Opportunities to Grow Small and Community Wind

Transcription

1 Opportunities to Grow Small and Community Wind Christa Shute Vice President, Business Development Earth Turbines, Inc. February 2009 Better Buildings By Design Conference Burlington, VT

2 Overview Earth Turbines Community Wind Challenges Solutions Wind Resources & Return Vermont Opportunities

3 Earth Turbines, Inc. To bring an innovative system of wind energy technology to the home, delivering quality power from quality wind. Growth and dedication to the mission of building renewable energy Commercial, community, residential.

4 Earth Turbines Wind System Complete grid-connected systems 2.5 kw at 11 m/s (24.6) SWCC std 112 proprietary tilt-up tower 5 year warranty; 25 year life Full service (permitting to production) Made in VT rebate

5 Community Wind The term "community wind" refers to the method and intention of development rather than the size of the project. Local ownership by: individuals, small businesses, schools, universities, rural electric cooperatives, municipal utilities.

6 Community Wind Benefits Energy price stability Local economic benefits from local ownership versus out-of-state Contribution to a cleaner environment Energy Crisis Peak Oil, and energy independence

7 Challenges in U.S. No federal policy governing small/community wind piecemeal by state Utility resistance Can t connect to grid Can t sell power Can t get a fair price Siting and zoning Financing Turbine AVAILABILITY

8 New Federal Tax Credits 30% of the total cost with caps of $4,000 or $500 per ½ kilowatt of capacity until 2016 Pending in the stimulus package American Recovery and Reinvestment Act Removal of the caps AMT Credit

9 Lessons from Europe Community wind works Denmark: 1/4 of all wind capacity (3180MW total) Germany: 1/3 of all wind capacity (25,176 MW total) Policy drivers (Feed-in-Tariff): Right to connect to grid Utilities required to purchase power A guaranteed fair price Dardesheim, Germany

10 2007 Wind Energy Penetration Levels (MW #s for 2008) Source: AWEA, EWEA

11 Renewable Energy Payments Previously called Feed in Tariff in Europe Contracts are Long term set prices(15-20 years) Guaranteed sale to utility (for every RE producer) Individuals, communities, co-ops companies, farmers Transparent (and open for inspection) Premium rate (45 70 cents) Spread among rate payers amount to minimal increase Provide incentive for creating/increasing production capacity

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13 Germany s Success Story Received $12.7 billion in Renewable Energy investment Created 300,000 new jobs Saved 45 millions tons of emitted CO2 Saved citizens over a billion dollars in electricity costs Doubled the share of electricity produced from renewable sources from 6.3% in 2000 to 12% in Currently it s 14%!

14 Take Home Action Contact your legislatures about the importance of Renewable Energy Payments and the newly introduced Renewable Energy Act

15 U.S. Examples Hull Wind in Hull, MA 660kW in 2001 Success brings a 1.8 MW in 2006 Municipal Light Department Jiminy Peak, Hancock, MA 1.5MW in 2008 Part of Sustainable Slopes program Mass Tech Collaborative Grant Min Wind in MN, 4-950kW and 7-1,650kW Local investors form cooperative

16 The Vermont Model Group Net Metering - Senate Bill 209, signed 3/19/08 Exception required for noncontiguous group-net metering (up to 250kw) Permitted through the PSB 248 process Allows power trading at retail rates CEDF / Rebate Incentives

17 Group Net Metering - How it works 1. Find a good wind site! 2. Wind turbine is permitted through PSB. 3. Group forms LLC and installs wind turbine. 4. Electricity is fed to utility through one meter. 5. Each month, meter is read and output (kwh) is credited to group members. 6. Each member pays his/her monthly bill, which shows total usage minus credited energy. 7. Credits carry forward month to month. After 12 months, account is zeroed.

18 Wind Resource Maps

19 Addison County

20 Measure the Wind At the height of your turbine NRG-NOW SYSTEMS-SYMPHONIE 50m = $14,450 60m = $15,750

21 Wind Power Generation is Based on Three Factors 1. Average wind speed at site 2. Smooth wind flow 3. Height of wind turbine

22 Power in the wind is a cubic function of wind speed. Cube of the Wind Speed Double the wind speed and power increases eight times!

23 Smooth Flow Equals Power Height = Smooth Flow Smooth Flow = Power

24 Height Equals Power

25 Rough Numbers Approximate Cost of refurbished Vestas 225kW: $500, mph 120,000kWh annual 18 mph 600,000 kwh annual Payback est. = 35 years Payback est.= 7 years

26 Group Net Metering - How it works 1. Find a good wind site! 2. Wind turbine is permitted through PSB. 3. Group forms LLC and installs wind turbine. 4. Electricity is fed to utility through one meter. 5. Each month, meter is read and output (kwh) is credited to group members. 6. Each member pays his monthly bill, which shows total usage minus credited energy. 7. Credits carry forward month to month. After 12 months, account is zeroed.

27 Create the Infrastructure Form an LLC so there is one party dealing with the utility company Insure that there is a 3 phase power line in proximity Consider road / access and environmental impacts Arrange for utility net-metering account

28 Identify & Secure a Turbine AVAILABILITY problem Northwind 100 Fuhrlander Vestas V kw Reconditioned EMS

29 Working with the PSB Must know turbine & install logistics (Including environmental impacts) Complete a Certificate of Public Good Notify relevant parties 30 day weigh-in period

30 Recap To Do s Find a good wind site, secure wind data. Decide on a turbine. Write the business plan Form an LLC Work through the PSB Invest and Install

31 An Alternative To Do Renewable Energy Vermont Collecting names of those willing and financially capable of an investment in Community Wind New companies forming with experienced personnel to handle the aforementioned to do s.

32 Links to Community Examples Jiminy Peak Hull Wind Minwind Community wind toolbox

33 Successful Wind in Vermont Home and Farm wind assists the individual and increases acceptance Community Wind provides efficient means of energy sufficiency for groups of citizens, municipalities, etc. Commercial Wind is the scale VT requires to meet its future energy needs

34 Information Sources Residential wind systems - Renewable Energy Vermont www. rerc-vt.org - Vermont Small Scale Renewable Energy Program - American Wind Energy Association - Danish Windpower

35 Earth Turbines, Inc. For a copy of this presentation and to learn more about the company, visit: