Wind Energy: Is it Right for Illinois?

1. Wind Energy: Is it Right for Illinois? David G. Loomis, Ph.D. Professor of Economics Illinois State University DeKalb County Farm Bureau October 10th, 2007

2. Outline • About Illinois State University and Wind Energy • Wind Energy Development: Types of Projects and Types of Ownership • Arguments from Opponents of Wind Energy

3. Illinois State University • First B.S. in Renewable Energy in the nation • Leading Illinois’ Wind Working Group • www.wind.ilstu.edu • Siting Conference, Peoria, December 13 • Annual Conference, Bloomington, June 25-26, 2008

4. Why Wind Energy • Benefits of Wind Projects • Revitalizes Rural Economies • Creates Jobs • Promotes Cost-Effective Energy Production • Supports Agriculture • Reduces Air Pollution and Global Warming • Clean, Domestic Energy • Ensures a Sustainable Energy Future

5. Growth in the U.S. Wind Industry Source: US Department of Energy: Annual Report of U.S. Wind Power Installation, Cost and Performance Trends:2006 http://www.nrel.gov/docs/fy07osti/41435.pdf

6. Wind Capacity in the US (June 2007) 12,634 MW installed to date Enough energy for over 3 million homes Source: American Wind Energy Association

7. Types of Wind Projects Wind is a modular technology: • Large Wind Farms- large number of large-scale turbines • Dispersed Wind Projects- one or a few large-scale turbines • Small wind turbines- residential or farm use

8. Large Wind Farm, Southwest Minnesota

9. Twin Groves, McLean County, Illinois

10. Adair, Iowa Dispersed Wind Development and Distributed Generation Woodstock, Minnesota

11. Small Wind Turbines

12. The Scale of Wind Power

13. Home and Farm-Scale Offset your own electricity consumption Costs thousands of dollars Motivations are not necessarily economic Commercial-Scale Bulk power sales to utility company Costs millions of dollars Require 3-5 years of planning, hard work, patience, and perseverance Personal vs. Utility Scale

14. Small Wind Turbine Projects • Stand alone/off-grid or net metered • For personal use • Money is not the motivator in most cases • Lower environmental footprint • Energy independence • Like to tinker with machines • Like to watch things spin • Simpler permitting • Easier interconnection • Lower installed cost

15. Wind Energy Potential20% Plan From the U.S. DOE • 20% of the nation’s electrical needs can be provided by wind! Currently the US supplies just under 1% of it’s electrical energy needs from wind

16. Wind Energy: Arguments from Opponents

17. Potential Problems with Wind Power • Radar • Property Values/Aesthetics • Sound • Safety • Bird Kills • Cost

18. Radar and Wind Turbines

19. Fact • Interference is rare and easily avoided through technology improvements and proper siting

20. Wind Energy andAscetics/Property Values • Concerns brought up at public hearings • Important to understand the underlying issues: • property values, • perceived public health risks, • visual nuisance, • or money • Land use plays a large factor • Agriculture – traditionally low opposition • Forested – wildlife impacts • Mountain top – strong visual concerns • Recreational – property values and visual concerns • Beauty is in the eye of the beholder!

21. Proper Siting Can Balance a Wind Projects Visual Impact • Communities can develop policies to safely and appropriately site projects based on community values and appropriate use of wind systems

22. Wind Energy and Sound • Wind systems are typically sited in windy areas where the sound of the wind generally masks noise from the machines. Chart shows noise from wind turbine at approximately 1,000 feet from the machine.

23. Wind Energy and Sound Today's turbines are much quieter than older technology. • Sound proofing of nacelle • More efficient blades • Quieter gear boxes • Slower moving rotors Gearbox and generator in a 1.65 MW wind turbine owned by Iowa Lakes Community College in Estherville, Iowa.

24. Wind Turbines and Safety • Epileptic Seizures: Modern wind turbine blades generally rotate between 10-22 rpm, which is slow.  Epileptic seizures for photosensitive people are triggered by rates of 5 to 30 flashes per second.  The blades of today's wind turbines do not spin quickly enough to cause seizures. At maximum rotational speed, there would be a little more than 1 flash per second. For more information about photosensitivity and epilepsy visit the Epilepsy Foundation’s website: http://www.epilepsyfoundation.org/about/types/triggers/photosensitivity.cfm

25. Wind Turbines and Safety • Ice Throw: “Ice throw, while it can occur under certain conditions, is of little danger. Setbacks typically used to minimize noise are sufficient to protect against danger to the public. In addition, ice buildup slows a turbine's rotation and will be sensed by a turbine's control system, causing the turbine to shut down.” Source: American Wind Energy Association – Wind Energy Myths vs. Facts http://www.awea.org/pubs/factsheets/050629_Myths_vs_Facts_Fact_Sheet.pdf

26. Spirit Lake, Iowa Wind Turbines and Safety • Blade Throw: “Blade throws were common in the industry's early years, but are unheard-of today because of better turbine design and engineering…. There are thousands of turbines installed in Europe and…in the U.S. - wind turbine standards ensure a high level of operational reliability and safety in the U.S. and worldwide.” Source: American Wind Energy Association – Wind Energy Myths vs. Facts http://www.awea.org/pubs/factsheets/050629_Myths_vs_Facts_Fact_Sheet.pdf

27. Wind EnergyAvian Impacts “Significant expansion of renewable energy sources such as wind power is needed to reduce pollution from fossil fuels and address global warming…[t]o protect birds, wildlife, and habitat from global warming[.] Fossil fuel power plants account for more than one third of the carbon dioxide emitted by the United States.” Mike Daulton Director of Conservation Policy, National Audubon Society Erickson, et al, 2002, A Summary and Comparison of Bird Mortality from Anthropogenic Causes with and Emphasis on Collisions http://www.awea.org/pubs/factsheets/050629_Myths_vs_Facts_Fact_Sheet.pdf

28. Cost of Wind Energy • Wind energy typically offsets higher cost natural gas fired peaking plants. • Large penetrations of wind complement hydro electric dams in the NW very well.

29. Cost of Wind Energy Source: US Department of Energy: Annual Report of U.S. Wind Power Installation, Cost and Performance Trends:2006 http://www.nrel.gov/docs/fy07osti/41435.pdf

30. Cost of Wind Energy Source: U.S. Department of Energy, Annual Report of U.S. Wind Power Installation, Cost and Performance Trends:2006 http://www.nrel.gov/docs/fy07osti/41435.pdf

31. Wind Energy and Subsidies • Every energy technology is subsidized. Wind energy is no exception. Wind receives a tax credit that provides an inflation-adjusted 1.5 cents for each kilowatt-hour generated, over the first ten years of the project. This credit reduces the tax liability of a wind farm, but is not a subsidy of public money flowing to the wind farm owner. • Subsidies that other energy sources receive: • tax deductions • loan guarantees • liability insurance • leasing of public lands at below market prices. • Additional indirect subsidies include federal money for research and development programs and policy provisions in federal legislation. Source: American Wind Energy Association – Wind Energy Myths vs. Facts http://www.awea.org/pubs/factsheets/050629_Myths_vs_Facts_Fact_Sheet.pdf

32. For More Information, Contact David G. Loomis Illinois State University Campus Box 4200 Normal, IL 61790 309-438-7979 dloomis@ilstu.edu