mayor’s wind farm committee

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MAYOR’S WIND FARM COMMITTEE

Report to the City CouncilJune 20, 2011

diversity of viewpoints

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Historical Background of Committee

• Request for Information (RFI) issued May 1, 2010• Responses received June 30, 2010• December 6, 2010: City Council vote to create

committee - Review & evaluate responses - Provide comments within 90 days.

• 2 co-chairs; staffed by Sustainable Programs Coordinator.

• Members appointed March 15, 2011;Full committee met four times; Multiple sessions by four working groups

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Mayor’s Wind Farm Committee

Rachael Bisnett Libby Hill Tim Patton Thomas Carey Victoria Hutchen Nicolai SchousboeTom Cushing Joe Jaskulski Tim SchwartzJack Darin Nathan Kipnis Bill SiegfriedtDeanna Dworak Diego Klabjan Jeff SmithJoel Freeman Kristin Landry William WagnerKevin Glynn Richard Lanyon Fred Wittenberg

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Purpose of the RFI

• Preliminary, less formal than RFQ or RFP • Typically used where leadership’s knowledge

is insufficient to prepare RFP • This RFI’s purpose: "to identify potential

partners, determine the City’s role and establish a process"

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Responses to the RFI

• Many wind farm developers declined to provide information: not interested so early

• Two local startup firms did respond:- Mercury Wind Energy (MWe)- Off Grid Technologies (OGT)

• Both respondents provided much information at no charge within the short time allowed.

• Committee wishes to thank both respondents for their efforts.

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Responses to the RFI

OGT Cover

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General

• Responses varied in detail and content• Provided at least partial useful information on most

aspects of concept• In some instances, working groups questioned or

sought to supplement information in the responses.• Report was strengthened by consideration of diverse

viewpoints : - Committee work revealed varying opinions on some aspects - Not every participant embraces every statement - Efforts made to report strong majority sentiment

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• MWe suggests 7 to 9 miles offshore; Minimum economic size of 100 MW

• OGT suggests 200 MW vertical-axis magnetic-levitation turbines. Committee notes technology not yet commercial

• Committee believes this sizing affects potential City role. Evanston lacks sufficient demand to use 100 – 200 MW of wind power.

• Likely grid interconnection: Skokie (Church @ Edens); underground cable route would involve Evanston & Skokie

Information Regarding Equipment and Sizing

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Information Regarding Overall Timeline

Committee believes:• Project schedule (studies, permitting, financing,

procurement and construction) will take significantly longer than expressed by respondents.

• Commercial-scale project, if first in Lake Michigan, would require minimum of 4 years, probably considerably longer.

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Energy Pricing Implications

Key Questions, Covered Poorly in Responses:• What will the wind farm's generated electricity cost?" • Who will buy it? How Bulk Power is Bought and Sold:• Necessity for large project: Power Purchase Agreement

(PPA) – Contract between the power producer and the wholesale buyer(s) covering amount of power and price. - MWe provided useful information- OGT provided example provisions Respondents only briefly mentioned potential buyers.

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Energy Pricing Implications (cont.)

Committee Finds That:• Retail price of power in Evanston currently not

determined by any single power generating facility. • Wind farm likely would not affect the retail price in

Evanston unless the community chooses.• Cost of electricity is in flux due to external events.

Likely electricity cost scenarios, including demand for renewable energy credits, need more study.

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Involvement of Government

Federal• Policy, including financial support, strongly

favors offshore wind development. • Approval for first U.S. offshore project now

complete• Policy documents on offshore wind power

push critical role of state and local leadership.

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Involvement of Government (cont.)

State of Illinois• Has renewable energy portfolio standard

(RPS) – aids wind project development • Owns the lakebed; has started legislative

process creating framework to lease lakebed & regulate offshore wind.

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Involvement of Government (cont.)

City of Evanston • Multiple role opportunities: • Urged State to consider offshore wind

development.• Some wind farm in lake is likely. If Evanston

takes no active role, opportunity to influence any project is lost.

• Very little inherent authority- Permitting cable easement

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Involvement of Government (cont.)

City of Evanston (cont.)• City should:

- Foster education and transparent discussion- Assess public opinion.

These roles are consistent with the City’s Climate Change Action Plan, accepted by the City of Evanston in November 2008.

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Recommended Next Steps

1. Encourage, facilitate and follow the State’s activities :- Promptly request an Evanston representative be the "local government official" on the expected Lake Michigan Offshore Wind Energy Advisory Council.

2. Act in harmony with residents: - Redouble efforts to promote awareness and foster transparent discussions.

3. Encourage and facilitate a meteorological station: - Essential for project feasibility. Collaborate with other interested partners, such as NU to minimize or eliminate direct expenses to the City.

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Recommended Next Steps (cont.)

4. Identify the pros and cons of offshore wind farm: - Environmental, social, financial: impact on City and residents, on its commitment to Climate Action Plan, on the University and local business.

5. Encourage, facilitate and follow key feasibility studies: - avian, other.

6. Identify grants, tax benefits, and other available sources:- Demonstrate favorable conditions to developers and lenders.

7. Follow initiatives such as Ohio:- Frame a leasing agreement for a developer to bring cables onshore and through City streets.

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Recommended Next Steps (cont.)

8. Actively explore and select City’s role(s): - Should Evanston consider itself a potential direct buyer of a portion of the power produced? - RFP necessary only if City chooses a role as owner, producer or buyer of the electricity.

9. Identify master planning concepts or imminent projects that may impact/be impacted by wind farm.

10. Promptly designate a group to work on these steps, especially the critical aspect of role determination.

11. Explore potential partners to minimize or eliminate direct expenses by City. - Collaborate with local governments, institutions, and other entities who may share costs or aggregate roles.

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The Mayor’s Wind Farm Committee wishes to thank the City for its interest in this concept and the opportunity for citizen input.