations concerning the Chinese government’s price subsidies for wind-power products.

WPE

Why develop wind in Wyoming

February 18, 2011 by  
Filed under Wind Power Projects

Featurepic1Wyoming is one of the top wind sites in the U.S., according to an NREL report “Wind Powering America.” The state is home to one of the oldest developed wind sites in the region,  Medicine Bow  online since 1982. Here, the Department of Energy funded research of wind energy production, particularly from large turbines.

The state has come a long way since then. As Wyoming Wind and Power LLC reports, the state has 1,100 MW of installed wind generation as of 2010 and its existing wind capacity ranks twelfth in the U.S. Yet the state ranks even higher, seventh, in potential wind capacity. The state has the potential to produce a whopping 227,664 MW of wind energy, enough power for 68.3 million homes. Wyoming is also home to more than 2/3 of the most productive onshore wind (class 7) in the country, but less than 1% of that energy potential has been developed.

Those who haven’t developed in Wyoming are missing out on a big opportunity. Not only does the state have ample wind resources, but recent projects and political decisions have made the state even more attractive to developers. Its proximity to railways and interstates catches the eye of those interested in building manufacturing facilities. Components made there will go to OEMs that will supply turbines to wind-farm developers who will put them to use, turning the state’s prevalent resource into power homes and business can use.

In a country were many transmission lines are outdated, getting wind power to those who will use it has been a problem, but not in Wyoming. The state plans to originate more than 15,000 MW of new capacity with six transmission lines in the next ten years. Those lines will bring Wyoming’s wind power to states such as California and Arizona that need green power to fulfill their renewable energy requirements. Wyoming politicians are also paying attention to wind, evident by many pieces of legislation that have passed through the House in the last few months. Officials recognize the state’s energy assets and are working with wind-industry representatives to make the legal system friendly to wind.

Wyoming Gov. Matt Mead recently expressed his support of wind energy. “The regulatory environment is a priority for me,” he said in an emailed comment to the Billings Gazette. “It needs to be certain, predictable, and reasonable. I feel there are collateral benefits from wind power, like keeping ranchers in ranching, giving a boost to our natural gas industry, and improving the electrical transmission infrastructure. We have world-class wind resources here in Wyoming and we need to match the regulatory environment to those resources and that will make it easy for me to go out and promote our wind power industry.”

Texas’ Windthorst-1 ready for next phase

A family owned Texas wind development company and a New York community wind developer have completed their portion of work on a 51-MW wind-power project in Windthorst, Texas. OwnEnergy Inc., Brooklyn, N.Y. (ownenergy.net) and Horn Wind (hornwind.com) located outside of Dallas, developed the project as a joint venture and have subsequently sold a majority stake to a global renewable energy company. The next step in the project is to secure a power purchase agreement so the electricity it produces can be sold to area utilities.

“Horn Wind managed the early stages of the development, such as locating the site and its assessment, while

The community wind farm Windthorst-1 will be sprouting turbines soon. It’s one of 26 projects under development by community wind developer OwnEnergy Inc.

OwnEnergy worked on later stage development tasks such as environmental and wind-resource assessments, major equipment BOP services procurement, and financing,” says OwnEnergy’s VP of Development, Cynthia Crooks. Although the two development firms sold their interest in Windthorst-1 when credit markets tightened, they will work together on a second wind project, Windthorst-2, and look forward to a longer involvement, all the way to wind turbine construction.

“If there is one thing I’ve learned on this project, it’s that developers should not overlook good wind areas close to population centers. Texas’ best wind areas are in the west and central parts of the state, some distance away. But there are still good areas, like Windthorst-1, close to those who need the power.”

She says the project was developed in keeping with the central tenets of community wind. “That is, increased local jobs, greater involvement, and control and financial upside for members of the community. This commitment was maintained through the sale of the asset as OwnEnergy and Horn Wind retain a long-term interest in the project.”

Crooks says her company encourages the shift towards smaller-scale, locally-owned renewable energy projects by making use of resources, networks, and industry expertise to guide and support local entrepreneurs through the complex process of project development. By forming long-term partnerships with landowners and local developers to jointly develop commercial-scale wind projects, the company creates local jobs, spurs economic growth, and provides communities with clean, renewable sources of energy they can call their own. OwnEnergy usually develops utility-scale wind projects of 10 to 80 MW for commercial purposes and using utility scale wind turbines, 1.5 MW and above. OwnEnergy and partners have 26 projects under development across 12 states.

“This is the first of five regional wind projects we’re developing,” says Horn Wind President Jimmy Horn. “Moving this project to the next stage lets the company continue to grow and support our local landowners and communities.”

The Windthorst-1 project, just outside of Greater Dallas, is in the ERCOT (Electricity Reliability Council of Texas, a grid operator for most of the state) North Zone. ERCOT manages electric power to 22 million Texas customers, about 85% of the state’s electric load and 75% of the Texas land area. It is an independent system operator that schedules power on an electric grid connecting 40,000 miles of transmission lines and more than 550 generation units. WPE