U.S. Investments in Wind and Efficiency

CNN Money, according to Kari M. at Climate Progress, is most optimistic about wind and efficiency among “green investment choices”, perceiving that both financial sectors are “overflowing with opportunity.”

[Unfortunately] the U.S. is trailing the world in terms of renewable energy technology and manufacturing. The is hard to come to terms with because it’s not natural for us to be lagging where there are so many exciting possibilities… We need to be investing more of our future into this industry – into research, development, and deployment, into capital, into manufacturing plants, and into these ‘green collar’ jobs.

Rotors being installed on nacelle
One hold-up to rapid development of wind power in North America has been availability of wind turbines. The Climate Progress author is of the opinion that wind farm installation cannot be exported abroad, nor should turbine manufacturing or investment in those companies be shipped elsewhere.

The CNNmoney report reiterates how The Center for American Progress has framed as opportunities our energy and climate crises.

Writing for the Wall Street Journal, Kevin Johnson says that the wind industry’s new mantra is” Mine is bigger than yours.” (It must be a Texas thing.)

Italy’s Enel SpA and GE Energy Financial Services just finished a wind farm in Snyder, TX, that boasts the tallest turbines in the U.S. The massive towers soar 345 feet to take advantage of higher sustained wind speeds.

Snyder’s 63-megawatt farm is the first in the U.S. to use the giant 3-megawatt turbines, which have gained traction elsewhere in the world. Most other U.S projects use turbines about half as big. Like Sweetwater, just down the road from the Snyder farm: The sprawling complex is the biggest in the U.S. by capacity, even if it can’t boast of similar-sized equipment.

What’s interesting is GE’s growing agnosticism on whose blades it buys. GE Energy is the biggest U.S. maker of wind turbines, but GE Energy Financial Services is ponying up an undisclosed amount of cash to work with Enel at Snyder and in Smoky Hills, Kansas—and both windfarms use turbines made by Denmark’s Vestas, one of GE Energy’s rivals.

In both cases, the explanation can be found in the growing consolidation sweeping the sector.

The Snyder windfarm was originally developed by Windkraft Nord USA, the U.S. arm of a German wind-farm developer that worked with Vestas since its inception. WKN sold Snyder to Enel in 2006, part of an avalanche of acquisitions by European companies desperate to get a foothold in the fast-growing but highly-fragmented U.S. wind power market. Smoky Hills was planned by TradeWind Energy LLC, which Enel gobbled up last year. Spanish and Portuguese utilities also went hunting with a string of U.S. acquisitions last year.

Even without guaranteed government price support, the U.S. wind power sector has been the world’s hottest for three years running. GE Energy Financial Services, which manages $2 billion in renewable-energy assets, appears to have decided that grabbing market share is worth moving beyond GE’s own metal.

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5 Comments

  1. jcwinnie
    Posted 2008-1-10 at 7:40 pm | Permalink

    Interestingly, the HAWT in the Climate Progress post is made by the German manufacturer, Enercon, which makes some of the largest currently made.

  2. jcwinnie
    Posted 2008-2-6 at 5:32 pm | Permalink

    Gatineau, Canada Treehugger Michael Graham Richard informs that Enercon now defintely makes the world largest Horizontal Axis Wind Turbine: the E-126.

    Enercon E-126
    The E-126 should produce about 20,000,000 kwh per annum, enough to power about 5,000 European homes (less in North-America, of course).

    The tower is 138 meters high (453 feet) and its walls are 45 centimeters (18 inches) thick, the diameter of the rotor is 126 meters (413 feet) and the blades feature an improved trailing edge that boosts production. Rated at 6 megawatts, it will probably produce more than 7, and despite its huuuuge size, the turbine is easier to install than its predecessors because the blades are made of two components that can be transported separately.

    The Enercon press release states:

    ENERCON will soon be installing a second E-126 directly next to the first one on the Rysumer Nacken. Both turbines are part of a research and development project in which ENERCON will be testing various storage systems in combination with the multi-megawatt wind turbines. More E-126 are planned to follow: One turbine is to be erected at the DEWI-OCC test site in Cuxhaven this fall. In 2008, five other turbines are scheduled to be installed – in Georgsfeld near Aurich, in Hamburg Altenwerder and in Estiennes in Belgium.

  3. jcwinnie
    Posted 2008-2-26 at 4:29 pm | Permalink

    Writing for Climate Progress, Bill Becker observes:

    Texas now brags that it is America’s undisputed leader in renewable energy. Last year, it became the first state in the U.S. to achieve one gigawatt of wind installations in a single year. Its wind farms at Horse Hollow and Sweetwater rank No. 1 and No. 2 in the country in terms of size. Texas also is exploring off-shore wind development along its massive coastline.

    Texan HAWTs

    Today, there are signs that the old wildcatting spirit is emerging again, but this time above ground. Farmers and ranchers are finding that by leasing land to wind developers, they can earn $6,000 annually per turbine and still graze or farm the land around the turbines’ small footprint. It’s hard to find a crop that’s more profitable and still legal.

    As the New York Times reported last Saturday (Feb. 23) in an article titled, “Move Over, Oil, There’s Money in Texas Wind“:

    Texans are even turning tapped-out oil fields into wind farms, and no less an oilman than Boone Pickens is getting into alternative energy. “I have the same feelings about wind,” Mr. Pickens said in an interview, “as I had about the best oil field I ever found.” He is planning to build the biggest wind farm in the world, a $10 billion behemoth that could power a small city by itself…”I like wind because it’s renewable and it’s clean and you know you are not going to be dealing with a production decline curve,” Mr. Pickens said. “Decline curves finally wore me out in the oil business.”

  4. jcwinnie
    Posted 2008-2-27 at 8:02 pm | Permalink

    Treehugger from Gatineau, Canada, Michael Graham Richard has more about the growth of wind power in Texas.

    Texas Oil and Wind
    Photo: Brian Harkin for The New York Times

  5. jcwinnie
    Posted 2008-3-3 at 8:23 am | Permalink

    Another post concerning wind power in Texas, this one from Kyle Weatherholtz.

    Texas is Numero Uno when it comes to wind power generation. The Lone Star state has installed wind power close to 5,000 megawatts which translates to enough electricity to power a million homes. The huge turbines, scattered across wide open spaces, conjure up more progressive feelings compared to those generated at the sight of oil rigs or smoke stacks; they are feelings of a changing world, a cleaner world.

    Because of the increased demand for wind power installation, the economies of some small locales in Texas are growing and welcoming the change. But this changing tide in the energy industry isn’t without some bumps in the road. Recently, when an unanticipated cold front killed 80% of the wind power in Texas, electricity for some offices and factories had to be cut.

    “It’s worth mentioning,” Sustainblog commentator Kiashu noted, “that the electricity shortage in Texas was more to do with a jump in demand and failure of other sources than a drop from wind. Kiashu cited the following from Houston Chronicle reporter Tom Fowler:

    “The state’s grid operators say a problem they could normally handle was complicated when a number of traditional power plant operators failed to provide the amount of electricity to the grid as promised […]

    “That same day in South Florida, a problem at an electric substation caused nuclear and natural gas-fired power generators near Miami to trip off temporarily, leading to blackouts for about 584,000 customers.”

    While energy storage technology is certainly to be welcomed, what’s more important is redundancy in systems, and good demand and supply management. A year or two back here in Victoria, Australia, we had bushfires – one line from NSW to Vic went down, and though it only carried 5% of the state’s load, cascading failures caused by lack of redundancy led to 2/3 the state being without power for 48 hours.

    A few years back in Auckland, there were four main power lines going into the city. These were old and poorly-maintained, so one of them went down. They sent the same total power through the other three, of course one overheated and went down, and so on – until the CBD was without power for a couple of weeks.

    Melbourne and Auckland are far from the only cities ever to suffer such problems.

    Whether the supply overall is intermittent or not has more to do with management and spending on infrastructure than to do with whether it’s wind or coal or whatever we’re getting our power from.


    Video: A short CBS special about wind farming in Texas

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  1. [...] a follow-up on investments in wind and efficiency in the United States, this blog relays information from a post by James Fraser. In the Energy Blog [...]

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