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Posts Tagged ‘wind farms’

I’ve written before about the coming collision between green energy projects and endangered wildlife. Now we have a federal court decision in a case involving an endangered bat and a West Virginia wind farm. As I write Thursday in The New York Times:

A federal judge’s ruling that stopped construction of a West Virginia wind farm to protect an endangered bat underscores the growing conflicts between green energy and imperiled wildlife.

But the case, thought to be the first of its kind involving a wind energy project, seems unlikely to derail other projects, as some wind energy advocates have feared, unless the operators ignore endangered species laws.

In the West Virginia dispute, a subsidiary of wind developer Invenergy called Beech Ridge Energy applied to build a 122-turbine project along an Appalachian ridgeline in Greenbrier County. The county is home to the Indiana bat, which the federal government listed as endangered in 1967.

“This is a case about bats, wind turbines, and two federal policies, one favoring the protection of endangered species, and the other encouraging development of renewable energy resources,” wrote Judge Roger W. Titus of the Federal District Court in Maryland in Tuesday’s ruling. “The two vital federal policies at issue in this case are not necessarily in conflict.”

That’s because under the Endangered Species Act, developers can apply for an “incidental take permit” that allows the inadvertent killing of protected wildlife if other measures are taken to protect the animals.

Invenergy told federal wildlife officials that surveys had not detected the Indiana bat at the West Virginia wind farm site. Although officials at the Fish and Wildlife Service had urged the company’s consultants to conduct more extensive surveys, a West Virginia state agency approved the project and construction of the wind turbines began.

The Animal Welfare Institute, a Washington-based nonprofit group, sued to stop construction. An initial assessment of the project had estimated that it would annually kill 6,746 bats of all kinds.

After listening to expert testimony from both sides, Judge Titus concluded that Invenergy’s consultants avoided undertaking surveys that would have shown the presence of Indiana bats at the project site.

“By a preponderance of the evidence, that, like death and taxes, there is a virtual certainty that Indiana bats will be harmed, wounded, or killed imminently by the Beech Ridge Project,” the judge wrote in his ruling. “This court has concluded that the only avenue available to defendants to resolve the self-imposed plight in which they now find themselves is to do belatedly that which they should have done long ago: apply for an I.T.P.” (I.T.P. refers to incidental take permit.)

You can read the rest of the story here.

photo: U.S. FIsh and Wildlife Service

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Over the weekend The New York Times’ Matthew L. Wald had a sobering story on the not-inconsiderable challenges facing efforts to expand and upgrade the United States’ power grid to tap renewable energy from wind farms and solar power plants. Among them: Opposition to new high-voltage power lines from landowners and environmentalists, a Byzantine permitting process and fights over who pays the costs of transmission projects that span state lines.

Here in California, the ongoing controversy over the Sunrise Powerlink project is a case study in just how difficult it will be to build the infrastructure to transmit electricity from dozens of solar power plants planned for the Mojave Desert. Among the big companies looking to cash in on the solar land rush: Goldman Sachs (GS), Chevron (CVX) and FPL (FPL)

Utility San Diego Gas & Electric first proposed the $1.3 billion, 150-mile Sunrise Powerlink in 2005 to connect the coastal metropolis with remote solar power stations and wind farms in eastern San Diego County and the Imperial Valley. For instance, SDG&E’s contract to buy up to 900 megawatts of solar electricity from massive solar farms to be built by Stirling Energy Systems is dependent on the construction of the Sunrise Powerlink. Like California’s other big investor-owned utilities – PG&E (PCG) and Southern California Edison (EIX) – SDG&E, a unit of energy giant Sempra (SRE), is racing the clock to meet a state mandate to obtain 20% of its electricity from renewable sources by 2010 and 33% by 2020.

But Sunrise sparked opposition from the get-go as the utility proposed routing part of the transmission project through a pristine wilderness area of the Anza-Borrego Desert State Park.  The prospect of 150-foot-tall transmission towers marching through critical habitat for desert tortoises and other protected wildlife galvanized environmentalists well-versed in the arcane arts of regulatory warfare.

Opponents also painted the project as a Trojan horse to bring in cheap coal-fired power from Mexico. (Wald makes a similar point in his Times‘ piece – the same high-voltage lines designed to transmit green electricity from wind farms can also be used to send cheap carbon-intensive coal-fired electricity across the country.) That argument subsequently lost currency when regulators, citing California’s landmark global warming law, barred utilities from signing long-term contracts for out-of-state coal power.

After more than three years of hearings and procedural skirmishes culminating in an 11,000-page environmental impact report, a PUC administrative law judge last October issued a 265-page decision all but killing the project on environmental grounds. Whether SDG&E thought that green energy and climate change concerns would trump worries over wildlife and wilderness, it was clear that trying to build an industrial project through a state park was a costly mistake.

Then in December, after California Governor Arnold Schwarzenegger signed an executive order to streamline and prioritize the licensing of renewable energy projects, the utilities commission’s board revived Sunrise Powerlink, approving a different route for the transmission lines that avoids Anza-Borrego.

But the fight is far from over. With the cost of the project now approaching $2 billion, late last month the Center for Biological Diversity, a Tucson, Ariz.-based environmental group, filed a suit in the California Supreme Court challenging the utilties commission’s approval of Sunrise Powerlink.

Safe to say, the battle will drag on for some time to come, giving new meaning to the term “stranded assets” for some would-be Big Solar developers.

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photo: Todd Woody

When Green Wombat offered up as a “talking point” the observation that the wind industry now employs more people than coal mining, the post set off some vociferous chatter in the blogosphere, fueled in part by my inadvertent error of referring to the “coal industry” in a subsequent reference rather than “coal mining.”

Eoin O’Carroll at the The Christian Science Monitor‘s Bright Green Blog called the comparison between 85,000 wind industry jobs and 81,000 coal mining jobs “bogus,” citing sources pegging direct industry-wide employment in coal at 136,000 to 174,000. Other commentators pointed out that wind power currently provides only about 1-2% of the United States’ electricity while coal supplies around 49%, according to the U.S. Department of Energy.

Fair enough. But let’s add some context. As Salon‘s Andrew Leonard pointed out, “The key takeaway shouldn’t be employment, but growth rates.” Employment in the wind industry grew 70% between 2007 and 2008 as a result of a 50% jump in the amount of installed wind capacity in the United States last year. And this number bears repeating: 42% of all new U.S. electricity generation in 2008 came from wind farms, the equivalent of building 14 600-megawatt coal-fired power plants  – without the environmental devastation that comes from strip-mining and releasing tons of carbon dioxide into the atmosphere. That extraordinary growth in wind power was, until the recession hit, reviving abandoned factories in the industrial Midwest as European turbine makers and their suppliers set up shop close to what has become the world’s largest wind market.

While wind produces a tiny percentage of the country’s total electricity today, the U.S. does not have a national power grid and energy generation varies widely by state. (For instance, in-state coal-fired power plants supplied 86% of Ohio’s electricity in 2006, according to the Energy Department, but only 1.1% of California’s – though the Golden State obtains about 20% of its electricity from out-of-state coal plants, a practice being phased out by its global warming law).

In Texas, wind accounts for 4.9% of the state’s electricity generation, according to the state grid operator.  Last week, Texas regulators announced they would invest $5 billion to expand transmission lines to bring wind power from remote west Texas wind farms to big cities like Dallas and Houston. That $5 billion, no doubt, will also generate quite a few green jobs and trigger even more wind development once the credit crunch eases.

Jon Wellinghoff, the new acting chairman of the Federal Energy Regulatory Commission, has identified the Great Plains – dubbed the Saudi Arabia of wind – as the prime candidate for a massive power grid project to connect the region’s wind farms to metropolitan regions currently dependent on coal-fired power. Again, such an initiative would generate thousands of jobs. (A 2008 Department of Energy report found that if such transmission hurdles were overcome the nation could obtain as much as 20% of its electricity from wind farms.)

Obviously, coal is not going away any time soon. (And those wind turbines are made of steel, after all.) But with the Obama administration willing to spend billions on a smart power grid to expand green energy production and half the states mandating renewable energy targets – not to mention a looming national cap-and-trade system that would assign a price to the environmental cost of coal-fired electricity – it seems clear which industry will be generating the jobs of the future.

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photo: Todd Woody

CEDAR RAPIDS, Iowa – For the past four years, the global wind industry has grown at a Google-like 30% clip as wind farm developers and turbine makers met demand for the one renewable energy source that has become competitive with fossil fuels. In the United States alone, new wind capacity will have jumped 50% in 2008.

Now the credit crunch is taking its toll – at least when it comes to forecasts for the industry’s prospects in 2009. Over the past week, analysts and industry insiders have ratcheted back growth predictions due to uncertainty over whether developers will be able to secure financing for the ever-bigger wind farms on the drawing boards.

“There is little visibility into the project finance market over the next 18 months,” wrote HSBC analysts Robert Clover, Charanjit Singh and James Magness in a report issued last week. “Thus far, company management in the wind sector continues to say that it is not experiencing a slowdown in growth, although developers say that finance is more expensive than it was. We do not believe that the long-term growth story has been undermined, but expect a period of reduced growth.”

The HSBC analysts predict the industry won’t grow at all next year. Meanwhile, the American Wind Energy Association, a Washington, D.C., trade group, also expects a slowdown in 2009.

“Clearly the market’s perception of growth for the wind industry has declined dramatically, but against a backdrop of virtually no industry data points,” the HSBC analysts acknowledged.

Ah, there’s the rub. Aside from the fear of the future that threatens to paralyze just about every industry, absent a complete collapse of capitalism the wind industry would seem poised to continue its run, albeit at a slower pace. (The nascent Big Solar business, in contrast, finds itself in a more precarious situation.)

In the U.S., state mandates that require utilities to obtain a growing percentage of electricity from renewable sources will drive growth for years into the future. That’s the reason you’re seeing plans for gigawatt-sized wind farms like the 4-gigawatt one T. Boone Pickens is building in Texas. As analysts were souring on the industry’s prospects last week, oil giant BP’s (BP) wind subsidiary finalized a deal with California turbine maker Clipper Windpower to build a five-gigawatt project – the world’s largest, sorry T. Boone – in South Dakota. (Of course, that’s little comfort to investors who have seen wind stocks take big hits in recent weeks. Nor is it good news for two U.S. startups that have filed for IPOs –  First Wind and Noble Environmental.)

The wind developers and turbine makers Green Wombat has talked to in recent weeks for an upcoming Fortune magazine story say the long-term impact of the financial crisis remains unknown at this point. A large pipeline of orders for windmills – Danish turbine king Vestas’ orders spiked 52% from the first quarter to the second, according to HSBC – suggests that growth will continue unless wind farm developers start canceling projects – something that hasn’t happened to date.

The wombat happened to be at Clipper’s Cedar Rapids, Iowa, turbine factory on Tuesday and put the question to Bob Gates, the Carpinteria, Calif.-based company’s vice president of operations. Clipper is only one of two U.S. turbine makers, the other being General Electric (GE). (GE acquired its turbine operations from a bankrupt Enron, which itself had bought the business in 1997 from Clipper’s founder.)

“I think growth will be flat next year and that may continue to 2010 and then go back up,” said Gates as workers assembed gigantic drive trains for Clipper’s 2.5-megawatt Liberty turbine. “You have to put in your order for some components a year in advance, so if demand drops in 2009 you’ll have fewer turbines to bring to market in 2010.”

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After a year of stalemate that threatened to strangle the nascent United States solar industry, the U.S. Senate on Tuesday passed energy legislation that extends a key investment tax credit until 2016.

The 30% solar tax credit was part of a package of green energy incentives that includes a one-year extension of the production tax credit crucial to the wind industry and a $2,500-$7,500 tax credit for people who buy plug-in electric vehicles. (That should make General Motors (GM) happy as it prepares to roll out its ever-increasingly expensive Volt plug-in electric hybrid.)

Homeowners also won an extension of a tax credit for installing solar panels and the $2,000 cap on such systems was lifted. Put in a small wind turbine or a geothermal heat pump and you can claim up to a $4,000 and $2,000 tax credit, respectively.

The big winner was the solar industry. Congress’ failure to extend the investment tax credit threatened to scuttle scores of multibillion-dollar solar power plants in the pipeline and undermine mandates that utilities like PG&E (PCG) and Southern California Edison (EIX) obtain a growing percentage of their electricity from renewable sources.

The legislation now returns to the House of Representatives, which earlier passed a similar version of the Senate bill.

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T. Boone Pickens and Texas may be the kings of Big Wind but California is catching up, buying gigawatts of green electricity from turbines planted on the windswept flatlands of … Oregon.

On Monday, Southern California Edison became the latest Golden State utility to look north, announcing a 20-year contract to buy a whopping 909 megawatts from Caithness Energy’s Shepherd’s Flat project. The 303-turbine wind farm will span two Oregon counties and 30 square miles when it goes online between 2011 and 2012. PG&E (PCG), meanwhile, signed a deal in July for 240 megawatts of wind power from Horizon Wind Energy’s turbine ranch in the same area. That’s on top of 85 megawatts it agreed to buy last year from PPM Energy (now called Iberdrola Renewables) in a neighboring county that’s part of a turbine tier of counties on Oregon’s northern border.  Earlier this month the Los Angeles Department of Water and Power approved a 72-megawatt contract with Willow Creek Energy for wind power from the same area in Oregon.

So why ship electricity a thousand miles down the West Coast when California already plans to add gigawatts of in-state wind energy?  In a word, transmission.

“The beauty of this particular project is that it is already fully permitted and has transmission already available,”  Stuart Hemphill, Southern California Edison’s (EIX) vice president for renewable and alternative power, told Green Wombat.

“Oregon has a terrific wind resource,” he adds. “It far exceeds that in California.”

In December 2006 the utility signed an agreement to purchase 1,500 megawatts from a giant wind farm to be built by a subsidiary of Australia’s Allco Financial Group in Southern California’s Tehachapi region. But the project is dependent on the construction of new transmission lines – often an environmentally contentious and drawn-out process in California.

“It is expected to go online in 2010,” says Hemphill of the wind farm. “We’re just getting the transmission project up and running. The first three segments have been approved and we’re doing the building now.”

With California’s investor-owned utilities facing a 2010 deadline to obtain 20% of their electricity from renewable sources, expect the Oregon green rush to continue.

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Oilman turned wind wildcatter T. Boone Pickens met with presumptive Republican presidential nominee  John McCain Friday morning to pump his Pickens Plan to wean the United States from imported oil by shifting electricity production to wind farms and using natural gas to fuel cars and trucks. On Sunday, he’ll hook up with Democrat Barack Obama.

The McCain meeting was “good…very relaxed,” Pickens said Friday during a conference call with Senate Majority Leader Harry Reid to promote next week’s National Clean Energy Summit in Las Vegas. “It was a free flowing discussion. I presented the Pickens Plan to him, and he asked a lot of questions about it. He feels like I’m an energy expert, and he wanted information.”

Pickens began a campaign in July to foster a bipartisan approach to reducing the U.S.’s dependence on imported oil, declaring the “the United States is the Saudi Arabia of wind power.” Pickens is building the nation’s largest wind farm in Texas, and he has an interest in a natural gas transportation company.

Though Nevada Democrat Reid remarked, “Who would have thought that T. Boone Pickens and Sen. Harry Reid would have been in same boat pulling the oars same way,” Pickens made clear he’s no latter-day Al Gore.

“I’d open it all up to drilling – OCS, ANWAR,” he said, referring to the outer continental shelf and the Alaskan National Wildlife Refuge – the third rail of environmental politics.

“The one place I differ with Senator McCain is that I said if you’re going to open the OCS, throw in ANWAR too,” Pickens added.

Gore and other greens have questioned the viability and environmental impact of using natural gas for transportation. Pickens, on the other hand, said he isn’t opposed to electric cars. But, he added, “We can’t make a big cut [in oil imports] in ten years without using natural gas as a transportation fuel.  Use it for trucks and let them do what they want with cars.”

For Reid’s part, he said offshore drilling was still on the table, but he’s pushing for Congress to extend the renewable energy investment tax credit that expires at the end of the year. Scores of wind and solar projects – like the massive photovoltaic power plants that California utility PG&E (PCG) unveiled Thursday with SunPower (SPWR) and OptiSolar – are contingent upon Congress renewing the 30% tax credit.

“We have people standing by willing to invest billions of dollars in renewable energy,” Reid said. “The future is not in a commodity that was discovered in the 18th century. The future is sun, wind, geothermal.”

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