Presentation Transcript
Overcoming BarriersExpanding the Market for Small Wind Energy Systems : Overcoming Barriers Expanding the Market for Small Wind Energy Systems Small Wind 102: Economics Making the numbers work
Small Wind 103: Siting Issues Addressing permit requirements, height restrictions, and environmental concerns
Small Wind 104: Grid Interconnection Reaching an agreement with your utility
Overcoming Barriers : Overcoming Barriers Small Wind 102: Economics
Making the numbers work
Before You Buy : Before You Buy Economics will depend on system chosen, local wind resource, electricity costs, and how you use your wind system Evaluate energy efficiency options first!
Approach investment as you would any other major purchase – do your homework Average Home Energy Use
Installation Costs : Installation Costs Estimate $2-4/installed watt for typical system
Smaller systems require smaller initial outlay, but cost more per watt
Taller towers cost more, but usually reduce the payback period A 4-10 kW system can meet the needs of a typical home
Customers paying 12 cents/kWh or more for electricity with average wind speeds of 10 mph or more can expect a payback period of 8-16 years
Factors Affecting Payback : Factors Affecting Payback Type, size and configuration of system
Wind resource
Local cost of electricity
How wind system is used
Rebates available, if any If you can participate in a California-type 50% buy-down program, have net metering and average annual winds of at least 15 mph (6.7 m/s), your system can pay for itself in about 6 years
Slide7 : 1987
U.S. Wind Atlas
North & South Dakota 2000
High-Resolution
(1-km2) Wind Map
New GIS Modeling Techniques Can Provide Substantially More Wind Resource Information
Indirect Estimates of Wind Resource :
Indirect Estimates of Wind Resource Review wind maps
Obtain airport data
Visually observe site vegetation
See “A Siting Handbook for Small Wind Energy Conversion Systems,” 800-553-6847 or www.ntis.gov/ordering.gov
Production & Technology Improvements Bringing Down Costs : Production & Technology Improvements Bringing Down Costs Costs for small wind turbines are projected to decrease to $1.50 / kW by 2010 10 kW Units
Programs and Policies that Support Small Wind : Programs and Policies that Support Small Wind Rebates or grant programs (10 states)
Personal or corporate tax incentives (14 states)
Sales tax exemptions (10 states)
Property tax exemptions (18 states) Loan funds (15 states)
Net metering policies (33 states)
PURPA (federal)
Selected State Wind Incentives : Selected State Wind Incentives
For More Information on Small Wind Economics... : Bergey Payback Calculator www.bergey.com/Channels/1F2.htm
Wind Resource Atlas of the United States http://rredc.nrel.gov/wind/pubs/atlas/
Database of State Incentives for Renewable Energy
www.dsireusa.org
For More Information on Small Wind Economics...
Overcoming Barriers :
Overcoming Barriers Small Wind 103: Siting Issues
Addressing permit requirements, height restrictions, & environmental concerns
Potential Obstacles : Potential Obstacles Legal issues
City, town, or county ordinances restricting height or requiring minimum setbacks
Building codes and covenants
Environmental Issues
Neighbors’ concerns (visual impact, noise)
Potential physical obstacles (growing trees, planned construction)
Tower Height Matters : Tower Height Matters Wind speed increases with height
Small increases in wind speed result in large increases in power
Tall towers often needed for clearance above obstacles (turbulence)
May require a variance or a special use permit
Slide16 : Height or Distance Needed
Noise & Visual Impact : Objections are less likely in a rural setting
Spinning blades perceived as useful
Talk to neighbors before seeking permit Noise & Visual Impact Improved designs have made machines much quieter
Comparable to central AC unit
Noise levels fall sharply with distance 1 acre is a good rule-of-thumb minimum property size for a small wind installation capable of powering the whole house
Raising Awareness Increases Acceptance : Raising Awareness Increases Acceptance Emphasize the positive – quiet, safe, renewable, non-polluting source of energy
Supply objective data – expected decibel level, photographs of the equipment Ask your city/county planners to designate small turbines a “permitted” use to allow 80- to 120-foot towers – 35-foot limits often date back to early 1900s
For More Information on Zoning Issues... : Legal and Safety Issues – U.S. DOE Small Wind System Installation Reference Brief www.eren.doe.gov/consumerinfo/refbriefs/ja2.html
AWEA Advice from an Expert www.awea.org/faq/sagrillo
- Trials and Tribulations
- Keeping Hearings Under Control
- Zoning Obstacles
- Perceptions/Local Concerns For More Information on Zoning Issues...
Overcoming Barriers : Overcoming Barriers Small Wind 104: Grid Interconnection Reaching an agreement with your utility
Connecting to the Grid : Connecting to the Grid PURPA requires utilities to connect with and purchase power from small wind systems
Reduce consumption of utility-supplied electricity
Utility acts as a big “battery bank”
Contact individual utility before connecting to its lines
Interconnection Requirements : Power Quality Issues
Must synchronize with grid
Must match utility power’s voltage, frequency and quality Interconnection Requirements Safety Issues
Must meet electrical codes
Must stop supplying power to grid during power outages
Standard Requirements and Contracts : Standard Requirements and Contracts California net metering law Limits utility requirements to certification of national safety and power quality standards (UL 1741; IEEE 929-2000, 519, and P1547)
Utility standard contracts Tariffs to expedite contracting and interconnection
Insurance Requirements : Insurance Requirements
Policy Responses
Eight states prohibit utilities from imposing insurance requirements for qualified systems
Five other states limit required coverage amounts to levels consistent with commercial and residential insurance policies In >20 years, there has never been a small wind system related liability claim Some utilities require small wind turbine owners to maintain liability insurance of $1 million or more
Other Requirements : Other Requirements
Policy Responses
Indemnity provisions should not favor the utility, but should be fair to both parties
Federal law prohibits utilities from assessing discriminatory charges to customers who have their own generation facilities Other charges may include metering, interconnection, or standby fees Utilities may want to be indemnified for liabilities that may arise from operation of a customer’s generating facility
For More Information on Interconnection... : “Connecting a Small-Scale Renewable Energy System to an Electric Transmission System” U.S. Department of Energy Reference Brief (bibliography) 800-DOE-EREC www.eren.doe.gov/consumerinfo/refbriefs/ja7.html
“Connecting to the Grid” Interstate Renewable Energy Council www.irecusa.org
For More Information on Interconnection...
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