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Distributed Wind Power Assessment Table of Contents Acknowledgments Principal Authors: Joseph M. Cohen, Princeton Energy Resources International, LLC (Principal Investigator) Thomas A. Wind, P.E., Wind Utility Consulting Contributing Authors and Consultants: Thomas C. Schweizer, Zia Haq, Michael Pendleton, Princeton Energy Resources International, LLC Birger T. Madsen, BTM Consult, ApS Knud Rehfeldt and Fritz Sanjer, Deutsches Windenergie-Insitut (DEWI) Bruce Bailey, AWS Scientific, Inc. Henry Zaininger, Power Technologies, Inc. Volunteer Consultants and European Site-Visit Hosts: Kurt Købaek Jensen, DEFU Preben Maegaard, Danish Folkecenter Per Dannemand Andersen, Risø National Laboratory Peter Ahmels and Petershoen Wilkens in Germany Gravers Kægaard and Arne Jensen in Denmark Local Utility, RAH, in Ringkøbing, Denmark Technical Writing and Editing Provided by: Julie Phillips, JA Phillips and Associates Document and Cover Design and Layout by: Christine Forsman and Stacy Zarlengo, Princeton Energy Resources International, LLC Cover Photos Courtesy of Thomas A. Wind, P.E., Wind Utility Consulting (top photo) and Lloyd Herziger, ©2000 Enron Wind (bottom photo). The top photo is a private cooperative-owned 3-turbine cluster on the Jensen farm in Denmark. The photo on the bottom is the 2.25-MW Algona, Iowa, distributed wind project jointly owned by seven utilities. Special appreciation to Kevin Porter at NREL, Brenden Kirby at ORNL, Ed Holt, of Ed Holt and Associates, and Ronald Lehr for their comments and insights. The Principal investigator wishes to thank the NWCC Distributed Wind Working Group and the project management team of Brian Parsons at NREL, Ed DeMeo at EPRI and (currently) Renewable Energy Consulting Services, Inc., and Abby Arnold, Heather Rhoades-Weaver, Gabe Petlin, and Detra Stoddard at NWCC (through Resolve, Inc.) for their guidance, assistance, and understanding. Notice This report was prepared as an account of work sponsored by an agency of the United States government. Neither the United States government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe pri- vately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommenda- tion, or favoring by the United States government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States government or any agency thereof. No U.S. Department of Energy funds were used for the printing of this document. Preface This assessment report is a product of the Distributed Wind Working Group of the National Wind Coordinat- ing Committee (NWCC). The NWCC was formed in 1994 as a collaborative endeavor composed of represen- tatives from diverse sectors including electric utilities and their support organizations, state utility commis- sions, state legislatures, environmental organizations, wind equipment suppliers and developers, green power marketers, consumer advocates, agriculture and economic development organizations, and local, regional, state, tribal and federal agencies. The NWCC identifies issues that affect the use of wind power, establishes dialogue among key stakeholders, and catalyzes activities to support the development of an environmentally, economically and politically sustainable commercial market for wind energy. The NWCC Distributed Wind Working Group was formed to examine and assess distributed-wind develop- ment options in the United States. In addition to this document, the National Wind Coordinating Committee has many other wind-energy-related materials on its web site: www.nationalwind.org. For comments on this assessment report or questions on distributed wind energy, contact the National Wind Coordinating Committee Senior Outreach Coordinator c/o RESOLVE, 1255 23rd Street NW, Suite 275, Wash- ington, DC 20037; phone (888) 764-WIND, (202) 965-6398; fax (202) 338-1264; e-mail [email protected]. ii Distributed Wind Power Assessment Table of Contents Report Summary .......................................................................................................... vii Chapter 1 – Introduction ............................................................................................... 1 REPORT OBJECTIVES .................................................................................................................................. 2 DEFINITION OF DISTRIBUTED WIND POWER .......................................................................................... 2 SMALL WIND TURBINES ............................................................................................................................ 2 QUESTIONS ABOUT DISTRIBUTED WIND POWER .................................................................................. 3 INTENDED AUDIENCE ............................................................................................................................... 3 HOW TO USE THIS REPORT....................................................................................................................... 3 REFERENCES ............................................................................................................................................... 4 Chapter 2 – Progress and Prospects ............................................................................... 5 THE EUROPEAN EXPERIENCE ..................................................................................................................... 6 Parallels Between Conditions in Europe and the United States..................................................................... 6 Differences Between Conditions in Europe and the United States ................................................................ 9 Policies and Incentives .............................................................................................................................. 10 Feed-in-Tariffs ...................................................................................................................................... 10 Policies in Denmark ............................................................................................................................. 11 Policies in Germany ............................................................................................................................. 12 Trends in Danish and German Wind Development .............................................................................. 13 ECONOMIC PROSPECTS FOR DISTRIBUTED WIND GENERATION IN THE UNITED STATES ................. 13 Project Ownership ..................................................................................................................................... 14 Utility, Developer, or Energy Service Company Ownership ................................................................. 15 Rural Electric Cooperative Aggregation of Output from Individually Owned Turbines ......................... 15 Regional Wind Energy Cooperative Ownership ................................................................................... 16 Private Cooperative Ownership ........................................................................................................... 16 Individual Ownership .......................................................................................................................... 16 Project Financing ....................................................................................................................................... 17 Local Economic Benefits ............................................................................................................................ 18 Manufacturing Sector Employment ...................................................................................................... 18 Construction Jobs ................................................................................................................................. 18 On-going Jobs in Operations and Maintenance.................................................................................... 18 Additional Tax Revenues ...................................................................................................................... 19 Local Ownership as an Economic Stimulus .......................................................................................... 19 Induced Effects on the Local Community ............................................................................................. 19 Economic Diversity .............................................................................................................................. 19 INFRASTRUCTURE ISSUES FOR DISTRIBUTED WIND IN THE UNITED STATES ...................................... 20 Resource Assessment ................................................................................................................................. 20 Siting and Permitting .................................................................................................................................. 21 Manufacturing and Service Industries ........................................................................................................ 21 Information Dissemination ........................................................................................................................
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