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WIND ENERGY Wind Energy Presentation for the State Department’s International Visitor Leadership Program June 22, 2012
WIND ENERGY
Wind Energy Presentation for the State
Department’s International Visitor
Leadership Program
June 22, 2012
Wind Tex Energy, LP
Developed 4 projects currently in operation in Texas. These comprise 5-
10% of current Texas Wind Energy.
Sold 5th project in 2011 to E.On. E.On expects to begin construction of
the 150MW Petronilla project in 2013.
Sold 6th project to CCWE. This 63MW CIRRUS project is in construction
and expected to be in commercial operation by December 2012.
Jointly developing a 7th project, Stephens Ranch. Construction of this
377MW project is expected to begin in November 2012, with commercial
operation in November 2013.
Have looked at or currently exploring projects in:
Uruguay
Caribbean
Steven K. DeWolf
Education
Attended the US Naval Academy for 2 years. Graduated from the University of Texas, highest honors, Phi Beta Kappa.
Graduated from University of Texas School of Law, with honors.
Received LLM degree in International Law, with honors, from Queens College, Cambridge.
Law
Co-Founder & Partner of Bellinger & DeWolf
Has been practicing law for over 30 years
Honored as a Texas Super Lawyer for the past 6 years
Wind Tex Energy, LP
Founder & Principal
Bob Erwin
Engineer
Over 40 years of experience with TXU, the largest utility company in Texas
Book
Coauthored the treatise “Texas Wind Law” published by LexisNexis
Professor
University of Texas School of Law Adjunct Professor
Spring 2012, Wind Law Seminar
United States: Total Utility-Scale Wind Power
Capacity - 48,611 MW (as of 5/1/12)
Texas: 10,648 MW (as of 5/1/12)
Leads United States in wind power production
United States – International Comparison (as
of 2/8/12) US rank – 2nd (19.7% of global wind production behind
China’s 26.3%)
Wind Energy in Texas and the United States
Development
Land Acquisition
Purchase
Lease Term
Development
Construction
Operation
Economic Terms Royalty / Fixed Amount
Other payments
Development
Commercial Operation
Development (cont.)
Amount of Land Needed
60 acres for each MW installed
5% land use by wind turbines versus 100% land
use by solar production
750 meters between rows of turbines
250 meters between individual turbines
Development (cont.)
Determining which land to use
Windy!
Rows perpendicular to wind
On coast
Ridges
Front side turbulence
Backside acceleration
Development (cont.)
Other issues
Constructability
Transmission lines
Roads / Harbors
Environmental issues
Tap-In Line
1. Purpose
2. Size
3. Acquisition
Purchase
Lease
Easement
Wind Analysis
A. Preliminary Analysis
1. Cost
2. Time
B. Gathering Wind Data
1. Meteorological Tower a) Cost
b) Erection
c) Size
d) Equipment 1) Anemometers
2) Recording Data
e) Data Retrieval
2. SODAR Unit a) How they work
b) Cost: $65,000-$75,000
3. Collection Period
Wind Analysis (cont.)
C. Final Wind Analysis
1. Objective
2. Necessity
3. Cost
4. Components a) Long term wind speed
b) Identification of correlating stations
c) Optimum turbine
d) Turbine layout
D. Micrositing
Transmission Analysis
ERCOT Securing ERCOT (Grid Operator)
Transmission Service Provider Steady state analysis
Short circuit analysis
Stability analysis
Facility study
Interconnection Agreement What can connect?
Size project
Type of turbine
Cost to connect
Infrastructure improvements
Security, timing, returned after command operations
Time to connect
Transmission Analysis (cont.)
Competitive Renewable Energy Zones (CREZ)
Texas Public Utility Commission recognized
problem and took action
CREZ increase in Texas wind capacity
6,903 MW to 18,456 MW (increase of 11,553 MW)
Transmission Analysis (cont.)
CREZ Zones
Transmission Analysis (cont.)
General Factors
Capacity of Transmission Lines
Size of lines
Quality of lines
Electrical System
US v. Europe
Type of turbine
Distance from load
Environmental Issues
U.S. v. Texas
4-Season Avian Study
Intensity dependant on the area (Texas Gulf Coast versus West Texas)
Beech Ridge Project (Bat issue)
Goodhue Project (Bald Eagle issue)
Cultural Assessment
Soil Issues
Impact on water sources
Visual Impact
Noise
Environmental Issues (cont.)
General Principles
Are there environmental laws that will be
impacted by the construction of a wind farm?
What is the process for compliance with those
laws?
Cost
Time
Government discretion in law
implementation
Permitting
A. U.S.
1. State (Texas) a) Very Little Permitting
1) No State
2) No County
3) No Municipal
b) As a result leads the country
2. FAA a) Four Corner
b) No Hazard-potential radar interim (military)→Kingsville
3. Microwave Path
B. General Factors
What permits are required? a) Cost
b) Time
c) Discretion
Financing
Expense Side
Cost to Build Project
Engineering, Procurement,
and Construction
Turbines
Size
Manufacturer
Financing (cont.)
Expense Side (cont.)
Cost to Operate Project
Taxes
Maintenance and Repairs
Staff
Debt repayment
Landowner Payments
Financing (cont.)
Revenue Side
Sale of Energy
Texas
Other
Caribbean
Feed in Tariff
Environmental Attributes
Renewable Energy Credits
Carbon Credits
Financing (cont.)
Tax Issues Income Tax
Property Tax
Custom Duties
Tax Incentives
Versus Treasury Grant
Versus Production Tax Credit
Construction
Economic Boom
Construction Process
Roads-60 feet to 20 feet
Foundation Different Designs
8 feet of concrete
Bolts
Turbine Erection Tower-3 Sections
Turbine-79 to 90 Tons
Blades Seimens 3.0 MW
10.3 Tons
49 Meters Long
Hub Height 80 Meters
Cranes
Construction (cont.)
Underground Lines Purpose
100 MW-6 miles of cable Depth buried
Substation
Operations & Maintenance Facility
Overhead Lines Tower size
Voltage of line
Space between towers Example: 400-500 feet
Time to Construct
Operation
Length of time
Dependant on lease
Inexhaustible source versus oil and gas
Costs
Turbine availability
Service life of turbines
Staff
Number – 10 per 100 MW in US
Training
Roles Operation
Maintenance
Accounting
Security
Business Model
Consultants to Advise
Turn Key and Sell to End User
Operate and Sell Energy
