Volume 13, Number 11 ■ December 2016 ® Wind Industry Braces For Trump page 28 Transmission No easy fixes for wind’s most pressing issue. page 22 Spotlight: Colorado Renewable-friendly policies promote development. page 26 a_01_NAW1612.indd 1 11/18/16 10:14 AM a_Suzlon_1611.indd 1 10/11/16 5:30 PM Contents Features 14 14 Thriving In A Post-PTC Era Check out how the wind industry is planning for life after the PTC phaseout. 18 New Lines Breathe Life Into Colorado Project New projects – and with them, new transmission lines – open up the state for wind development. 20 Taking Costs Out Of The Transportation Equation Getting your turbine components to the site is always a logistical dance – but it need not be costly. 22 No Easy Transmission Fixes Unfortunately, there are no elegant solutions for the wind industry’s transmission woes. 26 Rocky Mountain High Colorado continues to prioritize renewable energy. 20 28 Trump Wins U.S. Presidential Election: Now What? Representing a stark contrast from the past eight years, a Republican-led Trump administration is making its way into the White House in January. 28 26 Departments 4 Wind Bearings 6 New & Noteworthy 12 Policy Watch 31 Projects & Contracts 34 Viewpoint North American Windpower • December 2016 • 3 d_NAW_03_1612.indd 3 11/17/16 4:34 PM Wind Bearings www.nawindpower.com [email protected] 100 Willenbrock Road, Oxford, CT 06478 Toll Free: (800) 325-6745 It Happened Phone: (203) 262-4670 Fax: (203) 262-4680 MICHAEL BATES Publisher & Vice President [email protected] Mark Del Franco MARK DEL FRANCO Associate Publisher (203) 262-4670, ext. 283 [email protected] he shock waves created by Donald J. Trump’s surprise presidential victory over Hillary Clinton have yet to subside. As of this writing, throngs of BETSY LILLIAN Tanti-Trump protestors have taken to the streets all over the country. Hav- JOSEPH BEBON Associate Editors ing alienated several groups during the campaign, Trump also provided enough LAUREN TYLER damning statements regarding climate change and renewable energy to put a scare AMANDA FAVA Editorial Assistant into wind energy advocates. In fact, there have been rumblings that have leaked out concerning Trump’s initial priorities. DAWN S. HOWE Creative Director For example, the U.S. Environmental Protection Agency and the Clean Power Plan (CPP) are in the president-elect’s crosshairs, as the president-elect has ANGEL L. HERNÁNDEZ Graphic Artist made no secret of his disdain for the government agency. Reportedly, he will SANDRA MINCK Production Coordinator cut agency funding and roll back several initiatives, such as the CPP. Even if the CPP emerges victorious from its current legal entanglements, the Department CHERYL SAMIDE Office Manager of Justice under a Trump administration will likely decline to defend the CPP in the courts. Further, Trump has vowed to take the U.S. out of the Paris climate DAMASE CARON Information Systems Manager change agreement. Although such developments are unwelcome, Trump’s ascension to the Oval Advertising Sales Office does not have to be the show-stopping, soul-crushing event that many Mark Del Franco envisioned the morning after the election. On the bright side, the production tax credit will likely remain intact. Barring an act of Congress – and lest we [email protected] forget, Republicans will control both houses – the wind industry’s key tax incen- (800) 325-6745, ext. 283 tive is likely to remain unscathed, explains David Burton, partner at A free market principle Z ACKIN law firm Mayer Brown. PUBLICATIONS Trump cannot ignore. “Unlike the CPP, [the tax credits for wind] are statutory,” PAUL ZACKIN President [email protected] Burton explains. “A statute can only be changed by Congress’ passing a new law.” And due to the sheer number of issues on Trump’s to-do list, Burton says it is unlikely that the president-elect would opt to attack the tax credits, given that Member of several members of his own party support them. “Wind is fortunate to have a number of powerful Republican allies in Con- gress, including Sens. Grassley, Collins, Thune and Hatch.” Powerful and influential champions aside, the technology has advanced to the point where it can compete straight up with new sources of electricity – a free market principle that Trump and his designates cannot ignore. North American Windpower (USPS: 024-604 According to financial services company Lazard, wind energy is now one of ISSN: 1939-0947) is published monthly by Zackin the most affordable options for new electricity generation based on unsubsi- Publications, Inc. Advertising, Editorial, Production dized levelized cost of energy, or LCOE (based on dollar per megawatt-hour). and Circulation offices are at 100 Willenbrock Road, Oxford, CT 06478; (203) 262-4670. Periodical postage In its 2015 Levelized Cost of Energy Analysis report, Lazard notes that wind is paid at Shelton, CT and additional mailing offices. competitive with conventional generation in certain regions of the country. The Canada Post: Publications Mail Agreement #40612608. unsubsidized LCOE for wind energy ranged from $32/MWh to $77/MWh in Return undeliverable Canadian addresses to IMEX Global Solutions, P.O. Box 25542, London, ON N6C 2015 – with pricing the lowest in the interior region of the country. And techno- 6B2. Subscription: $48 per year. POSTMASTER: Send logical advancement will help continue to bring down costs. address changes to: North American Windpower, 100 Willenbrock Road, Oxford, CT 06478. Copyright Lastly, one final word. Be skeptical about polls and trends. As evidenced on © 2016 by Zackin Publications, Inc. All rights reserved; election night, no one truly knows what is going to happen. Because if they did, no reproduction without written permission from the you would be reading an entirely different column right now. w publisher. 4 • December 2016 • North American Windpower b_NAW_4_13.31_36_1612.indd 4 11/17/16 4:13 PM 250 MW Cedar Point Wind Project | Colorado | RES Developed and Constructed Need advice on developing, constructing, or operating renewable energy, energy storage, or transmission projects? RES HAS BEEN THE TRUSTED ENERGY ADVISOR TO THE GLOBAL ELECTRICITY INDUSTRY SINCE 1982. 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POWERING CHANGE DEVELOP | CONSTRUCT | OPERATE RENEWABLE ENERGY SYSTEMS 11101 W. 120th Ave. Suite 400 Broomfield, CO 80021 303.439.4200 | [email protected] | res-group.com _RES_1612.indd 1 11/11/16 2:44 PM New&Noteworthy Microsoft Makes Its Largest Wind Investment icrosoft Corp. has announced its largest purchase of U.S. wind has reached more than 500 MW. wind energy to date: Under two new agreements, the Microsoft and Black Hills Energy also worked together to Mglobal tech giant is adding on 237 MW of wind to its create a new tariff, available to all eligible customers, that al- portfolio. lows the energy company to tap the local data center’s backup Microsoft has contracted with Allianz Risk Transfer (ART) generators, thereby eliminating the need for Black Hills Energy to fix its long-term energy costs and purchase the power con- to construct a new power plant. The tariff received approval nected with the 178 MW Bloom Wind from the Wyoming Public Service Com- project in Kansas. mission in July. According to Microsoft, the project is These are Microsoft’s third and fourth the first to use ART’s new structure de- wind energy agreements, joining the signed to offset high upfront costs associ- 175 MW Pilot Hill wind project in Illi- ated with the creation of large-scale wind nois and 110 MW Keechi wind project projects. Microsoft says the new structure in Texas. In March, Microsoft also signed has the potential to bring clean energy an agreement with the Commonwealth projects online at a faster pace. of Virginia and Dominion Energy Inc. to “It is important for investors in re- bring 20 MW of solar energy onto the grid newable energy projects to secure long- in Virginia. term, stable revenues, and our structure “We are constantly looking for new does just that,” explains Karsten Berlage, managing director of ways to approach energy challenges and avenues of engage- ART. “We are thrilled to be partnering with Microsoft on this ment with our utility partners,” says Christian Belady, general groundbreaking project.” manager of cloud infrastructure strategy and architecture at In addition, Microsoft has contracted with Black Hills En- Microsoft. “The team worked closely with ART to come up ergy to purchase 59 MW of renewable energy credits from the with a completely new model to enable faster adoption of Happy Jack and Silver Sage wind projects, which are adjacent renewables. Likewise, the tight engagement with Black Hills to Microsoft’s Cheyenne, Wyo., data center. created the opportunity for Microsoft’s data center to become The combined output of the Bloom and Happy Jack/Silver an asset for the local grid, maintaining reliability and reducing Sage projects will produce enough energy to cover the annual costs for ratepayers. This kind of deep collaboration with utili- energy used at the data center, says Microsoft. ties has great potential to accelerate the pace of clean energy, With these new agreements, Microsoft’s total investment in benefiting all customers – not just Microsoft.” BLM Issues Final Public Lands Rule For Wind, Solar In support of the president’s Climate Action Plan, Secretary Smart from the Start approach to renewable energy develop- of the Interior (DOI) Sally Jewell has announced that the Bu- ment by the following: reau of Land Management (BLM) finalized its rule governing • Supports development in areas with the highest gen- solar and wind energy development on eration potential and fewest resource public lands.