Sdwea Blueprint Forum April12 Revised (2)

Wind Blueprint Forum

April 2009

South Dakota Wind Energy Association

Organized January 2009 Purposes

– Provide a forum for education, research, and reliable information

– Serve as a ‘clearinghouse’ for new ideas, challenges, and barriers to wind development

– Capture the economic ‘added value’ of wind development for South Dakota and its citizens

– Policy advocate

Associated General Contractors

East River Electric Power Cooperative, Inc.

Missouri River Energy Services

Rural Learning Center

Rushmore Electric Power Cooperative, Inc.

SD Corn Council

SD Electric Utility Companies

SD Farm Bureau

SD Farmers Union

SD Rural Electric Association

Core Members

Goals

Enabling wind development Forum for diverse wind interests Seeking solutions

Blueprint for South Dakota Wind Development

What is it?– Fresh look with a forward view– Solicit ideas and views– Define solutions

How?– Wind forums

• Clear Lake: April 16, 2009• Freeman: April 17, 2009 • Murdo: April 22, 2009

– More to come . . . . . .

Blueprint for South Dakota Wind Development

Blueprint Goal– Develop a profile of:

• Needed initiatives

• New or modified public policy

• Resources required

• And . . . . . . Other

Blueprint Schedule– Complete during 2009

1. North Dakota 1210 11. Colorado 481

2. Texas 1190 12. New Mexico 435

3. Kansas 1070 13. Idaho 73

4. South Dakota 1030 14. Michigan 65

5. Montana 1020 15. New York 62

6. Nebraska 868 16. Illinois 61

7. Wyoming 747 17. California 59

8. Oklahoma 725 18. Wisconsin 56

9. Minnesota 657 19. Maine 56

10. Iowa 551 20. Missouri 52

Data: Pacific Northwest Laboratories

(Billions of kWh)

State Wind Resource Potential

South Dakota Electric Demand

About 3,000 megawatts Current installed wind:

250 megawatts

2,933 MW

12,651 MW

42,289 MW

South Dakota Minnesota Illinois

2006 EIA Data: Summer Capability

#2 Buyer?

Drivers for Wind Development

Hedges risk of renewable portfolio standard and/or carbon tax or cap

No fuel costs No emissions / no wastes requiring

disposal Provides income to landowners

(economic development in rural South Dakota) and to investors

Requires no water

Challenges in Wind Development

Wind is an energy resource only, cannot schedule, difficult to predict

Short-term rate impact Cost, need, and timing of major transmission

additions Market access Siting Environmental issues Long-term equipment availability –

maintenance

14

Challenges with Wind Development

Variable and non-dispatchable– Must be supplemented with constant

sources Wind in remote areas

– Expansive new transmission needed “Not in my backyard” siting issues Seams agreements or national policy

needed Renewable Portfolio Standards (RPS)

Transmission and Markets

Exporting of Wind Powered Generation

Federal legislation Transmission State legislation

Transmission Facilities

Market Price

500 kV-DC

116’

800 kV-DC

138’

765 kV-AC

133’

345 kV-AC

88’

500 kV-AC

103’

50m Wind Turbine

164’

92’

80m Wind Turbine

262’

151’

100m Wind Turbine

328’

164’

To Scale Height Comparison

Made by JT

Produced by Midwest ISO

National Transmission Grid

20

Why extra high voltage?

Landowner and Wind Rights

Issues

Community Wind Development

Jobs Development and Education for Support of

Industry and South Dakota

Windy Rural AreasNeed Economic Development

Economic Development Impacts

Land Lease Payments– 2 - 3% of gross revenue $2,500-

$4,000/MW/year Local property tax revenue

– Ranges widely - $300K-$1,700K/yr per 100MW

100-200 jobs/100MW during construction

6-10 permanent O&M jobs per 100 MW

Local construction and service industry

– Concrete, towers usually done locally

Direct Jobs and Parts During Construction

ConstructionManagement and support

Earth moving, cement pouringTruck drivers,

crane operators

Wind Turbine Components

Indirect Jobs, Services, Materials

Steel mill jobs, parts, servicesPhotos: E.C.Levy, Inc, Detroit, MI

Financing, banking, accountingWind subcomponent manufacturing and sales

Property taxes

Induced Jobs, Services, MaterialsChild care, grocery store, clothing, other retail, public

transit, new cars, restaurants, medical services

South Dakota Wind Energy Center

40.5 MW (1.5-MW turbines) Landowner payments: $3,500-$4,000/year 100 – 125 workers during peak construction 3 fulltime O&M positions Property taxes: $220,000/year Sales and use tax: $1.2 million payable in

2003 Located near Highmore, SD (population 808) Owned by FPL Energy Constructed in 2003

Soaring Demand Spurs Expansion of U.S. Wind Turbine Manufacturing

Note: Map is not intended to be exhaustive

Key Themes

TransmissionMarkets

CommunityWind Job Creation

Education Opportunities

LandownerWind Rights

Where Do We Go From Here . . . .

Invitation

Go to: www.sdwind.org

Become a Member

Individual Advocate Member: Free