The Current State of the Wind Energy Dialogue in Oklahoma Scott Greene OWPI Director Professor, Department of Geography Why Wind? • Gain energy independence • Ease demand on the power grid •Reduce vulnerability to volatile utility prices • Reduce air pollution from fossil electricity sources •Economic Development US Electricity Installations Cost of Wind Energy Low wind speed sites Bulk Power Competitive Price Band High wind speed sites Wind Energy in Oklahoma Perceptions of Wind Energy Perceptions of Wind Energy Weatherford Wind Energy Center Florida Power & Light Phase I: 106.5 MW Phase II: 40.5 MW – ~ 44,000 homes – Public Service Company of Oklahoma 98 GE 1.5 MW turbines $150,000 payment in lieu of taxes to Weatherford School District for 5 years “We’ve seen our sales tax increase by about 20% recently. We attribute part of that to the guys working in town, the hotels being full and having them eat at our restaurants.” Mike Brown Mayor of Weatherford Fort Supply School District -Revenue Data •The first year saw a 114% increase. •Fort Supply received a 466% increase in funding in two years. Fort Supply $1,400,000 $1,166,628.07 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $441,293.09 $205,879.21 $200,000 $0 FY 2007 FY 2008 FY 2009 Across the State: •83 % support renewable energy. •72 % willing to pay more for renewable power. In Weatherford, Ok •55% felt wind farms helped property taxes. •85% said they had a favorable view of wind power. •84% thought the state should promote wind power. “Renewables are the future” we are “ready for the transition.” Chesapeake Chief Meteorologist John Davis “We aim to play a leading role in the growing low-carbon energy sector, developing large scale businesses that compete with traditional forms of power and fuel.” and “Wind farms provide safe, clean, and increasingly affordable energy.” BP “We believe investment in wind is the best solution for Oklahoma” OG&E Public-Private Partnerships River Springs, Oklahoma • New community in south-central Cotton County • Casino and a few neighborhoods exist • Southwest Oklahoma Regional Development Corporation has plans for a “main street” with businesses • Interested in community scale wind Feasibility Study Underway Yarbrough Public School Turbine Producing up to 80+% of electrical needs Recent Legislation Wind Energy Development Act • States that, in the best interest of the state, a renewable energy goal of 15% of all installed capacity shall be met by 2015. – AKA “Renewable Portfolio Standard” Recent Legislation • Prohibition of severance of wind and solar rights from surface rights (SB 1787) • Prohibits the severance of wind and solar rights from surface rights. Wind or solar leases may only be made with the owner of the surface right of a real property. • Decommissioning bill (HB 2973, SB 2132) • Owners of wind energy facilities shall be responsible, at their expense, for decommissioning of sites. Decommissioning consists of removal of turbines, towers, buildings, cabling, electrical components, foundations and other facilities to a depth of 30 inches and restoring to original condition. The Future of Wind Power In Oklahoma • HB2813 signed into law in 2008 – Enables Upgraded Transmission Cost To Be Past On To The Consumer – New OG&E Transmission line • OKC>Woodward>Panhandle • OK now has (a very weak) RPS • Oklahoma utilities committed to increasing wind power – OG&E, PSO, and WFEC plan to increase wind generated electricity – PSO at 11% – OG&E has said it will not need any new gas, coal or nuclear plants until at least 2020. • COMMUNITY SCALE WIND 8000+ MW of requested development have been submitted to the SPP queue, 4000+ MW of which are for the panhandle. Wind Industry Crystal Ball • Current US installations –35,000+ MW – – • • 20% wind energy = 300,000+ MW DOE Report - 20% Wind Energy by 2030 – • Over $40 billion investment Avoids 55 million tons of carbon emissions Strategic analysis of implications of rapid industry growth www.20percentwind.org Oklahoma – Economic Impacts From the 20% Vision 38,484 MW new development Wind energy’s economic “ripple effect” Direct Impacts Payments to Landowners: • $102.6 million/year Local Property Tax Revenue: • $247.6 million/year Construction Phase: • 69,860 new jobs • $7.26 B to local economies Operational Phase: • 9,940 new long-term jobs • $817 M/yr to local economies Indirect & Induced Impacts Construction Phase: • 64,450 new jobs • $5.43 B to local economies Operational Phase: • 8,834 local jobs • $778.6 M/yr to local economies Totals (construction + 20yrs) Total economic benefit = $44.6 B New local jobs during construction = 134,310 New local long-term jobs = 18,774 The Bottom Line • Development of strong wind industry will allow Oklahoma to: – – – – – – reduce our carbon footprint, help to mitigate impacts of climate change, create jobs, expand economic development Improve energy security, make Oklahoma a Renewable Energy Powerhouse, and allow us to……….. Carpe Ventum!