KANSA KANSA People of the South Wind People of the South Wind Thomas Wright Thomas Wright Chairman , Kansas Corporation Commission Chairman , Kansas Corporation Commission p Presentation for Presentation for Revolution: Oklahoma Wind Energy Conference Revolution: Oklahoma Wind Energy Conference December 3, 2008 December 3, 2008
Capacity & Cost Trends Capacity & Cost Trends Cost of Energy and Cumulative Domestic Capacity Cost of Energy and Cumulative Domestic Capacity 100 100 12000 12000 90 90 /kWh*) /kWh*) 10000 10000 80 80 W) W) 70 70 70 70 pacity (MW pacity (MW rgy (cents/ rgy (cents/ 8000 8000 8000 8000 60 60 50 50 6000 6000 Cap Cap 40 40 40 40 ost of Ener ost of Ener 4000 4000 30 30 20 20 2000 2000 2000 2000 Co Co 10 10 0 0 0 0 1980 1980 1985 1985 1990 1990 1995 1995 2000 2000 2005 2005 *Year 2000 dollars *Year 2000 dollars Increased Turbine Size - R&D Advances - Manufacturing Improvements Increased Turbine Size - R&D Advances - Manufacturing Improvements
U.S Lagging Other Countries for U.S Lagging Other Countries for Wind As a Percentage of Electricity Consumption Wind As a Percentage of Electricity Consumption Wind As a Percentage of Electricity Consumption Wind As a Percentage of Electricity Consumption
Installed Wind Capacities Installed Wind Capacities (1999 (1999 – 2007) (1999 (1999 2007) 2007) 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 Smoky Hills Wind Farm 2008 – 250 MegaWatts
Kansas Commercial Wind Farms WIND PROJECT (County) WIND PROJECT (County) DEVELOPER DEVELOPER UTILITY UTILITY SIZE SIZE YEAR 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 Facility (Butler Co.) y ( ) PPM Energy gy Empire p 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 2008 (1 st Qtr) Smoky Hills Wind Farm Phase I Tradewind Sunflower 50.4 MW 2008 (1 st Qtr) (Lincoln & Ellsworth Counties) KC BPU 25.2 MW 2008 (1 st Qtr) Midwest 25.2 MW Midwest 25 2 MW 2008 (1 Qtr) 2008 (4 th Qtr) Smoky Hills Wind Farm Phase II Tradewind Sunflower 24 MW 2008 (4 th Qtr) Lincoln & Ellsworth Counties) Midwest 24 MW 2008 (4 th Qtr) TBD TBD 100.5 MW 100.5 MW 2008 (4 Qtr) 2008 (4 th Qtr) Meridian Wind Farm (Cloud Co.) Horizon Empire 105 MW 2008 (4 th Qtr) Westar 96 MW 2008 (4 th Qtr) Flat Ridge Wind Farm (Barber Co.) g ( ) BP Alt Energy gy Westar 100 MW ( Q ) 2008 (4 th Qtr) Central Plains Wind Farm (Wichita Co.) RES America, Inc Westar 99 MW TOTAL TO BE INSTALLED BY END OF 2008 1013.4 MW
Kansas School Wind Kansas School Wind 50 kw Turbines 50 kw Turbines Moscow USD Moscow USD Pratt Community Pratt Community College College Quinter USD Quinter USD
Kansas Wind for Schools Project Kansas Wind for Schools Project 1 8 1.8 kW Skystream Turbines S A pilot project by the National Renewable Energy Lab (NREL) in K Kansas, Colorado, Nebraska, Montana, South Dakota & Idaho C l d N b k M t S th D k t & Id h Fairfield High School, USD 310, Langdon, Reno County Fairfield High School, USD 310, Langdon, Reno County Concordia School District, USD 333, Concordia, Cloud County Concordia School District, USD 333, Concordia, Cloud County Ell Ell- -Saline School District, USD 307, Brookville, Saline County Saline School District, USD 307, Brookville, Saline County Sterling School District, USD 376, Sterling, Rice County Sterling School District, USD 376, Sterling, Rice County Walton Rural Life Charter Elementary, Newton School District, Walton Rural Life Charter Elementary, Newton School District, USD 373, Walton, Harvey County USD 373, Walton, Harvey County Five schools will be selected for the project in each of the next 3 years Five schools will be selected for the project in each of the next 3 years
Kansas Wind for Schools Project Kansas Wind for Schools Project 1 8 1.8 kW Skystream Turbines S Fairfield High School R Reno County C t Walton Elementary Harvey County
Reported Impacts from the Reported Impacts from the Reported Impacts from the Reported Impacts from the Smokey Hills Wind Farm: Phase I Smokey Hills Wind Farm: Phase I • 145 local workers employed during construction construction • 4-6 permanent positions • Landowner lease: Minimum payment of L d l Mi i t f $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 NREL Forecasts for 100 MW of New Wind Power Power • 140-160 Direct Jobs during construction* – 135-155 construction-sector jobs • 15-25 Direct Jobs during operations* – 4-6 plant workers 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 – 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 Developers often arrange turbine layouts in accordance with existing land use to minimize land impacts
Kansas Economic Impacts Kansas Economic Impacts from from 1000 MW 1000 MW of New Wind Development (NREL) of New Wind Development (NREL) p p ( ( ) ) Wind Energy’s Economic “Ripple Effect” Totals Direct Impacts Indirect & (construction + 20 Payments to Landowners: y Induced Impacts Induced Impacts years) years) • $2.7 million/year Local PILOT Revenue: Construction Phase: Total economic benefit = • $2.9 million/year • 1,550 new jobs $1.08 billion • $138 million to local New local jobs during Construction Phase: economies economies construction = 3,150 t ti • 1,600 new jobs 1 600 j b 3 150 Operational Phase: • 1,500-1,550 construction jobs New local long-term • 180 local jobs • $189 million to local economies jobs = 430 • $17 million/year to local Operational Phase: • 200 new long-term jobs 200 new long term jobs economies • 40-60 plant-only jobs • $21 million/year to local economies
Kansas Economic Impacts Kansas Economic Impacts From the DOE 20% Scenario From the DOE 20% Scenario Wind Energy’s Economic “Ripple Effect” Totals Direct Impacts (construction + 20 Indirect & years) Payments to Landowners: y Induced Impacts p • $20 million/year Construction Phase: Total economic benefit = Local PILOT Revenue: • 11,200 new jobs $7.8 billion • $20 million/year • $985 million to local New local jobs during Construction Phase: economies economies construction = 22 700 construction 22,700 • 11,500 new jobs 11 500 j b Operational Phase: New local long-term • 11,150 construction jobs • 1,300 local jobs jobs = 2,800 • $1.4 billion to local economies • $120 million/year to local Operational Phase: economies • 1,500 new long-term jobs 1,500 new long term jobs • 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 Drivers for Wind Power • Competitive Wind Costs C titi Wi d C t • Fuel Price Uncertainty • Federal and State • 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 Working Group Wi d W ki G Installed MW of wind 1400 1200 1200 1000 800 800 600 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 Kansas Wind Working Group: t e a sas d o g G oup HOW WE CAN MAKE 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 Carpe Ventum Seize the Wind! Seize the Wind! Thank you!
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