Wind Energy: Is it Right for Illinois?

David G. Loomis, Ph.D.Professor of EconomicsIllinois State University

DeKalb County Farm BureauOctober 10th, 2007

Outline About Illinois State University and

Wind Energy Wind Energy Development: Types

of Projects and Types of Ownership Arguments from Opponents of

Wind Energy

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

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

Growth in the U.S. Wind Industry

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

Wind Capacity in the US (June

2007)

Source: American Wind Energy Association

12,634 MW installed to date

Enough energy for over 3 million homes

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

Large Wind Farm, Southwest Minnesota

Tw

in

Gro

ves,

McLe

an

C

ounty

, Illin

ois

Woodstock, Minnesota

Adair, Iowa

Dispersed Wind Development

and Distributed Generation

Small Wind Turbines

The Scale of Wind Power

Personal vs. Utility Scale

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

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

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

Wind Energy:

Arguments from Opponents

Potential Problems with Wind Power

Radar Property Values/Aesthetics Sound Safety Bird Kills Cost

Radar and Wind Turbines

Fact Interference is rare and easily

avoided through technology improvements and proper siting

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!

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

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.

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.

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

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. Factshttp://www.awea.org/pubs/factsheets/050629_Myths_vs_Facts_Fact_Sheet.pdf

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.”

Spirit Lake, IowaSource: American Wind Energy Association – Wind Energy Myths vs. Factshttp://www.awea.org/pubs/factsheets/050629_Myths_vs_Facts_Fact_Sheet.pdf

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 DaultonDirector of Conservation Policy,National Audubon Society

Erickson, et al, 2002, A Summary and Comparison of Bird Mortality from Anthropogenic Causes with and Emphasis on Collisionshttp://www.awea.org/pubs/factsheets/050629_Myths_vs_Facts_Fact_Sheet.pdf

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.

Cost of Wind Energy

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

Cost of Wind Energy

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

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

For More Information, Contact

David G. LoomisIllinois State University

Campus Box 4200Normal, IL 61790

309-438-7979dloomis@ilstu.edu