Pickens Enthusiastic About Renewable Components of Stimulus Bill
One of the biggest private proponents of clean energy, T. Boone Pickens, has weighed in on the $787 billion stimulus bill and appears to be generally excited about its provisions. In a letter to supporters of his Pickens Plan he highlighted the following provisions as being key to growing our wind energy capacity:
- A 3-year Production Tax Credit (PTC) extension through the end of 2012;
- An option to elect a 30% Investment Tax Credit (ITC) in place of the PTC;
- An option to convert the Investment Tax Credit into a grant for projects placed in service in 2009, or 2010, or placed in service before 2013 provided construction begins in 2009 or 2010;
- A new $6 billion Department of Energy renewable energy and transmission loan guarantee program, which should fund around $60 billion in principal amount of guaranteed loans;
- Authority for the Western Area Power Administration to borrow up to $3.25 billion from the Treasury to build renewable transmission lines in the western United States, including western Texas.
It is clear from the above list that Pickens has made some significant progress on the wind energy half of his Plan. However, his more controversial natural gas proposals were not directly addressed by the stimulus.
List of Top Wind Power States
According to the American Wind Energy Association, as of today, the top five states for wind energy generation are:
1. Texas, 7,116 MW
2. Iowa, 2,790 MW
3. California, 2,517 MW
4. Minnesota, 1,752 MW
5. Washington, 1,375 MW
Report: 2008 Was a Big Year for Wind Energy Growth
The American Wind Energy Association, an industry trade group, released a report this week indicating a record growth in wind energy in 2008, with more than 8,000 MW of new generating capacity having been installed. This increase grew the nation’s total wind power capacity by 50% and actually accounted for about 42% of all new power capacity added to the national grid last year. However, despite this good news, the report also warned that 2009 is set to see a halt in that growth due to the poor economy and credit crisis.
Gore Testifies on Climate Change Before Senate Committee
Al Gore testified before the Senate Foreign Relations Committee on Wednesday about climate change. (Link to full video list.) Gore noted that we are in a dire situation and fundamental change needs to occur as soon as possible. Gore repeated his warning that “clean” coal may not be a feasible solution in the near-term, noting “We must avoid becoming vulnerable to the illusion that this is near at hand. It is not.”
Gore said that the most promising sources of clean energy are wind and solar, and that while he is not against nuclear power, the costs are just too unpredictably high.
“Our home – Earth – is in grave danger,” Gore noted. “What is at risk of being destroyed is not the planet itself, of course, but the conditions that have made it hospitable for human beings.” READ MORE
Delays Continue for Pickens’ Texas Panhandle Wind Farm
Apparently the delays for T. Boone’s massive wind farm project in the Texas panhandle are not going to end anytime soon. Earth2Tech reports that at the Clean Tech Investor Summit on Wednesday, Pickens said that his wind farm would likely be delayed at least to 2011. But that even then, Pickens warned, “We’ll see what happens in 2-3 years.”
Earth2Tech notes that although the credit crisis has put a damper on Pickens’ own wind farm project, he is still pushing hard for the country to adopt the Pickens Plan, reiterating his argument that with a $28 billion investment, the U.S. could convert 350,000 diesel trucks to natural gas, which would reduce oil imports by 5% and create nearly half a million jobs.
Stimulus Package May Extend Wind Energy Tax Credit
It appears that the stimulus package may include an extension of the wind energy tax credit for another three years. The credit will help subsidize new wind farms for their first 10 years of operation. However, since many potential investors do not owe enough in taxes right now to benefit from a tax credit, the bill may provide an alternative form of subsidy– a direct grant to projects for 30% of their cost.
Unfortunately, it appears the stimulus bill will not address the problem of transmission lines– the lynchpin to any national renewable energy transformation.
Wind Energy Proponents 1, NIMBYs 0
Despite strong opposition by local NIMBYs, including Sen. Ted Kennedy, the Cape Wind offshore wind project took another big step forward today. After months of delays, the Interior Department’s Minerals Management Service handed the project a positive environmental review. The Obama administration will now have the final decision whether to grant final approval, or not.
The 130 turbine, 170 MW wind farm is planned for the waters of Nantucket Sound and will be positioned about five to eight miles offshore. The project is being built by Cape Wind and will cost around $1 billion and could open by 2011 if the process does not get tied up in court. It should produce enough electricity to power approximately 400,000 homes.
The above photo is a computer drawing from Cape Wind.
When Windmills Explode
This Vestas made windmill in Denmark was destroyed in February 2008 during a high wind storm. Apparently the blades were allowed to spin beyond redline speeds when the protective braking mechanism failed. Not only did the blades fly off, but they took the support tower with it. READ MORE
Israel Sets Renewable Energy Target of 10% by 2020
The Israeli government on Monday set a target of producing 10% of the country’s electricity from renewable sources by 2020. The target was set by the socio-economic cabinet, led by Finance Minister Roni Bar-On.
While this is a step in the right direction, it seems like Israel, out of all countries, would have the greatest interest in reducing fossil fuel dependency and consumption. However, a target of only 10% renewables by 2020 is a fraction of California’s goals, which are to have 20% renewables by 2010 and 33% by 2020.
While Israel has shown a progressive approach towards many clean technologies, including the early adoption of the Better Place electric vehicle model, it would seem to be in its interest to do significantly more with renewable electricity generation.
T. Boone is Back!
Our friend Boone Pickens (“the man with the plan”) has released a new commercial and message. His message echoes many of our recently expressed concerns about rising gas prices and the lessons to be taken from the current Russia-Ukraine natural gas dispute. The entirety of his message is printed below:
Is Trend Towards Residential Renewable Energy Production a Good Thing?
With state and federal governments implementing policies to support residential renewable energy production (such as this program in San Diego), Green Inc. takes a quick survey of the current state of private energy production, and questions whether it is even worth it:
“Buying a small wind turbine to power a home can be costly – in the range of $12,000 to $70,000 (including installation fees), according to Ron Stimmel, the small wind expert at the American Wind Energy Association.
“Altogether, says Mr. Stimmel, some kind of financial incentive for residential small wind is available in about 17 states, though in some cases the incentives are offered through utilities rather than directly by the state itself. (In Colorado, for example, a handful of utilities are offering rebates, which go up to $10,000.) READ MORE
Training America’s Future Green-Collar Workers
Last month, Casper College (a two-year community college) in Wyoming opened a new wind turbine that will be used as a training tool to educate students in renewable energy classes for both technician training and educational purposes.
The 6 kW turbine was installed on the historic Teapot Dome oil field north of Casper at the Rocky Mountain Oilfield Testing Center. At 50 feet tall, the turbine is smaller than most commercial windmills. However, this is intended to allow students a more hands-on experience. In fact, the whole tower can pivot at the base and be lowered to the ground. This allows students to engage in disassembly, maintenance, and study of the generator and other components. READ MORE
‘Unless you are willing to live naked in a tree and eat nuts for the next 30 years, coal’s going to be part of the portfolio’
This is what the Governor of Montana, Brian Schweitzer told the Christian Science Monitor for an article about wind energy and transmission lines. Schweitzer was making this statement, not as an argument against alternative energy, but as a matter-of-fact regarding the state of American energy production.
Montana, like most of the central states in the U.S., sits on tremendous wind resources. However, as is the problem with almost all regions with high winds, it is a long distance from the population centers that consume the most electricity.
As a result, Schweitzer has been a big supporter of proposals to conduct a massive upgrade of our nation’s transmission grid. He recently called on the federal government to spend $15 billion to build the next-generation grid to link out-of-the-way regions like Montana, with population centers on the east and west coasts. READ MORE
Pickens ‘anxious’ about wind farm project
Pickens held a briefing with reporters on Monday where he discussed the status of his massive Texas Panhandle wind farm project, as well as the state of energy, in general.
Regarding the Panhandle project, Pickens said that he is “anxious” since the economic and credit crises threaten to choke off financing for the project. “Where’s the money is the question. I don’t know how we’ll do it. I’m anxious to see what Obama comes up with. There is no money to finance a wind project now,” Pickens stated.
Pickens reiterated his warning that when the economy rebounds, prices will spike again, potentially even to $100 by next year. He also said that Obama’s policies will play a key role in determining whether efforts to effect an energy transformation will occur. Specifically, extending tax credits for alternative energy and promoting natural gas usage for heavy duty vehicles will be essential.
Earlier this year, Pickens’ company Mesa Power began the first phase of the Panhandle wind farm by purchasing over 600 wind turbines. While the future of that project is somewhat up in the air, as Pickens noted, “We don’t receive turbines until late 2010, so you’ve got some time for a recovery and we’ll see where we go from there.”
Offshore wind projects in Germany to be scaled back
Germany, the world leader in wind energy production, is having to scale back some of its ambitious offshore wind farm plans due to technical and financial problems. Previously, the country had planned to build enough wind capacity in the North Sea to generate 25,000 MW by 2025. However, that number is now being scaled back to 16,000 MW.
Some of the challenges include construction difficulties arising from building and servicing equipment that is miles offshore, as well as a backlog for equipment due to high demand. And of course, the global credit crisis has limited the resources available to fund the projects.
It is estimated that installing the 16,000 MW of offshore wind production will cost around $60 billion.
