planning, financing and interconnecting a wind turbine ...infohouse.p2ric.org/ref/51/50151.pdf ·...

Planning, Financing and Interconnecting a Wind turbine project on a College Campus

Midwest Buildings Technology Application Center

Web SeminarDecember 11, 2007

Introduction

Rob Lamppa, P.E., LEED AP– Director of Energy Management & Senior Project Manager– Carleton College– Northfield, MN– (507) 646-7893– E-mail: [email protected]

Carleton College– Private, Liberal Arts College – 18-1900 students– U.S. News and World Report – Top five– Northfield – south of Minneapolis/St. Paul, MN

Summary

Sustainability at Carleton CollegeWind Turbine Project– History/Background– Requirements– Process– Project Implementation– Carleton’s Installation– Performance/Financials

Conclusion

Green Initiatives

Definition of “Sustainability”– Self-renewing, self-perpetuating principles– Minimizing or negating adverse environmental,

social and economic impacts– Carbon-neutral goals– Energy generation and usage – Difficult to

discuss sustainability with out including energy– Reduce, reuse, recycle

Green Initiatives

Why do this?Debate on Global Warming

– How “real” is it?– Can I/we live with the consequences if it does prove to be

real?– What are our responsibilities?

On a personal levelAs parents/grandparentsAs local, national and world citizensAs leaders of educational institutions

Green Initiatives

Educational Institution responsibility– We are educating the next generation of

LeadersPolicy makersScientistsEngineersMedical personnelInnovatorsEntrepreneurs

Knowledge is power; the power to change

Relating to Institutional Mission

Carleton Environmental Statement of Principles– “Carleton College recognizes that it exists as part of

interconnected communities that are affected by personal and institutional choice. We are dedicated, therefore, to investigating and promoting awareness of the current and future impact of our actions in order to foster responsibility for these human and natural communities. Carleton strives to be a model of environmental stewardship by incorporating ideals of sustainability into the operations of the College and the daily lives of individuals.”

Sustainability at Carleton

• Installation of a 1.65 Mw wind turbine• President’s Climate Commitment signatory• Preliminary Greenhouse Gas (GHG) inventory• Energy monitoring and Management system

implemented (A/C, lighting, electrical & natural gas usage)

• Lighting and motor efficiency upgrades• Native species plantings• ENTS Curriculum• Composting of all dining venue waste

1.65 mw Wind Turbine

Native Plantings

Green Buffer

Sustainability at Carleton

• Use of sustainable practices/procedures/materials in design and construction projects (LEED Silver for NC)

• Strawbale Warehouse• Pilot “green roof” retrofit• B20 used in Grounds vehicles• “One Stream” Recycling of paper, plastic (#1-7),

glass, metal and corrugate• End-of-year, campus-wide garage sale• Initiation of a Sustainability Revolving Fund

Strawbale Warehouse

Green Roof

The American College & University Presidents Climate Commitment

Climate Leadership in Higher Education427 institutions signed up, so far (11/14/07)Local institutions signing include: Carleton, Macalester, Augsburg, Luther, St. Benedicts, St. Johns, Winona State, UW River Falls, UM Morris Other College examples include: Oberlin, Middlebury, Bowdoin, Dickinson, Pomona, PitzerAssociation for the Advancement of Sustainability in Higher Education (AASHE) endorsedEndorsed by SCUP, APPA, NACUBO and ACUHO

The Commitment

Create institutional structures

Complete inventory of GHG emissions

Develop institutional action plan & initiate two of seven suggested actions

First 2 Months

Within 1 Year

Within 2 Years

President’s Climate Commitment

Within Two Years – Set target date for becoming climate neutral.– Detail interim targets for goals and actions.– Detail plan to integrate the concepts of climate

neutrality and sustainability into the curriculum.– Detail actions to expand current efforts towards

climate neutrality.– Develop a plan for tracking success.

Currently “in progress”


Within Two Years – cont’d– Initiate two or more of the following

Policy for new buildings to be a minimum LEED “Silver” standard.Policy requiring all new appliances to meet Energy Star certification.Policy to offset GHG from all institution air travel.Encourage use of and provide access to public transportation for all students, faculty and staff.Within one year, begin purchasing or producing at least 15% of institution’s electrical consumption from renewable resources.Establish policy or committee to see that endowment is invested in companies which support sustainable initiatives.Participate in the Waste Minimization component of the national Recyclemania competition, and adopt 3 measures to reduce waste.


Third step– Make the action plan, GHG inventory, and

periodic progress reports publicly available by providing them to AASHE for posting and dissemination.

History/Background

However, prior to all of this…(approx 3 yrs ago)– Carleton Student Association (CSA) brought forward a

request to the Administration to purchase up to 10% of Carleton’s electrical usage with electricity produced from renewable resources (green tags/RECs)

– Subsequent analysis led to question of whether or not we could produce our own electricity for about the same cost

– Wind Turbine was deemed the most promising alternate (Hydro, Biomass, Solar, etc) to study.

History/Background

The Turbine, if constructed, would be a significant symbol of our commitment to sustainabilityWe would be “Walking the Talk” and…We would become the first College/University in the nation to own and operate a commercial-sized wind turbine.Onward and Forward…

History/Background

In the Fall of 2002, initial wind studies were begunCarleton College, Northfield Public Schools, St.OlafCollege, Northfield ReNew (Private-Non Profit)Erected two 70 foot towers w/ anemometers Local wind data from nearby State ParkFeasibility – site location and enough wind for economic viability

Big Wind

History/Background

Decision to proceed w/ further study– Two turbines initially– Carleton and Northfield Public Schools hired a wind developer– Public hearings prior to CUP– Northfield Schools did not move ahead due to Legislative

constraints– Carleton continued with a one turbine program

Began four simultaneous project paths– Power Company Interconnection Agreement and Power Purchase

Agreement– State and Federal Incentive Program Applications– Permitting– Turbine selection, delivery, and construction

Requirements

Interconnect Agreement with Power Company– Longest duration of negotiation– Outlines Terms and Conditions to Connect

Power Purchase Agreement (PPA)– Outlines Payment Rates and Term– Rates based on local production costs

Current, local coal-fired and nuclear plant production costs used as basis for developing rates

– Nuclear – approx. 1.8-2.0 cents/kwh– Coal – approx. 3-4 cents/kwh

Interconnection Agreement

Needed even if not selling power to utilityCommits college / university to certain operating proceduresMay necessitate an “interconnection study”Definition of a “small” project: – One that is less than 15 percent of the utility’s

circuit.

Power Purchase Agreement

“Separate and free-standing contract” from the interconnect agreementWill need to be negotiated in parallel with Interconnect AgreementDefines source and capacity of distributed generation to be connectedDefines terms and payment for power generatedDepending on the size of the distributed generation, sets agreement for % deliverable (usually 100%).


States that seller is responsible for applying for any tax credits and/or grants that may be available to help finance project (to make it viable)However, the price received for the power generated will not be modified by any failure to receive grants and or tax creditsMany power companies reserve the right to keep all green tags (RECs) as part of the power purchase price


Seller to read and record power generated (by power company meter), and to invoice power company on a monthly basisDescribes payment termsSeller responsible for all construction permits, operation, maintenance, record keeping and insurance of generation equipment


Power company to accept and deliver all power generatedDefines terms of contract default by either party and contract termination (if necessary)Sets guaranteed pricing for ongoing power purchased and initial start-up periodUsually has an Environmental Indemnity Agreement attached (as an exhibit)

Standby Charges

Standby charges are charges to a distributed generation owner to cover the utility's cost of "standing by" with a distribution system that will be able to deliver electricity at times when the owner's distributed generation system goes down.

Standby Charges

Can be high & can increase over timeCan affect economic viability of projectSome states disallow or cap standby charges for clean energy projectsNo standby charges if power is exportedCarleton pays no standby chargesSt. Olaf, however…

Requirements

State and Federal Renewable Energy Production Incentive Programs

– Both provide for production incentives and/or production tax credits (PTCs) - non-profit vs. for profit

– Programs may include grant monies, in addition

Federal program– REPI – non-profit – funds not yet reallocated– PTCs – for-profit – Reauthorized Energy Bill includes

State programs – vary with State– Most programs provide for PTCs as well as some incentives

and grants– Minnesota – grants, PTCs and incentives – will detail later

Requirements

Permitting– Conditional Use Permit (CUP) – County (City)– Building Permit – County (City)– Driveway Permit – State or County Hwy.

Land Lease Agreement (if needed)Crop loss negotiation – with farmer

Wind Developer

Benefits– Experience setting up this type of project– Agreements/Permitting – legal counsel– Local regulatory understanding – knows who to talk to– Local grant/incentive program (if any) familiarity– Your Time– May have more leverage with suppliers

Approx. 1-3% of total project cost

Process

Site(s) Selection – Wind Data– Proximity to connectable power lines– Do power lines need to be upgraded?

If so, negotiate who pays– Owned or leased land– Willingness of land owner to lease – lease

negotiation

Conditional Use Permit Approval - hearings

Process

Turbine Selection– Wind Study data– Manufacturer/Vendor review – GE, Vestas(NEG-Micon), Suzlon– Look at available turbine sizes– Ask Vendor for production curves– Calculate theoretical return based on PPA rates and State and/or

Federal program incentives/credits – depreciation– Have Vendor quote equipment “Delivered to site”– Compare for best value

pricedeliveryperformancewarranty

Implementation

Site Preparation– Soil Borings – foundation– Access Road/Erection site

BoringsPermitPhysical requirements – 350 ton crane – corners for trucks

– Foundation DesignPost or Spread

– Soils dependentLicensed engineer (in State constructed)

– Distribution line and Grid connection/metering

Foundation Types – Post or Spread

Implementation

Building Permit– Site Plan– Soil Boring Information– Foundation Design– Tower Design – Licensed Engineer (in State) –

Vendor provided– Equipment Spec for Turbine– Road Permit– Bolt tensioning procedure (as available)– Concrete testing results (as available)

Implementation

Construction– Foundation– Crane delivery/erection – 15 semi loads– Turbine delivery – 8 semi loads– Tower erection– Generator/gearbox housing (Nacelle)– Blade/hub assembly– Internals – mainly electrical

Carleton’s Installation

Turbine description– NEG Micon – NM 82

– 1.65 mw maximum capacity (1650 kw/hr)

– 70 meter (230 ft) steel tower – 3 sections – 130 tons

– 3 Blades – 135 ft – epoxy/carbon-fiber – 7 tons each

– Hub – 14 tons

– Nacelle – houses gearbox and generator – 23 tons

– Blade assembly pitched out 5 degrees to prevent damage (see diag.)

Carleton’s Turbine

Carleton’s Installation (Mark Boswell/Star Tribune)

Nacelle Diagram (NEG-Micon)


Turbine operating parameters– Blades rotate at 14.2 rpm at all wind speeds

above 8-9 mph – 136 mph tip speed– Turbine begins to generate electricity at 9 mph– Maximum electricity generated at 27-28 mph– Blades “pitch out” to dump wind between 29 and

45 mph (controlled by computer)– Turbine shuts down at winds above 45 mph

Power Curve (NEG-Micon)


Foundation– “Post” type – stiff soils– 32 feet deep – 15 ft. diameter– Like an upside down water glass filled with soil– Approx. 100 yds of concrete– 160 anchor bolts (80 inside, 80 outside) 1-3/8”

diameter (post tensioned)


Road and Foundation construction photos

Access Road

Foundation Excavation

Foundation forms

Anchor Bolt Installation

Ready for Concrete

Concrete Placement

Finished Foundation

Distribution Line

Turbine Ready


Turbine delivery and erection photos

Power Line Upgrade

Crane Erection

Turbine Delivery

Tower Section

Tower Erection

Tower Completion

Nacelle Lift

Blade Ready

Blade Assembly Lift

Last Connections (Photos - Weldon Hogie)

Power Up

Connection Lines


Project Budget

– Turbine* $1,515,000– Road $26,000– Site electrical $18,000– Power line upgrade $47,000– Phone line (monitoring) $5,000– Turbine installation and foundation $215,000– Consult./permits/fees $39,000

Total $1,865,000**

*Final price influenced by fluctuating steel prices, the strength of the Euro in world money markets, and availability at time of purchase

**Comparable estimated project cost today would be $2.5-3.0 mm


Project schedule– Two years from initiation of wind studies to actual power

generation– Construction schedule

Roadway construction began 7/24/04 – completed 7/28/04Foundation construction began 7/29/04 - completed 8/4/04Crane delivery began 8/25/04 - set-up by 8/27/04Turbine delivered 8/28/04Turbine erection completed 9/1/04

– Power generation began 9/16/04

Turbine Production

Turbine has been producing electricity for over three years (since 9-16-04)Total production 14.21 mm kWh (as of 10-1-07)Approx. 4.73 mm kWh/yr

– Range – 0 to 38,900 kwh per day– Average production per day – 13,150 kwh

Equals 32% of Carleton’s annual electrical usageAt an average home use of 800 kWh/month, the turbine would power approximately 500 homes on an annual basis.

Performance/Financials

Annual Production Estimate– Between 4.5 and 5.5mm kwh per year (could vary

up or down from this range depending on abnormal wind conditions)

Income – 4.8 cents/kwh first ten yearsIncome – 3.3 cents thereafterTotal Income based on 5 mm kwh per year– First ten years - $240,000 per year– Thereafter - $165,000 per year

Performance/Financials

Expenses– Insurance - $15,000 per year (est.)– Maintenance contract - $11,000 per year

(expected to increase)– Land lease – approx. $5,000 per year– Debt Service – Dependant on financing,

depreciation schedule, etc. – Carleton’s expected “payback” – 10 to 15 years– Life of turbine 20 to 25 years

Air Emissions by Fuel Type(pounds per thousand kwh)

Xcel Info. - 2005

0.0000430.334.05.51839Purchases

0.0000351.157.30.63641Biomass

0.0000680.2310.41.36036RDF

0.00000750.5410.52.32535Oil

0.000000010.081.60.0061393Natural Gas

0.0000570.355.35.92362Coal

MercuryParticulatesNitrogen Oxides

Sulfur Dioxide

Carbon Dioxide

Fuel Type

Environmental Performance

Environmental Performance - Carleton– Emission offsets (first three years)

Carbon dioxide – 9798 tons– 1379 lbs/1000 kwh*

Sulfur dioxide – 23.5 tons– 3.3 lbs/1000 kwh*

Nitrous oxides – 22 tons– 3.1 lbs/1000 kwh*

– Bird/Bat kills – no birds/ 7 bats found– Noise – non-issue – rustling of corn is noisier.– Light pollution – non-issue – only light is FAA required.

* Xcel Energy Data - 2005

Performance – Issues

Fluctuating source of power – reason not connected directly to CampusNo wind, No power generationTurbine does not run if “Grid” is downRemote monitoring service not always responsiveMaintenance service located over two hours away – sometimes need specialist from Denmark or U.K. Owner of a single turbine is a small owner – may affect responsivenessNEG-Micon/Vestas mergerMain Gear-box, Oil pump, Bearing Temp sensors

Summary

When deploying a wind turbine– Make sure you understand why you want to do a

project…What the desired outcomes are.– Determine appropriate project size and to what type of

destination the power will be delivered.– Make sure you have monitored and determined a viable,

desired wind site.– Make sure your site allows for access to the desired

electrical delivery systems (end user). – Work WITH your facilities group from the beginning, as they

have a direct impact on the success of the project.– Communicate advantages and enlist campus support

(faculty, staff and student).

Summary – cont.

When deploying a wind turbine – Consider holding informal public meetings to solicit input

and support of the broader community– Determine whether or not to enlist a wind developer.– Prepare initial production estimates to verify income/offset

costs on an annual basis.– Compare income/offsets to estimated annual expenditures,

(i.e. debt service, maintenance, insurance, lease costs (if any), etc.)

– Confirm value of “soft” income, (i.e. educational benefits, sustainability initiatives, institutional recognition, recruiting, etc.) as there may be reasons beyond economic viability to do this.

Summary – cont.

When deploying a wind turbine– Begin the four simultaneous planning efforts.

Interconnection Agreement and PPAInvestigation of available grants/incentivesInvestigate and procure applicable permits

– In particular, don’t forget the FAA Hazard Determination!

Turbine selection and procurement process

Summary – cont.

When deploying a wind turbine– Select vendor and negotiate agreement.

PerformancePriceDelivery scheduleMaintenance supportWarranty

– Determine the delivery and construction schedule.– Complete the installation.– Share your success!

Conclusion/Editorial

These projects are not only a reasonable financial investment, but an investment in the future.A future in which reliance on finite fossil fuels is minimized.A future with cleaner air, water, and land resources.A future our children can and must inherit.A sustainable future.Thank you for your attendance!

Carleton’s 1.65MW Turbine

planning, financing and interconnecting a wind turbine ...infohouse.p2ric.org/ref/51/50151.pdf ·...

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