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Wind Energy & PolicyWind Energy & Policy

DaveDave TuttleTuttle

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AgendaAgenda

Benefits/Challenges

Wind Technology Basics & Trends

Location of Wind vs Location of Load

Costs

Variability & Grid Integration Challenges

Policy

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Benefits/ChallengesBenefits/Challenges

Benefits:- Zero Emissions

- No water consumption

- Zero Fuel costs, zero imported fuel

- Economic development ^ /Jobs

- Payments to Farmers

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Benefits/ChallengesBenefits/Challenges

Challenges:

- Intermittency

- Integration into the grid

- Transmission

- Costs (without incentives)

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Wind Turbine BasicsWind Turbine Basics

- Horizontal Axis (such as above) have become dominant over vertical axis

- Technology has improved Capacity Factor (i.e. Yield) & other attributes

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Power from a Wind TurbinePower from a Wind Turbine

P = CP = CppAVAV33

Where

P = captured powerCp = max power coefficient, generally 0.25 to 0.45(Betz limit = 0.59)

= air density

A = rotor swept area

V = wind speed

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11stst Priority: Sites w/ Steady/Strong WindPriority: Sites w/ Steady/Strong Wind

Source: http://www.nrel.gov/gis/images/80m_wind/awstwspd80onoffbigC3-3dpi600.jpg

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Wind Potential vs. Turbine HeightWind Potential vs. Turbine Height

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Wind Turbine Sizes Over TimeWind Turbine Sizes Over Time

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Location of Wind ResourceLocation of Wind Resource

vsvsLocation of LoadsLocation of Loads

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Most Americans do not tend to liveMost Americans do not tend to live

near many prime wind locationsnear many prime wind locations(Hence, transmission lines needed for big wind)(Hence, transmission lines needed for big wind)

Note potential of Coastal or Off-Shore Wind- Much closer to Loads- Tends to better align with Peak Demand

But:- Costs, Aesthetics, Region Specific Issues

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Generation, Transmission, DistributionGeneration, Transmission, Distribution

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Transmission NeededTransmission NeededLarge Scale Transmission ConceptLarge Scale Transmission Concept

Key Policy Questions:- Transmission line locations- Acquisition of right of way- Allocation of construction costs

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CostsCosts

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Generation CostsGeneration Costs

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Wind Costs: Actual ProjectsWind Costs: Actual Projects

Note that Power Purchase Agreement (PPA) prices may be higher in

some projects to reflect value of meeting RPS/Mandates

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U.S. Grid InterconnectsU.S. Grid Interconnects

(.. )

() & ()

() &

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Varied Fuels Used to Generate ElectricityVaried Fuels Used to Generate Electricity

Source: John Dumas, ERCOT

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Big Wind Impacts on Grid OperationsBig Wind Impacts on Grid Operations

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The University of Texas School of LawThe University of Texas School of LawLAW 279MLAW 279M Monty Humble 2009 Monty Humble 2009

Wind Power Varies by Region, Season/Day, HourWind Power Varies by Region, Season/Day, Hour

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Diversity Reduces VariabilityDiversity Reduces Variability

The University of Texas School of LawThe University of Texas School of LawLAW 279MLAW 279M Monty Humble 2009 Monty Humble 2009

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Methods to Reduce the Impact ofMethods to Reduce the Impact ofIncreasing Amounts of WindIncreasing Amounts of Wind

Improved wind forecasting

Improved Balancing Authority coordination

More Flexible Resources: Generation or loads

New Types of Load and Demand Profiles

Deployment of new technologies :- Energy Storage

- PEVs- Demand Response (DR)- Phasor Measurement Units (PMUs)- Synthetic Inertia

Advances in computer software and Hardware performance

- Decision Support Systems

Improved ISO control mechanisms

New Electricity Market designs

Work Force Demographics and Skills/trainingSource: DOE: Wind Energy and Utility Control Rooms in 2030

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PolicyPolicyLaws/RegulationsLaws/Regulations

Wind Policy: Price CompetitivenessWind Policy: Price Competitiveness

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Wind Policy: Price CompetitivenessWind Policy: Price CompetitivenessPolicy Levers to Jump Start the IndustryPolicy Levers to Jump Start the Industry

Tax Credits, subsidies, abatements- Attempt to nurture over time the industry to competitive costs (without subsidies)

- Policy tools for driving technology need to be Temporary and Effective- Can reduce net costs, increase prices, force % or quantities, fix attractive prices

- PTC (Production Tax Credit) & ITC (Investment Tax Credit) examples for Wind- PTC pays only on energy production, not investment

- Early era wind projects more driven from ITC (% of invested capital)- Some became examples of tax dodge (vs effective driver of industry)

- Up-front incentive, no incentive to improve reliability or production

- PTC can drive prices negative which impacts new generation build-out- Contributes to low ERCOT wholesale prices, which discourage new generation- Contributes to lower retail prices for customers- 10 year duration then expires for a particular project

- Also can have State, Local (city, school district) incentives- Targeting economic development (job creation)- Tax abatements can be important for wind developers business case Profit/Loss

- Overall: claim is that PTC costs are fully recovered by increased

Federal/State/Local tax revenue over the life of the project (AWEA).

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Wi d P li C f G id I iWi d P li C f G id I i

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Wind Policy: Cost of Grid IntegrationWind Policy: Cost of Grid Integration

Conventional generation needed to back-up wind- Wind is intermittent & non-dispatchable unlike NatGas/Coal/Hydro generation- Policy Consideration: Society benefits from low emissions, zero water usage, jobs- Policy dictates how to allocate wind integration costs

- Costs vary by region, amount of wind integrated, amount of new transmission

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Wind Policy: Protected AnimalsWind Policy: Protected Animals

Threatened or Endangered Species Act (Federal Law)-Whooping Crane, Indiana Bat

Migratory Bird Treaty Act (MTBA)-Bald Eagle, Golden Eagle, House Martin bird

Developers/owners of Wind farms may be criminally liable (i.e. Jail Time)for bird deaths under some circumstances

Mitigation Strategies Evolving

- Radar warning of approaching birds- Turn off turbines during migration

Wind Related Laws/RegulationsWind Related Laws/Regulations

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Wind Related Laws/RegulationsWind Related Laws/RegulationsOther Considerations Other Considerations WindcattersWindcatters must address must address

Transmission siting:- Bulk transmission, or Connection to Bulk Transmission- Crossing Federal (Bureau of Land Management) or State lands- Eminent domain, negotiation with critical landowners

Wetlands preservation- Not a problem in West Texas.. But a consideration for attractive coastal wind

Aviation Interference: FAA (Federal Aviation Administration)

Zoning/Land use (Typically local issues and Ordinances)

Historical Location (e.g. Protected Burial Site)

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Questions??Questions??