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| 06 Nov 2009 09:54:41 pm |
 A diverse wind industry on display in Detroit |
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The wind industry that convened in Detroit this week was a different crowd than typically attends a wind energy event—the talk was more of kilowatts than megawatts, reflecting a higher profile for small and community wind.
The Small and Community Wind Conference and exhibition was a first for AWEA, and program organizers saw the attendance as a sign of strong interest in two sectors of the industry that are coming into their own.
The Small and Community Wind conference and Exhbition took place in concert with AWEA’s Supply Chain Workshop. Total attendance was more than 2100, splt roughly evenly among three topic areas, according to the conference organizers.
“The numbers indicate the tremendous interest in small wind,” said Charles Newcomb, a small wind program co-chair and Vice President of NextGen Energy. “The meetings were well attended right until the end of the conference. There was a strong desire among attendees to know more about small wind,” he said.
That enthusiasm was also in evidence on the show floor, where exhibitors reported not only leads for future sales but even deals closed this week. One small wind turbine manufacturer reported that he sold 10 of his $70,000 turbines over the two day conference.
Community Wind organizers were also enthusiastic. This sector is less visible than small wind, and there are still different views about how to define it. But there was no doubt the interest about one third of those who registered indicated their interest was in community wind, and the agenda, which ranged from the Wind for School program to the challenges of selling power to rural coops and utilities, as well as financing and project development sessions, reflected both the diversity of players and willingness to take on tough issues.
“This conference is really the coming of age event for Community Wind,” said Jacob Susman, CEO of OwnEnergy, a community wind developer, and co-chair of the conference. “A number of compelling factors have converged to create the ‘perfect storm’ for Community Wind in the U.S., including the need for local jobs, economic development and renewable projects that can seamlessly connect to the existing grid infrastructure.
Proving his point, during the week, OwnEnergy announced a partnership with a subsidiary of the Nationals Farmers Union to develop a 20 MW wind project in in Otter Tail County, Minnesota.
The increased visibility of small and community wind is a positive development. The wind industry as a whole will grow in political clout as it broadens its scope and image. The Wind for Schools program, for example, which was extensively discussed in Detroit, allows the industry to build a rural base of support that may well differ from the constituency that grows out of utility-scale development.
So, too, connecting with rural electric cooperatives, seemingly a natural constituency for wind energy, may be easier as more coops buy power from community wind developers.
One sign that small and community wind have been granted a more permanent seat at the table—planning is already starting on next year’s program. |
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Category : AWEA News
| By : Chris Madison |
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| 05 Nov 2009 10:03:05 pm |
| Shining some light on the Chinese wind farm deal |
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In recent days, there has been much debate over the announcement by a Chinese firm and a Texas wind developer that the two intend to cooperate on a 600-MW (generates the equivalent of the electricity needs of 180,000 average homes) wind farm with turbines to be manufactured in China.
Concern about this announcement, and the green manufacturing jobs it might create in China, is understandable. Still, the larger picture of wind energy and foreign imports into the U.S. tells a very different story:
* In 2008, China accounted for less than 5% of the imported value of turbine components for the U.S., according to data from the US International Trade Commission.
* In recent years, the trend has been towards more domestically manufactured components and wind turbines in the U.S. Overall, about 50% of the value of turbine components was made in the U.S. in 2008, up from less than 30% in 2005. Given the growth in the U.S. market during that same period, this means that in three years, the U.S. increased its domestic manufacturing 12-fold, from producing $450 million worth of components in America to $5.6 billion in 2008.
* Leading global wind turbine manufacturers like Vestas (#1 globally) and Gamesa (#3 globally) have opened major manufacturing facilities here in the U.S.; Mitsubishi just recently announced its intention to open a U.S. factory.
* In all, as of October 2009, there are nine original equipment wind turbine manufacturers (OEM)s (Acciona, Clipper, Dewind, Gamesa, GE, Nordic, Siemens, Suzlon, and Vestas) now operating U.S. manufacturing facilities, with Siemens and Vestas also investing in additional facilities. An additional six turbine manufacturers (Continental, EWT, Fuhrlander, Global Wind Systems, Mitsubishi, Nordex) have announced plans to open manufacturing facilities here in the U.S.
* This welcome trend toward investment in manufacturing facilities in the U.S., which creates local jobs, needs to be nurtured.
* The reality is that we need to catch up after decades of energy policy neglect in the U.S., and we are in a race to build up a wind turbine manufacturing base here in this country. The wind energy market is global, and leading companies such as Vestas, GE, Gamesa, Suzlon and many others operate on a global scale. These companies will direct their investments to where markets are certain to grow—-and that in turn is where there is a firm renewable energy policy in place.
* A strong national Renewable Electricity Standard will provide the market and policy certainty that is still needed in the U.S., and will ensure that our nation competes effectively in attracting investment and building up its manufacturing base.
* The U.S. is at a time of historic opportunity: passing comprehensive climate and energy legislation including a meaningful RES will give us the means to stay in this race, compete with other strategic markets like Europe and China, avoid carbon, and create jobs.
* It's important to understand how American Recovery & Reinvestment Act (ARRA) economic stimulus funding works: 100% of the Treasury grant funds are allocated on the basis of projects built here in the U.S. These projects create construction, engineering, operation and maintenance, and a host of other jobs here in the U.S. The ARRA process is NOT a zero-sum game—if a company is awarded a grant for a project, it does not mean that another company won’t get funding for a project for which it might apply. To protect taxpayer money, a company that applies for funding for a particular project needs to go through a detailed checklist to ensure that the project will actually be built and produce electricity. The grant funding for which a project is eligible is equivalent to the value of a 30% investment tax credit. The stimulus grant helps leverage the additional funds needed to finance a project.
* A healthy mix of global (Iberdrola, EDP Renewables) and U.S. (NextEra, AES, First Wind) companies are receiving ARRA grants or have announced their intention to apply for such grants. Nothing is keeping more U.S. utilities and companies from applying.
The economic stimulus legislation is providing the short-term support needed to keep the U.S. wind energy market alive. A strong Renewable Electricity Standard would build upon that short-term base and ensure American clean renewable energy job growth into the future. |
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Category : AWEA News
| By : Tom Gray |
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| 05 Nov 2009 03:38:38 pm |
| A supply chain guru spreads the good word in Detroit |
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There have been record crowds at the AWEA conference and exhibition in Detroit this week—the number of attendees registered edged over 2000, not including the general public who came in every afternoon to see the small wind turbines displayed on the exhibition floor.
In part, the attendance stems from the fact that three distinct subjects are being discussed—small wind, community wind, and the wind energy supply chain—and each brings its own constituency. But more than that, the numbers are driven by the hunger for jobs, and the desire to become part of the new energy economy.
The supply chain, despite its dry economics-department designation, is what makes wind attractive to the Midwest. The region’s manufacturing capabilities and skills are going unused due to the slow demise of the auto industry and the brutal severity of the current recession. Because of the need to manufacture the 8000 components that comprise a turbine, wind energy holds the prospect of rekindling America’s manufacturing might.
So hundreds came to this week’s conference to learn how to make the journey from the "rust belt to the greenbelt," as Michigan’s Gov. Jennifer Granholm aptly describes it. Dan Radomski, vice president of NextEnergy and one of the supply chain conference program chairs, is helping to draw the map. A former machinist also who spent a decade at the Society of Manufacturing Engineers, he has both the training and the innate ability to “see how any product is made,” as he puts it. He also can put it into plain English and adds a dose of passion that brightens a potentially boring subject. Mostly, he makes the supply chain sound like a living entity.
If you want to enter the supply chain, he explained at a session this week, you should understand (among other things) how wind energy technology is evolving, which components need the most repairs, and which components the large turbine manufacturers “outsource” rather than build themselves.
This week, Radomski used the latest research—some of it available only for a hefty price—to show attendees how to analyze the wind supply chain in great detail: know who the players are, what they make, what they outsource, and where, and whether it is a durable component.
If, for example, you want to enter the “aftermarket repair business.” Radomski will tell you that gear boxes are a good choice because they wear out more often than other components. But you also have to know how long it takes to repair one, and have on-the-shelf inventory to provide a working unit while you repair the non-working one, so the turbine is not out of service for long.
One of Radomski’s persistent messages these days is that the wind industry, while mature, is not perfect. The component “failure rate” is too high and the industry “better get a handle on durability.” He has been a key actor in Michigan’s efforts to land the DOE funding to build a national wind turbine drive train testing center here in Detroit. While it would cost more than $100 million, Radomski says, it would contribute to the development of turbines that fail less often. (Radomski’s vision of the supply chain includes design engineering and testing as part of the manufacturing process.)
At his core, Radomski is an optimist. He believes that most products can be redesigned to work better. So it is not a surpise to learn that he believes Michigan's image as a failed state is overblown. He was a key player in the state's efforts to help Michigan suppliers transition to the wind industry, resulting in over $670 million in new business awarded to Michigan suppliers in alternative energy markets since 2006. (There are 70 Michigan companies involved in the wind industry now, compared with 20 in 2006.)
“I think Michigan will rebound just fine. Michigan is not just about the auto industry. We are already diversified. We just need to be diligent and smart,” he says. |
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Category : AWEA News
| By : Chris Madison |
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| 04 Nov 2009 09:36:57 pm |
| New offshore wind report aims to inform |
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Noting the growing interest in offshore wind, the U.S. Offshore Wind Collaborative (USOWC) has released “U.S. Offshore Wind Energy: A Path Forward,” a resource for government, industry, and non-governmental stakeholders offering a snapshot of U.S. offshore wind energy activity in 2009.
“While currently this abundant domestic renewable energy source remains untapped, there is growing political and market momentum to realize the potential of offshore wind energy,” said Laurie Jodziewicz, AWEA’s manager of siting policy and one of the report’s authors. “This timely report captures some of this momentum and will hopefully advance offshore wind energy in the U.S.”
America's offshore wind resource is vast, estimated at 900,000 MW, or enough to provide roughly 75% of current total U.S. electricity demand. The U.S. Department of Energy's 20% Wind by 2030 Report envisions more than 50,000 MW being installed offshore by 2030, out of a total of 293,000 MW needed to reach the 20% objective.
The report provides an overview of various areas critical to sustainable offshore wind energy development, including regulation and government policies, technology development, economic and financial viability, environmental and marine use compatibility, and leadership and coordination. The mission of the USOWC is to address the technical, environmental, economic and regulatory issues necessary to catalyze the sustainable development of offshore wind energy in the waters of the United States. The Collaborative said it will update the report periodically as part of its effort "to serve as an information clearinghouse for offshore wind." |
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Category : AWEA News
| By : Tom Gray |
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| 04 Nov 2009 04:52:34 pm |
| Amendment could thwart new power lines, energy goals |
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An amendment currently included in energy legislation pending in the U.S. Senate could disrupt planning for new transmission lines and interfere with reaching national energy goals, a coalition of 62 companies and organizations warned Senate Leadership yesterday.
The seemingly minor language change, adopted by the Senate Energy Committee, deals with a critical (and eternal) issue: how the Federal Energy Regulatory Commission (FERC) determines who pays for new power lines. According to the coalition, it "would require lengthy, complex, cost-benefit analyses, invite litigation, and further contribute to uncertainty for investors." (And according to us at AWEA, if there is one thing the current transmission planning process does not need, it's to be slowed down further from an already glacial pace.)
“The Senate cost allocation language would block grid investment right at the time when there is a desperate need to expand the transmission system to deliver clean energy, assure reliability, and remove constraints that result in higher wholesale power prices,” commented Joseph Kelliher, Executive Vice President of Federal Regulatory Affairs for FPL Group and a former FERC Chairman.
AWEA CEO Denise Bode concurred, adding, "As a former state regulator, I believe the Amendment would bias regulatory decision making in transmission, where costs are certain but benefits are large and difficult to precisely measure."
A press release with additional information, including the full text of the letter, is available here. |
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Category : AWEA News
| By : Tom Gray |
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