Renewable Energy for the Farm and Ranch SARE August 15, 2006 Roya Stanley, NREL Disclaimer and Government License This work has been authored by Midwest Research Institute (MRI) under Contract No. DE-AC36-99GO10337 with the U.S. Department of Energy (the “DOE”). The United States Government (the “Government”) retains and the publisher, by accepting the work for publication, acknowledges that the Government retains a non-exclusive, paid-up, irrevocable, worldwide license to publish or reproduce the published form of this work, or allow others to do so, for Government purposes. Neither MRI, the DOE, the Government, nor any other agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe any privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not constitute or imply its endorsement, recommendation, or favoring by the Government or any agency thereof. The views and opinions of the authors and/or presenters expressed herein do not necessarily state or reflect those of MRI, the DOE, the Government, or any agency thereof. Powering Your Farms and Ranches with Biomass, Wind and Solar • Makes economic sense • Yields high quality power • Gains energy independence • Provides emergency back-up systems • Sustains clean environments for future generations Topics • • Energy Efficiency Wind Power • Solar Heat and Power • Biomass-Derived and Power • Combined Systems • Water Pumping • Renewable Resources • Incentives • Building Your System Energy Efficiency Let’s Hear It for Energy Efficiency! • Saves money at low cost • Citizens can do themselves • Creates local business opportunities • Energy efficiency is the quickest, cheapest and cleanest way to reduce energy consumption and cost Typical Energy-Efficient PV Home 2000 Kilowatt hours (kWh) Utility 1500 1000 Solar 500 Utility 0 Normal home Energy efficient PV home Similar results are possible using other renewable energy sources One dollar spent on an energy efficient appliance will save many dollars on RE components. 800 – 900 years ago in Europe 140 years ago, water-pumping wind mills Wind Power History 70 years ago, electric power 85 companies 20 years ago, Federal tax credits 35 companies Technology Barriers • High Turbine costs - Limited mass production, most turbines are custom-made, which results in high labor costs added to increasing material costs • Insufficient Product Reliability - Variations in production methods lead to inconsistent product quality • Wind resource misconceptions – SWGs work in low wind speed area when tower height is used to compensate for lack of resource or micrositing issues • Power Electronics – lack of robust design for SWGs to convert wild AC, not big enough market to compel power electronics manufacturers • Noise – SWGs can produce noise in their overspeed control mechanism combined with high rotational speeds • Lack of technology tools – due to turbine passive design, understanding inflow critical to providing good design tools Market Barriers • Lack of Effective Standards - no independent testing and approval body to assure consumer protection • Good products are kept out of the incentivized market due to inability to get on the CA Approved product listing • Bad products are kept in the market since no credible benchmarks in place to sort out problem turbines and incentives continue to draw turbine purchase • Zoning - tower height limitations continue to thwart towers higher than 35’ • Interconnection/net metering - challenges exist particularly in Rural Electric Coop territory where small wind works well (typically no zoning issues in rural America) • Complicated financial impact - Consumers and stakeholders struggle to understand small wind economics • Insufficient capitalization - Small-scale wind generator companies struggle to get their product message out and influence incentive policy across the US • Effective policy – While many states/utilities do have effective policies, it takes time for incentive organizations to effectively get the ‘word’ out about their programs Key Applications for Small Wind • Battery charging for both US off-grid and international off-grid to hybrid systems – Typically 3 kW or less • Water Pumping – Mechanical windmill – water pumper, must co-locate well with windmill • Best for lowest wind speed sites – Electric wind turbine – match with electrical pump, can locate turbine in most productive spot • Grid-Connect – Large US market – Many state and utility incentives exist and continue to grow Residential Small Wind Incentives www.dsireusa.org $ $ $ $ $ $ $ $ $ $ $ Property Tax Incentives $ $ BUYDOWNS Buydown & Net Metering Buydown, Net Metering, & Loans Puerto Rico $ RPS PRODUCTIVITY INCENTIVES Productivity Incentives & Loans Productivity Incentives Net Metering, Loans & Prod. Incentives Net Metering & Prod. Incentives Income Tax Credits MINOR INCENTIVES Loans Net Metering & Loans* *In Minnesota, loans apply only to farmers. Net Metering Federal Incentives: Mainstay Energy – green tag purchase (CA excluded); USDA Federal Farm Bill Title 9006 – grant for rural areas May 30, 2006 Small Wind Turbines Are Different •Utility-Scale Wind Power 600 - 1,800 kW wind turbines 1,500 kW – Installed on wind farms, 10 – 300 MW – Professional maintenance crews – 13 mph (6 m/s) average wind speed •Small-scale Wind Power 300 W - 500 kW wind turbines – Installed at individual homes, farms, businesses, schools, etc. – On the “customer side” of the meter, or off the utility grid entirely – High reliability, low maintenance – 8 mph (3.5 m/s) average wind speed 10 kW Small Wind Turbines • Configuration: 2 or 3 blades aimed into the wind by the tail • Blades: Fiber-reinforced plastics • Over-Speed Protection: Furling (rotor turns out of the wind), no brakes • Generator: Direct-drive, permanent magnet alternator (no brushes), 3-phase AC, variable-speed operation • Controller: Electronic device that delivers - DC power for charging batteries - AC power for utility interconnection • Result: – Simple, rugged design – Only 2–4 moving parts – Little regular maintenance required Bergey EXCEL, 10 kW Small Wind Turbine Towers Guyed Tower Tilt-Up Tower Self-Supporting Tower Southwest Windpower www.windenergy.com Flagstaff, AZ AIR-X 300 W 503 500 W Whisper H40 900 W Whisper 175 3 kW Whisper H80 1000 W Abundant Renewable Energy 110 www.abundantre.com Newsberg, OR Bergey Windpower www.bergey.com Norman, OK 1 kW BWC Excel 10 kW Wind Turbine Industries, Inc. Prior Lake, MN Jacobs 29/20 20 kW Entegrity Wind www.entegritywind.com EW15 60 kW Fuhrlander turbines www.lorax-energy.com Block Island, Rhode Island 30 kW, 100 kW, 250 kW (not shown) Vestas V-15 and EMS E-15 www.energyms.com Refurbished turbines Northern Power Systems www.northernpower.com Northwind 100 NW 100/19 100 kW Waitsfield, VT Other Turbine Issues • Operation and Maintenance – estimate 1.5 cents/kWh • Turbine/Tower Life – 20 years • Typical capital costs range from $6/W to $3/W – Generally, the larger the turbine the cheaper it is • Micro-siting most important for maximizing kWh production • For most Net-metering , try to meet 75% of load unless – High avoided cost – Retail rate payback for net excess – for utility bill reduction • Zoning – if in rural county not likely to have issues but suburban/urban zoning can be time consuming • Work on interconnection agreements with utility prior to turbine purchase Case Study: On-Grid Jess Alger’s Ranch - Stanford, MT Case Study: Jess Alger’s Ranch - Stanford, MT • Fourth generation Montana farmer • 1,200 acre cattle ranch and wheat farm • Wind used to offset electricity consumed by home and farm operations • Turbine installed September 2003 • 12 mph annual average wind speed (Class 3) • 100 foot tower Alger’s Estimated Cost and Production • Installed Turbine System - $36,850 – Lower than typical • Turbine system costs only, no dealer payment • Site preparation done by J. Algers • USDA RESG (25% grant) - $7,696 • Montana NCAT USB Funds - $12,500 • Estimated electricity used 14,200 kWh/yr • Estimate electricity produced 18,000 kWh/yr (based on Class 3 wind site) Small Wind Economics Simple Payback Bergey Excel, 100 ft Tower Net Metering Only, 12.5 mph Simple Payback, Years 50 Net Metering Only, 16 mph 40 USDA Grant and Net Metering, 12.5 mph USDA Grant and Net Metering, 16 mph 30 20 10 0 5 7 9 11 Electric Rate, ¢/kWh 13 15 Simple Payback (Micon 65 kW) Simple Payback Period (Years) 25 Micon 60 kW (C2) 20 Micon 60 kW - FB (C2) 15 Micon 60 kW - FB + PI (C2) Micon 60 kW (C3) 10 Micon 60 kW - FB (C3) 5 Micon 60 kW - FB + PI (C3) 0 0 0.05 0.1 Grid Cost of Energy ($/kWh) 0.15 Books by Paul Gipe Available from Chelsea Green Publishing Co. www.chelseagreen.com Small Wind Consumers Guide A U.S.guide and about 30 state and region specific specific guides are available from the National Renewable Energy Laboratory: http://www.windpoweringamerica.gov/ small_wind.html Why is there interest in small wind? • Strong market-pull - numerous state and utility incentives • Rural wind is corollary to urban PV – expansive consumer base with growing political support (i.e. 25x25) • Provide rural economic development opportunities – schools, locally owned community wind • Hedge against rising retail electricity costs • Energy security - can be independently owned and promotes self-reliance • Doesn’t require transmission • Low wind start up results in kWh at lower wind speeds • Maintain world leadership for US companies since EU not funding SWG activities Local Ownership Models - Utility Scale Turbines • Minnesota farmer cooperative (Minwind) • FLIP structure • Farmer-owned small wind • Farmer-owned commercial-scale Kas Brothers Plant 25-Year Cash Crop • First farmer owned commercial-scale project in U.S. • Two 750 kW Micon turbines installed in summer of 2001. • Financed with local banks (had an equity partner). • Dozens of farmers in MN now following this model. Minwind I and II “Farmer Cooperative” • Two LLCs formed with cooperative principles. • Sold membership stock to 66 individuals (33 in each group, required 85% of shares to be owned by farmers) • No individual can own more than 15% of the shares. • Developed two 1.8 MW projects (to use MN incentive) • Built the project in late 2002. Solar Heat and Power Solar Heat • Solar hot water heating is commercially available for both domestic and industrial water systems and for swimming pools. • Solar space heating and preheating is available also. PV Home Choices • Grid-connected – With or without battery storage – Most PV systems installed in the U.S. are gridconnected without battery storage • Grid independent – With battery storage – Can be more economical than utility grid extension costs for new energy service On-grid Home NREL’s Habitat for Humanity house, dedicated 9/2005, Wheat Ridge, CO. Zero Energy Home designed to produce as much energy as it consumes on an annual basis. • Solar hot water system • 4 kW PV system • Super insulated, passive solar construction and energy efficient lighting Off-grid Home Van Geet house, Idaho Springs, CO. Completed in 1999. • Solar hot water system • 1.2 kW PV system • Passive solar construction and energy efficient lighting Off-Grid Small PV Powered Applications • Electric fence charger with PV module. Total cost is around $170. • Electric lights recharged by PV module. Total cost is between $100 and $160 Biomass-Derived Power Covered Lagoon • Zebulon,NC • 4,000 sow farrowto-wean farm • Pit Recharge manure handling • Processed waste is used as greenhouse tomato fertilizer • 120 kW medium BTU Caterpillar genset and heat recovery • Total Cost: $290,000; Annual Revenue: $35,000 Plug Flow Digester • • • • • • • • • Candor, NY 560 milk cows Free stall scrape manure hand ling Heated plug flow digester w/ flexible top 60 kW output Installed for odor control Separated manure solids sold as nursery product Cost: $350,000; Annual Revenue: @$45,000 WWW.EPA.GOV/AGSTAR BioMax 15 Biopower System • Walden, Colorado • Power & heat for Vocational Horticulture Program • Uses forest thinning residues • Wood consumption is 3 lbs/kWh • Daily load is 6 to 8kW, 40-80 kWh • Installed Sept. 2003 Combined Systems Solar and Wind Resources are Complimentary Hours of sunshine or average wind power (Watts/m2) 400 Data from SE Iowa 350 Hours of sunshine/month 300 250 200 150 100 Average wind power/month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Off-Grid Office and Shop Building • Wind farm maintenance shop and office, Woodstock, MN • Electric loads include lighting, PC, shop tools, and heater • Passive solar daylighting, corn used for space heat • Total installed cost $6,800 (grid extension alternative: $7,500) • 1200 sf shop, 900 sf office • Whisper H40 wind turbine 900 W, 35 ft tower • PV panels, 500 W • 24 VDC battery, 750 Ah • Installed 2001 Water Pumping RE Water Pumping System Day PV modules Pump (generation) (electrical load) Stock tank (storage) Cattle (utilization) Stock tank (storage) Cattle (utilization) Night Wind turbine Pump (generation) (electrical load) SQP1-B256905 Off-Grid Water-Pumping with Wind •Ranch near Wheeler, Texas •Water pumping for 120 head of cattle •World Power Technology Whisper 1000 wind turbine, 1 kW, 9 ft rotor, 30 ft tower Example: Off-Grid Water Pumping with PV System • PV powered water pumping for stock tanks. Cost is $4705 for 100 foot well and 1500 gpd • Systems are owned or can be leased to ranchers for $16 to $52 per month, depending on size • Systems can be moved to different wells Freeze-Protection USDA Farm Bill Section 9006 www.rurdev.usda.gov/rbs/farmbill • Renewable Energy & Energy Efficiency: wind solar biomass geothermal hydrogen energy efficiency • For farms, ranches, small businesses (not for residential systems) • Grants (up to 25% of project cost), or Loan Guarantees (up to 50% of project cost) • In 2005, a total of $22 million in grants were distributed to 154 projects in 32 states. • Work with rural energy coordinators at your USDA State Rural Development Office • Simplified application in 2006 for projects < $200,000 USDA Farm Bill Section 6401 www.rurdev.usda.gov/rbs/coops/vadg.htm • Value-Added Producer Grants for: wind hydro biomass digesters • Grants (up to 50% of project cost) may be used for planning or working capital, but not for hardware acquisition. • For independent producers, producer cooperatives, and producer groups • $19.5 million available in 2006 • Work with rural energy coordinators at your USDA State Rural Development Office Building Your System First Steps • Determine your need • Estimate electrical and heating loads • Consider conservation and energy efficiency first • Determine system location; biomass, solar and wind resource • Estimate system size, performance, and cost Frequently Encountered Problems ⇒ Fatal Error #1 ⇒ Fatal Error #2 ⇒ Fatal Error #3 ⇒ Fatal Error #4 ⇒ Fatal Error #5 Ignore or donʹt coordinate with electric utility or local building inspectors Overestimate RE resource Underestimate loads or energy needs Undersize the PV, wind or batteries to trim costs Nobody is responsible for well-being of project and equipment Frequently Asked Questions • Economics • Severe weather • Warranties • Interconnection • Incentives • Insurance • Taxes • Zoning • Benefits • Environmental regulations Biomass, Wind or PV? How to Choose •Resource available •Size of application •Installed cost •Maintenance required •Local codes and zoning The U.S. Department of Energy’s National Renewable Energy Laboratory http://www.nrel.gov Roya Stanley 303-275-3057 Roya_Stanley@nrel.gov