Jennifer States: Community Wind Projects and Potentials

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Advancing Renewables in the Midwest – March 29, 2006 Columbia, MO
Community Wind Projects and Potentials
Jennifer States
Managing Director – JW Prairie Windpower, LLC
Contents
Models of wind development
Who we are
Wind power growth worldwide and in the USA
Importance of policy
Wind power potential in Missouri
Community wind: model, advantages, cooperation with
communities & policy needs
Models of Wind Development
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
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
The juwi-Group Worldwide
Why Wind?
Wind Works!
Improved Reliability
Improved Productivity - More Efficient - More Economical
Wind is Flexible
Scale – big or small projects
Time – short lead times
Ownership – local or outside
Wind Power Worldwide
Wind Power in the USA
Wind Power Worldwide
Policy Drives Worldwide Wind Power Growth
Installed MW of wind power generation in Europe
Europe 2005
Total
installed
capacity:
40,504 MW
Expansion: 6,183 MW
Legend:
Countries with quota system
Countries with reserved price
system
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
Importance of State Policies
Effect of PTC on the US Market
Annual Megawatts Installed
Source: AWEA Wind Power Outlook 2005
Wind Power Comparison
Europe:
40,504 MW of installed wind power capacity
Germany:
2-times the size of MO
Germany wind conditions similar to those in MO
BUT: more than 17,000 turbines   
Illinois:
Wind conditions comparable to Missouri
RPS established: 2% of power mix by 2006 and 8% by 2012
107 MW more wind capacity installed in IL
North America headquarters of Suzlon in Chicago, IL
Iowa:
RPS, state PTC, grants/loans and other incentives in place
836 MW more wind capacity installed
Top 20 States
Benefiting from
Wind Investment
Technical Report of the
Renewable Energy Policy
Project, September 2004
Wind Mapping Technology
Wind Power Potential in Missouri
AWS TRUEWIND Wind speed map of Missouri at 100 m height
Turbines For Low Wind Speed Sites
Improved technology guarantees economical feasibility, even for less
windy sites
500 times more energy output since 1980
Turbines For Low Wind Speed Sites
Historical and Projected Cost of Wind Energy Compared to
Market Prices of Electricity from Fossil Fuels.
Community Wind
Project development
model
Advantages &
benefits
juwi connection to
community wind
Cooperation with
communities
Policy needs
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
Transmission:
More opportunities for interconnection locations
Environmental:
Community wind projects are less intrusive on landscape and can
deliver easier permitting
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
Regulatory & Technical
Benefits of Community Wind
FERC Standardized Interconnection Rule for “Small Generators”
Small defined as 20 MW or less
Reduce overall cost of electricity to customers via development of
alternative energy sources and distributed generation
Appropriately simplify interconnection procedures for small
generators
Possible 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
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)
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 is not conducive to
community wind ownership;
innovative ownership structures are
required to capture federal and
state incentives
States have been driving the
market by implementing policies
that differentially support
community wind
Community wind requires stable
policies that reduce costs &
encourage utility purchase
Conclusions
Wind Energy Works!
Policy drives the market
Missouri has wind potential
The Community Wind model delivers many benefits,
especially to the rural communities
Careful planning and policy can make Community Wind a
reality in Missouri
Wind Power
Harvest Clean Energy
For further information:
Jennifer States
Managing Director
JW Prairie Windpower LLC
3211 Clinton Parkway Court, Suite 2
Lawrence, Kansas 66047
phone. 785.856.5997
fax. 785.856.5894
e-mail. [email protected]
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