Attachment 1 - Kansas Legislature

Kansas
Wind Energy
KIMBERLY SVATY
SENATE UTILITIES
COMMIT TEE
JANUARY 10, 2017
What is Wind Power?
Wind power is the ability to make electricity using the air flows that
occur naturally in the earth’s atmosphere. Wind turbine blades capture
kinetic energy from the wind and turn it into mechanical energy,
spinning a generator that creates electricity.
The three major types of wind power
Wind is a type of renewable energy, and there are three major types of
wind power.
◦ Utility-scale wind, wind turbines larger than 100 kilowatts are developed
with electricity delivered to the power grid and distributed to the end user
by electric utilities or power system operators;
◦ Distributed or "small" wind which uses turbines of 100 kilowatts or smaller
to directly power a home, farm or small business as it primary use;
◦ Offshore Wind which are wind turbines erected in bodies of water around
the world. First US offshore wind project online fall 2016.
How wind turbines work
When wind blows past a turbine, the blades capture the kinetic energy and rotate,
turning it into mechanical energy. This rotation turns an internal shaft connected to a
gearbox, which increases the speed of rotation by a factor of 100 (from 18 rmp to
1800 rpm). That spins a generator to produce the electricity.
Standing at least 80 meters tall, tubular steel towers support a hub with three
attached blades and a “nacelle,” which houses the shaft, gearbox, generator and
controls. Wind measurements are collected to automatically rotate the turbine to
face the strongest wind and angle or "pitch" its blades to optimize the energy
captured.
A typical modern turbine is available to generate usable amounts of power over 99
percent of the time. It will start to generate electricity when wind speeds reach 6 -9
miles per hour (or 3 – 4 meters per second), and cut off at about 45 miles an hour (or
20 meters per second) to prevent equipment damage.
Over the course of a year, modern turbines can reach more than 50-58 percent of
their rated maximum capacity; that is as good as or better than most other forms of
electric generation such as natural gas plants, which also don’t run 24/7.
How wind energy gets to you
Windmills vs. Wind Turbines
The terms “wind mill” and “wind turbine” are sometimes used interchangeably, but there are
important differences. Windmills generate mechanical energy, but they do not generate electricity.
People started using windmills centuries ago to grind grain, pump water, and do other work.
Today's wind turbine is a highly evolved machine with more than 8,000 parts. Modern wind turbines
harness wind's kinetic energy and convert it into electricity.
What is a wind farm?
Wind turbines often stand together in a windy area that has been through a robust development
process, in an interconnected group called a wind project or wind farm which functions as a single
power plant that puts electricity onto the grid.
How wind energy gets to you
The turbines in a wind farm are connected so the electricity can travel from the wind farm to the
power grid. Once wind energy is on the main power grid, electric utilities or power operators will
deliver the electricity where it is needed. Smaller transmission lines called distribution lines will collect
the electricity generated at the wind project site and transport it to larger "network" transmission lines
where the electricity can travel across long distances to the locations where it is needed, when finally
the smaller "distribution lines" deliver electricity directly to your town and home.
www.awea.org/wind-energy-101
Benefits of wind energy
Benefits of wind energy
Wind power pumps billions of dollars into our economy every year,
particularly into rural areas where 99.8 percent of wind farms are located;
70 percent reside in low-income counties. From 2008-15, the U.S. wind
industry generated more than $128 billion in private investment.
Wind energy supports 88,000 well-paying American jobs, including 21,000
manufacturing jobs (as of January 2016). The fastest-growing job in America
is “wind turbine technician,” according to the Department of Labor.
Wind energy is a drought-resistant cash crop that farmers and ranchers rely
on to make a living and keep their land in the family. Wind farm owners
make $222 million a year in lease payments (as of 2016). Local investments
paid help rural communities afford teachers, ambulances, and roads.
Wind investments are long-term 20-25 year, fixed price contracts for power
History of wind power
Earliest recordings in history describe wind power use
Wind mills on farms to pump water, later for small sources of light
First large wind turbine erected during WWII
1970s energy crisis spurred industry growth
Subsided crisis equated to waning American interest in new technology
Europe jumped on the American technology as they lacked the natural resources to
power their own energy needs and transportation costs were much higher
After 20 years of R&D and technology deployment, Europeans exported the
technology back to the United States
- Iowa first state RPS in 1982
- Federal Production Tax Credit instituted 1992
- Texas significant development under Governors Bush and Perry
2001 first commercial wind project operational in Kansas
Wind powering the Kansas
economy
◦
◦
◦
◦
◦
More than $10 Billion in new investment in 15 years in Kansas
12,000 new jobs across rural and urban parts of the state
$16,000,000 in annual landowner payments*
$10,000,000 in annual payments to the counties*
Helped attract other businesses such as Siemens (Hutchinson) with 400
direct jobs and 450 indirect jobs and Mars (Topeka) with up to 400 direct
and 475 indirect jobs
◦ Industry does not use or receive any State General Fund dollars
◦ 20 – 25 year fixed price contract providing long-term price stability and a
hedge against fuel source volatility
◦ Lowest & fixed pricing driven demand from corporate & industrial
purchasers
Like any industry, there is robust competition for jobs and capital
investment. The states with stable and favorable environments win capital
investment.
1.5 MW Wind Turbine Scale
Rotor Diameter
231 - 252 ft.
Using 80 – 100 meter
towers and 77 – 100
meter rotor diameter
blades
Hub Height
Blade Tip
Height
213 to 262 ft
327 to 388 ft.
211 ft.
Boeing 747
Excavated Foundation With
Spread Footings
400 yards of concrete
700 #s re-bar / cubic yard
140 tons of steel
55’ wide & 10 foot deep
Tower Section
Base section = 16’ in diameter
Tower Sections
3 sections + nacelle
80m = 262’ to rotor
Tower = 148 tons
Tower Installation
Blade
Length =121’
3 blades / WTG
Weight = 7 tons / blade
Diameter = 6 feet
Tower/Nacelle/Rotor
Tower / Nacelle / Rotor = 248 tons
Operation & Maintenance
Fastest Growing Job in America –
Wind Turbine Technician
Wind is changing power generation portfolios
In 2015, Wind Generated Nearly 24% of All Electricity in
Kansas
Wind,
23.90%
Other, 0.30%
Coal,
53.70%
Nuclear, 18.90%
Natural Gas,
3.30%
Coal
Source: AWEA U.S. Wind Industry Annual Market Report Year Ending 2015
Natural Gas
Nuclear
Other
Wind
Enough U.S. wind power for 20 million homes, led by Texas
Top states
1.
2.
3.
4.
5.
Texas
Iowa
California
Oklahoma
Illinois
** EY15 data
1Q17 Kansas
5,116.5 MW
Source: AWEA U.S. Wind Industry First Quarter 2016 Market Report
Increasing contribution to the grid, reliably integrated
• By the end of 2016,
Kansas likely to be
powered by 30%
renewable energy
• At times, wind has
supplied more than
37% of the power
across the SPP
system
Source: AWEA U.S. Wind Industry Annual Market Report Year Ending 2015
Jobs across America
Top states for
wind jobs in 2015
Texas (24,001-25,000)
Oklahoma (7,001-8,000)
Iowa (6,001-7,000)
Colorado (6,001-7,000)
Kansas (5,001-6,000)
Source: AWEA U.S. Wind Industry Annual Market Report Year Ending 2015
Roughly 500 component part facilities in 43 states including Kansas. At
least 78% of the value of a wind turbine produced domestically compared
to 25% in 2005.
Kansans embrace our wind power
resource
Conducted by NorthStar Opinion, a national, well-respected polling firm
with Republican ties
91% of Kansans support renewable energy
76% support increasing the use of wind energy
75% support 2009 RPS law of 20% by 2020
71% agree using renewable energy helps keep electricity rates stable
68% support increasing the RPS to 25%
73% willing to increase their monthly bill by $1 to increase renewables
Kansas– 4
Mike Pompeo 1586MW
Congressman Dr. Marshall
Wind power supporter
Senator Moran
Wind power supporter
Policy stability drives growth
Experience confirms that policy stability is critical to the growth and overall
success of any industry – wind energy included
◦ Federal
◦ PTC Phased out by 2019
◦ Gradual 20% annual reductions in PTC value
◦ PTC helped quadruple America’s installed wind power from 16,702 MW in 2008 to 69,470 MW by the
third quarter of 2015 … enough power to supply over 18 million American homes.
◦ Kansas
◦ RPS
◦ Siting
◦ Transmission
With the 2nd/3rd best wind resource, Kansas has the opportunity to supply the
US with power and the Americas and perhaps the world with component parts
Policy stability drives growth
TP&L (Transportation Partners and Logistics) yard on Jennie Barker Road and U.S. Highway
50 in Garden City, TP&L is an off-loading and distribution site for wind generation
components that operates a section of rail near its yard that ships wind generation
components.
“We have 3,000 pieces sitting on the ground right now, and that’s the highest we’ve ever
had,” said Billy Brenton, vice president and co-owner of TP&L. “We probably put 15,000
pieces through our yard last year.”
“We’re in the center of the U.S. from the plants, so it makes sense for them to ship the
parts here, and then we can provide what they call last-mile trucking,” Brenton said.
All of the parts that make up the giant windmills — blades, hubs, the machine heads that
turns the rotors, and tower pieces — are delivered from the site via trucks to wind farms
under construction in Kansas, Colorado, Nebraska and as far away as Wisconsin.
The pieces currently being stored at the TP&L yard are destined to four wind projects
under construction.
With the recent passage of the federal production tax credit extension through Dec. 31,
2019, Brenton doesn’t expect business to slow down any time soon.
“Passing that tax just secured business for us in Garden City for the next seven years.”
- Garden City Telegram January 10, 2016
World’s Largest Utilities Invest
in Kansas Wind
This statistic represents the world's largest electric utility companies as of April 1,
2014, based on market value. The value ascribed is in billions of dollars. The
highlighted companies have wind energy investments in Kansas.
EDF – 75.5
GDF Suez - 64.6
ENEL – 53.2
Duke Energy – 49.9
Iberdrola – 44.1
Dominion Resources – 40.9
NextEra Energy 40.9
Southern Co – 38.6
E.ON – 37.6
Exelon – 28.7
RWE Group – 25.1
American Electric – 24.6
SSE – 24.1
Korea Electric Power – 21.9
Tenaga Nasional – 20.7
PPL – 20.7
Fortum – 20.3
PG&E – 19.4
CLP Holdings – 19.2
PSEG Public Service Enterprise - 19
Kansas Wind:
Vision For the Future
2001
First commercial
wind project online
112 MW, 170
turbines, Vestas
660kv
2005
2 wind projects
262 MW capacity
2009
8 wind projects
1,061.2 MW
capacity
2012
KS led US in wind
farm construction
9 projects came
online totaling
1640.2 MW
Kansas wind generation has doubled 4 times in 10 years
and is about to double for the 5th time.
2005 – 2006
2006 – 2008
2008 – 2010
2010 – 2013
2013 – likely end of 2016
Total 2,701.4 MW
operating
2015
Wind is 21.7%
power portfolio
Power 994,000
homes
2,865 MW
Operational
1673.5 MW under
construction
Kansas Wind:
Vision for the Future
2016
3,764 MW operational
2016/2017/2018
1,245 MW under construction
2030
-
Kansas Department of Commerce
estimates 7,000MW of wind for
export
Google, Microsoft
5,116.5 MW operational by early announcements, GM
2017
Governor Brownback announces
50% renewable energy
integration by end of 2018
1800MW shy
DOE Wind Vision 20% by 2030
2050 – wind largest source of
electricity at 35%
Comparative cost of generating technologies, fuel price risk
Comparison below show the range of renewable energy costs with and without federal production or
investment tax incentives compared to generating technologies that have fuel price risk.
Source: AWEA combination of data from multiple charts in Lazard’s Levelized Cost of Energy
Analysis – Version 8.0, available at:
http://www.lazard.com/pdf/levelized%20cost%20of%20energy%20-%20version%208.0.pdf
Cost falling with economies of scale
Source: LBNL
Wind energy costs decline is leading the clean energy sector by a wide
margin because of advanced technology
Wind-generated electricity is two-thirds cheaper than it was six years ago
The reasons wind energy is so affordable include:
Improved turbine technology, with increased rotor diameters and
hub heights
Better computer analytics, so we know more about where to place
the turbines and how to operate them as a unit;
Networked sensors, and drones, so we can know more about when
to maintain, before we have to repair or replace
U.S. factories, which save on shipping large components from
overseas
New technology reaches higher winds, opens more regions
Wind resource at 80m turbine hub height
Wind resource at 110m turbine hub height
Wind output smooths out over large areas, can be forecast
Wind variability
Wind uncertainty
Kansas wind benefits ratepayers
In January 2014, KCP&L announced a new wind energy purchase from a
project in Coffey County. KCP&L stated the total benefits to their
customers over 20 years included a $600M savings from wind power.
In the case of Infinity’s power purchase agreement with Sunflower, the
price was so low that Sunflower determined that it would have a neutral
or negative impact on their customer’s rates. "Wind energy is produced
for less than $0.03/kWh in today’s PPA environment, which is less than half
of your retail rates," Matt Riley, CEO Infinity Wind Power before House
Energy & Environment 2.14.13
Kansas City Board of Public Utilities just announced a new wind power
purchase from a project in Rush County. They anticipate the project will
provide approximately $900,000 in annual savings to customers.
Fort Hays State University installed 2 Vestas wind turbines to help power
the campus. The project came online in June 2013. The project forecasts
an annual energy bill savings of nearly $1 million for FHSU.
65 Corporations are Committed to
Going 100% Renewable
Source:
http://www.wri.org/sites/default/files/corporate_renewable_energy_buyers_principles_1.pdf
Operating Kansas Wind Projects
Prepared by The Wind Coalition
Project Name
County
Developer
Size
(MW)
Power
Offtaker
Turbine
Type
(MW)
Installed
Turbines
In-Service
Year
Gray County
Gray
NextEra Energy
Resources LLC
112
MKEC
KCP&L
Vestas 660kW
170
2001
Elk River
Butler
Iberdola
150
Empire
GE 1.5
100
2005
Spearville
Spearville II
Ford
enXco
100.4
48
KCP&L
GE 1.5
67
48
2006
2010
Smoky Hills
Phase I
Lincoln/
Ellsworth
TradeWind Energy
100.8
Sunflower – 50
KCBPU- 25
Midwest Energy – 24
Vestas
56
2008
Smoky Hills
Phase II
Lincoln/
Ellsworth
TradeWind Energy
150
Sunflower – 24
Midwest – 24
IP&L – 15
Springfield -50
GE
99
2008
Meridian Way
Cloud
EDP Renewables
201
Empire – 105
Westar - 96
Vestas
3.0
67
2008
Flat Ridge
Barber
BP Wind Energy
100
Westar
Clipper
2.5
40
2009
Central Plains
Wichita
RES Americas
99
Westar
Vestas
3.0
33
2009
Greensburg
Kiowa
John Deere/ Exelon
12.5
Kansas Power Pool
Suzlon
1.2
10
2010
Caney River
Elk
TradeWind Energy
200
Tennessee Valley Authority
(TVA)
Vestas
1.8
111
2011
1.8
1.5
Operating Kansas Wind Projects
Prepared by The Wind Coalition
Project Name
County
Developer
Size
(MWs)
Power
Offtaker
Turbine Type
(MW)
Installed
Turbines
In-Service
Post Rock
Ellsworth
Lincoln
Wind Capital Group
Pattern
201
Westar
GE
1.5MW
134
2012
Ironwood
Ford
Hodgeman
Infinity
Duke Energy/ Sumitomo
Corp. of America
168
Westar
Siemens
2.3MW
73
2012
Cimarron I
Gray
Competitive Power
Venture (CPV)
NextEra Energy
Resources LLC
165
Tennessee Valley
Authority (TVA)
Siemens
2.3MW
72
2012
Cimarron II
Gray
CPV
Duke Energy/
Sumitomo
131
KCP&L
Siemens
2.3MW
57
2012
Shooting Star
Kiowa
Infinity
105
Mid-Kansas
Electric Coop
GE 1.6MW
65
2012
Flat Ridge 2
Barber, Kingman,
Harper & Sumner
BP Wind Energy
470.4
AECI – 310.4
Arkansas Electric 51.2
SWEPCO -108.8
GE 1.6MW
294
2012
Spearville 3
Ford
EDF Renewable Energy
100.8
KCP&L
GE 1.6MW
63
2012
Ensign
Gray
NextEra Energy
Resources LLC
99
KCP&L
Siemens 2.3M
43
2012
Buffalo Dunes
Finney, Grant,
Haskell
TradeWind Energy
250
Alabama Power
GE 1.8 MW
135
2013
Operating Wind Projects in Kansas
Prepared by The Wind Coalition
Project Name
County
Developer
Size
(MWs)
Power
Offtaker
MJMEUC
KPP
KMEA
Turbine Type
(MW)
Installed
Turbines
In-Service
Vestas
V110-2.0 MW
36
2015
Marshall Wind
Marshall
RPM Access Wind
Development
74
Buckeye Wind
Ellis
Invenergy
200
Lincoln Electric
System & SPP
GE 1.79MW
111
2015
Western Plains
Ford
Infinity
400
Westar (280)
Siemens
133
2017
Alexander Wind
Rush
NJR Clean Energy Ventures
49.5
KCBPU & Yahoo!
Siemens 2.3 MW
21
2015
Waverly Wind
Coffey
EDP Renewables
200
KCP&L
Gamesa 2.0 MW
95
2016
Slate Creek Wind
Sumner
EDF Renewable Energy
150
Great Plains Energy
Vestas 2.0 MW
75
2015
Cedar Bluff Wind
Ness & Trego
NextEra Energy Resources
LLC
200
Westar
GE 1.79 MW
111
Ninnescah
Pratt
NextEra Energy Resources
LLC
200
Westar
GE 2.0 MW
100
2016
Kingman County Wind
Kingman
NextEra Energy Resources
LLC
200
Westar
GE 1.79 MW
GE 1.715 MW
120
2016
2015
Wind Projects Operational or
Under Construction
Prepared by the Wind Coalition
Project Name
County
Cimarron Bend
Clark
Bloom
Ford
Clark
Developer
Enel
Capital Power
Size
(MWs)
Power
Offtaker
Kansas City
Board of Public
Utilities
400MW
(200MW)
Google
(200MW)
178MW
Allianz Risk
Transfer
Microsoft
Turbine Type
(MW)
Installed Turbines
In-Service
Vestas
2.0MW
200
Phase 1
December 31,
2016
Phase II
1Q2017
Vestas
3.3MW
54
2Q2017
Future of wind energy
Successes
Innovation driving down price
◦ Achieved 67% reduction in cost per kilowatt hour last 5 years
Improved forecasting
Continued R & D is driving new markets & buyers
“Made in America” success story
Reduced water consumption
Energy Storage is on the forefront of change for the wind industry.
◦ Predict the cost per kilowatt hour to decrease by 41% in 5 – 10 years
◦ Impacts of energy storage on the wind industry will become clearer as the
market evolves and distinct strategies emerge.
Future of Wind Energy
Challenges
Policy stability
Transmission investment
Innovation is leveling the playing field
Solar technology advances & rapid price decline
Other disruptive technologies very likely in the next 5 – 10 years
Questions?
Kimberly Svaty
913.486.4446
[email protected]