getting creative – maintaining renewable energy products...
TRANSCRIPT
Getting Creative –Maintaining Renewable
Energy Products as Viable Investments
KU Environmental Engineering Conference
April 22, 2020
OVERVIEW
► Speaker Background
► The Anatomy of a Wind Project
► Building a Wind Farm, Cradle to Grave
► The Federal Production Tax Credits
► Wind Energy and the Grid
► Community Impact
► What’s Next?
SPEAK ER BACKG RO U N D
► Ella D. Rose, PE, MBA• Nebraska Native• BS: Mechanical Engineering• MBA: International Business, Finance• Professional Engineer: Montana• Burns & McDonnell: 6 years• Renewable Energy Consultant
ANATO MY O F A WIN D PRO JECT
Wind(fluid motion)
Wind Turbine (fluid motion translated to
mechanical energy)
Gearbox + Generator(translate mechanical
energy to electrical energy)
Electrical cables transfer electrons to a
substation
Substation collects electrons, transforms them to match grid
properties
Electrons delivered to local grid
ANATO MY O F A WIN D PRO JECT
Tower
Nacelle
Rotor
Blade
Foundation
BUILDING A WIND FARM: CRADLE TO GRAVE
Land AcquisitionWhile each wind turbine only utilizes a few acres of land (including access roads), each must be spread apart to capture the wind.
Environmental & Permitting
There are many aspects of the environment to consider with Projects crossing vast areas: Water, 4 B’s, Archaeological, Permitting
Financial PartnerProjects will typically include a financial investor. Like any business, these investors require financially viable projects to earn them returns.
BUILDING A WIND FARM: CRADLE TO GRAVE
Engineering DesignAll aspects of the project needs to be studied and designed prior to construction.
ConstructionConstruction of roads, turbine foundations, electrical collection system, substation, T-lines, O&M building, and erecting turbines.
Commercial OperationThe project is finally on-line and producing electrons for the local grid!
BUILDING A WIND FARM: CRADLE TO GRAVE
OperationsFull-time maintenance crews are required to keep the project operations. Teams typically include both on-site and remote support.
RepowerProjects reaching 10+ years of operation may look at repowering, or replacing older equipment with newer, more efficient equipment to gain energy production.
DecommissioningDecommissioning (or dismantling of the project infrastructure) at the end of life is anticipated and financially planned for. Materials are de-constructed and primarily recycled.
FEDERAL PRO DU CTIO N TAX CREDITS
Government Tax Incentives
Wind Energy
Cost Competitive
Increase Demand
Technology Advances
Increase Competition
0
200
400
600
800
1000
1200
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Cost
Adop
tion
Time
Technology Maturity Curve Cost Curve
PRO DU CTIO N TAX CREDIT (BEFO RE B ILL )
100%
80%
60%
40%
0%0%
20%
40%
60%
80%
100%
2016 2017 2018 2019 2020
PTC
VA
LUE
[%]
YEAR OF COMMENCING CONSTRUCTION
PTC Value:$23/MWh
PTC Value:$19/MWh
PTC Value:$15/MWh
PTC Value:$10/MWh
PRO DU CTIO N TAX CREDIT (AFTER B ILL )
100%
80%
60%
40%
60%
0%
20%
40%
60%
80%
100%
2016 2017 2018 2019 2020
PTC
VA
LUE
[%]
YEAR OF COMMENCING CONSTRUCTION
PTC Value:$23/MWh
PTC Value:$19/MWh
PTC Value:$15/MWh
PTC Value:$10/MWh
PTC Value:$15/MWh
CU RREN T WIN D MARK ET
0
20
40
60
80
100
120
TOTA
L W
IND
CA
PAC
ITY
[GW
]
Installed Under Construction* Through 1Q2019Source: AWEA 2018 Annual Report
285%INCREASE
WIN D EN ERG Y AN D TH E G RID
0
5
10
15
20
25
0:00
1:00
2:00
3:00
4:00
5:00
6:00
7:00
8:00
9:00
10:0
011
:00
12:0
013
:00
14:0
015
:00
16:0
017
:00
18:0
019
:00
20:0
021
:00
22:0
023
:00
0:00
Energy Demand
Energy Demand Baseload Intermediate Load Peak Load
0:00
1:00
2:00
3:00
4:00
5:00
6:00
7:00
8:00
9:00
10:0
011
:00
12:0
013
:00
14:0
015
:00
16:0
017
:00
18:0
019
:00
20:0
021
:00
22:0
023
:00
0:00
Prod
uctio
n (k
Wh)
Time of Day
Wind Energy Production
CO MMU N ITY IMPACT
• Skilled/Technical Labor
• Long-term• Good Pay
Jobs
• Schools• Hospitals• Community
Resources
Tax Revenue
• Added Resource to the Land
• Hedge Against Uncertain Times
Landowner Returns
WH AT ’S N EXT?
