In January, PacifiCorp and FPL Energy announced an agreement to develop and market power from the world’s largest single wind energy development on the Washington-Oregon border, the Stateline Wind Generating Project. 450 wind turbines there will supply the needs of 70,000 homes annually. Most of the Stateline Project will be generating energy this year, helping to ease the area’s severe energy shortage. FPL Energy is the largest developer and operator of wind energy facilities in the nation with more than 1,000 megawatts of wind turbines in operation or construction in seven states.
Bonneville Power Administration (BPA) released a request for proposals on February 21 for 1,000 megawatts of wind energy generating capacity. Randall Swisher, executive director of the American Wind Energy Association calls it a major breakthrough. The solicitation, which amounts to roughly $1 billion in new business for the wind industry, “takes wind energy to a whole new level in the Pacific Northwest and the U.S. What BPA is saying is that wind energy has arrived as a recognized source of bulk electricity supply.” This is a clear signal the BPA recognizes the potential of wind energy to provide near-term, stable-priced electricity supplies for California and the Pacific Northwest. The new wind plants will provide enough electricity for 400,000 people in two to three years.
The BPA also announced the start of a $200 million program that gives individuals and utilities a discount on their power bill if they agree to invest in conservation measures or renewable resources (such as fuel cells, PVs, wind generators, biogas turbines). “Given the current and projected price of power on the market, conservation and renewables can come at very attractive prices, acting administrator Steve Wright says. California offers a rebate of up to 50% on the purchase price of a home wind energy system – sales are exploding for local wind installers. To encourage small renewable energy and energy efficiency projects in the state, Washington Governor Gary Locke introduced legislation – supported by both houses – that exempts small-scale solar and wind, energy-efficient lighting and appliances from sales tax.
Also in January, the Department of Energy announced that 665 acres of the former nuclear weapons testing site near Las Vegas, Nevada – The Nevada Test site – will host the nation’s second largest wind power facility. The site will help stabilize volatile utility supplies especially for California and Nevada.
In early February, Energias Argentina announced it plans to build and operate wind power plants capable of supplying 15 percent of the total Argentine energy needs. The project requires an investment of US$2.25 billion over the next 10 years to generate 3,000 megawatts of power. The first wind turbines will be imported from Spain and assembled in Argentina, but may be manufactured locally in the future.
British Energy, a nuclear power company and the UK’s largest power generator (20% of the UK’s power), entered into a joint venture to build large scale offshore wind facilities – Offshore Wind Power Limited – with Renewable Energy Systems, one of the largest wind energy companies in Europe. Renewable Energy Systems has over 1,100 megawatts of capacity in various stages of development in the U.S., Europe, Asia and the Caribbean, and is about to build the worlds largest wind farm in Texas, with a capacity of 280 megawatts.
According to government figures, the UK has enough offshore wind to supply three times the country’s current electricity requirements, going a long way toward meeting its goal of cutting C02 emissions 19 percent by 2010. Less than a week after British Energy’s announcement the government proposed streamlining the approval process for wind facilities, making the Department of Trade and Industry a “one stop shop” for offshore developers.
The worldwide boom in wind energy slowed during the year 2000, but still remained strong, according to a American Wind Energy Association analysis released in early February. About 3,500 megawatts were installed last year, enough to supply energy to 1.3 million California households (3.5 million people). The growth rate of wind power installations worldwide increased by 26 percent in total capacity for the year 2000 as compared to a 37 percent jump in 1999. The slower rate of growth was due to a temporary dip in the U.S. market. In the U.S., just 53 MW was installed, compared to 732 MW in 1999.
The French government announced it will generate 21% of its electricity from renewable sources by 2010. To finance 5,000 megawatts of wind capacity over the next decade, a FF4 billion (US $548 million) public fund will be created by charging electricity customers a small surcharge. Even smaller surcharges will fund hydroelectric development and incinerators. To encourage wind development, the public utility Electricit de France will be required to purchase wind power at fixed prices. An investment fund will also be set up to help finance new projects and energy-efficient technologies.
DuPont Fuel Cells, a new unit of DuPont, intends to be ”the leading supplier of materials and components to the emerging worldwide fuel-cell market.” The company estimates there will be a $10 billion market for fuel cells by 2010. Last year the company opened a multi-million-dollar, fuel-cell technology center near its Wilmington, Delaware headquarters.
In a recent speech, Jeroen van der Veer, managing director of the Royal Dutch Shell Group, the second largest oil company in the world, said the oil industry cannot ignore the issue of climate change. “We are witnessing an historic shift from oil to gas to renewable forms of energy, and a growing business commitment to sustainable development. This is not being done for philanthropic reasons, but because we believe there is a real business opportunity out there. Over the next 20 years, customer demand in this area is going to grow significantly. Environmental, social and ethical issues are central to building brand loyalty and to ensuring long-term competitive advantage.”