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MEAN Wind Experience

MEAN Wind Experience. Billy Cutsor, P.E. Resource Planning Engineer NMPP Energy / Municipal Energy Agency of Nebraska. Overview. NMPP Energy MEAN background MEAN wind resources Challenges and Lessons Learned. NMPP Energy.

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MEAN Wind Experience

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  1. MEAN Wind Experience Billy Cutsor, P.E. Resource Planning Engineer NMPP Energy / Municipal Energy Agency of Nebraska

  2. Overview • NMPP Energy • MEAN background • MEAN wind resources • Challenges and Lessons Learned

  3. NMPP Energy NMPP Energy is a nonprofit, member-owned organization providing electricity, natural gas and utility related services to nearly 200 member communities across seven Midwestern and mountain states. NMPP Energy promotes the benefits of joint action and local utility control among its member communities. NMPP Energy consists of four entities: • Nebraska Municipal Power Pool (NMPP)Utility-related services • Municipal Energy Agency of Nebraska (MEAN)Wholesale electric supply • National Public Gas Agency (NPGA®)Wholesale natural gas supply • Public Alliance for Community Energy (ACE)Retail natural gas choice

  4. MEAN • Background • Joint action agency and political subdivision of the State of Nebraska • Created in June 1981 • Currently has 66 participants, including 60 total requirements participants in Nebraska, Colorado, Wyoming, and Iowa • Approximately 500 MW peak demand projection for 2008

  5. Renewable Options • Small-scale purchases • Own and operate • Large-scale purchases • Purchase renewable attributes / Renewable Energy Credits (RECs)

  6. Evolution of MEAN Wind Resources • Demonstration project • First utility scale project • Participation in larger project

  7. Demonstration Project • Springview Turbine Verification Project (TVP) • Commercial Operation in October 1999 • Two 750 kW Zond turbines operated by NPPD • Funded with series of grants • MEAN was 4.89% owner (~220 MWh per year)

  8. Demonstration Project • Springview Turbine Verification Project (TVP) • Valuable lessons learned for MEAN and industry • Proper grounding • Lightning protection • Generator design in wind turbines • Units retired in August 2007 • Cost to repair / refurbish compared to salvage value indicated retirement was the least cost option • Economic life was less than ten years

  9. MEAN Wind Project at Kimball

  10. MEAN Wind Project at Kimball • First utility scale project in Nebraska • October 2002 • Seven 1.5 MW turbines • Class IV/V wind site (35% capacity factor) • 18 months from planning to completion • Not possible today with turbine delivery schedules • Production Tax Credit expiration • Actual construction took about six months

  11. MEAN Wind Project at Kimball • Factors in success of project • Good transmission access • High level of local interest / enthusiasm for project • MEAN Member interest in project • Original goal was to sell 50% of project directly to interested MEAN Members, keep 50% in MEAN’s resource portfolio • 2.1% of MEAN energy is from wind • 30 MEAN Members purchase wind production monthly • Annual purchases vary from 1% up to 30%

  12. Challenges and Lessons Learned • Ancillary Services • Supplied by thermal or hydro generation • WAPA charges intermittent resource fee • Nebraska plans to perform an integration cost study • Scheduling Accuracy and Penalties • MEAN developed a spreadsheet based wind forecasting module through APPA DEED grant • Achieve results similar to those advertised by forecasting professionals • MEAN is not currently assessed penalties under existing provisions

  13. Hourly Wind Variability - Kimball

  14. Challenges and Lessons Learned • Financial • Large capital investment: $2,000 - 3,000 per kW • Equivalent cost for baseload coal generation • Still need resources to dispatch for peak usage months • More difficult to finance using traditional municipal financing methods • MEAN decided to use accumulated reserves rather than issuing bonds

  15. Challenges and Lessons Learned • Clean renewable energy bonds (CREB) • Funding limited to small projects • Production Tax Credit (PTC) • Public utilities can not take advantage • Neighboring states have Investor Owned Utilities (IOU) • Renewable Energy Production Incentive (REPI) • Funds not fully appropriated by Congress • Need additional cash flow without REPI payments

  16. Challenges and Lessons Learned • Retail Rates and State Renewable Portfolio Standards (RPS) • RPS States have higher average rates

  17. Challenges and Lessons Learned • Need for reliable operations and maintenance vendor for Wind Project • Difficult conditions: 230 feet above ground in windy area • Very specialized industry: parts availability, crane rental and need for specialized tools, equipment and expertise • MEAN contract for O&M provides for annual fee plus liquidated damages if availability falls below certain thresholds • Help ensure O&M contractor will address issues quickly

  18. Kimball Site Tour • Overview of Site • Meet at gate • No access to site • Maintenance • Liability • Maps

  19. Questions? Billy Cutsor bjcutsor@nmppenergy.org www.nmppenergy.org

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