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Posts Tagged ‘American Wind Energy Association’

In a recent blog post, I reported on the completion of a large amount of CREZ transmission lines – infrastructure that incentivizes the production of wind energy – here in Texas. While the discussion around wind energy is usually around environmental responsibility, it is important not to overlook some of the more salient effects of wind energy – namely, consumer savings.

Photo from Renewable Energy Magazine

Photo from Renewable Energy Magazine

A recent report by the American Wind Energy Association notes that states that get more than 7% of their energy from wind have seen electric rates go down by .37% over the last five years, whereas all other states have seen a 7.79% increase in electric rates. Luckily, Texas is one of these 11 states that get more than 7% of its energy from wind, along with Wyoming, Oregon, Oklahoma, Idaho, Colorado, Kansas, Minnesota, North Dakota, South Dakota and Iowa.

There’s still more good news to come – as more wind develops in Texas, your electric bill could be lowered even more. Some reports show that when wind provides 14% of electricity, prices drop 10%, and when it reaches 24%, prices decline 15% .

Wind’s not just good for the environment, it’s good for your wallet, too.

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“CREZ will turn out to be the most visionary thing this state has ever done electricity-wise,” predicts Jeff Clark, executive director at the Wind Coalition, a regional partner of the American Wind Energy Association (AWEA).

201-02-06  - Wikipedia

Wind turbines in west Texas

Only a few days ago, the final segment of Texas’s $6.8 billion, 3,600 mile Competitive Renewable Energy Zone (CREZ) transmission build-out was completed. The project, which has been in the works for over eight years, could signal the beginning of another era of wind power development in Texas.

In 2008, the Public Utility Commission of Texas (PUCT) identified five competitive renewable energy zones (CREZs) – geographic areas ideal for wind farms – in the Lonestar State . However, in order to get the energy generated in these CREZs to the areas that need energy most (Dallas-Fort Worth, Austin, Houston and San Antonio), transmission lines needed to be built. Instead of waiting for wind developers to come to Texas, and then begin the multi-year, multi-billion dollar project, the PUCT decided to put in the lines beforehand to entice developers to take advantage of the already existing infrastructure.

The new transmission lines, which will be able to transmit up to 18,500 megawatts of power across the state, will increase the wind capacity in Texas by over 50%, which will be three times as much as any other state in the nation. The large amount of potential wind energy in Texas, along with the new infrastructure, has already resulted in more wind developers coming to Texas, including a project in the panhandle by Pattern Energy Group that broke ground back in October.

All in all, the completion of the Texas CREZ Project is a huge step forward to moving our state towards absolutely clean, renewable energy. Instead of waiting for developers, PUCT has been proactive in creating a better future for our state.
(more…)

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According to Bloomberg, with four days left in 2012, wind-turbine installations are expected to exceed natural gas-fueled power plants in the U.S. for the first time as wind farm developers race to complete projects before a renewable energy tax credit expires.

New wind capacity reached 6,519 megawatts by Nov. 30th of this year, beating the 6,335 megawatts of gas additions and more than double that of coal, according to data from Ventyx Incm which plans to release final tallies in January.

Congress has yet to renew the production tax credit, which provides incentives for wind farms completed before Dec. 31, 2012. Efforts to take advantage of the subsidy trumped interest in gas-fired stations, which are supported by a plunge in prices for the commodity resulting from added production through hydraulic fracturing.

To qualify for the tax credit, which pays wind farm owners 2.2 cents per kilowatt-hour of power they produce over 10 years, projects must be online and producing power by Jan. 1.

A bill to extend the wind production tax credit was approved by the Senate Finance Committee in August.  Unless Congress extends the incentive, wind turbine installations are predicted to fall 88 percent next year according to a forecast by New Energy Finance.  Earlier this month, in an effort to head off opposition to an extension, the American Wind Energy Association proposed a six-year phase-out of the credit, ending the subsidy at the start of 2019.  They claim 37,000 jobs will be lost if the credit lapses now.

An increase in gas prices may make wind even more competitive. Gas futures saw their first annual increase since 2007, rising almost 15 percent this year.  And, utilities in 29 states are required to get an increasing amount of their supplies from renewable resources such as wind and solar, whether or not Congress renews the tax credits.

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The Solar Energy Industries Association (SEIA) has taken a step that any self-respecting supporter of renewable energy should do – ditched the American Legislative Exchange Council (ALEC).  This relationship looked a lot like the fabled one between the scorpion and tortoise.

Despite members such as the SEIA and the American Wind Energy Association (AWEA), ALEC has decided to make a nationwide push to roll back renewable energy portfolio standards (RPS) that have been enacted in many states.  The RPS sets a percentage of electricity consumed that must be derived from renewable energy sources, such as wind or solar.  The Texas RPS, passed in 1999, has helped propel the state into its role and a wind industry leader.  At one point last month, the ERCOT electric grid (which encompasses most of Texas) was getting 26% of its power from wind turbines.

congratulationsIt pleases me to see good organizations such as SEIA leaving the backward notions of ALEC behind and I hope that other well-meaning organizations, businesses and elected officials will take a hard look at the facts and do the same.  ALEC has perverted the legislative process to suit its needs.  Model bills are developed behind closed doors to fit certain member industry desires and are then pushed for adoption in as many states as possible.  Of course, as SEIA has likely discovered, not all members are equal and its the big boys that get to make the rules of the game.

Numerous polls and studies show widespread support for renewable energy, but nothing speaks so loud as money.  Only when the coffers at ALEC dry up will they stop pushing this kind of backward legislation.

It remains to be seen whether ALEC’s effort to repeal the RPS will gain any traction in Texas.  Here’s to hoping that saner heads prevail and send ALEC packing.

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