Green Power

Federal Agencies Purchase Renewable Energy Certificates

Working with Western Area Power Administration, Los Alamos National Laboratories and the Rocky Mountain Oilfield Testing Center purchased renewable energy certificates to help meet renewable energy goals set by the Energy Policy Act of 2005. Western contracted the purchase on behalf of the facilities through its Renewable Resources for Federal Agencies program. The program is a partnership with the Federal Energy Management Program established to help Federal agencies move toward the EPAct goals.

Element Markets LLC will supply RECs to Los Alamos totaling 12,000 MWh over three years. The oilfield testing center is making a one-time purchase of 2,667 MWh worth of RECs for FY2008. Element Markets will provide the certificates for that purchase as well. Western's Colorado River Storage Project-Management Center coordinated the purchase.

Renewable energy certificates, or "green tags," are the intangible environmental benefits associated with generating one megawatthour of electric energy by a renewable resource. Renewable energy producers can sell the credits, as well as the power itself, to offset the difference between the cost of the renewable power and power from fossil energy sources. Agencies that are not located near the source of renewable generation can buy RECs and claim the environmental benefits to meet their own or mandated goals.  Source: Western Area Power Administration, 8/21/2007.

Renewable Energy Technologies

USDA Solar Irrigation Tests Show Promise in Mo. (Ind. Report)

Since June, the Cape Girardeau County office of the USDA's Natural Resource Conservation Service in Mo. has been testing the use of solar power to operate an irrigation system. Using 10 two-foot-by-six-foot solar panels combined into one solar array, Gordonville-area farmer Mark Wessell has been irrigating a 24-acre field.  USDA Civil Engineer Mark Nussbaum said he selected a field that was bigger than the ideal size for the 10 solar panel array to test the system under extreme conditions. To date, the system has performed beyond expectations. Source: Southeast Missourian, Aug. 08, '07. Contact: Mark Nussbaum, USDA; 573-243-1467 ext 109. Source: EP Overviews, 8/10/2007.

Making Wind Fit

With the public's demand for green energy growing and favorable tax policies in place at least through the end of next year, wind energy's upward draft shows no sign of abating. In fact, in its first-quarter 2007 market report, the American Wind Energy Association projected another 3,000 megawatts of capacity being built this year and thousands of megawatts remain on the drawing board in the ensuing years.

So that means that solutions to the traditional impediments to wind development -- intermittency and lack of transmission access -- will continue to be challenges, operationally and logistically. Some of the largest players in wind-driven power generation -- and smaller ones, too -- are creating ways to alleviate these concerns through a range of efforts, from technical advances to massive capital expenditures.

The fact that wind doesn't always blow when it's needed, or it blows at times when customers are using less electricity, impeded acceptance of wind-driven power for many years. The variable output that accompanies strong gusts followed by light breezes would create challenges for grid stability if wind was to occupy a larger share of the electric generators' portfolio. But with state mandates to increase the amount of clean energy in the mix, integrating wind is not merely desirable, it's a requirement. Proponents say its apparent shortcomings are not enough to stifle its continued growth. The challenge and opportunity exists by reasonably managing its output but partly by having realistic expectations of what it can provide to the electric grid. Transmission planning and operations are what will lead to greater acceptance. Managing the output plays a role, and so does setting realistic expectations of what wind-driven generators can provide to the electric grid. Suitable transmission planning and operations will lead to greater acceptance. Managing this asset is well under way in many of regions of the United States where wind energy is most abundant.

The common challenge is to move generation from areas where it is most prolific, through the Great Plains and Midwest regions, to load centers in large cities, often hundreds of miles distant. In fact, the Holy Grail of the wind-power industry in America, tapping the vast resource from North Dakota to Texas and efficiently sending the energy to the load centers closer to the coasts or to population centers in the nation's midsection, is already technically feasible and is approaching economic viability.

To that end, AEP embarked on a decade-long $7 billion build-out unveiled in April before the Public Utility Commission of Texas in which wind-driven power will play a significant part. Texas has a well-known transmission-line bottleneck west of McCamey such that power generated by wind from west Texas cannot always reach load centers in the eastern sections of Texas -- and this, in a state that is becoming a leader in wind-driven power generation capacity.

An 11-state utility, AEP is a large purchaser of wind energy, and to a lesser extent an owner and operator of some facilities. It has 2,200 megawatts of wind power on its transmission system in Texas and Oklahoma. Mike Heycek, senior vice president for transmission for the Columbus, Ohio-based utility, said one technical challenge has been overcome. In fact, a 765-kilovolt line can now sustain transmission into the hundreds of miles without significant leakage. AEP even envisions wind generation from the central plains as cost-effective and available to as far east as Chicago.

Operationally, the integration of wind is the subject of ongoing efforts in the Pacific Northwest. The federal Bonneville Power Administration (BPA) is a participant in a "Northwest Wind Integration Action Plan," along with numerous other stakeholders. That collaborative process includes the BPA, investor-owned utilities, municipals, co-ops and environmental groups. This spring it released a framework to integrate wind into the overall power generation and distribution mix in the northwestern states.

Hydropower generation capacity has been used to smooth out the ups-and-downs of wind variability in the Pacific Northwest. But hydropower in that region is at its limit, and peaking generation is often produced in the same way it is in the rest of the country through expensive gas-fired generation. The cost advantage of hydro is therefore lost.

Wind power's value is as a peaking source and not meant as a base load resource. Wind fits into the generation portfolio by avoiding the operation of expensive natural gas plants. But associated operational costs increase as the higher degree of wind penetration into the overall portfolio mix increases. Elliott Mainzer, manager of transmission strategy and planning, says, "In general, the studies have found that wind integration costs are a significant, but not dominating portion of total wind resource costs, up to wind nameplate penetration levels of 20 to 30 percent of peak load."

A remaining challenge is the size of the control area in which the resources are located: the larger the area, the more readily wind generation from geographically distant plants are integrated. With 16 control areas served by BPA, coordination is essential to lessen the costs associated with integrating wind. "Short of actual control area consolidation, the two most significant steps toward realizing this benefit are the development of expanded wholesale markets for control area services and greater operating-area revenue sharing."

Studies in the United States and Canada have demonstrated that thousands of megawatts of wind power can be accommodated by the power grid with minimal disruption. GE Energy performed a study in New York that showed the state could contain 3,300 megawatts of wind generation. Similarly, a GE study for the Ontario Power Authority found that there were minimal system operation impacts for levels of wind capacity up to 5,000 megawatts. A separate study in the Northwest showed that system has no operational or physical constraints to prevent 6,000 megawatts from being generated. As in much of life, timing is everything. Public demand for clean energy will continue to grow the technical and cost impediments to wind generation are being addressed, but the transmission build-out needed to make this resource more readily available will have to accelerate significantly to make it all work. Source: Energy Central, Bill Opalka, Editor-in-Chief, 8/13/2007

SMUD Signs Solar Home Deals With Homebuilders Towne, Centex

Another 462 solar-powered, super energy-efficient homes will be built in the Sacramento area in agreements between Sacramento Municipal Utility District and two homebuilders, Homes by Towne and Centex Homes. SMUD buys down the cost of solar and energy efficiency equipment to keep the price of the homes affordable to more customers. Homes by Towne will construct 355 SolarSmart homes in four communities in SMUD's service territory and Centex will construct 107 in four more communities.
 
The deals are the latest SMUD has signed with homebuilders to construct SolarSmart homes in the area. In March, SMUD announced a partnership with Lennar Homes to build more than 1,200 SolarSmart homes, which represents the largest solar new homes partnership in the United States. In May, SMUD signed a deal with Tim Lewis communities to build 183 SolarSmart homes. Construction has already begun on those homes. Residents of these homes may save as much as 60 percent annually on their electric bills through the energy-efficient features and the solar roof tiles that generate electricity. The community benefits as well from these solar homes. Less electricity will be needed to serve the SolarSmart homes, especially at peak demand times, like hot summer days, when power is most expensive. Cumulatively, the 1,900 SolarSmart homes that SMUD has partnered with builders to construct are expected to shave nearly three megawatts off peak demand, and help keep power costs low for all customers.

In addition to the built-in solar panels, SolarSmart homes also boast many energy efficiency measures to help customers reduce their bills year-round. The energy efficiency measures include efficient HVAC systems, radiant barriers in attics, added insulation, duct sealing and energy-efficient compact fluorescent lighting. The homes also have a smaller "carbon footprint" than conventional new homes. Carbon footprint is the amount of greenhouse gas emissions produced. Combined, all 1,900 SolarSmart homes could reduce carbon emissions equivalent to taking about 940 cars off the road or planting about 1,500 acres of trees. SMUD provides incentives to builders to buy down the cost of the solar electric systems and provide rebates for energy efficiency upgrades. These rebates and incentives, along with attractive tax credits, make solar electric systems a more affordable option for more homebuyers.

SMUD is also working with other builders to establish more solar partnerships in the near future, making solar homes available to even more customers in the SMUD service area, which includes all of Sacramento County and a small portion of Placer County. As the nation's sixth largest publicly owned utility, SMUD has been providing low-cost, reliable electricity for over 60 years. SMUD is a recognized industry leader and award winner for its innovative energy efficiency programs, renewable power technologies, and for its sustainable solutions for a healthier environment. Source: Sacramento Municipal Utility District, 8/3/07.

Outreach, Education, Reports & Studies

Renewable Energy World

The July/August issue of Renewable Energy World is available to view or download.

Features include:

• Winning over skeptics - the continued rise of private equity investment in clean energy
• PV market update - demand grows quickly and supply races to catch up
• Star performer - Europe installs 2.1 GW of new solar thermal in 2006
• Marine means business - a review of marine renewable energy
• Betting on biofuels - a look at investments
• Directory of Suppliers

Source: Ron Kalusha, Circulation Manager, Renewable Energy World, 8/10/2007.

August Issue of Connecting to the Grid Newsletter

The August 2007 issue of the Interstate Renewable Energy Council's Connecting to the Grid newsletter is now online. Source: Rusty Haynes, Editor, NCSU Solar Center, 8/10/2007.

CEC Intermittency Analysis Report

The California Energy Commission's Public Interest Energy Research Program assembled an industry team to tackle the challenges of integrating renewables into the future electricity transmission system. The Intermittency Analysis Project conducted a series of scenario-based studies to examine the statewide system impacts of higher levels of intermittent renewables on the California electricity and transmission infrastructure, including about 3,000 MW of PV and CSP by 2020. Based on the analysis, technical and operational strategies and mitigation measures are recommended for consideration by California's utilities and system integrator. The analysis also provides a framework for system operators, utilities, and infrastructure planners to gauge the needs of the future 2020 system. Source: SEPA News, 8/3/2007.

Solar Power 2007 Early Bird Deadline Ends Today at 11:59 PM EST

Register today to take advantage of the Solar Power 2007 early-bird registration discount and save $100.

Utility Specific Events:
 Sign-up through conference registration (if you have already registered for the conference, just RSVP):

• Monday, 9am-12pm: Developing Utility Business Models workshop
• Thursday, 3-6pm: PV Capacity workshop

RSVP through SEPA:

• Tuesday, 5:30-7pm: SEPA Utility Networking Reception
• Wednesday, 12:30-2pm: SEPA annual meeting/luncheon

Regularly scheduled conference sessions:

• Wednesday, 11am-12:30pm: Solar in the Utility Business Environment session
• Thursday, 10:30am-12pm: Policies to Encourage Utility Support of Distributed and Central Solar session

See the story "Solar Power Conference and Expo to Break Attendance Record in a Landmark Year for Solar Power" from SEPA at RenewableEnergyAccess.com. Source: SEPA, 8/3/2007.

National laboratories co-host Wind Turbine Reliability workshop

Join host Sandia National Laboratories and wind plant developers, operators, equipment suppliers and utilities for the 2nd Wind Turbine Reliability Workshop at the Albuquerque Marriott in Albuquerque, N.M., Sept. 17 to 18. National Renewable Energy Laboratory and American Wind Energy Association are co-hosting the two-day event.

Industry experts will discuss the major reliability and operation and maintenance issues for wind turbines. Topics will include:

• Optimizing predictive and preventative maintenance strategies
• Managing failures and faults
• Providing stakeholders with meaningful data
• Improving system reliability and availability

Space is limited to 200 people, so register today. Download Word or pdf registration forms and return to Lenore Boulton; phone: 505-844-0183; fax: 505-855-6541.

Limited space is also available for attendees to distribute literature, display items or set up exhibit booths at this event. For further details, contact Roger Hill; phone: 505-844-6111.

The Marriott is holding a limited block of rooms at a special conference rate for reservations made by Sept. 3. Source: Western Area Power Administration; 8/24/07.

CEC New Solar Homes Partnership Guidebook Available

The New Solar Homes Partnership (NSHP) is part of a comprehensive statewide solar program known as the California Solar Initiative (CSI). The NSHP implements the Energy Commission's portion of the CSI and provides financial incentives to encourage the installation of eligible solar energy systems on new residential construction. The Energy Commission will work with builders and developers to incorporate high levels of energy efficiency and high-performing solar systems to help create a self-sustaining solar market. The NSHP seeks to achieve 400 megawatts of installed solar electric capacity in California by the end of 2016. Source: SEPA News, 8/3/2007.

Beyond Corn: Oklahoma Positions Other Alternative Fuel Sources

As Oklahoma continues to research and develop its alternative fuel sources and production, the Governor of Oklahoma will host GROW: Oklahoma Biofuels Conference, October 16-17 in Oklahoma City.

"Switchgrass and other native Oklahoma prairie grasses show great potential for alternative fuels and can offset some of the downside of corn," said Brad Henry, Governor of the State of Oklahoma. "Studies show the U.S. will need many renewable products besides corn to create transportation fuels to replace a portion of imported petroleum."

Oklahoma is uniquely positioned to help meet that need. Switchgrass and other varieties of perennial prairie grasses, which grow naturally in Oklahoma, are relatively drought resistant, require modest amounts of energy-intensive fertilizers and regenerate yearly. In comparison, corn requires annual replanting, large amounts of water and energy-intensive fertilizers. For these reasons, the conversion of switchgrass to fuel can be far more energy efficient than the conversion of corn to fuel.

In addition, farmers, ranchers and American consumers are concerned that using corn as an alternative fuel source drives up food and animal feed prices. James Woolsey, former director of the CIA, will be a keynote speaker at the Oklahoma Biofuels Conference, addressing the relationship between national security and the development of alternative transportation fuels. Other topics will include the growth in the U.S. biofuels industry, current and emerging research and development initiatives and Oklahoma's emerging biorefining sector. Additional national presenters include: John Ferrell, U.S. Department of Energy; Duane Grant, USDA Advisory Committee on Biotechnology and 21st Century Agriculture; Richard Hess, Idaho National Laboratory; Anna Rath, Ceres, Inc.; Robert White, Ethanol Promotion and Information Council; Dr. Steven Phillips, National Renewable Energy Laboratory; Curt Rich, Van Ness Feldman; David Terry, Governors' Ethanol Coalition and Dr. Jeffery Dahlberg, National Grain Sorghum Producers.

Registration is $45. For more information, a complete list of speakers or registration, call 1-800-203-5494. The Oklahoma Biofuels Conference is presented by the Office of the Secretary of Energy, State of Oklahoma, in collaboration with the Oklahoma Department of Agriculture and the Office of the Secretary of Environment, State of Oklahoma. Source: Nicole Thomas, 8/3/2007.

Workshop on Geothermal Heat Pump Programs in Bismark, ND, Sept. 11-12

As public concern about energy and the environment grows, so does interest in energy-efficient technologies like the geothermal heat pump (GHP). This clean, "green," heating-and-cooling system could potentially save consumers, utilities and the nation trillions of Btus of energy for space conditioning and water heating. Learn more about GHPs from the experts at the two-day workshop, Geothermal Heat Pump Programs, in Bismarck N.D. This workshop is for utility staff and management who are interested in:

• Assessing the potential for GHP programs
• Determining the cost effectiveness of the programs
• Hearing about the experiences of utilities with GHP programs
• Learning about new GHP technologies

Feel free to pass this email on to others who may be interested in attending. Source: Western Area Power Administration, 8/13/2007.

Submit Nominations for 2007 Wind Power Pioneer Award

It is time to nominate your choice for the 2007 Wind Power Pioneer award, sponsored by the U.S. Department of Energy's Wind Powering America Program. The annual award honors one public power utility for leadership in wind power. All public power utilities that are members of the American Public Power Association are eligible. Utilities can nominate themselves and there is no cost to enter.  Please submit nominations, on the standard nomination form only, to: Randy Manion, Western Area Power Administration, P.O. Box 281213, Lakewood, CO 80228-8213. All nominations are due by 12:00 a.m. on Sept. 16, 2007. For more information, call 720-962-7271. Source: Western, 8/14/2007.

News from Washington

House-Senate Energy Bills Head towards Conference Committee

Now that the House and Senate have passed energy legislation, they will have to reconcile the many differences between their bills. When Congress returns in September, they will each appoint Members to represent them in a Conference Committee, whose job it will be to reach agreement on the final measure. It is also possible that the Senate may take one more shot at passing some key parts of the energy passage, including an energy tax bill, a national renewable energy standard, and national geothermal legislation. While the House bills contain all three of these measures, the Senate was blocked from including them in its bill.

Once the House and Senate appoint Conferees, they are expected to begin meeting in September and it's possible that a final compromise bill will be reported by early October.  However, a major hurdle will still be ahead of any compromise bill: the threat of a veto by the president. It could be Thanksgiving before the fate of the energy bill in this session of Congress is clear. See the final text and more information on the House and Senate bills: House Passed Bill: HR 3221, the New Direction for Energy Independence, National Security, and Consumer Protection Act; Senate Passed Bill: HR 6, Renewable Fuels, Consumer Protection, and Energy Efficiency Act of 2007 (Engrossed Amendment as Agreed to by Senate). Source: GEA Update, 08/13/2007.

State Activities, Marketing & Market Research

Why Not Wind Instead of Coal?

Critics of the proposed Highwood Generating Station have been saying for months that wind power could eliminate the need for the coal-fired plant. The theme runs through public meetings, letters to the editor, online forums and, most recently, a lawsuit filed to block federal funding for the $720 million project east of Great Falls. So the question, posed recently to several people on both sides of the debate, is "why not wind?"

The short answer is that it would be possible to substitute wind power for electricity from the coal-fired plant if it were supplemented, or firmed, by electricity from other sources such as hydroelectric power or natural gas-fired power plants. Standing in the way are technical issues and the rising costs of wind power. In addition, the five rural co-ops comprising the Southern Montana Electric Generation & Transmission Cooperative need new power quickly to replace power they are losing from the Bonneville Power Administration.

Great Falls City Manager John Lawton, who has taken a lot of heat over the city's participation in the Highwood project, said he believes in wind power but that it is unlikely to be the total answer. "It has to be available and it has to be the right price," Lawton said. He added that the city of Great Falls will soon issue requests for proposals from wind-power companies and natural gas-fired plants to determine what other power sources may be available for the city's Electric City Power arm. But Lawton said he sees such power as a supplement to the 250-megawatt Highwood Generating Station, not a replacement. He added the city plans to continue to pursue owning 15 percent of the coal-fired plant.

Critics contend that the federal Rural Utilities Service, which is considering lending Highwood project developers more than $600 million, appeared to blow off wind as an alternative in a May 10 record of decision it issued jointly with the Montana Department of Environmental Quality. The record of decision and final environmental impact statement states that wind energy would be "incapable of providing approximately 250 (megawatts) of base load due to its intermittency." Other plant backers have rapped wind as either impractical or too expensive. Critics, including the Montana Environmental Information Center and the Sierra Club, say Highwood developers should have thought about buying wind energy instead of burning coal. They raised the issue in a federal lawsuit filed in Washington, D.C., this summer. The third plaintiff was the Great Falls-based Citizens for Clean Energy.  Neil "Jerry" Taylor, a member of the citizens group, maintains city officials should have explored wind power "two years ago."  "I don't think they explored the possibilities," he said. "They haven't done their homework."  Taylor said his group has been pushing wind power for more than a year. "Nobody listens," he said.

Wind-power advocate and Cascade County Commissioner Peggy Beltrone contended that the Rural Utilities Service and the Highwood plant developer have been so focused on coal that wind has been given short shrift. Beltrone said part of the reason the federal agency dismissed the idea of wind power is because it "has only dealt with co-ops using coal." Wind power pioneer Ed DeMeo, president of Renewable Energy Consulting Services of Palo Alto, Calif., couldn't agree more.

DeMeo said recently that he hopes developers of the proposed Highwood Generating Station east of Great Falls "won't take what they see as the easy way out and build another coal plant. I think they should seriously consider wind." Kenneth Reich, a Boston attorney for SME, counters that the impact statement on the plant "does a pretty good job of considering the wind option." He added that the analysis was thorough and detailed. To create enough wind to equal the Highwood station's output would require 18.6 square miles of land, covering 11,880 acres, the impact statement said. Reich noted SME already has been criticized for its plan to place four wind turbines near the coal-fired plant.

Taylor and others have been weaving a tantalizing tale of late, describing how cheap wind-generated power is from Montana's biggest wind farm at Judith Gap. That farm is a success story, though it has created some technical challenges for NorthWestern Energy, which serves about 320,000 electric and gas customers in Montana. "We're very pleased with Judith Gap," NorthWestern spokeswoman Claudia Rapkoch said.  

One of the keys to the farm's success is "Montana has super-strong wind," said Mark Jacobson, senior development manager for Chicago-based Invenergy Wind, which owns the Judith Gap farm. General Electric, which supplied wind machinery to Judith Gap, considers Montana's wind to be something special, he said.  "Judith Gap produced more electricity than any other wind farm in North America within their fleet," Jacobson said.
 
NorthWestern's decision to purchase wind power from the 135-megawatt Judith Gap farm was far-sighted. Wind power from Judith Gap now costs the company between $42 and $46 per megawatt hour, after figuring in the costs of supplemental power. That's a bargain-basement price with default electricity prices exceeding $55 per megawatt hour. Jacobson said his company would be happy to talk to SME or Great Falls officials about selling wind power to them. He said the wind farm expects to expand by 53 or 54 megawatts as soon as 2008.  "It is a possibility," Jacobson said. "We're talking to a number of people right now. There are no signed contracts. We'd be happy to get together a proposal."

Jacobson declined to discuss the cost of new wind power from Judith Gap. But conservation groups claimed in their recent lawsuit that firmed wind power from central Montana could still be had for no more than $45 per megawatt hour. Lawton called the claim "ridiculous," saying the price of wind power has risen since 2005, when NorthWestern Energy agreed to buy wind power from Judith Gap for 20 years at about $31 a megawatt hour.

Supplemental electricity, known as firming power, pushes the total cost to $42 to $46 per megawatt hour, according to Rapkoch. She said Montana consumers get that wind power from NorthWestern at cost, with no markup. Unfortunately for groups such as SME that are hunting for energy, wind power costs are soaring. Lawton said the city would be happy to snap up wind power at the old price. "Will they sell it to us now for $42?" Lawton asked.

Coleen Balzarini, the city's fiscal officer, said she talked to Jacobson last month and was told the 53 or 54 megawatts of wind power would cost more than $50 per megawatt hour, not counting the firming power. With that added in, it could push the total cost higher than $60 per megawatt hour, which is more than NorthWestern's August residential default power cost of $56.87 per megawatt hour. The Highwood project environmental impact statement estimated the cost of firmed wind power at $66.24 per megawatt hour. That's substantially higher than the latest estimate of about $50 per megawatt hour for power from the proposed Highwood Generating Station. However, several unknowns exist that are likely to push up that cost.

Opponents of the coal-fired plant contend an expected federal carbon tax, which will tax companies based on carbon emissions, will increase Highwood's final power price. They also say the cost of power from the Highwood plant will increase if SME attempts to capture carbon dioxide and ship it via pipeline to oil fields in Canada or bury it underneath a salt dome east of Glacier National Park. Last week, two Great Falls city commissioners said they think the wind versus coal issue is more complex than wind advocates portray it. "This thing sounds so simple that you'd be doing it tomorrow," said City Commissioner Bill Beecher.

"There's a catch someplace there." Lawton said two major stumbling blocks for wind are cost and availability. He said it makes no sense for the city and SME to cancel plans for the Highwood station and "chase a ghost" -- wind power. He added the Judith Gap wind farm did not exist when rural co-ops began planning to make up for a loss of cheap Bonneville Power Administration electricity that is scheduled to start in 2008.

Officials sometimes dismiss wind as an unpredictable source of energy. "If it's base load, then wind just simply can't do it," said Jason Hayes, communications director for the Washington, D.C.-based American Coal Council. That's a view echoed by Great Falls Mayor Dona Stebbins. A base-load facility is one that provides a steady source of power. Most energy experts agree that Hayes and Stebbins are right in saying wind alone cannot provide all the power needed by a community or rural electric co-op. But the experts also say it's possible to substitute wind for coal, if it's supplemented by firming power from other sources. "The firming power is the big thing," Hayes said.

Wind power from the Judith Gap area is being firmed relatively cheaply, and wind supporters argue that firming power ought to be available for more Montana wind farms, albeit at increasingly higher prices.

Greg Jergeson, chairman of the Montana Public Service Commission, agreed that electricity generated by wind can serve as base-load power if it's properly firmed. "Firming is getting more expensive," Jergeson added.

Power to firm the 135-megawatt wind farm at Judith Gap comes primarily from contracts with two neighboring utilities, Idaho Power Co. in Boise, and Spokane-based Avista Utilities. "They're both primarily hydro( power) utilities," Rapkoch noted.

Water power can be well-suited to firming wind because water can be stored behind a dam, then released to create power when it's needed. Another way to firm wind is through a natural gas-fired power plant. The down side to gas is it's expensive. NorthWestern Energy arranges for its own firming power for Judith Gap. Great Falls officials say they'd be forced to go out and find their own firming power if the city purchased new wind power from Judith Gap or elsewhere.  

Rapkoch confirmed that would be the case, adding it probably wouldn't be easy for Great Falls to buy firming power. "It's not easy for us right now," Rapkoch said.  Contracts with Idaho Power and Avista are expiring soon, and NorthWestern is finding the market "very challenging," she said. "The potential resources out there are drying up," Rapkoch added.

Montana's position in the energy picture is a difficult one, according to DeMeo. The electrical grid system is quite inflexible, with few connections to outlying areas, and few sources of power -- primarily coal-fired power from Colstrip and hydro-electric power from dams in Cascade County and elsewhere.

Rapkoch agreed. She said that's why NorthWestern Energy hopes to build a new source of generation, probably a natural gas-fired power plant that could firm wind and cover short periods of peak electricity demand. The utility also has proposed a new transmission line from roughly Townsend to southwest Montana and into Idaho.  Another transmission line, called the Alberta Tie project, has been proposed from Great Falls into Alberta. Wind will help diversify Montana's energy supply, but Rapkoch said there's a limit to how much wind NorthWestern could handle. That's why NorthWestern is taking part in a new study with wind experts and others that should pin down how much more wind power the system will accommodate. That study is due out by the end of the year.

Hayes conceded that coal has an image problem these days, although he pointed to a new plant near Edmonton, Alberta, Epcor's Genesis III plant, which is a "supercritical" facility that burns cleanly yet produces inexpensive power, he said. He argued that new technologies including gasification, supercritical plants, coal-to-liquids and other approaches will give coal a new lease on life. Taylor argues that if Great Falls-area residents could choose between a coal-fired plant and buying power from a wind farm, he thinks they'd choose wind.  "It's a no-brainer," he said.  

Wind power is not immune from criticism. The turbines kill birds and bats, and some people think huge wind farms don't do much for the landscape or view. Texas-based Wind Hunter LLC originally planned to erect 337 towers in a 500 megawatt farm 30 miles northwest of Glasgow, but after objections from environmentalists about its proximity to a wilderness study area, the farm was scaled back to 114 of the 390-foot-tall machines.  Wind energy pioneer DeMeo said utilities tend to be conservative businesses, bound by tradition. "Their job is to keep the power flowing," he said.

DeMeo added that utilities need incentives to turn toward renewable energy. A carbon tax, which DeMeo believes is coming, will be one way to do that. If the Highwood Generating Station becomes a test site for carbon dioxide capture and storing, it could be a good thing, DeMeo said. However, he said carbon capture and sequestration may come into play more often when retrofitting old plants rather than building new ones.  DeMeo said it's not unreasonable to expect the United States to get 20 percent of its power from wind in a few decades, but he conceded wind won't be a complete solution.

SME attorney Reich said much-need new power needs to come from somewhere, and price remains a big selling point for coal. "In the next 10 years or so, there's going to be a severe energy shortage in all parts of the country, including the Northwest," Reich said.

The coal council's Hayes agreed and said he doesn't think that need for new power should be broken down into coal versus wind. "We're in it together," Hayes said. "We need the electricity. Demand for electricity is going through the roof." Reach Tribune Staff Writer Richard Ecke at 406-791-1467 or 800-438-6600. Source: Richard Ecke, Tribune Staff Writer, 8/12/07.

Catching Wind in Power Grid

Three-hundred-foot wind turbines in Sullivan County? Some Sullivan officials are already talking about it to Empire State Wind Energy LLC, which is going to send "wind prospectors" armed with wind-flow gauges to ridges in the Callicoon-Fremont-Rockland area. But unlike other new energy projects raising hackles across the state, a Sullivan County wind farm is being carefully studied. Way before any turbines even get manufactured, this proposal would have to include all the community stakeholders and be worth it to locals, or it's no go, says Callicoon Supervisor Gregg Semenetz.

The payoff for taxpayers could be big, adds Semenetz. "Initial calculations are for at least $700,000 a year as the local share from maybe 10 wind turbines between Callicoon and Fremont." More detailed numbers are up in the air right now. Semenetz does caution that "Empire has not done any wind studies on specific sites."

But Empire State Wind Energy President Keith Pitman says Sullivan's "got a pocket of wind" his company could turn into fossil-free, highly efficient alternative energy for the state power grid. The grid now gets power from a mix of coal, oil, nuclear and alternative electricity sources. While it's true that a 2004 county wind study found windy places along some ridges, Semenetz said Empire has some wind prospecting to do -- putting up wind meters on each site to make sure there's a steady average breeze of say 13 to 16 miles an hour.

Just last month, Empire huddled with a bunch of officials and members of the pro-growth, pro-alternative energy Sullivan Alliance for Sustainable Development. Current projections estimate there could be $70,000 per tower per year coming back to the community, based on 10-15 towers between Callicoon and Fremont, said Semenetz. "They'd be 2 to 3 megawatts (a megawatt typically serves 1,000 people) and be 320 feet tall with 120-foot blades. They would be very beneficial to our end of the county." In time, of course.

The time frame and other details will depend not just on public reaction but also permits, financing through federal and state programs, and the developer's willingness to cooperate. Empire, run by former gubernatorial candidate Tom Golisano -- who used to be a wind-industry critic -- encourages local communities to fashion the best cash, environmental and power deals for themselves. That's the kind of sharing that Callicoon renewable energy activist Dick Riseling's looking for. A key member of the Alliance, he runs an 80-acre farm with its own small wind turbine, horse-powered farming and public workshops about green energy power. "People are absolutely ready for this," says Riseling. "We have three towns that have voted unanimously -- Fremont, Callicoon and Rockland -- to invite wind developers in.... Our group is pursuing a community-benefit model."

The model so far has 39 items and is growing. "It could be many millions of dollars (depending on the project size) and could cut everybody's taxes in the county by half, and enhance school budgets." He'd like the towns to own the systems. Given this backdrop, any wind developer coming to town already has an energy smart, sophisticated, determined group in place to get the best community deal. Why are wind farm developers scouting Sullivan? It doesn't show exceptionally big blows on the state wind map.

But the county's ridges have constant, industrial-sized blows -- it's windy up in the mountains. Mention wind farms and people think of the 195 giant turbines spinning at Tug Hill in upstate New York, one of the windiest places around New York. Yet, is there market-sized energy in Sullivan? Looks like it, says Empire's Pitman. He's getting in on the latest Wall Street buzz about wind. While all the talk's been about alternatives like solar, biomass, hydro and geothermal, wind's blown into first place as the hot investment. "When I started working wind four years ago, I couldn't imagine what is happening now in today's world," says former Scenic Hudson staffer Marion Trieste, managing director of the consulting company Green Energy Outreach Services.

More than 50 wind farm projects have requested hookups to the state power grid, according to the grid's manager, the state Independent System Operator. Big Wall Street names are chasing the wind. GE Energy Financial Services just partnered with Noble Environmental Power for a $564 million investment to build three new wind parks -- which would create enough power for 93,000 average homes -- in Clinton and Wyoming counties.
Big oil's investing nationally. And so are utilities -- Central Hudson Energy Group has wind-farm shares.

"Undeniably, it's the fastest growing energy source," says Carol E. Murphy, executive director of the Clean Energy Alliance New York. She's just been named to Gov. Eliot Spitzer's renewable energy task force. Why's wind power blowing so hard? Customer demand, says Trieste. Wind power's highly efficient, doesn't burn fossil fuels and so saves mega-tons of carbon emissions -- the major greenhouse global warming culprit -- and gases that cause smog and acid rain.

"Just years ago, the wind-power business was highly speculative," says Pitman. The risks are acceptable now, he said, what with tax credits and the willingness of big name investors to jump in. The welcome mat's out for wind power in his neck of the woods, says Riseling, providing the deal's good for the locals.

Any developer should take note of the mid-Hudson's wind-power development history, which is fairly unknown but instructive. One developer in the 1980s underestimated the locals and chose his site poorly, proposing hundreds of wind turbines for the Shawangunk Ridge. That's now a world-class wildlife habitat.

Wind now has backing from major environmental groups. "On balance, National Audubon strongly supports wind power as a clean alternative energy source that reduces the threat of global warming. Location, however, is important," says the leading conservation group. If no solution's found to greenhouse gas pollution it "will kill far more birds than wind turbines," says Audubon.

Good turbine siting's now a must. Turbines have been vastly improved and cooperation with the locals is a mantra, says Pitman. As wind power improves its performance, it's gone from hot air decades ago to a hot ticket on Wall Street, says Brooklyn College economics professor Robert Bell in his new book, "The Green Bubble."

Wind turbine farms send their electricity to the power grid, which is a mix of all the power sources in the state. When you plug into a wall socket, you don't know which kind of electricity you're getting, unless you pay a surcharge to local utilities, or you've installed your own power -- solar, wind or electric, for instance.  

As wind power grows more popular, its production costs go down -- it's now a very competitive market. "As consumers continue to demand alternative energy, then the market responds to it, and that's where I think it's different than it was five years ago," says Pattern for Progress President Jonathan Drapkin. "There are more people and more consumers and municipalities at least saying we want a portion to come from alternate sources." New Paltz did so, for instance. New York's goal is 25 percent of its electricity from renewable sources by the year 2013. Source: By Wayne A. Hall, For the Times Herald-Record, 08/12/2007.

Duke Weighs 93 Bids for Generating Renewable Energy

Wind-generated power could become a significant source of renewable energy for N.C. utilities, if the bids just received by Duke Energy Carolinas are any guide. Duke is analyzing 93 bids from companies inside and outside the Carolinas that propose producing up to 1,942 megawatts of electricity from alternative sources. Of those, 770 megawatts -- nearly 40 percent of the total -- would come from wind.

Duke received bids from more than two dozen companies July 27. Chris Fallon, head of strategic planning for Duke Energy Corp.'s regulated utilities, says it's too early to tell how many of the proposals will end up as contracts. But he says Duke is pleased with the number and quality of the bids.  Last week, the N.C. General Assembly adopted a measure that requires the state's electric utilities to produce 12.5 percent of the energy they sell in North Carolina by 2021 from sources other than coal, gas and nuclear power. The bill awaits the governor's signature. The legislation phases in the requirement. Duke and the state's other principal utilities face no mandate on renewable energy until 2012. That year, 3 percent of their power must come form alternative sources.

But Duke Chief Executive Jim Rogers says the company is moving quickly to meet the pending deadlines. He expects Duke to award some renewable-energy contracts by the end of the year. Some of the bidders have told Duke they could produce power for the utility by late 2008 or early 2009.  However, Fallon notes any proposal for power-plant construction in North Carolina would have to be OK'd by the N.C. Utilities Commission. Each proposal would be considered independently, and it is hard to tell how long the approval process will take.

Some proposals could prove controversial. For example, an independent wind farm planned for Ashe County has met strong resistance from residents. And biomass, which could provide up to 266 megawatts of capacity for Duke, according to the recent bids, could involve the use of hog waste -- a prospect that worries environmental groups. Duke could choose to buy the bidders' technology and build some of the plants itself, if that makes the most economic sense.  The company will soon hire a consulting firm with expertise in renewable technology to help it sort through the bids. Fallon says the company has narrowed the field to a couple of firms, and negotiations are under way. He declines to identify the consultants Duke is considering. Meanwhile, the commission has a good deal of work to do as a result of the legislation. The measure requires the commission to set rules for everything from the regulation of renewable-energy credits to metering issues and the proper way to consider conservation in approving new coal, gas or nuclear plants. Handling all those issues will be a major challenge, commission Chairman Ed Finley acknowledges.

The commission hopes to have those rules written by the end of the year. Finley says the commission hasn't decided whether to hold public hearings on the new regulations. But he says consideration of individual plants or programs, such as Duke's Save-A-Watt conservation program, can proceed while the commission does its rule-making work.

Duke Energy Carolinas received 93 project bids from 26 energy companies for proposed renewable-energy plants. Here's a breakdown of the production capacity of the bids' proposed sources: Wind: 770 megawatts, Solar: 511 megawatts, Biomass: 266 megawatts, Biodiesel: 253 megawatts, Other(landfill gas, hydro, biogas): 142 megawatts. Source: By John Downey, Senior Staff Writer, Charlotte Business Journal, 08/10/2007.

Idaho Joins the Climate Registry

Governor C.L. "Butch" Otter announced Aug. 8 that he has applied for Idaho to become the 38th state member of The Climate Registry. The registry is a multi-state and multi-tribe collaboration that is working on a greenhouse gas (GHG) emissions reporting system. The goal is to provide reliable data to support GHG reduction policies.

"The registry is an excellent opportunity for state government to take a leadership role in this important area and Idaho is eager to take our place at the table," Otter wrote in a letter requesting Idaho's membership. "We look forward to participating in The Climate Registry's open, transparent and collaborative process."

Otter also stated in the letter that he was designating Toni Hardesty, director of the Idaho Department of Environmental Quality, to be Idaho's official representative to the registry. Hardesty is Otter's point person for coordinating and implementing greenhouse gas reduction efforts throughout state government in Idaho. That includes developing a greenhouse gas emission inventory and providing recommendations on how to reduce those emissions. "Collaborating with other states on building a consistent accounting system for measuring and tracking greenhouse gas emissions is an important task. I look forward to participating in this groundbreaking program," Hardesty said.

The principles and goals to which Idaho is committing as a member of The Climate Registry include:

• Working to establish and endorse a voluntary statewide greenhouse gas emissions reporting and verification system.
• Working to identify a set of greenhouse gas emissions minimum data quantification standards.
• Providing an accurate, complete, consistent, transparent, and verified set of greenhouse gas emissions data, supported by a robust accounting and verification infrastructure.

Source: U.S. Department of Energy, Energy Efficiency and Renewable Energy, 08/09/2007.

NPPD Commits Nearly $500,000 Toward Renewable Energy, Efficiency

The Nebraska Public Power District (NPPD) Board of Directors continued to invest in the future of public power by committing nearly $500,000 toward advancement of renewable energy and energy efficiency related technologies during their meeting Friday. The board unanimously approved $482,000 for domestic energy research and application initiative projects. During the meeting Ron Asche, president and CEO of NPPD, said NPPD is looking at a greater scope and expanded use of energy efficiencies. "We are developing an Integrated Resource Plan, which will look at our future needs and future resource options," Asche said. "Many variables are included in this complex study; however, we are confident that from this study will come a continued and increased commitment to energy efficiency." One consideration in the plan is to provide incentives for home builders to construct energy efficient homes, he said.

Board member Dennis Rasmussen said he supported working with home builders to make the homes efficient from the beginning by installing compact florescent lights and encouraging other energy efficient practices. As part of the $482,000, the board allocated $256,000 for promotion of their compact fluorescent program, which primarily discounts the lights in many retail stores throughout NPPD's service territory, but also provides education on the light's energy and cost savings.

According to an NPPD press release, "the beauty of a CFL (compact fluorescent light) is that it provides the same amount of light as a comparable incandescent lamp, is about 70 percent more efficient and has a rated life that is seven to 20 times the life of a traditional incandescent lamp."

Nearly $33,000 went toward partial funding for the Ponca State Park "Green Cabin" project, which will be provided to the Nebraska Games and Parks and will allow them to complete the first cabin at the park that will be categorized as "green". The "green cabin" will use recycled and renewable building materials and provide guests a first-hand educational experience with energy efficient construction, lighting, heating/cooling controls and complete on-site waste disposal and treatment, the press release said.

Also, according to the release, $30,000 will be used to conduct an engineering analysis and develop a conceptual design for a modular, scalable Photovoltaic Demonstration Project; $40,000 to convert a Ford Escape hybrid into a plug-in hybrid vehicle to demonstrate that technology exists today for utilizing electricity as a low-cost transportation fuel; and $30,000 for an Electric Power Research Institute Gas Turbine Bio-Diesel Demonstration project to determine the technical feasibility and economic viability of using domestically grown oil crops, like soybeans converted into bio-diesel fuel, for gas turbines., which could be utilized for potential power plant conversions to bio-diesel fuel blends.

Also included was $75,000 for procurement of a portable wind monitor to measure wind speeds and provide NPPD with accurate measurements of wind speeds and directions in flat and complex terrain at the Ainsworth Wind Energy facility.

Another $18,000 was included to participate in the Nebraska Energy Assistance Energy Education program, a cooperative effort between Nebraska energy utilities, community action and outreach organizations to promote low-cost but under-utilized energy efficiency measures and technologies. According to the news release, the program targets "at-risk" low-income families, which receives an "Energy Efficiency Starter Kit" that contain two compact florescent lights, an LED nightlight, a low flow shower head, temperature cards and an energy efficiency booklet from the Nebraska Center for Energy Sciences Research. The goal is to reach 1,000 households in 25 or more communities.

NPPD also is continuing the partnership started last year with the University of Nebraska-Lincoln to research energy and water efficiency initiatives. NPPD provides the Nebraska Center for Energy Sciences Research with funding of $1 million per year for a five-year period, and so far the money has funded 14 research projects and four energy education projects, the press release said. NPPD also is pursuing Clean Renewable Energy Bonds and submitted three application requests. The first was for $3,387,000 for two new advanced design wind turbines at Springview. The second was for $32,960,000 for wind turbines to build at the Ainsworth Wind Energy Facility. The third was for $9,200,000 for a hydroelectric facility in the Gerald Gentleman Station water discharge canal, according to the press release.

Asche said these projects are just the beginning of NPPD's efforts to improve efficient use of energy in Nebraska.

"The cleanest and least expensive kilowatt is one we do not have to generate. Thus, helping our customers use less is very important to them, very important to us and ultimately very important to our environment," he said. Source: By Adrian Sanchez, Columbus Telegram, 08/20/2007.

Nebraska Energy Quarterly

The August 2007 issue of the Nebraska Energy Quarterly is now available online. Articles and news items in this issue include:

• Incentives and Policies for Encouraging Wind Energy Generation
• U.S. Department of Energy Awards $2.23 Million for Home Weatherization in Nebraska
• Energy Office Receives $10,000 Grant
• 2006 Annual Report on U.S. Wind Power Installation, Cost, and Performance Trends
• Path to Passive: Nebraska's Passive Solar Primer  
• Using Energy Wisely on the Farm and Ranch
• Features such as 5 percent Dollar and Energy Saving Loan Questions & Answers and the Energy Wiz

Source: Nebraska Energy Office, 8/13/2007.

New Mexico: Richardson Rejects New Conventional Coal and Funds Renewables

New Mexico Gov. Bill Richardson sided with the opponents of the proposed 1,500-MW Desert Rock coal plant July 27, calling the facility "a step in the wrong direction."  Richardson said the 12 million tons of CO2 estimated to be emitted from the plant each year would increase New Mexico's greenhouse-gas emissions by about 15 percent and make the aggressive GHG-reduction goals he has set for the state "difficult -- if not impossible -- to meet."

Richardson's announcement came as the Bureau of Indian Affairs wrapped up a series of public hearings on the draft environmental impact statement for the plant that Sithe Global is seeking to build on Navajo Nation lands in northwestern New Mexico.

Richardson pronounced himself "gravely concerned" about the potential environmental impacts of Desert and said the draft EIS "fails to adequately address a number of the state's serious concerns." Richardson, meanwhile, is moving forward on his own clean energy agenda. In July, he announced the first five grantees under New Mexico's $2-million Energy Innovation Fund, created by the 2007 Legislature, to accelerate the commercial adaptation of clean energy technologies. Source: GEA Update August 13 2007.

Energy Savings Plan Could Mean Big Bucks or Big Losses for California Utilities (Reg. & Leg.)

California utilities could be paid up to $500,000,000 US over three years for exceeding energy savings goals, or they could be penalized up to the same amount for not meeting a base energy savings target under a proposal being considered by the California Public Utilities Commission. The plan would cover Pacific Gas & Electric Co., a unit of PG&E Corp., Edison International's Southern California Edison and Sempra Energy's San Diego Gas & Electric Co. and Southern California Gas Co. The commission expects to vote on the plan on September 20. (Source: Reuters, Aug. 10, '07) Contact: California Public Utilities Commission, 415-703-2782. Source: Reuters, 08/10/2007.

Grants, RFPs & Other Funding News

Ascent Solar Technologies wins $165,000 US contract for Photovoltaic development (G&C - R&D)

Ascent Solar Technologies received a contract worth $165,000 US from the US Department of Energy National Laboratory to develop advanced materials and processing tools for thin-film, copper-indium-gallium-diselenide photovoltaic material. (Source: RTT News, Aug. 24, '07)

Contact: Joseph Armstrong, Chief Technology Officer, Ascent Solar Technologies, 303-285-9885.  Source: EP Overviews, 8/27/2007.

Learn more about funding solicitations.