QUICK NEWS, 4-13: SENATORS BRING 25% NEW ENERGY STANDARD; FICKLE U.S. INCENTIVES CRIPPLE NEW ENERGY; READYING THE GRID FOR THE EV; WIND GETS HIGHER

SENATORS BRING 25% NEW ENERGY STANDARD
Mark Udall, Tom Udall Introduce Renewable Energy Standard Legislation; Senators Continue Long Fight to Enact National RES
April 6, 2011 (Office of Senator Mark Udall)

"U.S. Senators Tom Udall (D-NM) and Mark Udall (D-CO)…continued their fight to enact a federal Renewable Energy Standard (RES) by introducing legislation that would require utilities to generate 25 percent of their electricity from wind, solar and other renewable energy sources by 2025…[It] would set the first national threshold for utilities to provide a certain percentage of their electricity from renewable resources - with a 6 percent requirement by 2013, followed by gradual increases thereafter to meet the 25 percent by 2025 goal.

"The senators first introduced a similar initiative in 2002 while members of the House of Representatives. The two eventually built a coalition in the House and won passage of an RES amendment in 2007…[The first cousins] first introduced the legislation in the Senate after being elected in 2008, and are joining forces again in hopes of finally passing a national RES into law…"

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"The legislation would create a federal standard requiring electric utilities to diversify their portfolios with wind, solar, biomass, hydrokinetic and other renewable energy sources. Studies have shown it would also…[1] Create jobs: Wind and solar energy are likely to be among the largest sources of new manufacturing jobs worldwide during the 21st Century…[2] Reduce energy bills: …an RES would lower natural gas and electricity prices and save more than $100 billion for American consumers…"

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"…[3] Revitalize rural America: Farmers and rural land owners in windy areas are reaping payments of $3,000 and up per turbine per year, while still being able to work their land. The "wind harvest" can carry hard-pressed farmers through difficult times, such as droughts…[4] Slow global warming: …an RES can cut emissions of conventional pollutants and greenhouse gases."

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"Suppliers can meet the federal requirements by purchasing credits from other entities that have obtained credits by producing renewable energy. It also allows utilities to bank credits for four years and to borrow credits from up to three years in the future. Municipal and other publicly-owned power plants and rural electric co-ops would be exempted from the requirements.

"Support continues to grow for a transition to cleaner energy sources in the generation of electricity…President Obama called for an 80 percent Clean Energy Standard (CES) by 2035, which would include renewables, nuclear, and natural gas…[The Senate Energy Committee] recently released a White Paper on a CES…[The Udalls expect] at least eight Senate co-sponsors…29 states and the District of Columbia, representing over half of the U.S. electricity market, already have renewable generation standards with various timelines and targets. This legislation does not pre-empt states [stronger standards]…"


FICKLE U.S. INCENTIVES CRIPPLE NEW ENERGY
US wind energy incentives: ‘Stop-go’ policies hamper renewable energy roll out
Bob Moser, 8 April 2011 (Wind Energy Update)

"…US wind sector [2010 new] orders fell by nearly 50% from 2009, and the industry took a hit as businesses throughout hesitated to expand with the impending end of the…1603 cash grant [which] simplified participation for developers by shifting unfavorable tax credits to unfront payments that are not tied to a particular company's income. It was a game-changer for renewable energy developers, covering 30% of the full cost of the wind turbines.

"…[S]imilar drops in market activity happened in 2000, 2002 and 2004 when owners hesitated to invest because of uncertainty over federal support, and the following year sales recovered. With the 1603 cash grant [finally – at the very end of the year] renewed for a year, it now stands to reason that an upward swing may be in store for 2011. Owners have this year to get projects started, and those who paused last year after receiving permits should be placing orders…"

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"America's wind industry built 5,115 MW of wind power in 2010, barely half of the effort in 2009. The industry opened 2011 with more than 5,600 MW currently under construction, more than the same period a year earlier.

"In late March, Senator Sherrod Brown (D-OH) introduced legislation to renew the Security in Energy and Manufacturing Act, which includes the Advanced Energy Manufacturing Tax Credit program, commonly known as 48C. The program provides investment tax credits of 30% for US companies that manufacture parts for renewable energy equipment…The 48C credit, part of the Recovery Act of 2009, was so popular that the Department of Energy said it was three times oversubscribed for the US$2.3 billion made available. Nationwide, US$5.8 billion in unfunded applications were deemed eligible. Brown's office says many of those manufacturers are still waiting on the 48C credit to build or expand their business…"

Sadly, this has happened before. (click to enlarge)

"A House of Representatives bill introduced in January, HR487, has proposed requiring 100% domestic content in property eligible for federal grants or tax credits…Amy Grace, North American wind analyst with Bloomberg New Energy Finance, thinks “Buy American” legislation is clearly a fearful reaction to Chinese turbines, and isn't necessary...Most big manufacturers have plants open in the US, and while they may get some bearings or gearboxes from China, blades and towers are almost always sourced within the US, as are most smaller turbine parts, Grace said.

"Even if tax credits don't expire, Grace sees a 'huge' chance of a US turbine market dip by 2013, due to no public mandate for demand growth…[A] Renewable Electricity Standard is likely the only move left for federal government to ensure the wind energy industry grows at a consistent pace…"


READYING THE GRID FOR THE EV
Report: Utilities Unprepared For Increased EV Integration
6 April 2011 (Renew Grid)

"According to a new report from Pike Research, many utilities could be unprepared to deal with the impact of electric vehicles (EVs) on the electric grid due to a lack of standards for sharing information between utilities and external systems."

[John Gartner, senior analyst, Pike Research:] "While plug-in electric vehicles will not threaten the integrity of the power grid as a whole, they will have an immediate local impact on neighborhood distribution infrastructure…Many utilities are reluctant to make long-term investments in IT systems that will be necessary to support EV charging, often due to state-level regulatory structures that discourage such spending, and as a result, they may be playing catch-up as more and more electrified vehicles drive off dealers' lots."

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"…[T]he automotive, home networking, smart grid and utility industries are collaborating with organizations such as the National Institute of Standards and Technology to develop standards to establish first-time interoperability with grid equipment, but many of these standards will not be completed until 2012 or later. Therefore, utilities are largely taking a “wait and see” approach to EV IT investment and are assuming that the vehicles will not sell in sufficient numbers to impact grid performance for several years."

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"Moreover, utilities’ understanding of the benefits of EV IT systems across all aspects of grid operations - including load management, the use of renewable energy, and the ability to avoid capital investment in generation and transmission equipment - are not well known today…

"Pike Research anticipates that worldwide investment in electric vehicle IT systems will reach $1.5 billion annually by 2015, with a cumulative total of $5.1 billion in spending between 2010 and 2015…[T]hose levels of investment are far lower than other smart grid infrastructure categories, and may be insufficient to adequately prepare for the arrival of EVs in increasingly greater numbers over the next five years…"


WIND GETS HIGHER
Reaching Toward the Sky: GE Energy Introduces Taller Wind Turbine Towers
April 4, 2011 (GE)

"GE…[has] introduced taller towers for its onshore wind turbine product line. The new towers enable higher annual energy production (AEP) and increase the number of potential wind sites. The towers initially will be offered for GE’s 2.5-MW series including the new 2.75-103 wind turbine. The taller towers are available with hub heights in excess of 130 meters…"

[Stephan Ritter, general manager, GE Renewable Energy Europe:] “With taller towers, more sites become attractive wind farm locations. The increased height also offers more customer value through higher winds and a reduction in the impact of turbulence resulting in higher annual energy production.”

GE's towering 2.75-103 wind turbine. It's not grandaddy's wind mill. (click to enlarge)

"The taller tower will have a robust hybrid pre-cast concrete and tubular steel design. This construction offers an optimal balance between customer value and advanced technology while reducing logistical challenges. The new tower is an especially good fit for densely forested areas and hillside locations that are prone to high turbulence intensity.

"Initial key markets for the new, taller GE wind turbine towers will be Germany, Scandinavia, Poland, Romania and Canada."