Shirley Wind: An Auspicious Debut for Emerging Energies

by | Nov 10, 2010 | Uncategorized

Commentary
by Michael Vickerman, RENEW Wisconsin
November 10, 2010

Earlier this week, I had the privilege of attending a celebration of Shirley Wind, Wisconsin’s newest commercial wind installation. Located in the Brown County township of Glenmore, a mere 15 miles southeast of Lambeau Field, the project consists of eight Nordex N100 turbines rated at 2.5 megawatts (MW) apiece. All eight turbines are fully erected and will be turned on individually as part of the commissioning process. Commercial operation should begin in a few weeks.

There are many features of this project that stand out. The most obvious one is the turbines themselves, which are the tallest in Wisconsin and are among the tallest in North America. The nacelle is perched on a 100-meter tower (330 feet). Attached to the rotor are three blades extending 50 meters (165 feet). For comparison purposes, the tower is more than 60 feet taller than the next largest turbine in Wisconsin, the Vestas V82, and the blades are about 30 feet longer. According to Michels Wind, the general contractor for Shirley Wind, the spread foundations supporting these turbines are the largest in North America.

Between their height and blade length, Shirley Wind’s eight turbines will be the most productive wind generators in the state. The power conversion zone of a Nordex N100 is one-third larger than those of the Vestas and GE turbines located in Fond du Lac and Dodge counties. The turbine’s productivity is enhanced by the favorable wind resource that flows over the relatively flat terrain in southeast Brown County. All told, Shirley Wind’s turbines should produce about 64 million kilowatt-hours of electricity each year, which will exceed the annual output from the 20 turbines at the 30 MW Montfort installation in Iowa County, now in its 10th year of operation.

Another praiseworthy feature of Shirley Wind is the degree of local participation in the manufacturing and construction of the project. The towers were fabricated in Manitowoc by Tower Tech Systems. Manitowoc Crane supplied the giant crane that assembled the turbines. Brownsville-based Michels Wind Energy, which was also the general contractor for the 86-turbine Forward Energy Center surrounding its headquarters, organized and oversaw all facets of project construction. Numerous Wisconsin-based subcontractors, consulting engineers and natural resource professionals also made significant contributions to Shirley Wind. And Emerging Energies, the enterprising developer that started prospecting in this area in 2004 and drove the project forward across the finish line six years, is a Wisconsin corporation whose principals have deep roots in the Badger State.

It is no accident that the Shirley Wind project sets a new standard for Wisconsin content and participation. From its inception, Emerging Energies sought to maximize the benefits of windpower development to two important constituencies: Wisconsin businesses and the local community. As it turned out, its decision to partner with Tower Tech was a money-saving proposition, due to the very short distances needed to haul 80-ton tower sections from Manitowoc to the project site 25 miles away.

To build support among local officials, Emerging Energies agreed to set aside a portion of their receipts for compensating local governments and project neighbors, even though such payments are not required on power plants under 50 MW. The developer devised an innovative arrangement that allocates one-third of this revenue pool to the Town of Glenmore, one-third to Brown County, and one-third to project neighbors living within a certain distance of a wind turbine. This commitment to equitable distribution of revenues was no doubt instrumental in helping Emerging Energies secure a conditional use permit from the township in March 2007. This was no mean feat for a seasoned wind developer, let alone a relative newcomer to the industry.

With permit in hand, Emerging Energies set out to find an entity with an appetite for renewable energy. Initially, the developer approached Wisconsin utilities, which are required under 2005 Act 141 to increase the renewable energy content of the electricity they sell. However, by the time Emerging Energies started knocking on their doors, the utilities were already moving forward with their own acquisition plans, which emphasized owning and operating renewable generation sources over purchasing renewable electricity from third parties.

However, the same state law created another entity that needed to acquire renewable energy, namely, the State of Wisconsin. Under Act 141, which was signed into law in March of 2006, the State is obligated to source, by 2011, 20% of the electricity it consumes, or 184 million kilowatt-hours per year, from renewable resources. For state government officials, the purchasing requirement presented an opportunity to back an in-state wind project that could showcase Wisconsin’s prowess in manufacturing and construction as well as bolster the local economy. As a modest-sized project that had assembled a highly capable project development team, Shirley Wind shaped up to be an ideal fit for the State’s aspirations.

Because only utilities can legally sell electricity at retail, the State of Wisconsin and Emerging Energies needed to engage Wisconsin Public Service Corporation, the local utility, in a purchasing agreement that could allow the project to move forward. This was accomplished under a novel arrangement that allows Wisconsin Public Service to purchase both electricity and renewable energy credits from Shirley Wind under a 20-year contract and resell the credits to the State of Wisconsin.

With this three-way arrangement in place, Emerging Energies then sold a 90% stake in Shirley Wind in late 2009 to an outside investor, Central Hudson Enterprise Corporation, a Poughkeepsie, N.Y.-based company. The other 10% of the project remains with Emerging Energies. Having consummated that investment, Shirley Wind cleared the last remaining preconstruction hurdle. Project construction commenced in April.

When fully operational, Shirley Wind will produce enough electricity to equal the annual consumption of approximately 8,000 households without discharging so much as an ounce of carbon dioxide into the atmosphere. At the same time, the project as well as generate thousands of dollars each year in supplemental income to host landowners and their neighbors. At every step of this six-year endeavor, Emerging Energies pursued its vision of locally beneficial renewable energy development in a patient and transparent manner, which eventually bore fruit when the State of Wisconsin decided to apply the power of the public purse to seal the deal for Shirley Wind. Shirley Wind represents an auspicious debut for Emerging Energies. Hopefully, there will be more projects coming through that particular pipeline.

Michael Vickerman is executive director of RENEW Wisconsin, a sustainable energy advocacy organization. RENEW Wisconsin hosts and updates the on-line Wisconsin Wind Information Center (http://www.wiwindinfo.net) and facilitates the Wisconsin Wind Working Group. These commentaries also posted on RENEW’s blog: http://renewwisconsinblog.org.

Wind farm proximity and property values

by | Nov 2, 2010 | Uncategorized

From a study by Jennifer L. Hinman, graduate student, Illinois State University, Department of Economics:

The estimation results provide evidence that a location effect exists such that before the wind farm was even approved, properties located near the eventual wind farm area were devalued in comparison to other areas. Additionally, the results show that property value impacts vary based on the different stages of wind farm development. These stages of wind farm development roughly correspond to the different levels of risk as perceived by local residents and potential homebuyers. Some of the estimation results support the existence of wind farm anticipation stigma theory, meaning that property values may have diminished due to a fear of the unknown: a general uncertainty surrounding a wind farm project regarding the aesthetic impacts on the landscape, the actual noise impacts from the wind turbines, and just how disruptive the wind farm will actually be.

However, during the operational stage of the wind farm project, as property owners, living in close proximity to Twin Groves I and II wind turbines, acquired additional information on the aesthetic impacts on the landscape and actual noise impacts of the wind turbines to see if any of their concerns materialized, property values rebounded and soared higher in real terms than they were even before wind farm approval. Thus, this study presents evidence that demonstrates close proximity to an operating wind farm does not necessarily negatively influence property value appreciation rates or property value levels (in percentage terms). The estimation results strongly reject the existence of wind farm area stigma theory for the area surrounding Twin Groves I and II.

Turbine-blade manufacturer shifts course on new plant

by | Oct 20, 2010 | Uncategorized

From an article by Nathaniel Shuda in the Wisconsin Rapids Tribune:

A Wisconsin Rapids-based manufacturer recently revised its plan for a wind-turbine blade manufacturing plant, making it a three-phase project, instead of a one-phase project, the company’s top executive said.

At one time, Energy Composites officials hoped to break ground on a 535,000-square-foot facility about a year ago, but a difficult bond market led to project downsizing, President Jamie Mancl said.
“Now we’re talking about … a smaller portion of that plan to get the shovel in the ground and started with something,” Mancl said Tuesday evening during a presentation to the Wisconsin Rapids Common Council. “We’re taking a more prudent approach to get this thing off the ground.”

The company, which includes the former Advanced Fiberglass Technologies, already retained Stern Brothers & Co., a private financing firm, to help secure $25 million from investors for the first phase, Mancl said.

“With the financing issues we’re experiencing in the country, it’s hard to put a timeline on it, but … within six months or less, they’re hopeful they’ll be able to secure (investors),” he said, declining to say how much money the company has raised.

Suppliers tout opportunities in wind power industry

by | Oct 14, 2010 | Uncategorized

From an article by Tom Content in the Milwaukee Journal Sentinel:

Companies looking to get involved with the wind power supply chain should be ready to compete with top-notch quality and be prepared to adapt to swings in business activity in the sector, speakers at a wind energy symposium said Wednesday.

The wind power supply chain has plenty of opportunity, as the industry aims for a return to growth next year after a down year in 2010, said Jeff Anthony, business development director with the American Wind Energy Association.

“There are a lot of challenges in the wind industry. It’s not an easy industry to get in, but there are plenty of opportunities,” Anthony said.

Anthony addressed hundreds of participants at the Milwaukee symposium sponsored by Wisconsin Wind Works, a group focused on building up Wisconsin’s participation in the wind power supply chain.

David Lisle, chief executive of Wausaukee Composites, is already a veteran of the fluctuating wind market.

“Tremendous opportunities do exist, but it can be treacherous waters,” Lisle said.

In a few short years, the company has opened a plant in Cuba City that employed as many as 90 people, and then had to close it twice because of a downturn in the economy and tight credit markets that make banks reluctant to finance projects, he said.

But the company has diversified to the point where it now has four different customers in the wind industry instead of just one, he said. The company announced plans recently to expand its wind component factory in Cuba City to 76,000 square feet and create up to 200 jobs.

The challenge for suppliers dealing with the wind sector is to realize that this may be a new market in the United States but it’s not new around the world. European makers of wind turbines have been relying on European suppliers for years, and are now shifting to the U.S. market, he said.

Meet Butler Ridge, Wisconsin’s Newest Wind Project

by | Oct 5, 2010 | Uncategorized

By Michael Vickerman
September 30, 2010

On September 23, Alex DePillis and I hopped on board a tour bus filled with natural resource professionals and gave an overview of wind development in Wisconsin as we headed to the 54 MW Butler Ridge Wind Facility. The project is located in the Town of Herman in southeast Dodge County, a few miles west of State Highway 175. Most of the project’s 36 turbines are located south of State Highway 33.

The project was developed by Midwest Wind, which also developed the Cedar Ridge project owned by Alliant Energy. The project was sold to Babcock & Brown’s U.S. division, which then constructed the facility. The general contractor for that project was RES Americas. Butler Ridge was placed in commercial operation in March 2009. Right now, it is the newest utility-scale wind project in Wisconsin, but that distinction will only late this year, when Shirley Wind comes on-line.

In December 2009, NextEra Energy (formerly FPL Energy) bought Butler Ridge from Babcock and Brown. NextEra is also the owner of the Montfort project in Iowa County.

It turned out to be an excellent day to see wind generation in action. Thanks to a strengthening low pressure system to the west, there was a steady southerly air flow sweeping over southern Wisconsin that morning. Every flag we saw that morning was stiff as could be and pointing due north. Wind speeds at hub height ranged between 20 and 25 mph. The GE turbines were producing at about 75% of their rated capacity.

We stopped at Butler Ridge’s operations and maintenance center on Illinois Road. From the vantage point of the facility, we could see wind turbines in every direction. The closest turbine, at about 1,100 feet away, was audible but barely so.

Full article here.