Sunday, May 08, 2011

Orangeville anti-wind group aims to continue lawsuit appeal

ORANGEVILLE — Clear Skies Over Orangeville aims to continue its appeal of its lawsuit against the town’s 2009 zoning amendments.

The group that opposes the proposed Stony Creek Wind Farm filed a motion Monday to reargue the case. It is also asking permission to appeal to the Court of Appeals in Albany.

If those motions are denied, CSOO will pursue a separate request for permission to appeal directly to the Court of Appeals, said Gary Abraham, the group’s attorney.

CSOO plans to argue there was a lack of any factual basis for the town’s zoning amendments allowing 50 decibels for such projects; and ethics violations by the Town Board.

Although not part of the appeal, Abraham has questioned the joint motion filed by Invenergy.

“During the course of the proceedings, and particularly in the appellate court, the town and Invenergy put in briefs that were identical,” he said in an interview last month. “I strongly suspect Invenergy did all the legal work, which would constitute a questionable gift of services.”

But that issue isn’t part of the appeal.

Town Attorney David DiMatteo said Invenergy’s attorney Hodgson Russ has been involved since CSOO’s lawsuit was first heard in court.

“Obviously we collaborated with regards to the responses,” he said. “Invenergy’s attorney Hodgson Russ entered understanding our interests were unified, and were granted entry by Supreme Court, granting them permission to intervene because our interests were so similar.”

He said the court and appeals judges weren’t swayed by CSOO’s previous arguments.

If successful, the CSOO appeal would be the latest in the ongoing legal action over the project.

The group originally filed suit in Jan.10. Its members sought to invalidate the town’s 2009 zoning amendments, which set the rules for wind turbine development.

The lawsuit was dismissed by State Supreme Court Judge Patrick NeMoyer. The CSOO members appealed, but a five-judge panel upheld his decision in a March ruling.

The group’s arguments were almost entirely rejected in NeMoyer’s decision, which found no conflicts of interest or ethics violations.

In an open letter to town residents last month, the Town Board said the lawsuit and appeal had cost the town $29,789.61. Abraham said last month that CSOO was reluctant to say how much it’s spent, but that its funding was raised by people in the community, and did not include outside sources.

The Chicago-based Invenergy is proposing a 59-turbine wind farm in Orangeville. It operates a similar project in the adjacent town of Sheldon.

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Thursday, May 05, 2011

Zotos' wind turbines idled by snag

What was billed as the largest wind energy project at a manufacturing facility in the United States was rolled out last summer as a showcase of green energy.

But the blades have remained motionless on the two 364-foot wind turbines erected in January at the Zotos International plant in Geneva.

New York State Electric and Gas Co. spokesman Clayton Ellis said in an email that the towers are too close to NYSEG power lines.

"We anticipate resolution of this issue by relocating the power lines," Ellis said.

He declined to respond to any other questions.

Zotos vice president of operations Anthony Perdigao also released a statement by email: "With respect to the wind generation project, Zotos is working through some operational issues with NYSEG, and we are confident that we will resolve those issues."

According to the American Wind Energy Association, the $7 million project is the largest of any manufacturing company in the U.S.

Federal economic stimulus funding covered 30 percent of the cost.
The turbines are projected to generate about 70 percent of the plant's energy. Zotos spends about $1 million a year on electricity.

A maker of hair dyes, Zotos has more than 360 full-time and 310 flex-time employees at the 660,000-square-foot plant on Forge Avenue in the Ontario County city.

Wednesday, May 04, 2011

Changes for First Wind mean little to Cohocton

Cohocton Supervisor Jack Zigenfus was notified Monday about the changes with First Wind.

“They didn’t want the town to be alarmed,” he said. “They called me so I wouldn’t hear about it second-hand.”

The only change for the town will be in the insurance bonds regarding agreement with First Wind. Zigenfus said the insurance company will have to issue new bonds, worth $300,000, after the agreement between the companies.

Zigenfus pointed to First Wind depositing $100,000 in the town’s bank account Saturday as an example of business continuing as usual with the wind energy company.

The $100,000 is payment as part of a six-year road use agreement between the town and company. The agreement is now in its fifth year, said the supervisor.

Projects started and completed by First Wind that are transferring to the operating company include the Cohocton Wind and Steel Winds I in Lackawanna, as well as a project in Vermont and four projects in Maine, according to the release.

Read the entire article

Tuesday, May 03, 2011

First Wind enters new partnership agreement

First Wind Holdings Inc., Algonquin Power and Utilities Corp., and Emera Inc. have entered into an agreement to jointly construct, own, and operate wind energy projects in the Northeast, including projects in Maine and Vermont, the three companies said in a press release issued over the weekend.

Boston-based First Wind has a portfolio of five operating wind energy projects and two projects about to go operational. Those assets will become part of an operating company that First Wind will own 51 percent of, the press release said. Emera and Algonquin, both based in Canada, are entering into a joint venture called Northeast Wind that will own the remaining 49 percent of the operating company.

Last year, First Wind drew up plans to go public with an initial public stock offering. In October, First Wind suddenly pulled the plug on the planned IPO after investor demand went slack.

Commenting on First Wind's agreement with Algonquin Power and Emera, a First Wind spokesman wrote in an e-mail that First Wind is excited about this new agreement "because it provides a significant amount of capital so we can build more projects down the road."

Emera and Algonquin have scheduled an analyst call for this morning to discuss the agreement.

Algonquin Power & Utilities owns and operates a diversified portfolio of clean renewable electric generation and sustainable utility distribution businesses in North America.

Emera is an energy and services company with $6.3 billion in assets and revenues of $1.6 billion.

Monday, May 02, 2011

Wind Power Promises and Predictions Gone Awry

The predictions and promises made by wind developers for Northern New York in 2005-2007 can now be analyzed in the light of a number of wind projects that have been in operation for 3 or more years.

I have scrutinized a number of news articles, press releases, and meeting minutes from the above period on wind power. Developer promises have come to pass in nearly none of the cases.

Most of the wind plant statistics I have quoted refer to the 106.5 MW capacity Chateaugay project. (All are verifiable). I use Chateaugay because it is in Franklin County and is the largest of the four area wind plants. The other three -- Clinton, Ellenburgh, and Altona -- have virtually identical outputs.

John Quirke of Noble Power said that local wind projects should average 30-35% of their listed capacity. In 2010, however, the Chateaugay wind plant only averaged 20.6%. The predicted value was exaggerated 58% over actual. According to Public Service Commission Report #09E-0497, if transmission losses and wind project electric use are subtracted, the wind projects only returned about 10% of their advertised capacity to consumers.

Noble’s Mark Lyons said the Chateaugay project would produce enough electricity to power 33,000 homes. The actual output of 192,000 MWh in 2010 would power fewer than 18,000 homes, again a significant exaggeration over estimate. There is a huge caveat in these figures, since Chateaugay had 1,222 hours of no output (that’s more than 50 days). Since this down time is unpredictable, Chateaugay can supply reliable electricity to ZERO homes. The low average value of NNY wind speeds coupled with a very high degree of variability means Northern NY is NOT suitable for economically viable nor dependable industrial wind installations.

In hyping a tentative 70 turbine project for Malone, Noble's Mark Lyons predicted it would create up to 45 jobs. This sounds like an exaggeration since the 195 turbines at Tug Hill created less than 40 jobs. The job creation aspect of wind projects is also often over-inflated. A Dept. of Energy document tells of a loan guarantee to First Wind for $117 M for a project to create 10 jobs. That’s nearly $12M per job.

All of Noble’s presenters claimed that wind would produce cheap electricity since the fuel is free. The reality? Chateaugay’s electricity cost of $38 MWh is more than 20% higher than the cost of power from the FDR Seaway hydro plant. Maybe wind power should be touted as “not so cheap electricity”. The sale of electricity in Chateaugay will not be sufficient to pay for the turbines before they are worn out!!

Chuck Hinckley said “there is no evidence of property devaluation near large wind turbines”. In fact, there are a number of well done professional studies that have found significant property devaluation near wind turbines. Studies done in Texas and Wisconsin are among the best. Some local realtors avoid listing properties near turbines because they are hard to sell.

Dan Boyd, Noble’s project manager, stated on several occasions that wind power could reduce our dependence on foreign oil. Any such effect is laughingly small. The entire 2010 energy production at the Chateaugay wind plant is equivalent to a mere 17 minutes of imported oil. Since oil and electricity generally serve different uses, the effect is negligible. To produce 25% of imported oils energy would take approx. ½ million turbines occupying 30+ million acres (5 Adirondack Parks). An impossible dream.

All of Noble’s spokepersons claimed that free and clean windpower would combat global warming. No one mentioned the huge carbon emissions debt created when building a wind project.

An in-depth study by the internationally respected Pacific Research Institute found that a typical project must operate for 7 years at full capacity before it pays back all the emissions produced in manufacture and construction. Since our local wind plants operate at about 20% capacity, it would take 30+ years to become emission free. Not bad for machinery that the manufacturer (GE) says will last 20 yrs.

Then there’s the mercury problem. Through cement use, wind projects have released enough airborne mercury to render most of the fish in the Adirondacks inedible.

Mark Lyons and Chuck Hinckley insisted that Noble would pay its fair share of taxes. Yet the PILOT agreement with Franklin County has most homeowners paying 10 times the tax rate that Noble does.

In the PILOT agreement with Clinton County IDA, Noble offered to pay a bonus of $1000/MW every time the annual capacity factor of any of their projects exceeded 35%. The problem? No NY wind project has ever exceeded a 35% annual c.f. Probably none east of the Mississippi has ever done so. Did Noble know this? If so, it was a con.

Lyons insisted that all the land around turbines could have the same use it could have had before they were installed. Not quite. If a turbine had to be sited say 1500’ from a home for health and safety reasons, then future homes could be built no closer than 1500’ to existing turbines. Thus, each turbine would exclude 160+ acres from home building.

Lyons and others claimed that 1&1/2 times the tower height was a safe setback from roads, trails and other areas frequented by people. Basic physics, however, shows that debris from blades at normal operating speeds can fly up to 1000’ far more than 1&1/2 tower heights. The runaway turbine that self-destructed in Altona in 2009 could theoretically throw debris up to 1640’. 1&1/2 tower height setbacks are woefully inadequate, actually downright dangerous.

Lyons and Hinckley maintained that noise was not a problem and the sound emitted by turbines was “no louder than a refrigerator”. Neighbors soon found the turbines at times much louder than a refrigerator. Medical experts are just learning that sound undetectable to the human ear (infrasound) is causing serious health problems. This is known as Wind Turbine Syndrome(WTS). These problems have been diagnosed in hundreds of people worldwide who live near wind turbines. This has led the prestigious French Societe de Medicine to recommend 2 km. (1.24mi.) between turbines and all houses.

Lyons said their turbines only turned at 20 RPM’s therefore they were little threat to birds. A little math shows that the tip speed of a 20 RPM 240’ diameter rotor is nearly 180 mph. -- certainly fast enough to do in most birds!

One has to wonder if the huge discrepancy between what the wind developers promised and what ultimately transpired is due to ignorance of a fledgling company that did not do its homework or the result of a concerted deceptive propaganda campaign designed to dupe a naïve and trusting rural populace?

Algonquin Power and Emera Sign New Strategic Co-Operation Agreement

Algonquin Power and Utilities Corp. (APUC) (TSX: AQN) and Emera Inc. (TSX: EMA) have signed a new strategic investment and co-operation agreement pursuant to which the two companies will pursue projects in each specific areas or in tandem in projects of mutual benefits.

The agreement specifies “areas of pursuit” for each of Algonquin and Emera. For Algonquin, these include investment opportunities relating to unregulated renewable generation, small electric utilities and gas distribution utilities. For Emera, these include investment opportunities related to regulated renewable projects within its service territories and large electric utilities. In respect of opportunities encountered by either Algonquin or Emera that fit within the other’s business development “areas of pursuit”, they are committed to working together on such opportunities.

Algonquin and Emera commenced their joint-venture and strategic investment partnership in April 2009 when the two companies jointly established California Pacific Utilities Ventures, LLC (CPUV) . Iin January 2011 CPUV completed the acquisition of the California-based electricity distribution and related generation assets of NV Energy, Inc. for total consideration of US $131.8 million. Currently CPUV owns and operates through California Pacific Electric Company, LLC (CalPeco). The amount paid by Emera for its 49.999% equity investment in the common shares of CPUV was US $30.9 million. In connection with the acquisition, Emera agreed to a conditional treasury subscription for approximately 8.5 million shares of APUC at a price of $3.25 per share.

In December 2010, Algonquin, through Liberty Energy Utilities Co., entered into agreements to acquire Granite State Electric Company, a regulated electric utility, and EnergyNorth Natural Gas Inc. a regulated natural gas utility from National Grid USA for total consideration of US $285 million. In connection with the acquisitions, Emera has agreed to a treasury subscription of subscription receipts convertible into 12.0 million APUC common shares upon closing of the transactions at a purchase price of $5.00 per share

As first act pursuant to the new agreement, Algonquin will acquire Emera’s 49.999% ownership in CalPeco to own 100% of CalPeco. Algonquin will issue 8.211 million Algonquin shares in two tranches to Emara. As part of the agreement, Emera’s allowed common equity interest in Algonquin will be increased from 15% to 25%. Algonquin will seek shareholder approval at its upcoming annual and special general meeting scheduled for June 21, 2011.

As second act under the agreement, Algonquin and Emera, through Northeast Wind, a joint venture of the two companies, have acquired a 49% minority interest in First Wind Holdings, LLC’s wind energy projects in the Northeast U.S.

First Wind will transfer its Northeast wind energy projects to a new operating company of which First Wind will own 51%. Northeast Wind will own 49%. Northeast Wind will invest a total of $333 million to acquire the 49% ownership of the operating company. This includes a $150 million loan to the operating company. The loan will be repaid within 5 years, or convert to equity in future projects.

Emera will initially own 75% of Northeast Wind and Algonquin will own the balance.

Row after wind farms 'turned off'

Six wind farms were given six-figure payments to switch off their turbines because the Scottish grid network could not absorb all the energy being produced, it has emerged.

Research by the Renewable Energy Foundation (REF) found energy companies were paid a total of £900,000 for stopping the turbines for several hours between April 5 and 6 this year.

The REF said some of the payments were as high as 20 times the value of the electricity which would have been generated if the turbines kept running.

The National Grid makes constraint payments to power stations that agree to stop generating in order to stabilise the network.

It happens when the grid system or a section of the system is unable to absorb all the electricity being generated, and some generators that are contracted to generate are asked to stand down.

The largest payments were made to Whitelee wind farm in East Renfrewshire, which was given over £300,000 in April 2011, and Farr wind farm, south of Inverness, which received over £260,000 in the same month.

Dr Lee Moroney, Planning Director for the REF, said: "The variability of wind power poses grid management problems for which there are no cheap solutions.

"However, throwing the energy away, and paying wind farms handsomely for doing so, is not only costly but obviously very wasteful.

"Government must rethink the scale and pace of wind power development before the costs of managing it become intolerable and the scale of the waste scandalous."

The National Grid said the grid had overloaded because high winds and heavy rain in Scotland on April 4 and 6 produced more wind energy than it could use.

Sunday, May 01, 2011

First Wind to partner with two Canadian companies

The most aggressive developer of wind power in Maine has entered into a complicated partnership agreement with two Canadian power companies in order to build, own and operate wind projects in the Northeast United States.

The deal was reached late Friday night, according to a First Wind spokesman. In the most basic sense, it provides First Wind of Boston with seriously needed financing through Ontario-based Algonquin Power and Utilities Corp. and Halifax-based Emera Inc.

Both Canadian companies already have significant interests in Maine. Emera is the parent company of Bangor Hydro-Electric Co. and Maine Public Service Co. Algonquin owns hydroelectric generating facilities in northern Maine, including Caribou Hydro and Squa Pan Hydro, as well as some thermal power facilities in the region.

“This is an excellent strategic partnership that brings together the region’s leading wind company with some of the region’s leading power and utilities companies. This partnership will help bring further growth of well-sited and well-run wind energy projects in the region in the future,” said Paul Gaynor, CEO of First Wind, in a statement from the three companies. “This agreement will support First Wind’s plans to grow and develop and invest in new projects in the Northeast and across the country.”

In the deal, Ontario-based Algonquin Power and Utilities Corp. and Halifax-based Emera Inc. will form a joint venture, Northeast Wind.

First Wind, which has developed wind farms across Maine, and has several more in the development pipeline, will enter into an agreement with Northeast Wind. In that agreement, First Wind and Northeast Wind will create an unnamed operating company that will own First Wind’s wind farms on the East Coast, according to a statement from First Wind, Algonquin and Emera.

Those include Mars Hill Wind, Stetson Wind I and II in Danforth, and the under-construction Rollins Wind Project, as well as operations in Vermont and New York.

First Wind will own 51 percent of the operating company, and Northeast Wind will own 49 percent.

Northeast Wind will invest a total of $333 million to acquire that 49 percent. That includes a $150 million loan to the operating company, to be repaid within five years, or converted to equity in future projects. The remaining $183 million would go to First Wind, which is relinquishing sole ownership of those wind farms to the operating company.

In addition to its ownership interest in the operating company, First Wind will serve as its managing partner and will continue to operate the projects. First Wind will continue to develop Northeast projects, eventually to be transferred to the operating company – providing First Wind with additional revenues to put toward future developments.

According to First Wind spokesman John Lamontagne, the company has a number of potential projects in Maine that are in various stages of siting and permitting, including one near Rumford, one in Bingham, one on Bowers Mountain in Carroll Plantation, one in Oakfield, and one near Eastbrook on Bull Hill.

For Algonquin and Emera, the deal represents an investment in the American renewable energy sector – and its robust market of electricity users on the East Coast – that would potentially extend well into the future.

“This investment is an excellent means for Algonquin to partner with Emera and expand our reach into the New England renewable energy market with a strong portfolio of attractive wind projects,” said Algonquin CEO Ian Robertson in the release. “This transaction augments Algonquin’s growth strategy and affords us the opportunity to lever our expertise alongside the First Wind development team and expand our participation with Emera in the New England ISO electricity market.”

Emera is an investor in Algonquin. This deal also includes an opportunity for Emera to increase its ownership interest in Algonquin up to 25 percent, subject to Algonquin shareholder approval.

The deal with Emera and Algonquin follows First Wind’s decision last October to shelve its initial public offering, in which it had hoped to raise up to $240 million, which the company intended to use to pay off a $78 million loan and fund future project development and construction costs.

First Wind first indicated its intentions to go public in 2008 SEC filings. It backed away from those plans as the country’s economic troubles grew, waiting for the IPO market to improve.

After that IPO fell through, the company continued to seek ways to finance its operations. In December, KeyBank and Germany’s 10th-largest financial institution helped arrange $98 million in financing to allow First Wind to finish its $130 million Rollins Mountain industrial wind site in and near Lincoln.

And now there’s the deal announced this weekend, which still needs certain state, federal and other regulatory approvals, and is expected to close by the end of the year.

The development of wind projects in Maine has become controversial in recent years, marked by lawsuits and protests by groups unhappy with their impact on scenery, health and the environment.

To supporters, industrial wind farms create good-paying construction jobs, funnel much-needed tax dollars into host communities and help Maine move toward greater energy independence from fossil fuels. Wind power developers have spent an estimated $1 billion on projects in Maine in recent years.

Earlier this week in Augusta, the Legislature’s Energy, Utilities and Technology Committee began public hearings on more than a dozen bills targeting the wind power industry.

APOV: Wasteful, redundant schemes must stop

Every day we are bombarded with stories about the out-of-control spending going on in Washington, as our national debt continues to soar. A particularly infuriating report that recently came out exposed the hundreds of billions wasted every year due to redundancy in our government. With the United States flirting with economic disaster as our debt nears $14.3 trillion, it seems we could all agree on this one thing — redundancy must be eliminated!

A perfect example of government-sponsored redundancy that taxpayers and ratepayers foot the bill for is industrial wind. Due to wind’s intermittent, volatile nature, our reliable, dispatchable, baseload power sources must provide constant back-up power for wind at all times — a redundancy we simply can not afford. Claims that this redundancy is necessary to reduce CO2 emissions and save the planet have been proven false by a number of studies. The Colorado/Texas Bentek studies, which looked at actual wind performance data, concluded that wind caused coal plants to operate more inefficiently, “often resulting in greater SO2, NOx, and CO2 emissions than would have occurred if less wind energy were generated and coal generation was not cycled.”

Wind’s typical outputs range from 10 percent to 20 percent — making the negative return on investment very clear. Wind received $3.4 billion in Section 1603 direct cash grants last year alone. Another $2.2 billion of stimulus funds were given to “renewables” (mostly wind) — of which 80 percent went overseas. Yet, mega-corporations like GE (who paid zero taxes on $15 billion in profits last year), who are benefiting from all these handouts via our tax dollars, have “no skin in the game” when it comes to industrial wind projects.

Analysis by Chris Horner, an energy expert at the Competitive Enterprise Institute (author of the books “Green Hell” and “Power Grab”), indicated that the stimulus bill’s subsidies for renewable energy cost taxpayers about $475,000 per job created — “a lousy return on investment, even for the government.” President Obama warned us in his campaign that “his energy policy would cause electricity prices to necessarily skyrocket,” and with “green” jobs costing at least four times to create what it costs a non-subsidized private firm to create a job, it’s no wonder! (“The Wind Subsidy Bubble,” Wall Street Journal.)

Obama continually referenced Spain early on in his push for all things “green.” The President doesn’t talk much about Spain anymore — ever since a study out of Spain revealed that for every “green” job created, 2.2 jobs were lost in the rest of the economy — leading Spain to an unemployment rate of over 20 percent. Or maybe it’s because Spain has the highest electricity rates in Europe.

Then there was the revelation by the CEO of UK’s National Grid, that a six-fold increase in wind power will mean rationed electricity.

All of these facts in the face of our already overwhelming debt, beg the question — Why would anyone want to waste our taxpayer and ratepayer dollars on this obvious disaster? Especially when all these facts are now widely known and easily accessible? Sadly, we see the pursuit of this utterly divisive, redundant energy source being perpetuated by willfully blind political and business leaders right here in Western New York.

The realities of industrial wind are clear. The only thing reliably generated by these negative-return-on-investment, redundant projects are complete and utter civil discord — not something any business leader worth his oats would pursue.

We all have a responsibility to educate ourselves, speak out, and demand accountability from our elected officials. It’s time we insist that the government welfare programs that enable redundancy and negative-return-on-investment schemes to exist, be ended! As Edmund Burke said, “All that is necessary for evil to triumph is for good men to do nothing.”

Thursday, April 28, 2011

Clayton wind law changes urged

CLAYTON — Town Supervisor Justin A. Taylor, who voted against stricter regulations on wind development exactly a year ago today, called for a far stricter set of criteria for commercial wind farms to follow that would have an impact on any projects proposed for the town.

Included in his recommendations at a Town Council meeting Wednesday are increased setbacks for wind turbines and measures to protect property values in the wind overlay district.

He proposed amendments to the town's wind law, or Local Law No. 1 of 2007, that would increase the setbacks to 1,250 feet from nonparticipating property lines instead of from residences and require wind companies to reimburse wind district residents if they are unable to sell their properties at assessed value after a year, among other things.

"Is it perfect? Is it the right number? I don't know. But it's better than what we've got now," Mr. Taylor said. "At this point in time, it gives us an opportunity and the applicant an opportunity to make adjustments before any shovels are put in the ground."

Read the entire article

First Wind challenges direction of 'Big Wind' project

The recent decision by Castle & Cooke to cede 200 megawatts of its wind allocation for the so-called “Big Wind” project to Pattern Energy so it can develop a wind farm on Molokai is being greeted with criticism from First Wind CEO Paul Gaynor.

The Big Wind project seeks to bring 400 mw of wind energy from Molokai and Lanai to Oahu via an undersea cable. The original 2008 agreement included plans for Boston-based First Wind to develop a 200 mw wind farm on Molokai and Castle & Cooke to develop a 200 mw wind farm on Lanai.

First Wind officials missed a March 18 deadline to secure land for the project from Molokai Ranch despite several offers. Earlier this month Peter Nicholas, the CEO of Molokai Ranch, announced that he had chosen San Diego-based Pattern Energy as its preferred developer if the project was to go forward, and that he would not work with First Wind.

In a recent letter to the state Public Utilities Commission, Gaynor described the agreement between Castle & Cooke and Pattern Energy as being in direct violation of the original agreement between Hawaiian Electric Co., Castle & Cooke and First Wind, in addition to going against stipulations included in the PUC’s original order approving the agreement.

Gaynor also described the new agreement with Pattern Energy as “contrary to the interests of ratepayers and the interests of the state of Hawaii and its people.”

According to Gaynor’s letter, the original 2008 agreement approved by the PUC stipulated that if one of the Big Wind developers failed in pursuit of their project, the other developer could develop up to 350 mw on its designated island and the remaining 50 mw could be competitively bid. Alternatively, the PUC’s decision allowed for 200 mw of wind energy to be competitively bid, according to Gaynor’s letter.

Gaynor said that First Wind was “very surprised and equally concerned” that the original agreement is now “being subverted, if not breached, by these most recent developments in which C&C has unilaterally claimed a right to develop the full 400 mw and further is seeking to ‘assign’ 200 mw to an entirely new party its ‘development opportunity’ on another island, Molokai, with respect to which C&C has no relationship, contract or any other legal rights whatsoever.”

Gaynor also said that, “to our great disappointment, Hawaiian Electric seems to be supporting these actions.”

Earlier this month, Hawaiian Electric officials advised the PUC against extending an eight-month deadline to First Wind to secure the land needed for the Molokai wind farm. First Wind officials requested the deadline a day prior to the March 18 deadline.

Hawaiian Electric officials also submitted an agreement for PUC approval this month, which included an option for Castle & Cooke to assign a portion of the project to a developer on Molokai — an action which Gaynor said “stunned” First Wind. (The announcement of an agreement between Castle & Cooke and Pattern Energy followed shortly afterward.)

"Despite concerted efforts, First Wind has been unable to secure the rights to lease land needed for a wind farm" on Molokai, said Hawaiian Electric spokesman Peter Rosegg, in a statement. "Without that fundamental step by the deadline, they were unable to negotiate a term sheet with an agreement on major issues like pricing."

That said, Rosegg added that HECO still considers First Wind "a good partner" for Hawaii and Hawaiian Electric, noting that the utility has been "pleased" with its relationship on the Kaheawa and Kahuku wind farms.

Gaynor’s letter urges the PUC to rule that Castle & Cooke has no right to assign any wind development opportunity on Molokai to Pattern Energy, and that 200 mw of the wind project be put out to competitive bid. The 200 mw to which First Wind refers includes 150 mw which Castle & Cooke has chosen not to develop on Lanai and the 50 mw which was originally intended to be competitively bid if development plans for one of the wind farms fell through.

According to Gaynor, First Wind officials “would be happy to work with Hawaiian Electric, as well as the commission” on this matter.

Officials from Castle & Cooke and Molokai Ranch could not immediately be reached for comment. A Pattern Energy spokesman is working to respond to questions from PBN related to its understanding of the agreement.

John Lamontagne, a spokesman for First Wind, made this response by email: “The letter speaks for itself. We have communicated with the PUC and expect that they and other state leaders will determine how to move forward from here on the interisland cable.”

First Wind officials also told PBN in early April that they hoped that the island of Maui would be included “as the ‘third leg of the stool’ to improve the overall likelihood of success of the interisland cable project.” The island of Maui was not included in the original agreement.

Lamontagne told PBN Tuesday that “we are not suggesting that Maui be included in the interisland cable project instead of either of the other islands, just that it be added to the process.”

Tuesday, April 26, 2011

Hammond Hears From Iberdrola

The Hammond Town Board heard a final plea from an Iberdrola spokesperson and decided to look to its attorney for wordsmithing its wind law, but took no other formal action on recommendations made by the wind advisory committee at a special meeting Monday.

Iberdrola's Jenny L. Burke said her company "believes the existing law is reasonable and consistent with the majority of 15 operating wind farms in New York State."

"If you take the committee's recommendations as is," Ms. Burke said, "you're eliminating a project before a site-specific plan and our environmental impact statement have even been produced."

Coupled with more intensive studies that will meet any regulations set forth by the state Department of Environmental Conservation, United States Fish and Wildlife Service, or state Department of Agriculture and Markets, Ms. Burke said Iberdrola could "offset any negative impacts" with the money and jobs such a project would generate in Hammond.

Read the entire article

'Hawaii is the guinea pig'

Hawaii's pursuit of energy independence has made the state a testing ground for technology to overcome the instability of wind and solar power generation.

Hawaiian Electric Co., the state's largest utility, is leading the charge, investing in battery storage technology and honing its grid-management skills as it braces for a surge in the growth of renewable energy sources.

A cloud passing over a photovoltaic panel or a sudden drop in wind at a wind farm presents challenges for any utility trying to maintain a flow of electricity through its grid at a constant frequency. That challenge becomes even more difficult on island grids, like those managed by HECO and the Kauai Island Utility Cooperative, where electricity cannot be brought in from a neighboring state to smooth out fluctuations. The world will be watching to learn from the successes and failures in Hawaii, experts say.

"Hawaii is the unintended guinea pig for these technologies," said Sam Jaffe, an analyst at IDC Energy Insights, an energy industry consulting firm. Battery storage, although expensive, is emerging as the most practical solution to the problem, he said.

The growth of utility-scale wind projects and a surge in photovoltaic generation on thousands of rooftops of homes and businesses in Hawaii is unparalleled in any other state, according to Jaffe.

"Just last year Hawaii emerged as the leader. And that will be even more true in the next few years," he added.

Xtreme Power, an industry leader in battery storage for wind and solar energy products, has made Hawaii a testing ground for its technology, which it says is superior to lithium ion batteries when it comes to energy storage, efficiency, longevity and cost.

Xtreme Power has been running a demonstration project for several years at First Wind's 30-megawatt Kaheawa Wind Farm on Maui. The technology proved successful, and Xtreme has landed contracts to supply battery backups at First Wind's 30-megawatt project in Kahuku, scheduled to start generating early next year, and the Kaheawa II project, scheduled to break ground next year.

Although privately held Xtreme Power won't disclose pricing for its battery systems, the cost can be high, Jaffe said. At an estimated cost of $1,000 per kilowatt, the 10-megawatt battery system planned for the Kahuku wind farm could cost as much as $10 million, he said. The price is expected to come down as technology advances, he said, noting that automaker Nissan is targeting a battery cost of $400 per kilowatt for its electric Leaf by 2012.

Xtreme also is installing a battery at the state's largest solar farm, a 1.2-megawatt photovoltaic project developed by Castle & Cooke on Lanai capable of supplying 30 percent of the island's electricity. The system is currently running at half power because without a battery backup to smooth out the volatility of solar generation, the system would cause the grid on Lanai to crash.

Lanai also has been targeted for a 200-megawatt wind farm that is still in the conceptual stage. The project, along with another 200-megawatt farm eyed for Molokai, would deliver electricity to Oahu via an undersea cable.

An Idaho-based energy company has proposed building a pumped-water-storage project on Lanai to help with energy storage issues should the wind farm ever be realized. The plan, advanced by Gridflex Energy LLC, would feature a reservoir on the western end of the island at an elevation of 1,790 feet to hold stored sea water pumped using electricity generated by the wind farm during hours when overall electricity use is low. The water would then be allowed to run downhill through a hydroelectric generator during hours of peak electricity demand. Castle & Cooke and HECO say concerns about cost and environmental impact make the project unlikely to advance.

Meanwhile, HECO says it is using federal stimulus money to study the feasibility of integrating battery storage systems in its distribution networks to help stabilize the flow of electricity as it takes on more "distributed energy" from rooftop solar systems around the state.

The utility also is working to improve its forecasting for wind and sunshine so it can be better prepared for the ebbs and flows from the renewable sources, said Scott Seu, HECO's vice president for energy resources.

"We're trying to be more aggressive in our approach to renewables while at the same time being prudent."

Chinese wind turbine maker Goldwind wins two U.S. deals

Xinjiang Goldwind Science and Technology Company, a leading Chinese wind turbine maker, has won two new orders in the United States, the company said here Monday.

These two orders comprise of five 1.5 megawatt (MW) direct-drive permanent magnetic wind turbines, sold to clients in the United States, said Goldwind.

The turbines will be installed in two wind farms respectively located in Ohio and Rhode Island, which are funded by local American companies. Goldwind did not say when the two turbines will be delivered.

Despite surging growth of annual output in recent years,most Chinese-made wind turbines are supplied to the domestic market.Chinese wind turbines have little track record in the U.S. or Europe.

In 2010, China exported 13 wind turbines, totaling 15.55MW. Exporting wind turbines has become a strategic target for leading Chinese wind turbine makers as they compete to take up a larger share of the world market.

Tim Rosenzweig, chief executive of Goldwind USA Inc., the American arm of Goldwind, said "Goldwind has achieved marvelous results in tapping the world market since our American arm was established a year ago. Our company has employed local staff workers and cooperated with local suppliers. It proves effective to promote our internationalized expansion through a localization strategy."

In early 2010, Goldwind integrated into the grid three 1.5MW wind turbines in UILK Wind Farm, Pipestone Town of Minnesota. It was Goldwind' s first wind farm project in the United States, and also its first MW-level wind farm project in overseas areas.

In December 2010, Goldwind USA won a competitive bid to provide power from the Shady Oaks project, fully owned by TianRun Shady Oaks LLC, a subsidiary of Goldwind, to utility Commonwealth Edison from June 2012 over a term of 20 years.

The landmark 109MW Shady Oaks project is the first large U.S. wind farm to use Chinese-made turbines -- Goldwind's 1.5MW direct-drive permanent-magnet turbines.

Tim Rosenzweig expects construction of the Shady Oaks project to start in late spring or early summer, and be completed by the end of 2011.

Wu Gang, Goldwind board chairman, said "The Shady Oaks project, our first scaled and commercial facilities in the United States, reflects substantial recognition in the American market of our turbines. It opens a road for us to go on exploring the American market."

So far, Goldwind, the world's largest maker of direct-drive permanent magnetic wind turbines, has about 3,500 such turbines installed and integrated to the grid.

Monday, April 25, 2011

A Look Inside First Wind's Control Center


To most people, the operation of a wind farm is a complete mystery – even as more wind turbines pop up in our communities around the United States. This allows wind opponents to make the claims that wind energy "doesn’t work."

Now, First Wind (full disclosure – a client of mine) is pulling back the curtain with a new video that demonstrates that wind farms are in fact producing real power. What’s more, there’s a very sophisticated flow of data and analysis that goes into making wind energy production efficient, with centralized monitoring and troubleshooting.

What I find most interesting about wind project operations is the technology that goes into the process. When people talk about making America more competitive economically through leadership in clean energy, it’s this technology that’s really the backbone of the argument. The new technology being developed to wean ourselves off fossil fuels may ultimately be put to use in other sectors of the economy, helping make a stronger economic foundation for the country, and spurring additional innovation.