HomeMy WebLinkAboutAgenda Report - May 19, 1982 (47)Council received general information regarding wind electric
generation, along with specific data describing the Cameron
Ridge Wind Power Plant Project. This project is to be a
joint venture of NCPA and the Wind Energy Company (WEC).
PROJECT DATA SUMMARY
Cost: $93,400.000 (includes $10,000,000 payment
to WEC for wind sites), to be financed
by NCPA/cities.
Sizes 40,000 kw (40 MW).
Location: Cameron Ridge, Kern County, Califor--n1a
(1,860 acres leased by WEC). Excellent
wind site.
Description: 80-500 kw wind turbine generators.
Timetable: Commercial operation by 1983-184.
Benefits: 50% of net (approx.).
Utilization by
Lodi 3,000 kw in 1995* (7.51 participationT.
s
Lodi phase 2
Liability: $165,000 (approx.).
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187:
Continued May 19, 1982
Project Evaluation: Marginal investment under current terms
and at present interest rates. Financial
success too dependent upon profitable
layoff (sale) of early year energy.
PARTICIPATION Following discussion and questions being directed to Utility
IN WIND 1 Director Curry, on motion of Council Member Olson, Pinkerton
ELECTRIC second, Council determined not to enter into the NCPA Phase 2
GENERATION Agreement covering the Wind 1 (Cameron Ridge Power)-. Project at
PROJECT (NCPA) this time.
REJECTED
COUNCII. C0,11111UNICA ON
TO: THE CITY COUNCIL DATE NO.
FROM: THF CITY MANAGER'S OFFICE May 7, 1982
SUBJECT: WIND 1 ELECTRIC GENERATION PROJECT
RECOMMENDED ACTION: A City Council decision that Lodi not enter into an NCPA
Phase 2 Agreement covering the Wind 1 (Cameron Ridge Power Plant) Project, at
this time. Though significant long-term benefits could result from participation
in a generation project at this excellent wind site, current terms and conditions
make the project a 'marginal' investment. Phase 2 participation at an appropriate
level (3,000 kw, 7�%), would require the assumption by Lodi of a $165,000 cost
liability for project design, development and further analysis.
BACKGROUND INFORMATION: Council has received general information regarding
wind electric generation, along with specific data describing the Cameron Ridge
Wind Power Plant Project. This project is to be a joint venture of NCPA and
the Wind Energy Company (WEC).
PROJECT DATA SUMMARY
Cost: $93,400,000 (includes $10,000,000 payment to
WEC for wind sites), to be financed by NCPA%
cities.
Size:
40,000 kw (40 MW).
Location:
Cameron Ridge, Kern County, California
(1,860 acres leased by WEC). Excellent
wind site.
Description:
80-500 kw wind turbine generators.
Timetable:
Commercial operation by 1983-'84.
Benefits:
50% of net (approx.).
Utilization by Lodi:
3,000 kw in 1995* (7.5% participation).
Lodi Phase 2 Liability:
$165,000 (approx.).
Project Evaluation:
Marginal investment under current terms and
at present interest rates. Financial success
too dependent upon profitable layoff (sale) of
early year energy.
David K. Cur
Utility Director
* Future energy requirements
depend on load growth, a quantity which is
somewhat uncertain, with high interest rates and the passage of Measure 'A'
(growth initiative).
May 26, 1982
Gail Sipple
Northern California Power Agency
8421 Auburn Blvd.
Suite 160
Citrus Heights, CA 45610
Dear Gail:
Please be advised that the Lodi City Council, in action taken
at a regular meeting held May 14, 1982, decided not to enter
into the NCPA Phase 2 Agreement covering the Wind 1 (Cameron
Ridge Power Plant) Project at this time.
Should you have any questions regarding this action, please do
not hesitate to mall this office,
Very truly yours,
Alice M. Reimche
City Clerk
AR: dg
cc: David Curry
Utility Director
WIND 1 AND OTHER PROJECT DATA
For the past two years, wind speed and direction measurements have been
taken at nearby anemometer stations operated by both Wind Energy Company
(WEC) and the California Energy Co= ission (CEC). There are now seven
anemometer stations operating in the area* with more than six months of
continuous data on most of them.
N C P A has reviewed the WEC and CEC data and has concluded that the
proposed site does, as suggested by WEC, constitute a highly viable
wind energy project location-. Average annual wind energy capability
measured at the site exceeds 700 watts per square meters (W/M2). This
compares to 400 W/M2 for the highly sought after- San Gorgonio Pass,
550 W/M2 for Pacific Gas & Electric Company's (PG&E) Solano site, where
their 2.5 MW wind turbine is nearing completion and where additional
development is planned, and 600 W/M2 for the Hawaiian Electric Company's
$290 million 80 MW Kahuku Wind Energy Project. The Kahuku project is a
joint development with Windfarms, Ltd., and is scheduled for full
operation by 1985.
* Cameron Ridge
4/26/82
WIND 0
California Windpower
PGandE has announced completion of a 2.5 Mw Boeing wind machine northeast of
San Fran - scoo. PGandE and Boeing expect to spin the rotor in early ApriL
Windfarms Ltd. of San Francisco has announced that the 350 M w windfarm it plans
to erect: for PGandE in Solan County Ca., will be deferred at least 6 months.
Delays in preparation of the ES and the expected lowering of "avoided cost" (tire
price PGandE would pay for the power) were cited as the reasons„
Southern California Edison Co. has announced 4 agreements for wind power. A
letter of -intent with First National Capital calls for 60 windmills with a total
output of 30 M w at San Gorgonio Paws. Ten windmills with a combined capacity of
5 Mw have been installed in the Tehachapi Mountains by Ridgeline Windfarm, and
are expected to begin generating electricity in April or May. A third contract with
American Wind Energy calls for 80 windmills of 50 Kw each. The fourth contract
with Oak Creek, Energy Systems is for 5 Mw worth of windmills near Tehachapi.
(The Energy Dailyi 3/3".7)
San Gorgonio Wind. Resource.�tudy
The BL H and Riverside County have prepared a draft on the proposed
development of wind energy resources in the San Gorgonio Pass new Palm Springs.
Ca. Comments will be accepted until May 2,, 1982.
(Federal Register, 3/19/82)
Solan Ca., Wind Turbines
Windfarms Lt:., of San Francisco, has filed an application with FERC for
Commission Certification of Qualifying Status of a Small Power Production
Facility.
Windfarms is proposing to eanst=uct 21 wind turbines, all. within a mile of one
another, in Solan Co., Ca. The generabors will have nameplate cads of 2.5
and 5.0 M w each. The total prQjecbed capacity of the installation is 92.5 M w.
(Federal Register. 3/I"2)
Loans for Wind Energy and.Small Hydro
DOE cancelled its March 9, 1982 pjbUc hearings on Loans for wind energy systems
and sm all hydro project, due to lack of public interest in making oral presentations.
Written comments on the proposed rulemaking are due April. 19,1982.
(Federal Register, 3,/3/82, p. 9017)
DOE's Pacific Northwest Laborabory has prepared a handbook that explains the
meteorological aspects of Ming large wind turbines. Copies of the handbook
(PNL-2522) are available from NTlS.
Ml,ectric Light and Power, 3/82)
WIND '
Fairfield Wind Turbine`
The City of Fairfield Ca., began operating a wind turbine May, 1983. Since that
time, it has produced 33,000 Kwh of power- and has resulted in over $2,300 in _
electricity sales to PGandE. The City expects the machine to produce an annual
revenue of $9,500.
('California Energy Com minion News & Comments, 2A2)
SLIM RighhHX-Way for Wind Generates
The Cilifocrda BLM has developed procedures for granting rights way for
competing apQticat3ons for whxlrpawer generating facilities on public lands.
Com menfis on these procedures are due March 26, 1982.
CFederal Register, V2"2, p6 8253)
Bureau of Reclamation Windmill
A 2h Mw wind machine built by Boeing in Wyoming is in a shutdown mode due to
lack of fund% The project was built under contract to the US Bureau of
Reclamation, which does not presently have the funds for the testing necessary
before 0,*e government will accept the machine. The USBR is considering three
cvptiocs: garnering more federal funds, turning the project over to the stage of
Wyoming. ac making some arrangement with the private sector.
One of the unigue features res of this project is that it would be tied into the USBR's
hydroelectric grid. Thus power generated by the wind machine would decrease the
amount of eiectricit demanded from hydro facMbzs, resulting in a form
of energy storage.
(The Energy Daily, 7f2V82)
PGandE Windfarm
PGandE and Windfaurms L have ted a contract for a 350 Mw windfarm
Ltd. negotiated
in Solan Co. Ca. The California Department of Wager Resources has signed
a separate contract allowing it to purchase a portion of the off-peak
power.
Windfarms Ltd. will. finance, build, operate and maintain the project.
Construction is scheduled to start in late 1982.
V; tar Energy Digest, Z/82)
Loans for Find and Small Hvdro Pr
DOE is issuing proposed rules to establi.Sh procedures for making and
administering direct loans for the development of wind energy systems and
small hydroelectric power Arcs act (However DQE has recommended that
Congress appropriate no funds for these programs, the proposed rulemaking
Is only for purposes of complying with PU RPA and the Wind Act)
federal Register, ?116/82)
WIND ENERGY PROGRESS AT PGandE
Presented at
UMC Wind and Solar Energy Technology Conference
April 5-7, 1982
Kansas City, Missouri
Presented by
Michael V. Russo
Generation Planning Department
Pacific Gas and Electric Company
77 Beale Street
San Francisco, CA 94106
WIND ENERGY PROGRESS AT PGandE
Michael V. Russo
Generation Planning Department
Pacific Gas and Electric Company
77 Beale Street
San Francisco, CA 94106
ABSTRACT
Pacific Gas and Electric Company has been actively involved with
the renaissance of wind energy in the United States. PGandE is
currently dependent on fossil fuels for 45% of its generation
mix, but has been blessed with a service territory that has an
excellent -wind resource. These two ingredients have resulted in
an increasingly successful wind energy program.
Following promising results from a 1979 California Energy
Commission-PGandE study, the Company began a sixteen -site
meteorological monitoring project in 1980. Data reduction has
confirmed that winds of commercial quality exist in several large
ureas near San Francisco.
Using in part this meteorological data, the Company sited its
2.5 MW Boeing Mod -2 in Solano County, California. The
performance of this turbine, Scheduled to begin commercial
operation in May 1982, will be closely monitored We hope to
gain insights into such factors as the effect of variable winds
during operation, electrical integration into the PGandE grid,
and the potential of the site for a major expansion of wind
capacity.
our new resource plan cal.s for a portion of capacity from
382.5 MW of wind energy projects by 1992, including the PGandE
unit, now under construction. As a utility whose peak load is
greater than 15,000 MW, we have the ability to accept substantial
amounts of wind power.
Studies to evaluate the firm capacity of wind energy continue.
Empirical results •from data collection in two study areas
indicate that the potential of both sites combined may be greater
than each one taken 'separately. Economic studies have shown that
commercialization of large turbines may depend on the Mod -5 being
brought to the market. economic assessment is an aid to
utilities even if they take no equity interest in these projects.
Negotiations are currently under way with various private wind
energy companies for projects that could more than double the
total installed megawatts of wind energy planned to be on line by
1992. Two companies already have installed megawatt.clusters of
turbines and are connected to our grid for electric sales in the
near future. PGandE is anxious to assist third parties in
developing their projects. We believe that wind energy has a
1
bright future in our service area, and are planning for its
implementation.
PGandE's RESOURCE PLANNING PROCESS
Goals
PGandE's resource plans are designed with several utility
objectives in mind. The foremost of these is to provide reliable
service at the lowest practicable cost to the ratepayer. We aim
to accomplish this goal while avoiding unreasonable risk for
stock and bondholders and operating in a manner consistent with
current regulatory standards and practices, including
environmental control. Diversification of generating facilities
away from oil -fired plants is sought as a means of increasing
efficiency and security. against fossil fuel price fluctuation_
Planning Input
Important input to our electric supply plan, along with refined
techniques to project system demand, are the elements by which we
judge proposed additions to our -electric resources. Emphasis is
placed on flexibility and diversity -- both of type of resource
and the role that it can best Tay in meeting our needs. The
Company develops capacity requirements for a chosen level of
reliability. An acceptable- quantitative definition of that
interval might be the commonly used. industry standard of a loss
of load probability (LOLP) index of one day in 10 years. This
LOLP index is used to determine planned capacity reserve margins.
Conceptually, this means that sufficient sources of generating
capacity are expected to be available to serve customer load at
all times except for one peak -period day in 10 years. With
PGandE''s current resource mix this corresponds roughly to about a
15 to 17 percent reserve margin or risk of less of the systems
two largest units.
Important also is the ability of the Company to displace older
inefficient units with newer units. One alternative is to build
new base load plants and back off aging oil -fired units, some of
which have been operating since 1948. Another alternative is to
reduce the usage of fuel oil and gas in existing plants. This is
where wind energy is most advantageous. As a capacity resource,
it is not dispatchable, but as an oil -reducer it has great
promise. If wind can be economically justified in this way, it
makes sense for us to encourage its implementation by third
parties.
Wind Energy in the Resource Plan
Our current resource plan includes a portion of the 380 MW of
wind energy capacity from which PGandE will be purchasing power.
This supplements our 2.5 MW Boeing unit, soon to be completed,
for a total of 382.5 MW. The 380 MW in purchases is the sum of
2
0
our contracts with U.S. Windpower and Windfarms Ltd. The latter,
a 350 MW wind power sales agreement, is the largest of its kind
to date. The 382.5 MW total will probably be expanded as we sign
contracts with some* of the more than two dozen private parties
with which we are actively negotiating. For the purposes of
meeting loads, we use 20% of the megawatts installed at a given
time, so that our resource plan shows 77 MW of wind energy by
1992. This figure will change in accordance with the inclusion
of other wind projects and/or operating experience.
THE CALIFORNIA REGULATORY ENVIRONMENT
California Energy Commission
The California Energy Commission has played a key role in the
implementation of alternative energy in California. They drafted
and carried through the state legislature key laws which have
resulted in sizeable tax credits and favorable depreciation
allowances. These have given great impetus to the wind.industry
in California. They currently operate an anemometer loan program
wherein potential on-site users of wind: energy can borrow this
instrumentation to evaluate their wind resource. Other programs
include a statewide wind resource assessment and ongoing
information dissemination.
California Public Utilities Commission
The California Public Utilities Commission has as one of its
major responsibilities overseeing utilities providing electricity
to the state. The CPUC sets electric rates and determines the
allowed rate of return on equity utilities should be granted.
Use of "preferred" technologies stch as hydroelectric,
geothermal, wind and cogeneration can result in a higher allowed
return on equity because the Commission is very interested in
seeing their implementation. The CPUC also has the
responsibility of approving some non-standard contracts for power
purchase, and at the time of this writing, was reviewing the
PGandE-US Windpower contract.
The CPUC also decides whether the Standard Offer Contracts them-
selves are acceptable for use by California utilities. In a
recent decision, Order Instituting Rulemaking #2, the Commission
ordered that utilities offer several different contracts, some
featuring a fixed price and/or capacity payments based on 100/ of
as -delivered capacity'.
i Loosely speaking,
this instantaneous
shortage.
as -delivered capacity refers to value of
capacity in reducing the chance of a
3
The net result of California's regulatory environment has been to
provide incentives for utilities to look at new technologies,
such as wind energy, with more than a passing glance.
PGandE ACTIVITIES
Meteoroloqical Monitoring Proqram
In 1979, the Company completed a study done cooperatively with
the CEC to determine the feasibility of wind energy in two areas
of our service territory (1). Based on the favorable results of
this study, PGandE embarked on a broad data collection study in
the spring of 1980.
We concentrated on two study
areas in Solano County and the
Altamont
Pass region of Alameda County. In each
area, eight
towers were sized, equipped, and
operated as follows:
Number of
Towers Height (ft)
Measurement Level
heights (ft)
5
30
30
2
100
. 30,
100
m 1
300
30, 100, 200,
300
Rohn towers were used, with Teledyne Geotech sensors and digital
recorders. The equipment samples every two seconds and stores,
on a cassette tape, speed and direction means and filtered
variances. In September 1981, a full year of data collection was
completed at all sixteen sites. Results indicate that the winds
are strongest near the time of summer peak loads. For the two
areas, we have estimated annual capacity factors for each of tha
sites, using a computer simulation that translates hourly wind
speeds into output using a Boeing Mod --2 power curve. For 1981,
using 30 -foot wind speeds, the,Altamont sites averaged 34%, the
Solano sites, 36%. The relationship between simulated output at
the sites and peak loads will be discussed below.
Solano Wind Turbine Project
Based on the results of the PGandE/CEC study and on interest in a
new technology that was beginning to show excellent potential for
utility electric generation, the Company began siting studies for
a large turbine (2). One candidate site'was chosen in each of
the Solano and Altamont areas, and further studies were
conducted. Among these were impacts of visibility and possible
encroachment by incompatible land uses, such as housing. Others
included the availability of transmission interconnection as well
as availability of the site itself for purchase. Computer simu-
4
0
lation of measured wind speeds was used to judge the match of
high winds to our system peaks. The Solano site was chosen based
on these considerations, which were the deciding factors, since
both the Solano and Altamont sites had annual winds averaging
18 mph.
Following a competitive bidding process, a Boeing Mod -2 machine
was selected for the project. Construction began in June 1981,
and the unit is scheduled to begin commercial operation in
May 1982. Prior to the completion of the turbine, a 350 foot
meteorological tower was erected close by for use in studying the
machine's performance. With a consonant program of monitoring,
we hope to gain insights into such factors as the effects of
variable winds during start-up and shut -down periods and the
electrical integration into the PGandE grid.
Empirical Capacity Credit Studies
Analysis to determine answers to some long-range questions about
wind energy continues. The issue of capacity credit interests
the utilities strongly because it must be addressed regardless of
whether -the power is produced by it or a third party. By CPUC
mandate, payment to third parties will be based on as -delivered
capacity, or possible the amount of nameplate capacity that they
will contract for. Unfortunately, where we have up to 85 years
of USGS hydrological data for some hydroelectric sites, we have
little long-term wind speed information anywhere.. Since
probabilistic studies have difficulty in simulating
meteorological conditions on our complex terrain, the summer of
1981 was analyzed in an empirical way, to try to gain an
understanding of the relationships among our sixteen
meteorological sites.
For our studies, we concentrated on the 50 peak hours of system
demand in the summer of 1981. Thus, for a sixteen site system,
this resulted in a possible 800 data point study (the actual
total was somewhat less, due to down time). Simulated capacity
factors, using our a computer model, a Boeing Mod -2 power curve-,
and measured hourly wind speeds at 30 feet yield noteworthy
results..
Figure 1 shows the frequency distribution of the average
simulated capacity factor of Mod -21s sited at each of our eight
stations in the Altafaont Pass area. It is important to note that
this average is computed from eight separate capacity factors,
rather than the average of eight windspeeds, which would produce
incorrect results. Here the wind speeds are not well related to
our needs --during 36% of the peak hours, no energy would be
produced at any of the eight sites.
At the Solano site, shown in Figure 2, the results are much more
encouraging. Here, some power is produced for all but two peak
hours. Figure 3 shows the composite averages of 50 hours which
All
AID
W
06 in
Figure 1
B ALTAMONT SITES
PROJECTED CAPACITY FACTOR FREOUENCIES
50 PEAK LOAD HOURS -1961
BOEING MOD - 2 POWER CURVE
0 1 10 20 90 40 50 60 70 6O 90 100
OVERALL CAPACITY FACTOR
Figure 2
6 SOIANO SITES
PROJECTED CAPACITY FACTOR FREOUENCIES
60 PEAK LOAD HOURS -1961
BOEING MOD -- 2 POWER CURVE
A0
.30
8
W
Ib eft
0 1 10 20 30 40 60 • 60 70 60 90 100
OVERALL CAPACITY FACTOR
6
0
a
W
42
AO i
.30
.10
Figure 3
8 SOLAND SITES + 8 ALTAMONT SITES
PROJECTED CAPACITY FACTOR FREQUENCIES
50 PEAK LOAD HOURS -1981
BOEING MOD - 2 POWER CURVE
0 1 10 20 SO 40 50 .80 70 80 90 100
OVERALL CAPACITY FACTOR
demonstrate that there is some "constructive" correlation, which
accounts for only one hour where the combined capacity factor was
zero. The correlation coefficient factor between the average
capacity factor at the two areas for the 50 hours investigated
was .65. Annual correlation factors for the eight sites within
the two areas, on an hourly basis, vary from .75 to .98 for the
Solano Area and .79 to .97 for the Altamont Area (Averages:
Solano; .86.2; Altamont, 89.01. Most of the hours of zero
operation at Altamont were balanced by some potential generation
in Solano, which accounts for the large frequency in the 0-30%
range.
Of course, these results were obtained from only one year of data
at the two 'sites using only 30 foot data. Further evidence from
more years and more .potential site areas, as well as analysis of
the nature of wind shear, will provide greater insight into the
value of the resource in our service territory.
Wind Farm Economics
Perhaps the most salient issue is whether development is likely
to be dominated by large or small (less than 100 kW)'machines or
both. For the type of terrain on which the resource exists in
our service territory, more MWhr/acre may be produced with larger
machines, but this may not prove an important consideration.
Strong evidence exists that cc:amercialization of the largest
7
machines may depend on the Mod -S being brought to the market. We
have completed a comprehensive cost simulation of a 5,000 -acre,
94 -site wind farm, and the results indicate that an extension of
tax credits, and their qualification for utilities may be needed
to justify such a venture. Estimates for operation and
maintenance show that this is a major expense, especially given a
utility's accounting system of fixed charge rates and escalation.
The figure for O&M generally used for calculations is 2% of the
capital cost, escalating annually. Escalated and levelized, this
figure rises to up to 25% of the base case fixed charge rate. A
similar study for a field of small turbines would be helpful in
determining their value.
In a sense, these studies are not crucial at this time because
capital constraints, reluctance to transfer technological risk to
the ratepayer, and denial to utilities of certain tax credits
all indicate that the Company should encourage private investment
in wind energy. But analysis is necessary because it is
important for us to have an understanding of basic wind farm
economics, both as an aid to contract negotiation and as a
tracking mechanism for a new technology.
Third Party Contracts
Given the present situation that America's utilities find
themselves in, locating private capital to devote to building
generating facilities is a high priority. In this spirit, PGandE
encourages power sales projects by third parties who can better
bear the risks and receive the benefits of new technology
ventures.
Encouraging private investment in wind farms can best be
accomplished by entrepreneurs reducing town acceptable level the
risk factors borne by each participant in the venture. The types
of risk involved are:
1) Technical Risk - Will the machine work as designed?
2) Resource Risk - Will the wind blow as expected?
3) Price Risk - Will power sales fully compensate investors?
4) Regulatory Risk - Will PURPA prices always be in effect?
Technical risk can best be minimized through stringent quality
control and extensive operating experience. Resource risk can be
insured for, as has actually been done by several developers in
i California. Allocation of the price uncertainties imbedded in an
agreement can be shared by all concerned parties --the developer,
utility, and its ratepayers. Negotiation can result in the
proper apportionment of this risk among the participants, as well
as the rewards for accepting it. Regulatory risk can be
mitigated by similar, negotiated arrangements.
8
Since repayment of the note through which a development is
financed requires constant payments (in current dollar terms),
income assurance is desirable. This situation may be remedied
somewhat by a fixed price payment for delivered power in early
years, with appropriate compensating contractual provisions
followed by compensation to the utility later in the project's
life. This was the arrangement negotiated with US Windpower,
Inc.
The USW/PGandE contract calls for a fixed price of 90 or 100/kWh
(depending on tax credit legislation) in the early years of the
contract. The difference between 97% of our Standard Offer price
and the fixed price accrues, with interest, in a tracking
account, until payment in excess of the Standard Offer price
draws the .account down to zero. Following this period, discounts
from the Standard Offer of 5% through 2001, and 10% until 2011
occur. Thus, a fixed price for delivered power for the duration
of the tracking account has assisted USW in obtaining financing,
while the ratepayers are adequately compensated for the risk they
shoulder (an internal rate of return of 63% over the life of the
contract, using base case assumptions). The rate of return. to
the ratepayer over the life of the tracking account only, is 46%, -
as illustrated below.
colt" a Prim
so
75
s7% sWod"
OMw Priv.
Figure 4
MECHANICS OF THE U.S•. WINDPOWER/PGandE
PAYMENT TRACKING ACCOUNT (PTA)
Ros ovw &w1 p Orw Ufa o1 PTA
106 WJHM&Wb
1
PTA • 0 Whh k — PTA • 0 Whh
b""S" -100% hints Intwrt 720% Mn»
MW 100% oundwd wW 97% SUNW d
OMw Prim O W Prim
PTA Salaam
► rte...
Im N 104 as M 87
9
Fixed price contracts of the type just explained will not replace
PGandE's present Standard Offer, but were designed to allow
financing of some early projects. Currently, California
utilities are changing their Standard Offer in response to a CPUC
order, and expect to complete this process soon.
While each third party we have negotiated with has taken their
own route towards pursuing their project, certain features common
to all have appeared. The importance of initiating utility
contact as soon as possible cannot be overemphasized. PGandE may
need several months in order to complete lengthy and often
complicated interconnection studies, and contract negotiations
can often take longer than anticipated.
The magnitude of third party wind activity in our service
territory has been extremely gratifying. Aside from U.S.
Windpower's 30 MW and Windfarms, Ltd. Is 350 MW projects, and a
2.8 MW installation by Farrell -O'Keefe Properties, we axe
continuingq to talk to over two dozen developers, some of whom are
municipalities. These parties would like to sell us power from
projects ranging up to 100 MW in several resource areas in our
service territory. The CEC has estimated that our two prime wind
resource sites, the Solano and Altamont areas, could ultimately
yield 1800 MW. While this may be an upper bound, we continue. to
be optimistic about the future of this renewable source. .of
energy.
REFERENCES
(1) Davis, Earl and Ron L. Nierenberg, Wind Ener Prospecting
in Alameda and Solano Counties, May 1980, Pacific Gas and
ectr c Ccmpany, Meteor. o ogl• Off ice.
(2) Shikuma, Rae. Siting the First PGandE Wind Turbine
Generation, April 980, Pacific Gas anc=ETect it c Company,
Sit ng Department.
10
• .�..:r+ter+. ..�..� r.�.� �• � - r Y r
NOTE,; Source; California Energy Commission
PROGRESS OF WINO DEVELOPMENTS
1981
. of TuRines General on
Installed
1982
of Turbines Generat on
Scheduled to be
Installed
Altamont Pass -
69
4.0 MW
468
28.4 MW
(Alameda County, 2 projects)
Tehachapi Mountains -
31
1.3 MW
345
14.75 MW
(Kern County, 3 projects)
Boulevard -
43
2.0 MW
350
14.0 MW
co (San Diego County, 3 projects)
-�
Carquinez Strait -
1
2.5 MW
(Solan County, 1 project)
San Gorgonio Pass -
1
3.0 MW
1
.S MW
(Riverside County, 2 projects)
TOTAL
144
10.3 MW
1165 60* MW
By the end of 1982 approximately 1300 turbines will be installed resulting in 70 MW of generating capacity
r- -_..__.,....._
S4
.Yv
The Kahular Wind Energy Project is the
fust large -sale commercial demorhstratioa
ofrrrenewable technology contributing
to our energy needs. The ptolect is
made possible by Oahu's ideal setting
(its windy north shore) and the farsight-
edness of Hawaiian Electric Company, Inc.
At this time, it may be the most significant
step any community in the world has taken
toward a dean, sustainable energy future.
NA WA //
The Hawaiian Islands are ideally situated :
to initiate the energy transition. It was
the Pacific trade winds which brought the
early settlers to Hawaii. Until too years
ago., these people depended entirely upon
indigenous resources for their energy
needs. But rgadern Hawaii, Me the con.
twental United Stan. has become
highly dependent upon oil to power its
homes and businesses. Today, the
Islands' people are more than gi perct&
dependent upon imported oil for their
energy needs.
In Honolulu, Hawaiian Electric burns
almost to million bafrds of oil each year
to fire its generators. nth only ;o days'
supply, it is vulnerable to even the
slightest delivery interruptions. A siofi.
ant sap towards reduction of this de-
pendence ocurred in t 98o when
Hawaiian Electric signed a contract with
V`indhrms Ltd. to purchase energy
from the 8o -megawatt Kahuku end
Energy Project. Hawaiian Electric
will pay less for the wind energy than f6ii
an equivalent amount of oil -generated
electricity.
In the hills above the plantation town of
Kahuku. Oahu, Hawaii, the world's
first large -sale wind energy project is
.
being built by Windfarms Ltd. By t 985.
twenty wind turbines, each capable
of generating over s.000 horsepower, will
.
face the prevailing trade winds and
begin delivering electricity to the Island
of Oahu and the City and County of
Honolulu.
Their graceful blades will generate S. s
paoerht of the dectrial needs of Oahu's
Sm000 residents and 4,000 000 annual
t:
visitors. Nearlyone million barrels
of oil will be scared each year. To
accom-plish
this, =ago million in private
`. �
capital is Wag committed to the ptojeces
coasoruttion.
The Kahular Wind Energy Project is the
fust large -sale commercial demorhstratioa
ofrrrenewable technology contributing
to our energy needs. The ptolect is
made possible by Oahu's ideal setting
(its windy north shore) and the farsight-
edness of Hawaiian Electric Company, Inc.
At this time, it may be the most significant
step any community in the world has taken
toward a dean, sustainable energy future.
NA WA //
The Hawaiian Islands are ideally situated :
to initiate the energy transition. It was
the Pacific trade winds which brought the
early settlers to Hawaii. Until too years
ago., these people depended entirely upon
indigenous resources for their energy
needs. But rgadern Hawaii, Me the con.
twental United Stan. has become
highly dependent upon oil to power its
homes and businesses. Today, the
Islands' people are more than gi perct&
dependent upon imported oil for their
energy needs.
In Honolulu, Hawaiian Electric burns
almost to million bafrds of oil each year
to fire its generators. nth only ;o days'
supply, it is vulnerable to even the
slightest delivery interruptions. A siofi.
ant sap towards reduction of this de-
pendence ocurred in t 98o when
Hawaiian Electric signed a contract with
V`indhrms Ltd. to purchase energy
from the 8o -megawatt Kahuku end
Energy Project. Hawaiian Electric
will pay less for the wind energy than f6ii
an equivalent amount of oil -generated
electricity.
9
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C3
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MIP
JVS0
THE PROJECT
The Kahuku Wind Energy Project is
situated some 30 miles from Honolulu on
the northeast comer of the island. Here
the prevailing trade winds first encounter
the island's landmass. As the winds
rise up and are forced around Mt. Kawela.
they rapidly accelerate to an average
velocity of ss miles per hour. On land
leased from the jarnes S. Campbell
Estate and shared with the U.S. Army.
Windfarms Ltd. is building the project.
The twenty wind turbines will be erected
on three ridges facing the northeasterly
trades. Each turbine will consist of a
s So -foot steel tubular tower anchored to a
concrete foundation. Atop the tower
will sit a nacelle and 27o -foot rotor, or
propeller.
i:,`~vi"��'�! __�'��� yam► �{•
-41
On the site, an electrical substation will
collect the energy from each turbine
and increase its voltage to 138 kv for
delivery to a rq-mile transmission line.
At Wahiawa, the electricity will feed into
the Hawaiian Electric grid.
During windfarm operation, microwave
radio signals will transmit electrical
and technical data from the site to the
Hawaiian Electric load management
center. Here the manager will dispatch
the windfarm's energy to electrical
customers and simultaneously reduce or
shut down oil -fired generators. At times
when the wind is relatively calm, the
manager will bring the oil -fired units
back on line.
rEcHNococr
In order to compete economically with
existing energy sources, wind turbines
must utilize the most advanced
aerodynamic technologies, sophisticated
materials and control methods. Aircraft
and aerospace companies have paved
the way for these large utility turbines.
Combined with more traditional
electrical generating equipment. wind
turbines will soon take their place as
accepted power generating units. 1"
■ Each turbine has two fiberglass blades
measuring t 3S fret long and weighing 15
tons. Connection to the 24001diameter
main drive shaft is made through
the hub assembly that also contains the
pitch control mechanisms. Blade angles
are constantly adjusted for maximum
energy extraction and correct generator
speed by the self-contained micro-
processor computer. The wind turbine
begins generation at t 4 miles
per hour and automatically shuts itself
down when wind speeds exceed 6o
miles per hour.
• The nacelle housing contains a trans-
mission that steps the rotor's 3o revolu-
tions per minute up to 1800 rpm.
A four -megawatt generator then converts
the rotating mechanical energy into
electricity: ► The brake assembly, cooling
systems and control equipment are
l: also housed in the nacelle. The entire
v e Unit weighs 210 tons.
rAff Mrs Pimples Ism kPat and
• 7MAAW Mee
PAR1r/CIPA NTS
The Kahuku Wind Energy project utilizes
state of the art technology in meteoro•
logical assessment, wind turbine design,
equipment construction and utility
systems integration. Its success is due to
the support of Hawaii's people and
the cooperative association of many small
groups and large institutions man-
aged and organized by Windfarms Ltd.
'The meteorological technology is being
provided by the University of Hawaii,
the Meteorological Research In.
stitute and Windfarms Ltd. The wind
turbine technology was developed
and is being manufactured by Swedyards
in Sweden and the Hamilton Standard
division of United Technologies in the
United Stara. Hawaiian Electric
Company is building the substations
and transmission lines. Bechtel
Power Corporation of Los Angeles is
providing construction, logistics,
power engineering and utility interface
services. The First Boston Corpo-
ration in New York is providing project
financing services.
at".Ibis
/led 4%a&.w� a2Ae&e (%e
CS
WIND 1 PROJECT LOCATION
HORIZONTAL AXIS WIND TURBINE
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