Southeast and Mid-Atlantic Challenges to Wind
Development
The Southeast & Mid-Atlantic Regional Wind Summit, Raleigh, NC
September 19, 2005
© 2005 Community Energy, Inc.
Summary
• Community Energy, Inc. (CEI) Background
• The Economics of Wind
• The Wind Market
• Our 2005 Projects and Development Challenges
•
© 2005
2003 Community Energy, Inc.
CEI Overview
• Founded in 1999, with headquarters in
Wayne, PA and offices in NYC, Binghamton,
Chicago, Connecticut, New Jersey and
Colorado
• 37 employees
• Marketing/Sales Division
- Over 2 Billion kWh of wind under contract
(supporting 200 MW of wind)
- 100% Growth Rate over past 3 years
- 20-year PPAs with Exelon
• Supply Development Division
- Long-term PPAs with PPL, ComEd, &
ACUA
- 350,000 MWh under contract
- Over 200 MW of new CEI
developments (PA, NJ, MA, IL) under
long-term PPA’s
© 2005 Community Energy, Inc.
Business Model
Marketer
• 20 utility partners
• 40,000 residential
& business
customers
• Pioneered sales to
C&I customers
• EPA Green Power
Leadership Award
Winner 2001-2004
Supplier
• 350,000 MWh
under contract
• RPS Portfolio
Management
• RECs
 Wind
 Solar
 Landfill Gas/
biomass
 Small hydro
Developer
• > 1500 MW wind
farms under
development
• Developing the
only 2 wind projects
in Mid-Atlantic this
year
• Land under lease
in more than 12
states
© 2005 Community Energy, Inc.
The Vision
A world powered by clean,
responsibly developed
renewable energy
The Model
Linking customer purchases
with the development of new
regional wind supply to flip
economics in positive direction
© 2005 Community Energy, Inc.
The Economics of Wind
Value of Wind Energy (in PJM):
+ $40-45/MWh
Cost of Wind Energy (in PJM):
- $55-60/MWh
NET ECONOMIC IMPACT
- $10-20/MWh
Green Market Premium
+ $15-25/MWh
REVISED ECONOMIC IMPACT
- $5 to +$15/MWh
© 2005 Community Energy, Inc.
Large Wind Buyers
© 2005 Community Energy, Inc.
© 2005 Community Energy, Inc.
Wind Supply
The Wind Farms
242 MW
Wethersfield, NY 6.6MW on-line 2000
Somerset, PA
15MW
on-line 2001
Mill Run, PA
9MW
on-line 2001
Fenner, NY
30MW
on-line 2001
Mountaineer, WV 66MW on-line 2002
Waymart, PA
64.5MW
on-line 2003
Crescent Ridge, IL 51MW on-line 2005
Under development:
Atlantic City, NJ
7.5MW Fall 2005
Bear Creek, PA
24MW
Fall 2005
Princeton, MA
3MW
2006
Lempster, NH
24MW
2006
Jordanville, NY 150MW
2007
© 2005 Community Energy, Inc.
Deal Structure
REC Customers
RECs
Wind kWh
(with RECs)
Wind Farm
Bankable PPA
Premiums
Wholesaler
(e.g., Exelon
PPL, Enel,
CEI, etc.)
Wholesale Energy
ISO (PJM)
Locational Marginal
Price
© 2005 Community Energy, Inc.
A Key Piece of the Puzzle:
Long-Term Creditworthy REC Purchases
The University of Pennsylvania
- Original 5 year, 20,000 MWh/yr. purchase in 2001 supported new PA projects
- Last year doubled to 10-year, 40,000 MWh/Yr. purchase
- Term & credit behind commitment will directly support PA project in 2005
© 2005 Community Energy, Inc.
CEI 2005 Projects
7.5-MW Jersey-Atlantic Project
Atlantic City, NJ
On-Line Late 2005
24-MW Bear Creek Project
Bear Creek, PA
On-Line Late 2005
© 2005 Community Energy, Inc.
Atlantic City Wind Farm
- Clean energy showcase visible to 30
million people per year
- Leadership by the Atlantic County
Utility Authority
- 5 GE Turbines, 7.5 MW capacity,
15,000 - 20,000 MWh/Yr.
- Partially behind the meter (BTM) to
ACUA, balance is merchant power
delivered to PJM
- NJ BPU providing grant support to
offset costs
© 2005 Community Energy, Inc.
Bear Creek Wind Farm
• Visible from the Pennsylvania
turnpike
• 12 Gamesa Turbines, 24 MW
capacity, ~70,000 MWh/Yr.
• 20-year Power Purchase
Agreement with PPL
• Central Hudson Group and
Babcock and Brown
© 2005 Community Energy, Inc.
Development Aspects
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Road design
FAA Permits
Foundation design
Avian studies
Other general topics
© 2005 Community Energy, Inc.
Road Design – Bear Creek
•
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Heavy loads during brief construction period
Pickup truck usage 20 years post-construction
Erosion and sediment control
Discharges to streams
© 2005 Community Energy, Inc.
FAA Permits – Bear Creek
• Micrositing is a necessary component of every
wind project
• Every adjustment establishes a new
“obstruction record”
• Process streamlining is underway at FAA
• CEI received excellent support from FAA to
resolve possible last minute conflicts
© 2005 Community Energy, Inc.
Foundation Design - ACUA
• Design for hurricanes need to be considered
– Foundation effect
– Turbine effect
© 2005 Community Energy, Inc.
Avian – Bear Creek and
ACUA
• Misconceptions
• Pre-construction studies done at both sites
• NJ Audubon/CEI cooperating on advanced
post-construction avian studies
• PA Game Commission/CEI performing postconstruction avian and bat studies
© 2005 Community Energy, Inc.
General Challenges
• Turbine size increase = transport vehicle size
increase
• Land use compatibility
– ACUA – co-located with County Sewage Treatment Plant
– existing brownfield site designed for utility use
• Role of community leaders
© 2005 Community Energy, Inc.
Contact Information :
Matt Heck
Community Energy, Inc.
150 Strafford Avenue, Suite 210
Wayne, PA 19087
484.654.1077
matt.heck@newwindenergy.com
www.CommunityEnergy.biz
© 2005 Community Energy, Inc.