Barriers to Additional Wind Energy Development

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Barriers to Additional Wind Energy Development

It is worth noting that, as with solar, wind investments are not always happening in the windiest areas. The reality is that there are a large number of factors that influence the development of wind energy globally. As the technology for wind energy has improved, other factors have also come together to create market drivers for wind power. These drivers include:

  • Declining Wind Costs
  • Fuel Price Uncertainty
  • Federal and State Policies
  • Economic Development
  • Public Support
  • Green Power
  • Energy Security
  • Carbon Risk

video icon Earth: The Operator's Manual

Despite all of these barriers to wind energy deployment, wind is, in fact, one of the fastest-growing sources of power generation in the world. Wind energy is being embraced in areas that have traditionally favored low-carbon energy development as well as in areas that have a long history of fossil fuel extraction and use. The following video explains how two very different regions - Denmark and Texas - have embraced wind energy.

Video: Yes, in My Backyard (aka YIMBY!): (9:08)

Click here for a video transcript of "Yes, In My BackYard".

Narrator: Are there other examples of communities and nations that have begun the transition away from fossil fuels? What does it take to welcome the turbines and solar farms of the new energy system, and say, "Yes, In My Backyard." This is the story of two communities that at first look very different. Samso is a small island off the Danish mainland. West Texas is a vast, dry expanse in America's South. What both have is abundant wind. At times, Samso produces more electricity than it uses, exporting surplus power to the Danish mainland. And Texas wind now generates as much power as the next three U.S. states combined. Samso and West Texas both solved the NIMBY, not in my backyard challenge that has stymied so many renewable energy projects. It's not easy, but with patience, and persistence, and the efforts of the right people, it can be done.

Soren: Okay-- My name is Soren Hermansen, and I am the Director of the Samso Energy Academy. Samso means, in Danish, means the Meeting Island-- when you make a circle around all of Denmark, then Samso is right in the center of the circle.

Narrator: But it wasn't geography that brought Lykke Friis, then Denmark's Minister of Climate and Energy, here in mid-2011. It was why and how this community had turned NIMBY into "Yes, in my backyard."

Lykke Friis: Well, Samso is a pioneering project, in the sense that Samso, way back, decided that Samso should become independent of fossil fuels. Narrator: Before its transformation, people thought of Samso as just a cute tourist community, busy in summer, empty and desolate in winter. Now people come here not just to see the turbines, but to understand the process that got the community to welcome wind energy. After a national competition, Samso was selected by the Danish government to be a proof of concept for how to transition from fossil fuels. But it was up to individuals like Soren Hermansen, with the passion and skills to effect change, to figure out just how. Soren: So when we won, the normal reaction from most people was, "Yeah, you can do this project, that's OK, but just leave me out of it."

Narrator: Samso has a deep attachment to its past and values its traditional way of life.

Soren: But gradually we won their confidence in establishing easy projects to understand, and also easy projects to finance. Because basically, it's all about, "What's in it for me?" Because it's not convinced idealists or green environmental hippies who lives here.

Narrator: Soren, a native of the island, convinced some of his neighbors to become early adopters. They found success and spread the word. Jorgen Tranberg operated a large and profitable herd of milk cows. After initial reservations, he invested in a turbine on his own land. When that went well, Jorgen became part owner of one of the offshore turbines.

Soren: Farmers, they have to invent new things and be ready for changes. So when they see a potential, they look at it, no matter what it is. They look at it, say, "Could I do this?" And if they see fellow farmers do the same thing, they are quick to respond to that. So even being very traditional and conservative in their heads I think they have this ability of making moves and do things because they have this independency in them. A farmer is a free man-- maybe he owes a lot of money to the bank, but he's still a free man in his thinking.

Narrator: It was seeing what was in it for them and for their community, that won over landowners in West Texas. And it took one of their own, a man whose family had deep roots in Roscoe's cotton fields, to educate them about wind farming. Cliff Etheredge: Well, I'm really a farmer-farmer, you see. I farmed for almost over 40 years. We're in-- right in the middle of the Roscoe Wind Farm. And we've got about 780 megawatts of production, that's per hour, enough electricity for about 265,000 average homes. Narrator: Roscoe had no oil and faced hard times in the early '90s, but it did have wind.

Cliff: When this land was acquired there was absolutely no value to the wind. Fact is, it was a severe detriment, because of the evaporation of the moisture.

Narrator: Cliff, like Soren, had to work with his neighbors to get them ready to accept wind turbines.

Cliff: The first thing farmers want to know is, "Well, how much is it going to cost me?" It costs them nothing. "What's it going to hurt?" Three to five percent of your farmland is all it's going to take up. You can do what you want to with the rest of it. Then it came down to, "Well, how much money is this going to make me?"

Narrator: Cliff did his research and checked his numbers with wind experts and the Farm Bureau.

Cliff: Then I was able to go to our Landowners' Association and show them, where they had been receiving 35 to 40 dollars an acre, then the landowners could expect somewhere in the neighborhood of three times that.

Narrator: In fact, farmers stand to make 10 to 15 thousand dollars a year, per turbine, just from leasing the wind rights.

Cliff: There was no guarantee in it from the very beginning, but sure enough we've got, I think, in the neighborhood of 95 or more percent of our area that accepted the wind farm.

Narrator: In both Samso and West Texas, individuals saw economic benefits. But the whole community, beyond the investors and land-owners, benefited too.

Cliff: Because of the wind farm, now, and the people working in the wind industry, now we've got jobs available and opportunities for young people to come back from college or from technical school or from whatever. It's just been a Godsend.

Narrator: For Kim Alexander, superintendent of the Roscoe school district, that godsend translates into dollars.

Kim Alexander: In 2007, prior to the wind values coming on our tax roll, our property values were at about 65 million dollars. And then, that wind development, they jumped to approximately 400 million dollars, to 465 million dollars.

Narrator: The school district will get more than 10 million dollars over a decade. That guaranteed revenue stream unlocked additional funding. School buildings, some dating from the 1930s, could be updated, and computer labs added.

Cliff: This is an indication to me of what can be done for rural areas, and will be done, all the way to Canada-- bringing life and prosperity back to these rural communities that are suffering just like we have.

Narrator: The same oil shock that got Brazil started on ethanol, got Denmark started on manufacturing wind turbines, just in time to compensate for a decline in its shipbuilding industry.

Lykke: And it's also good for the economy, in terms of export. I mean, 10 percent of Danish exports comes from the cleantech area.

Narrator: Energy and environment always require tradeoffs, such as clear vistas versus clean energy. It's something that communities have to make time to work through. Cliff, for one, believes it's worth it.

Cliff: Everything, the schools, the churches, the civic organizations, all the businesses will benefit from this. It will increase, hopefully, our town's populations, and our economics.

Kim Alexander: My granddad used to say, not realizing he was prophetic, but "If we could sell the wind, we'd be wealthy." Well, who would have ever thought we'd be able to sell the wind?

Narrator: For Samso, Denmark, and Texas, clean energy brought economic benefits and energy security. But replacing fossil fuel emissions with wind power has other advantages.

Lykke: And let's not forget, also good for climate and health, and such, and that's a very important argument.

Cliff: We've got a constant wind resource here, that's tremendously valuable, and as opposed to oil and gas, it'll last forever, and it doesn't pollute anything.

Source: Earth: The Operators' Manual

We have already mentioned the US Production Tax Credit, which is responsible for a good amount of the trend in US wind energy investment – both up and down! A decline in wind investment in 2010 and 2011 was due in part to the global financial crisis. A drop in natural gas/wholesale electricity prices has made some planned projects less competitive than originally expected and halted development. There has also been a slump in the overall demand for energy. Another factor that limits the growth of wind power capacity is the constraint on the transmission infrastructure. As can be seen in the wind capacity map on the previous page, many of the locations that experience the windiest conditions are not close to coastal population centers. The cost of upgrading this infrastructure is significant — perhaps $30 to $90 billion in the US by the year 2030 according to some estimates. This seems like a huge amount, but consider that our government spends about $20 billion each year in direct subsidies to the fossil fuel industry, which would sum up to $200 billion by the year 2030. In light of that, the upgrade cost for better transmission lines is a bargain!

Note

A great resource for information on the current state of the US wind market and the wind industry, in general, is the US Wind Technologies Market Report which is annually published by the Mark Bolinger and Ryan Wiser of the Lawrence Berkeley National Laboratory.