Wind Energy's Economic
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KANSA People of the South Wind Thomas Wright Chairman , Kansas Corporation Commission Presentation for Revolution: Oklahoma Wind Energy Conference December 3, 2008 Capacity & Cost Trends Cost of Energy and Cumulative Domestic Capacity 100 12000 90 10000 80 )) kWh*)kWh*) //// 70 8000 WWWW 60 50 6000 acityacity (M (M gygy (cents (cents pppp rrrr 40 4000 CaCa 30 20 st of Enest of Ene 2000 oooo CC 10 0 0 1980 1985 1990 1995 2000 2005 *Year 2000 dollars Increased Turbine Size - R&D Advances - Manufacturing Improvements U.S Lagging Other Countries for Wind As a Percentage of Electricity Consumption Installed Wind Capacities (1999 – 2007) Meridian Way Wind Farm 201 MW 2008 Westar 1.5 MW 1999 Smoky Hills Wind Farm Central Plains Wind Farm 250 MW 2008 99 MW 2008 Spearville Wind Farm Facility 100 MW 2006 Elk River Wind Farm 150 MW 2005 Gray County Wind Farm Flat Ridge Wind Farm 112 MW 2001 100 MW 2008 Kansas Commercial Wind Farms Gray County Wind Farm 2001 – 112 MegaWatts Elk River Wind Farm 2005 – 150 MegaWatts Kansas Commercial Wind Farms Spearville Wind Farm 2006 – 100 MegaWatts Smoky Hills Wind Farm 2008 – 250 MegaWatts Kansas Commercial Wind Farms WIND PROJECT (County) DEVELOPER UTILITY SIZE YEAR____ Jeffery Energy Center (Pottawatomie Co.) Westar Westar 1.5 MW 1999 Gray County Wind Farm (Gray Co.) FPL Energy Aquila 112.2 MW 2001 Elk River Wind Facilityy( (Butler Co. ) PPM Energy Empire 150 MW 2005 Spearville Wind Energy Facility (Ford Co.) enXco KCP&L 100.4 MW 2006 TOTAL INSTALLED AT END OF 2007 364.1 MW Smoky Hills Wind Farm Phase I Tradewind Sunflower 50.4 MW 2008 (1st Qtr) (Lincoln & Ellsworth Counties) KC BPU 25.2 MW 2008 (1st Qtr) Midwest 25 .2 MW 2008 (1st Qtr) Smoky Hills Wind Farm Phase II Tradewind Sunflower 24 MW 2008 (4th Qtr) Lincoln & Ellsworth Counties) Midwest 24 MW 2008 (4th Qtr) TBD 100.5 MW 2008 (4th Qtr) Meridian Wind Farm (Cloud Co.) Horizon Empire 105 MW 2008 (4th Qtr) Westar 96 MW 2008 (4th Qtr) Flat Ridgg()e Wind Farm (Barber Co.) BP Alt Energy Westar 100 MW 2008 (4th QQ)tr) Central Plains Wind Farm (Wichita Co.) RES America, Inc Westar 99 MW 2008 (4th Qtr) TOTAL TO BE INSTALLED BY END OF 2008 1013.4 MW Kansas School Wind 50 kw Turbines Moscow USD Pratt Community College Quinter USD Kansas Wind for Schools Project 181.8 kW Skystream Turbines A pilot project by the National Renewable Energy Lab (NREL) in Kansas, ClColora do, NbNebras ka, Mon tana, Sou thDkt&Idhth Dakota & Idaho Fairfield High School, USD 310, Langdon, Reno County Concordia School District, USD 333, Concordia, Cloud County EllEll--SalineSaline School District, USD 307, Brookville, Saline County Sterling School District, USD 376, Sterling, Rice County Walton Rural Life Charter Elementary, Newton School District, USD 373, Walton, Harvey County Five schools will be selected for the project in each of the next 3 years Kansas Wind for Schools Project 181.8 kW Skystream Turbines Fairfield High School RCtReno County Walton Elementary Harvey County Reported Impacts from the Smokey Hills Wind Farm: Phase I • 145 local workers employed during construction • 4-6 permanent positions • LdLandowner lease: MiiMinimum paymen tft of $3,000/turbine (1.8 MW turbines) • Payments in Lieu of Taxes (PILOT): $3,000/MW Data furnished by NREL NREL Forecasts for 100 MW of New Wind Power • 140-160 Direct Jobs during construction* – 135-155 construction-sector jobs • 15-25 Direct Jobs during operations* – 4-6 plant workers • 50-100 acres of land removed from agriculture or range service – Total acreage of a 100-MW wind farm is estimated at 5,000 acres (50 acres/MW) • 1%-2% is removed from existing applications – Developers often arrange turbine layouts in accordance with existing land use to minimize land impacts Kansas Economic Impacts from 1000 MW of New Wind Developp()ment (NREL) Wind Energy’s Economic “Ripple Effect” Direct Impacts Totals Indirect & (construction + 20 Payments to Landowners: Induced Impacts years) • $2.7 million/year Local PILOT Revenue: Construction Phase: Total economic benefit = • $2.9 million/year • 1,550 new jobs $1.08 billion Construction Phase: • $138 million to local New local jobs during • 1, 600 new jo bs economies consttitruction = 3, 150 •1,500-1,550 construction jobs Operational Phase: New local long-term • $189 million to local economies • 180 local jobs jobs = 430 Operational Phase: • $17 million/year to local • 200 new long-term jobs economies •40-60 plant-only jobs • $21 million/year to local economies Kansas Economic Impacts From the DOE 20% Scenario Wind Energy’s Economic “Ripple Effect” Totals Direct Impacts Indirect & (construction + 20 Payments to Landowners: Induced Impacts years) • $20 million/year Local PILOT Revenue: Construction Phase: Total economic benefit = • $20 million/year • 11,200 new jobs $7.8 billion • $985 million to local New local jobs during Construction Phase: economies • 11, 500 new jo bs construction = 22, 700 Operational Phase: •11,150 construction jobs New local long-term • 1,300 local jobs • $1.4 billion to local economies jobs = 2,800 • $120 million/year to local Operational Phase: • 1,500 new long-term jobs economies •300-450 plant only jobs • $150 M/yr to local economies *See slides 6, 7, and 8 for notes regarding this analysis Drivers for Wind Power • CtitiWidCtCompetitive Wind Costs • Fuel Price Uncertainty • Federal and State Policies • Economic Development • Public Support • Green Power • Energy Security • Carbon Risk Energy Issues were prominently featured in State of the State Address by Governor Sebelius… “Our goal is to produce 10 percent of our state’s electricity from wind power by 2010, and 20 percent by 2020. ” ….State of the State Address, Jan. 10, 2007 Estimates from the Kansas Wind W orki ng G roup Installed MW of wind 1400 1200 1000 800 600 MW 400 200 0 Existing By End 2008 Existing, Under Existing, Under Construction and Construction, Announced by 2010 Announced by 2010 and Announced by 2012 (Kansas or Missouri) According to Kansas Lt. Governor Mark Parkinson, chair of the K an sas Win d W orkin g Gr oup: HOW WE CAN MAKE THIS HAPPEN? WE BRING EVERYONE TOGETHER… ENVIRONMENTALISTS, UTILITIES, AND CONSUMER ADVOCATES MUST COME TOGETHER IN AN UNPRECEDENTED WAY A favorite quote by our friend, Larry Flowers Carpe Ventum Seize the Wind! Thank you!.