1 / 20

Rural Wind Energy Development

Rural Wind Energy Development. Opportunities and Challenges for Community-Based Wind Dr. Karl-Heinz Mertins Mgr, Business Development Deere & Company Moline, IL Windpower 2005. John Deere – Facts. Founded in 1837, Deere & Company

wynn
Download Presentation

Rural Wind Energy Development

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Rural Wind Energy Development Opportunities and Challenges for Community-Based Wind Dr. Karl-Heinz Mertins Mgr, Business Development Deere & Company Moline, IL Windpower 2005

  2. John Deere – Facts Founded in 1837, Deere & Company • Stays focused on solutions for agriculture, construction and forestry, grounds care • Employs over 45,000 people • Does business in more than 160 countries • Is known as one of the most valued and trusted brands in mobile equipment • Has annual sales of ~ $20 Billion

  3. John Deere – Renewable Energy Activities Running Green projects prove environmental considerations in business planning and decision-making: • Ethanol: E-diesel R&D • Biodiesel: 5% biodiesel in diesel engines • Biomass: • Alholmens Kraft power plant, Finland / Timberjack • Chariton Valley Biomass Project • Hydrogen: Fuel cell R&D • Wind Power . . . .

  4. Wind: A Cost Competitive Midwest Resource • Wind energy is mature and cost effective • Wind turbines are, and will continue to be, placed on farm land • Well aligned with John Deere’s market presence • Can increase buying power of farmers How can farmers get involved ? Again.

  5. Wind Resource Land Rights Wind Turbines Cost of Energy, Returns Energy Markets Financing Five Success Factors Of Wind Projects Regional differences must be considered

  6. Wind Turbines Come In Many Sizes …And This Size Fits • Utility Scale • 600 kW to 2.0MW nameplate capacity • Provides lowest cost of energy • Suitable for community wind • Generally no net-metering

  7. Room For Different Wind Farm Models • Community - owned: • 2 - 20 MW Projects • Dispersed clusters • Aggregated • Investor - owned: • 50 - 200+ MW projects • Concentrated “Peaceful Coexistence”

  8. Grouping Turbines Into Small Wind Farms Small defined as < 20 MW per site • Allows connection to distribution systems at or below 34.5 kV: • Opens up many locations for wind development • Regulatory Support: • FERC NOPR for “Small Generators” • Other Benefits: • Streamlined permitting • Direct engagement of land owners • Some economies-of-scale

  9. Interconnection At Distribution System Level • Minimizing substation efforts • Feeding small load centers directly • Avoiding ISO interconnection studies, fees, and queues

  10. Compatible With Existing Power Grid • Calhoun County, Iowa • 69 kV lines • 70 MW potential • 10 Sites • Over 140 local owners Opportunities for many participants Source: Wind Utility Consulting

  11. Examples To Learn From Erkelenz, Germany Jutland, Denmark Brewster, MN Schneebergerhof, Germany

  12. Pilot Project On Buffalo Ridge Deere has become equity investor in farmer-owned turbines • Objective: proof of concept • Model & learning platform for future activities “Learning By Doing”

  13. Pilot Project On Buffalo Ridge Building partnerships • Collaborating with local developers • Need to work with turbine manufacturers, contractors, off-takers Partners

  14. Projects typically less than 20 MW Geographically distributed to accommodate power grid Aggregated where it makes sense Local owner(s) Receive annual land lease rent for first ten years Receive annual management service fee for first ten years Purchase the LLC or LP at the end of ten years for Fair Market Value Receive 100% of income for remaining life of project (10+ years) John Deere works with qualified local partners Wind developers who initiate projects Experienced contractors who participate in BOP work Refining The John Deere Model Gives local partners a fair share

  15. Additional Economic Benefits • Construction • Creates one to two part-time jobs per MW installed • 2.4 times more than required for coal & natural gas power plants • Routine O&M • One permanent local FTE job per 8-10 MW installed • Many renewable energy jobs are high wage ($38k-$48K) • Indirect and induced economic activities • Restaurants, hotels, tourism • others Creates high local impact

  16. 9-year renewal 3-year renewal 2-year renewal Source: EIA-DOE The PTC Is Essential To Success • Supports cash flow distribution to rural America • Enables long-range planning and execution • Helps deliver adequate returns to investors Significant growth through long-term PTC extension

  17. The Opportunity • An historic opportunity exists to stimulate rural economic development through wind energy projects • John Deere will continue to invest in distributed wind projects if given consistent and adequate Production Tax Credit policy

  18. Wind Energy Can Turn Rural Decay…

  19. …Through Active Participation Of Farmers… • Education • Transparent project planning process • Sincere consideration of environmental impacts • Fair investment opportunities for local participants • “Saving the land for the next generation” • Direct and indirect benefits for local businesses • “Keeping the money in the State/Community” • Financial benefits to local tax districts CommunityOwnedRenewableEnergy “CORE”

  20. …Into New Rural Development "I think it's one of the greatest things that ever happened. It's good for my pocketbook. It's good for the environment.” -- Chuck Goodman, retired farmer near Alta, Iowa; Has three wind turbines on his land

More Related