Wind Energy UpdateWind Energy Update Timothy Anderson, AICPTimothy Anderson, AICP

Principal PlannerPrincipal Planner

January 12, 2012January 12, 2012

Benefits of Wind EnergyBenefits of Wind Energy

Produces no Produces no poisonous chemicalspoisonous chemicals

Requires no waterRequires no water Requires little fuelRequires little fuel No hazardous wasteNo hazardous waste Economic Economic

development development

The Negative SideThe Negative Side

NoiseNoise Visual clutterVisual clutter Shadow flickerShadow flicker WildlifeWildlife EM signal EM signal

interferenceinterference Property valuesProperty values

Renewable Energy SourcesRenewable Energy Sources

Do not rely on fossil fuels and cannot Do not rely on fossil fuels and cannot be depleted.be depleted.

Most rely on the sun as the ultimate Most rely on the sun as the ultimate source.source.

Examples: Solar, geothermal, Examples: Solar, geothermal, hydroelectric, biomass, hydropower, hydroelectric, biomass, hydropower, ocean energy, and wind.ocean energy, and wind.

Global Wind Energy CapacityGlobal Wind Energy Capacity

6.1

215

0

50

100

150

200

250

1996

1998

2000

2002

2004

2006

2008

2010

GW

h

Source: US Energy Information Administration

Total Installed Wind Capacity, 2011Total Installed Wind Capacity, 2011

0

10000

20000

30000

40000

50000

60000

MW

China

USA

Germany

Spain

India

Italy

France

UK

Canada

Portugal

Rest of world

Source: Global Wind Energy Council

UNITED STATESUNITED STATES

ELECTRICITY GENERATION BY SOURCEELECTRICITY GENERATION BY SOURCE

0

500

1000

1500

2000

2500

1980 1990 2000 2010

GW

h

Coal Natural Gas Nuclear

Hydroelectric Other Sources Wind

Source: US Energy Information Administration

US Energy Production by Source, US Energy Production by Source, 20002000

Coal51%

Natural Gas16%

Hydroelectric7%

Wind1%

Nuclear20%

Other5%

Source: US Energy Information Administration

US Energy Production by Source, US Energy Production by Source, 20102010

Coal45%

Natural Gas24%

Hydroelectric6%

Wind2%

Nuclear20%

Other3%

Source: US Energy Information Administration

Federal Incentive Programs/Federal Incentive Programs/Policy for WindPolicy for Wind

Several incentives for small wind energy. Several incentives for small wind energy.

Production Tax Credit (PTC) – Current Production Tax Credit (PTC) – Current $.022 per KWh, 10 years. $.022 per KWh, 10 years.

Modified Accelerated Cost Reduction Modified Accelerated Cost Reduction System (MACRS) System (MACRS)

In 2006, President Bush said that the US In 2006, President Bush said that the US could produce 20% of its power from wind could produce 20% of its power from wind energy by 2030.energy by 2030.

Michigan Incentive Michigan Incentive Programs/PolicyPrograms/Policy

Several loan programs available to Several loan programs available to manufacturers of renewable energy.manufacturers of renewable energy.

Clean, Renewable and Efficient Clean, Renewable and Efficient Energy Act (PA 295 of 2008). Energy Act (PA 295 of 2008).

10% from renewables by 2015. 10% from renewables by 2015. Consumers and DTE have specific Consumers and DTE have specific requirements. requirements.

SummarySummary

NationalNational Wind energy currently represents Wind energy currently represents

only 2% of the nation’s electricity only 2% of the nation’s electricity stream.stream.

Wind is the fastest growing source of Wind is the fastest growing source of renewable energy. renewable energy.

The production tax credit is an The production tax credit is an important factor.important factor.

Summary (cont.)Summary (cont.)

State of MichiganState of Michigan The Renewable Energy Standard The Renewable Energy Standard

requires Michigan electric providers requires Michigan electric providers to achieve a retail supply portfolio to achieve a retail supply portfolio that includes at least 10% renewable that includes at least 10% renewable energy by 2015. energy by 2015.

Provides an incentive for Michigan Provides an incentive for Michigan utilities to team up with wind utilities to team up with wind developers to meet the RES goal. developers to meet the RES goal.

Summary (cont.)Summary (cont.)

RegionRegion Two wind energy development Two wind energy development

proposals to date. proposals to date. 14 communities have adopted wind 14 communities have adopted wind

regulations. Several more in the regulations. Several more in the works.works.

Local and county planning Local and county planning commissions are playing a large role commissions are playing a large role and will continue to do so.and will continue to do so.

Wind Regulations in PlaceWind Regulations in Place

Hillsdale CountyHillsdale County Pittsford TownshipPittsford Township Reading TownshipReading Township Somerset TownshipSomerset Township Wheatland Twp.Wheatland Twp.

Jackson CountyJackson County Henrietta TownshipHenrietta Township Leoni TownshipLeoni Township

Napoleon TownshipNapoleon Township Spring Arbor Twp.Spring Arbor Twp. Waterloo TownshipWaterloo Township

Lenawee CountyLenawee County Cambridge Twp.Cambridge Twp. Clinton TownshipClinton Township Palmyra TownshipPalmyra Township Riga TownshipRiga Township Rome TownshipRome Township

Web SitesWeb Sites

1. 1. Energy InformationAdministration: Energy InformationAdministration: www.eia.govwww.eia.gov

2. 2. Global Wind Energy Council: Global Wind Energy Council: www.gwec.netwww.gwec.net

3.3. State Incentives for Renewables: State Incentives for Renewables: www.dsireusa.orgwww.dsireusa.org

4.4. Michigan Public Service Commission: Michigan Public Service Commission: www.mpsc.govwww.mpsc.gov