midwestern wind energy policy practical siting issues ...¾iberdrola is also the world’s largest...
TRANSCRIPT
Jesper MichaelsenProject Developer
Jesper MichaelsenProject Developer
Midwestern Wind Energy PolicyPractical Siting Issues
Midwestern Wind Energy PolicyPractical Siting Issues
Overview of Presentation
Brief PPM Energy overview
Development Process
Practical Siting Issues
PPM Energy has Joined the IBERDROLA Group of Companies
IBERDROLA is the world’s largest renewable energy company
IBERDROLA is also the world’s largest wind energy company with 6,500 megawatts (MW) of wind in operation worldwide, and a 38,000 MW wind development pipeline
IBERDROLA has a strong financial profile. It currently has a combined enterprise value of approximately €70 billion. By pro forma 2006 figures, the group has €63.5 billion in assets, €20.3 billion in turnover, and combined net profit of €1.9 billion. ($1 = € 0.74 Euros)
IBERDROLA has 39,000 MW of existing generating capacity (all types) and 22 million customers worldwide
PPM Energy No. 2 in US Wind Market
More than 2,000 MWs in operation or under constructionWind assets throughout the U.S.Goal of 3,500 MWs by 201011,200 MW development pipelineBacked by the robust resources of the IBERDROLA group Successful equity investment products captures tax value and recycles capitalDeveloping innovative offerings: firmed and shaped, hedge products, build-to-sell, O&M services
0500
1000150020002500300035004000
FY02 FY03 FY04 FY05 FY06 FY07Outlook
FY10Outlook
Controlled Owned
Growth Outlook(Capacity in MWs)
PPM’s Diversified Customer Base
Alliant
Northern States
Merced
Avista
Puget Sound
Eugene Water & Electric Board
BPA
Seattle City Light
City of AnaheimPublic Service of
Colorado
UAMPS
Salt River Project
Platte River Power Authority
SMUD
LADWP
MID
NYSERDA
Portland General Electric
Empire Electric
Great River Energy
City of Palo Alto
City of Alameda
PacifiCorp
CDWR City of Santa Clara
City of Redding
SDG&E
Burbank Water & Power
City of Azusa
City of Colton
City of Glendale
PG&E
SCE City of Pasadena
NYPA
First Energy
PPM Energy Mid-Continent Wind Assets(with major electricity pricing points)
Updated May 2, 2007
Moraine51 MW Owned
Trimont100 MW Owned
Flying Cloud44 MW Owned
MinnDakota150 MW Owned
Elk River150 MW Owned
Major electricity pricing pointOperating wind projects Wind projects under construction
Minnesota Hub
NI HubSPP
ERCOT
PPM’s Integrated Business ModelIdeally Suited for Wind Development
Origination/Development
Prospecting/Pipeline
Procurement/Construction
Monetisation/Operations
Asset Mgmt./Maintenance
Key Competencies:Access to Capital, Origination, Policy, Meteorology, Land Management, Permitting, Engineering, Procurement, Logistics (Transmission & Interconnection)
In-House Services:Pricing & Structuring, Energy & Risk Management, Finance, Credit, Legal, IT, HR & Communications
Siting Considerations
1. Wind Resources2. Transmission lines/capacity3. Community and Landowner interest,
Land control4. Permitting (including project design)5. Power Purchase Agreements -----------------------------------------------------
With these key factors confirmed and in hand, project sponsor make:
Investment commitment Wind turbine commitment
Wind regimes, land uses, siting requirements differ
Maps available online at:
http://www.eere.energy.gov/windandhydro/windpoweringamerica/wind_maps.asp
Practical Siting Considerations
Wind ResourcesCollect on-site data for 1-3+ yearsCorrelate with relevant long term data
Transmission lines/capacityReview Interconnection QueueWhat is distance to existing high-voltage transmission lines?What is current/future capacity?Regional Transmission Network study queue cannot keep pace with study requests. Long lead-time item!!!
Community and Landowner interestParcel size. Bigger parcels make it easier to design projectObtain site controlEducate landowners & community about impacts of wind energyIntegrate wind project with current land use
Stages of Project Development
Initial DevelopmentSite Selection Final Development Construction Operation
Analyze Market FundamentalsPreliminary Wind Yield AssessmentInterconnection and Transmission AssessmentMarket AssessmentLandowner DiscussionsLand EasementsGrid CapacityConstruction Issues
Interconnection ApplicationEnvironmental AssessmentPermit Applications Preliminary Design/Layout
Interconnection AgreementPermit ApprovalsFinal Design/LayoutLandowner CoordinationConstruction ContractsDue Diligence
Project ManagementLandowner CoordinationPerformance Engineering/Geo-tecnical TestsProgram Milestones
Revenue CertaintyAvailability and ReliabilityService and MaintenanceAsset ManagementOngoing Wind Assessment
Wind Development Process
Marketing and Sales
Big $ - Equipment, construction, and deposits
2 – 5 years 6-12 months 20-25+yrs
Practical Siting ConsiderationsStarts in site selection process and continues through constructionPermitting and project design must take into account multiple issues:
Ordinance and/or State/Federal requirementsSetbacks
From public roadsFrom residencesFrom property line, non-participantsFrom biological resources
Microwave beam pathsFAA/RadarWetlands/streamsBridgesTransportationBiological (avian, bat, other)Soil conditionsNoise
Practical Siting Considerations
3 sections in a windy area in the Midwest
Practical Siting ConsiderationsNow with site control layer added
(purple/blue = under control)(green/white = no control)
Practical Siting ConsiderationsNow with site control + setbacks addedSetbacks (from public roads, homes,
streams, microwave)
Practical Siting Considerations
All layers added: site control, setbacks& potential turbine/road/cable locations
Practical Siting ConsiderationsWhat do wind energy developers look for to identify sites:
Established/Understood process for permittingEstablished County/State/Federal requirementsFinding the sites where key elements come together to give reasonable probability for success:
Wind resourceTransmissionPermittingEnvironmental issues manageable
Access to market for wind energyPermitting consistency/predictability and policy stability help attract wind energy development
Questions & Answers – Contact Information
Questions and Answers
Contact information:Jesper J. Michaelsen, Project DeveloperPPM Energy, IncP: (847) 656-4859E: [email protected]