Weekly Clean Energy Roundup: Jan. 29, 2003

News and Events

EIA Updates Regional U.S. Reports on Appliance Use

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NEWS AND EVENTS

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LIPA and GE Wind Turbines Boost U.S. Offshore Wind Prospects

The likelihood of offshore wind power developments in the United States improved last week, thanks to separate actions taken by the Long Island Power Authority (LIPA) and Cape Wind Associates, LLC.

LIPA, acting on a previous study, requested proposals for an offshore wind power plant that would produce 100 to 140 megawatts of power. The utility has identified its preferred location, a five- square-mile area about 2.5 miles south of Jones Beach on the western end of the island. LIPA is prepared to enter into a 15- to 20-year power purchase agreement for the power produced by such a facility, which the utility hopes would be operational by late 2007. LIPA would also build the undersea cable to connect the facility to its electrical grid. Proposals are due on May 1st. See the LIPA press release and the request for proposals at: http://www.lipower.org/newscenter/pr/2003/jan22.html
http://www.lipower.org/projects/wind.html

LIPA’s wind power proposal is supported by a coalition of 30 environmental, civic, and faith-based groups based on Long Island, all working together through the Long Island Offshore Wind Initiative. See the Web site at: http://www.lioffshorewindenergy.org

In Massachusetts, Cape Wind Associates may have improved its chances of building a wind power project in Nantucket Sound by selecting GE Wind Power’s new 3.6-megawatt wind turbine for the proposed project. The huge generating capacity of the new turbine allows Cape Wind to decrease the number of proposed turbines from 170 to 130, reducing the impact on Nantucket Sound. It also increases the distance of the wind facility from shore. See the January 21st press releases from Cape Wind and GE Wind Power at: [sorry this link is no longer available]
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Meanwhile, another potential developer of offshore wind power, Winergy LLC, has been gradually narrowing its list of potential wind power projects. The company has eliminated three proposed projects in Virginia and one in Maryland, so its project list now includes 15 proposed sites that, if developed, would total 8,931 megawatts of generating capacity. See the Winergy Web site at:
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U.S. Wind Power Growth Slows to 10 Percent in 2002

The installed wind generating capacity in the United States increased by 10 percent in 2002, the American Wind Energy Association (AWEA) announced last week. Though the 410 megawatts of new wind power still represent a healthy growth, the results are disappointing compared to the record growth in 2001, when U.S. wind generating capacity increased by about 66 percent. AWEA cited energy industry retrenchment as one reason for the slowed growth, but also noted uncertainty about the production tax credit, which is due to expire at the end of this year. The credit provides a tax break of 1.5 cents (in 1992 dollars) per kilowatt-hour of wind power. Despite continued uncertainties, AWEA projects that renewed growth will boost U.S. wind capacity by about 1,500 to 1,800 megawatts in 2003, an increase of about 32 to 38 percent. See the AWEA press release at: [sorry this link is no longer available]

The early signs of that renewed growth are evident in Oklahoma, which is slated to receive its first large-scale wind plant. Zilkha Renewable Energy announced Monday that Western Farmers Electric Cooperative has signed a 20-year agreement to buy power from the proposed 64-megawatt Blue Canyon wind facility. The cooperative and its member utilities service most of the state. The new wind facility will be located north of Lawton and is expected to begin commercial operation by the end of this year. Zilkha will share ownership of the plant with Kirmart Corporation. See the Zilkha press release at: [sorry this link is no longer available]

On a global level, Germany was the clear winner in 2002, achieving a 37 percent growth in capacity and maintaining its world leadership with 12,000 megawatts of installed wind capacity. See the “English summary” link on the Bundesverband WindEnergie e.V. Web site at: [sorry this link is no longer available]

Maine Renewable Energy Brings Green Power to the State

Maine Renewable Energy, an affiliate of Competitive Energy Services, LLC, launched a new green power service for the state last week. Sold at a premium of about 1.5 cents per kilowatt-hour, the power will come mainly from small hydroelectric plants (less than 30 megawatts in capacity) as well as wood-fired biomass power plants. The company will use 10 percent of its profits to fund new zero-emission energy projects in the state. See the company’s press release at:
http://www.energymaine.com/press/pressRelease.asp

Maine Interfaith Power and Light (MeIPL), a non-profit organization, is working in partnership with Maine Renewable Energy to sell green power in the state. In addition to informing Mainers about the Maine Renewable Energy option, the organization offers them the option of buying green tags that support wind and solar energy developments in the western United States. At least 20 percent of MeIPL’s revenues will go toward new renewable energy facilities in Maine. See the MeIPL Web site at: [sorry this link is no longer available]

Massachusetts, New Jersey Revise Clean Energy Programs

Massachusetts Governor Mitt Romney gave the state’s Renewable Energy Trust Fund a new direction last week, announcing his plan to use the fund to encourage economic development while supporting renewable energy technologies. The governor awarded $9 million to five renewable energy companies and established a new $15-million Green Energy Fund to provide equity capital, loans, and management assistance to the state’s renewable energy businesses. Bob Pozen, the governor’s chief of commerce and labor, said states such as New York, New Jersey and Connecticut are in direct competition with Massachusetts for economic expansions by fast-growing renewable energy companies. The Massachusetts Technology Collaborative (MTC) manages the Renewable Energy Trust Fund. See the press release on the MTC Web site at: [sorry this link is no longer available]

Speaking of New Jersey, the state’s Board of Public Utilities (BPU) launched the New Jersey Clean Energy Program in early January by approving $2.7 million to develop renewable energy markets, businesses, and technologies within the state. The program will award the funds by a competitive solicitation. The BPU also approved nearly $6 million in funds for three renewable energy projects: a 5.7-megawatt landfill gas facility, a nearly 3-megawatt sludge digester at a wastewater treatment facility, and a 5- to 7-megawatt wind power installation at the Atlantic County Utilities Authority in Atlantic City.

The BPU chose to form the New Jersey Clean Energy Program in December by revamping the former utility-run Comprehensive Resource Analysis program, creating a Clean Energy Council to administer the program, and initiating a new program to offer rebates on compact fluorescent lights and energy efficient air conditioners. The BPU also launched a pilot weatherization program for senior citizens living in all-electric homes. See the BPU press releases: [sorry this link is no longer available][sorry this link is no longer available]
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President’s 2004 Budget Increases Weatherization Assistance

Energy Secretary Spencer Abraham announced last week that President Bush’s proposed budget for fiscal year 2004 includes $288 million for DOE’s Weatherization Assistance Program. Although the fiscal year 2003 budget has not yet been finalized, the figure represents an increase of $11 million over the President’s request for fiscal year 2003. The increased budget should allow energy efficiency improvements to 126,000 homes of low-income families, saving each an average of about $218 per year on utility bills. The President’s proposed budget is only the first step in the budget process, providing a starting point for Congressional budget bills. See the DOE press release at: [sorry this link is no longer available]

For every dollar spent, DOE’s Weatherization Assistance Program returns $1.83 in energy savings over the life of the weatherized home, based on current energy prices. See the Weatherization Assistance Program Web site at: [sorry this link is no longer available]



New Combined Heat and Power Projects Mark a Growing Trend

Two new combined heat and power (CHP) projects, in New York and New Jersey, were announced in January. In New York, Calpine Corporation and the Long Island Power Authority (LIPA) announced a new contract last week to expand a CHP facility at the State University of New York at Stony Brook. Calpine will upgrade its existing 45-megawatt facility to 80 megawatts over the next year and a half. On a smaller scale, South Jersey Industries, Inc. signed an agreement in mid-January to build a 6-megawatt CHP plant, capable of producing 10,000 pounds of steam per hour, at a Johnson Matthey plant in West Deptford, New Jersey. See the press releases from LIPA and South Jersey Industries at:
http://www.lipower.org/newscenter/pr/2003/jan21_b.html
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CHP, also called cogeneration, is a highly efficient means of producing power, since the heat energy from the power cycle is used either to heat buildings or for process heat in industrial plants. However, as noted in a recent report from the American Council for an Energy Efficient Economy (ACEEE), significant market and regulatory barriers at the state and federal level are hampering development of CHP plants. See the ACEEE press release, with a link to the full report, at: [sorry this link is no longer available]

Despite such barriers, a number of CHP plants have started up in recent months, including Calpine’s 550-megawatt facility in Corpus Christi, Texas. The plant, which began operating in October 2002, can supply more than 1.4 million pounds of steam per hour to nearby industrial plants. Calpine owns six CHP plants in Texas. See the October 17th press release from Calpine at: [sorry this link is no longer available]

CHP has a lot of potential for federal sites as well. A report prepared for DOE’s Federal Energy Management Program in September estimated that 9 percent of federal sites could use CHP to generate as much as 1600 megawatts of power, providing 13 percent of the electricity used by the fe
deral government. See the report: [sorry this link is no longer available]

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SITE NEWS

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H2CARSBIZ
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H2CARSBIZ features international news about the hydrogen economy, including its infrastructure, markets, financing, investment, car manufacturers, and hydrogen providers. It’s published by Zero Emission Energy Systems in Denmark.

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ENERGY FACTS AND TIPS

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EIA Updates Regional U.S. Reports on Appliance Use

DOE’s Energy Information Administration (EIA) completed on Monday an update of nine regional reports on the use of appliances in the United States. The EIA’s “Appliance Reports” are brief statistical reports in which long-term U.S. trends in the use of air-conditioning units and about two dozen appliances are compared with the trends in each U.S. Census Division. The Pacific region, for instance, uses less air conditioning than the rest of the country, and the Southeast (the South Atlantic and East South Central regions) relies more on electricity and less on natural gas than the United States as a whole. The latest update incorporates data from a survey performed in 2001. See the EIA’s Appliance Reports at: [sorry this link is no longer available]

The reliance on electricity in the Southeast is one reason why last week’s cold snap brought record electricity use to many of those states. The Tennessee Valley Authority, the North Carolina Electric Membership Corporation (NCEMC) and Progress Energy Florida all experienced record power demands on January 24th. See the press releases from TVA, NCEMC, and Progress Energy at:
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