Padoma Wind Power

Industry

Wind power is a reality today. More than 2,000 megawatts (MW) of wind generation - enough to serve more than 600,000 average American homes - were installed in the United States in the past two years alone. With continued government encouragement to accelerate its development, this increasingly competitive source of energy can provide at least six percent of the nation's electricity by 2020, revitalize farms and rural communities, and reduce volatility in natural gas prices - without consuming any natural resource or emitting any pollution or greenhouse gases. However, a long-term extension of the federal wind energy production tax credit (PTC) is urgently needed to keep the wind industry's development on track.

Wind power is a reality today.

One of the fastest growing energy sources on a percentage basis over the last five years (24% annually in the U.S. - 2000-2004)
Total installed U.S. wind capacity at year's end 2004 was 6,740 MW, or enough to serve more than 1.6 million average households (with 4.3 million people)
Globally, 7,000-7,500 MW were added in 2004, according to initial estimates. Current installed capacity worldwide is about 46,500 MW, enough to serve more than 10 million average U.S. households)
Denmark and some regions of Spain and Germany now have 10% to 25% of electricity generated from wind power

More than 2,000 megawatts of wind generation--enough to serve more than 600,000 average American homes--were installed in the United States in the past two years alone.

Over 16 billion kilowatt-hours generated in the U.S. in 2004 (AWEA estimate based on year-end 2003 installed capacity) - enough electricity for 1.5 million average American homes (a single new 1-MW turbine generates enough electricity for 250 to 300 homes)
2004's new installations include:
The 159-MW Intrepid Wind Power project in Iowa, the first half of MidAmerican Energy's large wind power investment. When the second of MidAmerican's projects is complete in 2005, the utility estimates that slightly more than 9% of its generation will come from renewable sources.
An additional 14 wind turbines installed by farmer-owned groups. Although a farmer encounters more complexity and risk when owning a project rather than leasing land to a project developer, the potential financial return is also larger.
An additional 15 turbines added to the Tennessee Valley Authority's Buffalo Mountain project - the only utility-scale wind power project in the Southeast.
Sales of small residential turbines also growing

With continued government encouragement to accelerate its development...

Enact long-term extension of federal wind production tax credit (PTC) - provides stable financial environment needed to promote industry's continued growth (PTC will expire for the fourth time in less than seven years at end of 2005)
Transmission policy agenda: (1) reform electricity market rules to allow nondiscriminatory access to transmission system for wind-generated electricity; (2) targeted upgrades and new transmission lines to remove "bottlenecks" in existing system; and (3) ultimately, major investment in new transmission - "wind pipelines" - to tap the immense resources of the Great Plains and West
Enact renewables portfolio standard (RPS) of at least 10% by 2020 - low-cost, market-friendly way to boost clean energy sources (18 states and District of Columbia now have RPS policies)
Access to low-cost financing
Federal renewable energy procurement - federal leadership needed in green power purchases
Provide incentive for purchase of small turbines - 30% federal investment credit, state cost-share programs
Maintain consistent research funding
State incentives - Texas RPS (2,000 MW of renewables by 2009), New York RPS (increase renewables from 17% of state's electricity use to 25% by 2012) and New York government procurement (10% by 2005, 20% by 2010), California RPS (increase renewables from 12% of state's electricity use to 20% by 2017), others - can play major role

...this increasingly competitive source of energy...

With its federal incentive, "large" wind is now in a competitive range (2.5 - 5.5 cents/kilowatt-hour, depending upon project size and average wind speed at the site)
Wind is "inflation-proof" - once a wind plant is built, the cost of energy is known, and is not affected by fuel market price volatility
Technology is steadily improving (rotor blade airfoils specially designed for wind turbines, variable-speed generators, power electronics, sophisticated computer modeling of design changes)
New, larger turbines (1 MW to 1.8 MW) generate 120 times as much electricity as 1980s models at one-sixth the cost
Wind plants can be built quickly to respond to electricity shortages
In windy areas, small machines are most economical self-generation option

...can provide at least six percent of the nation's electricity by 2020 ...

Enough electricity for 25 million homes
100,000 MW (or approximately 15 times existing capacity at end of 2004)
Nearly as much electricity as hydropower supplies today
European Wind Energy Association (EWEA) now believes 100,000 MW of wind can be installed in Europe by 2010

...revitalize farms and rural communities ...

A single wind turbine can provide $2,000-$4,000/year in farm income even though only 3-5% of the land within wind farm boundary is used for turbines and access roads.
Wind plants can be valuable source of property tax income for local governments (especially rural counties)
Wind energy helps diversify income for farmers, ranchers, and other landowners
Each megawatt of wind provides 2.5-3 job-years of employment
Wind provides ~1 skilled O&M (operations/maintenance) job for every 10 turbines installed

. . . and reduce volatility in natural gas prices . . .

Natural gas supplies in North America are being depleted
Current US natural gas shortfall is ~3-4 Bcf/day (billion cubic feet per day)
Current US wind generation is equivalent to more than 0.4 Bcf/day, with an estimated 80% displacing natural gas
Expanding wind generation and building "wind pipelines" (see above) is one of quickest, easiest ways to conserve gas supplies, reduce price spikes

...without consuming any natural resource or emitting any greenhouse gases. . .

A single 1-MW turbine displaces 1,800 tons of carbon dioxide each year (equivalent to planting a square mile of forest), based on the current average U.S. utility fuel mix
To generate the same amount of electricity as a single 1-MW turbine using the average U.S. utility fuel mix would mean emissions of 9 tons of sulfur dioxide and 4 tons of nitrogen oxide each year
To generate the same amount of electricity as a single 1-MW wind turbine for 20 years would require burning 29,000 tons of coal (a line of 10-ton trucks 11 miles long) or 92,000 barrels of oil
To generate the same amount of electricity as today's U.S. wind turbine fleet (6,740 MW) would require burning 9 million tons of coal (a line of 10-ton trucks 3,437 miles long) or 28 million barrels of oil each year
100,000 MW of wind energy will reduce CO2 production by nearly 150 million tons annually

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...or other environmental impact.

Pre-construction site surveys are now standard, reduce threat to birds to minimal levels; cats, hunters, glass windows, communications towers are far more dangerous to birds
Bat collisions are issue only at a few Eastern ridgeline sites; industry is helping fund ambitious research effort with leading bat conservation group to reduce mortality
Minimal footprint, can be placed on working farms or ranches
No pollution impact on people, wildlife, or habitats
Noise virtually eliminated -- a wind turbine a quarter of a mile away is no noisier than a kitchen refrigerator

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...while increasing security of U.S. electricity supply

Domestic energy source
Inexhaustible supply - U.S. winds could generate more electricity in 15 years than all of Saudi Arabia's oil, without being depleted
Wind plants consist of small individual generators which cannot easily be damaged at the same time and which are easy to replace
If a wind plant is damaged, there is no secondary threat to the public (such as release of radioactivity, explosions, or the breaching of a dam)

However, extension of the federal wind energy production tax credit (PTC) is urgently needed to keep the wind industry's development on track.

Repeated expirations of the PTC during the past five years have resulted in "roller-coaster" pattern and seriously hampered industry growth - 732 MW in 1999, 67 MW in 2000 after expiration; 1,697 MW in 2001, 410 MW in 2002 after expiration; 1,687 MW in 2003, and 389 MW in 2004, when the PTC was not in force for two-thirds of the year.
Industry badly needs stable financial environment in which businesses can plan for growth.
At least $2 billion in new investment at risk, thousands of jobs at stake.

Assumptions:

33% average capacity factor assumed for machines installed in 2003.
30% average capacity factor assumed for entire turbine fleet
Average annual household consumption (U.S.) = 10,655 kWh
10-ton truck is 20 feet long