July 29th, 2010 | 
Author: It seems as though every person, town, state, city and nation is looking into green energy resources. From building green homes that are energy efficient and cost less to heat, to using alternative energy methods to provide whole towns with electricity, the green energy trend is here to stick around . One town is going above and beyond what other towns are currently doing and are building a biogas plant.
San Jose, California seems to be paving the standard and setting a good example of how a whole region can become more energy conscious. The biogas plant that is currently in the works will sit on a 40 acre plot of land which is conveniently located next to a landfill. What is striking about this situation is what biogas actually is and how it's made.
Biogas is made when human waste that is broken down biologically and without oxygen. That's right; biogas is made from human waste. While this may literally sound like a polluted business, the practice of using human waste for things such as fertilizer has been going on for centuries. In the case of using biogas for energy, the waste is broken down and then heated up. Here are several different uses for biogases aside from using it as residential and commercial energy:
· Biogas can be used as automobile fuel. It is currently estimated that there is a potential for at least 17% of cars in the United Kingdom to be fueled by biogas. At this time however, biogas is not an approved automobile fuel in the United States.
· It is perfectly safe to use as a cooking fuel and can be used to power major types of heating appliances.
Along with biogas, the city of San Jose is enacting other green laws and changing building codes to make the area a cleaner and more energy efficient area. Biogas is a current niche in the green energy field.
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Water is a renewable energy resource, and one that offers the greatest variation in power production. We can harness the water energy through what is known as motive energy or through the differences it experiences in temperature. Unfortunately there aren't enough trained professionals that have completed renewable energy courses.
Water is nearly one thousand times as dense as our air. What this tells us, then, is that a slow moving stream of water is more powerful, in terms of renewable energy than wind. A wave or swell of the sea can deliver many times that energy.
We have many forms of renewable water energy from which to choose.
The first type of water energy, and the one we most commonly think of when we think of renewable water power, is hydroelectric. This is the power that commonly is created by large hydroelectric dams.
You can also have what are called micro hydroelectric systems. These are small power installations that produce as much as 100 kilowatts of power. The most common places to find these renewable water energy sources are in areas where water is abundant and the hydro system can be used as a remote area power supply RAPS. While there are many RAPS around the globe several are functioning in the Solomon Islands.
Wave power is another way of using water as a renewable energy source. The waves are used to create an up and down affect for pontoons that float in the water. This has just started to be used commercially as renewable energy.
Tides can produce renewable energy as well. As the ocean tides come in the water level is raised in the water basin. Then, at low tide the basin water gets discharged through the water turbine. Tidal stream power is different in that it captures the energy produced by the tidal flow. This usually is accomplished through the use of an underwater plant that looks like a small-scale wind turbine. While governments have set up demonstrations for this type of tidal power, any large scale commercialization of this renewable tidal energy would require extensive upfront capital. This has yet to be attempted.
Ocean thermal energy conversion OTEC is yet another form of water energy. OTEC uses the different in temperature between the oceans surface water and the water at deeper points. To do this it uses a cyclic heat engine. This form of renewable energy has had no large scale field test as yet.
Though not technically a form of generating renewable energy the cooling of the water in deep lakes is an efficient way to save energy during the hot summer months. Pipes are submerged and used as heat sinks. The bottom of these lakes typically stays at less than 40 degrees Fahrenheit.
Blue energy, which is really desalination in reverse, is a renewable energy resource still being researched. There is no data at this point to show whether it will work.
Unfortunately there aren’t enough trained professionals that have completed renewable energy courses.
If you have got an interest in understanding how solar energy works and the way to scale back your power bills by exploiting it as an alternative power source, then facts about this sort of power is going to capture your interest! This energy is a replaceable resource and one of the oldest method of energy usage. The incontrovertible fact of the affair is that the sun's rays are so powerful that if we are to convert that into energy, the planet will never run out of energy for approximately another 4.5 billion years, according to. The sun never creates any dangerous byproduct which could harm the environment.
In the early 1950's, this energy was considered as a replacement for man-made energy resources. Further studies lead to the discovery that energy might be obtained thru less-expensive sources. The demand for this energy has grown seriously inside 20 to 50 pc over the past 20 years.
Solar power can support home devices, lighting and water heaters. These days, this form of energy is more heavily priced, but in the future, with increased systematic research, it'll cut down the expenses, and will increase its efficiency in the procedure. By 2025, it's expected to generate around 2.5% of the Earth energy demand thru solar energy. This makes it the fastest growing technology.
There are some fundamentals about this sort of power that you should know. It is measured in kilo watt hours, and 1 kilowatt=100 watts. One kilo watt hour equals the total amount of electric energy which is needed to burn 100 watt light bulb in a span of ten hours. 866 kilowatt hours is the monthly consumption of an average American household. The residential power usage Survey conducted in 2001 shows a yearly electricity bill was around 2,000 greenbacks.
A decrease in unit costs has gave towards a growth in enlargement rates, making it a critical energy resource. After the year two thousand, solar energy has grown at an annual rate of forty percent. Solar power is moving at a progressive rate in the developing nations too, as the employment of carbon-based fuel has doubled over time .
Compared with this energy which is a continual alternative power source, standard fuel reserves are reducing. And in contrast to costly power grids, setting up solar energy devices ( if you're going to make solar panels, for example ) is easy. The drawback of traditional fuels is that the costs have risen along with the cost of transporting coal, oil and gas.
With the increased environmental concerns are more widespread shared with the apparent wish to lower our ever growing electric bills has lead to new attitude of view regarding solar heating systems that had been at one time regarded as a fringe eco systems. However this fresh approach, with its adoption of green ideals has increased the public awareness in the two different types of solar heaters, the first and most widespread water heaters and, secondly space and hot air heaters.
Solar Water Heaters come in two distinct subsystem styles: Passive and Active.
Passive A passive solar heating system is a unique heating solution using pipes or plates, which are out in the open to the sun, through which water is pumped thus soaking up the solar heat. The heated water is then be stored for use later or the hot water can be given over to an auxiliary or pumped system both for use as hot water or as heat supply for warming the home or business. In most climate zones solar heating can be utilized to produce as much as 85% of a properties hot water needs thus giving substantially to the reduction of the use of conventional energy and the lowering in cost that it brings about.
This has lead the way to passive solar heating turning into a popular option with house owners. These heating systems are most commonly utilized in houses, to heat the water for swimming pools, bathing and other domestic needs, in addition to providing below floor heating for rooms, or energy input for other heating systems.
Active An active heating system, also called a pumped system is coupled to an auxiliary system that is set in motion when the temperature of the water drops below a pre-determined temperature. The supplementary system may also be part of a “Green” or alternative energy system that even further lowers the need for carbon based fuels.
Solar Air Heaters are becoming increasingly accepted as a valuable home heating answer and can be easily integrated as part of an existing heating system, and can be quickly made making use of an online information kit and a few hours of your time. The savings you can achieve by making your own solar air heating system are significant and that’s before you see the lowering of your electric bills through using it
Solar heating systems are ideal for those seeking ways to lower the carbon footprint of their home, by cutting out or at least significantly reduce their dependence on commercial energy that has been generated by burning fossils fuels. This reduction not only means less expensive bills but helps with the reduction of greenhouse gasses.
By making use of the downloadable guides that will show you in step by step instructions how and what to do, you can make incredible savings over a retail system that will do exactly the same job. Till 2016 you will be eligible for Alternative Energy Tax rebates that give you back about 30% of your costs
Just follow the links to www.homebuildgreenenergy.com for information on the best of these DIY alternative energy systems for solar heating systems or for generating renewable energy, whichever system you decide on it will be simple and economical to build and give you great benefits for many years.
Active An active heating system, additionally known as a pumped system is linked to an back up system that is triggered when the water temperature goes lower than a pre-determined minimum. The back up system can additionally be part of a “Green” or renewable energy system that even further reduces the need for carbon based fuels.
Solar Air Heaters are becoming increasingly accepted as a useful home heating answer and can be readily integrated into the existing heating system, and can be easily made making use of an online information guide and a few hours of your time. The savings you will get by making your own hot air system are substantial and that’s before you see the lowering of your energy bills by using it.
Solar heating systems are ideal for those seeking ways to lower the carbon footprint of their property, by cutting out or at least significantly reduce their dependence on commercial energy that has been generated by burning carbon based fuels. This lowering not only means cheaper bills but helps with the reduction of greenhouse gasses.
By using of the downloadable guides that will show you in step by step instructions how and what to do, you can make incredible savings over a retail system that will do exactly the same job. Till 2016 you will be eligible for Alternative Energy Tax rebates that give you back about 30% of your costs
Just follow the links to www.homebuildgreenenergy.com for information on the best of these DIY alternative energy systems for example homemade solar panels or for generating renewable energy, whichever system you decide on it will be simple and economical to build and give you great benefits for many years.
Jay Haley, P.E.
1. How much money can I make?
Based on wind projects in southern Minnesota and northern Iowa, landowners can expect to receive annual land-lease payments ranging from $2,000 to more than $4,000 per turbine. The amount depends on the size of the wind turbine and how much electricity it produces as well as the selling price of the electricity. The same turbine will produce more in one location than another depending on the annual average wind speed at the site. The payments typically represent from 2% to 4% of the annual gross revenue of the turbine.
2. How many turbines can be placed on a section of land?
Approximately 10 megawatts (MW) can be placed on a section of land. Wind turbines are usually spaced 5 to 10 rotor diameters apart. The spacing criteria allow approximately twelve 750-kilowatt (kW) turbines or six 1.5-MW turbines on a section of land. Developers usually place the turbines as close together as possible to reduce the costs for wire and roads, but they do not want to create wake losses by placing the turbines too close together.
3. Is my land a good wind site?
A small increase in wind speed results in a large increase in power output from the turbine, so developers want to find the windiest sites. The wind speed increases with altitude and is slowed down by surface roughness elements such as trees, rough hilly terrain, and buildings. For example, a high plateau surrounded by land with relatively low surface roughness out to a distance of 5 miles or more would be a good wind site. The site must also be accessible to large cranes and other construction equipment and be near the transmission grid.
4. How do I get wind turbines on my land?
Work with your community to attract developers interested in working in your area. When planning large wind farms, developers rely on meteorologists to determine the best locations for the turbines. Developers want maximum energy capture at the lowest installed cost.
5. How much will I have to invest?
In most cases, wind developers finance, own, and operate the wind farms. The local landowners are not expected to provide financial support. The landowner’s role is typically to lease land to the developer for an annual fee.
6. Will my property taxes increase?
Installing a wind turbine may increase the property value because turbines produce long-term income. Most land-lease agreements have provisions stating that the wind developer will cover any increase in the landowner’s property tax.
7. Can turbines be sited on Conservation Reserve Program (CRP) land?
Yes, wind turbines can be sited on CRP land. The square footage occupied by the turbines and access roads may have to be removed from the CRP agreement if the landowner is receiving land-lease payments.
8. Can turbines be sited on grassland easements?
The U.S. Fish and Wildlife Service has developed guidelines that will allow one wind turbine per 160 acres of land that is under the grassland easement program. However, there are some restrictions. Interested landowners should contact the U.S. Fish and Wildlife Service for details.
9. What are the steps leading to wind development?
Typically, wind developers need a power purchase agreement, a good wind resource, low-interest financing, and low transmission upgrade or construction costs. The steps leading to wind development include:
- • Prospecting for good wind sites
- • Negotiating land-lease agreements
- • Monitoring wind speeds
- • Investigating transmission access
- • Negotiating power purchase agreements
- • Arranging financing.
10. What does the local utility think?
In the past, most utilities did not favor wind development because of its high cost and low reliability. Over the years, incremental design improvements have lowered costs and increased reliability to the point at which wind energy is the least-cost form of new generation, and reliability is better than 99%. Today, utilities across the country are involved in wind projects as a means of diversifying their portfolios, lowering their exposure to the risk of fluctuating fuel costs, and responding to consumer demand for wind energy.
11. How much do wind turbines cost?
Wind farms cost approximately $1 million per megawatt of installed capacity.
12. How much does a wind farm earn?
A 1.5-MW wind turbine will produce approximately 5,000,000 kWh per year―enough to power about 500 homes. At $0.04/kWh, the turbine would earn $200,000 per year in gross revenue.
13. Who owns the wind farm?
Investors typically own wind farms.
14. How much wind is needed?
Wind farm development becomes economically viable in wind regimes that have at least a 16-mph annual average wind speed (at the hub-height).
15. How much electricity do they generate?
A 1.5-MW wind turbine will produce approximately 5,000,000 kWh per year, which is enough to power about 500 homes.
16. Do wind turbines harm birds?
Birds collided with wind turbines on some of the early California wind farms, so the wind industry has carefully studied almost every wind farm project built since. The resulting studies indicate that the California experience was due to a unique set of circumstances that contributed greatly to the problem. Better sitting practice has helped the industry avoid repeating the mistakes made in California.
17. How tall are wind turbines?
Modern wind turbines are placed on towers that range in height from 56 meters (184 feet) to 100 meters (328 feet). The blades are usually around 100 feet long, so at the top of its arc, a blade tip could be more than 400 feet in the air.
18. Are wind turbines noisy?
Modern wind turbines are very quiet. The noise produced by a wind turbine is a combination of the “swoosh” of the blades flying through the air and the hum from the gearbox and generator. The overall noise level has been compared to that of a modern refrigerator. When standing near a modern wind turbine, the background noise of the wind rushing past your ears will usually drown out any noise from the wind turbine.
19. How do turbines operate?
Wind turbines are sophisticated machines with computer controls. A typical operating sequence is as follows: When the wind speed reaches the cut-in speed of the turbine (usually around 10 mph), the turbine blades will spin up to operating speed, usually around 14 to 29 rpm (varies by turbine model), and start generating electricity. As the wind speed increases, the generator output increases. When the wind speed increases to the rated wind speed (usually around 30 to 35 mph), the generator will output its nameplate-rated capacity (i.e. a 750-kW turbine would now output 750 kW). As the wind speed continues to increase, the generator output will remain at the rated capacity (i.e. 750 kW) until the wind reaches the cut-out speed (usually around 55 to 65 mph). At this wind speed, the turbine will deploy its tip-brakes and then apply its disk brake, stopping the blades in a few revolutions. It will then rotate itself 90 degrees out of the wind and park itself. If the wind speed drops to a level below the cut-out speed for a sufficient length of time, the turbine will point itself back into the wind, release the brake, and resume power production.
20. What happens when the wind doesn’t blow?
The existing system consists of two types of generating equipment, base-load equipment (coal-fired generators) that run at the same output level all the time, and load-following equipment (natural gas-fired generators) that are designed to vary their output to match the fluctuating load (lights and appliances going on and off). When wind turbines put electricity onto the grid, the natural-gas-fired generators respond by lowering their output. This automatic system is capable of compensating for wind energy added to the grid. Studies indicate that wind energy penetration levels of at least 10% on the grid are feasible under current control systems. In reality, it will be many years before we see wind penetration levels approaching 10%.
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Steve Clemmer, Union of Concerned Scientists
The potential economic benefits of continued growth in the wind industry are huge. The U.S. Department of Energy’s “Wind Powering America” initiative has set a goal of producing 5% of the nation’s electricity from wind by 2020. DOE projections show that achieving this goal will create 80,000 new jobs during the next 20 years, provide $1.2 billion in new income for farmers and rural landowners, and add $60 billion in capital investment in rural America.
New Jobs
Wind power creates new high-paying jobs in a wide variety of industries. This includes direct jobs installing, operating, and maintaining wind turbines, as well as jobs at manufacturing facilities that produce wind turbines, blades, electronic components, gearboxes, generators, towers, and other equipment. Indirect jobs in the industries that support these activities are also created. According to AWEA, the U.S. wind industry directly employs more than 2,000 people and contributes to the economies of 46 states. The Danish Wind Turbine Manufacturer’s Association estimates that wind power creates 22 direct and indirect jobs for each MW of installed capacity—five jobs per MW for installing the turbines and 17 jobs per MW related to manufacturing. Operating and maintaining wind turbines can provide a long-term source of highly skilled jobs for local communities. New wind projects directly create about one operation and maintenance job for every 10 MW of installed capacity. Additional jobs are created in local businesses that supply goods and services to these projects, and these employees spend their paychecks in the local economy. The degree to which wind power creates new jobs in a state or local economy will depend on how much of the labor, materials, and services are supplied by local businesses. Furthermore, the rate of job creation per unit of capacity is likely to decline over time as the industry grows and is able to manufacture wind turbines in larger volumes and at a lower cost. However, this will make wind power more affordable, which will lead to additional economic growth. Although only a handful of states have fossil fuel reserves, most states have the potential to generate a significant portion of their electricity needs from wind power. For states that import most of their energy, wind power provides an opportunity to create jobs by keeping more energy dollars at home. For example, a study by the New York State Energy Office found that wind energy creates 27% more jobs in the state than the same amount of energy produced by a coal power plant and 66% more jobs than a natural gas power plant.
Landowner Revenues
Many people will benefit from the clean air and economic growth brought about by wind power development, but farmers and other rural landowners may benefit the most. The best wind resources tend to be located in rural areas and on farmland in the plains states. Wind power can provide a new cash crop for farmers and ranchers. Large wind turbines use only about one quarter-acre of land, including access roads, so farmers can continue to plant crops and graze livestock right up to the base of the turbines. One of the easiest and most attractive ways for farmers and other landowners to benefit from wind power is to allow wind developers to install large wind turbines on their land. Although leasing arrangements vary widely, royalties are typically around $2,000 per year for a 750-kilowatt (kW) wind turbine, or 2% to 3% of the project’s gross revenues. Given typical wind turbine spacing requirements, a 250-acre farm could increase annual farm income by $14,000 per year, or more than $55 per acre. In a good year, those 250 acres might yield $90 worth of corn, $40 worth of wheat, and $5 worth of beef per acre. Thus, lease payments from wind power can provide a stable supplement to a farmer’s income, helping to counteract swings in commodity prices. Another option is for a farmer or group of local landowners to own one or more wind turbines. These “wind co-ops” are common in Europe, but there are only a few examples in the United States. However, in the 2002 farm bill, Congress included new incentives to form wind co-ops and help farmers finance wind projects. A 1996 study by the Southwest Regional Development Commission in Minnesota found that local ownership of 200 MW of wind power could generate 300 more jobs and $7.8 million more income over a 30-year period than receiving land lease payments from wind developers. Local ownership of wind projects presents some challenges, however. Purchasing one or more large wind turbines can be a substantial investment for even a large farm operation. Smaller wind farms may also have to compete with larger, multiple turbine wind farms, which often have lower production costs due to economies of scale in manufacturing and installation. However, farmers may be able to team up with a rural electric co-op to finance a project and sell the wind power to its customers.
Tax Revenues
Wind power can also provide significant property tax revenues for rural areas. While local property tax rates vary widely, payments generally range from 1% to 3% of the project’s value. At 1%, property tax payments would provide approximately $10,000 per MW of installed wind capacity for rural communities each year. These revenues can be used to build new schools, roads, bridges, and other infrastructure. Wind projects pay property taxes that are often two to three times higher per unit of energy than conventional power plants because they are more capital intensive. To help level the playing field, some states give wind power an exemption or partial exemption from property and other taxes. Many wind projects also pay state business, sales, and income taxes. Throughout the United States, wind power is creating a new source of jobs and income that could help revitalize state and rural economies while providing a clean, inexhaustible source of energy.
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Renewable energy in clean alternative forms are being searched for on a world wide scale by governments and industry, not only as a valuable source of energy but also as a means of combating Global warming. There is rapidly rising need for electricity , but this is accompanied by an upsurge of ill feeling with the present methods of generating in power stations, that use fossil fuels such as coal and oil, which produces harmful gaseous emissions.
Individuals are searching for their own DIY renewable energy projects for use in their own homes, a prime example of such emission power source that has been developed in the last decade is a zero point magnetic power generator.
One of the many fascinating facts with zero point magnetic generators is that they can be made and run under cover so they work in any weather . The system uses permanant magnets to createt electricity, the system once in motion it creates its own power supply needed to keep it in motion, the majority of the energy it produces is then used to meet the needs of the home , in the form of zero cost electricity.
The lynch-pin of the system is the perpetual motion of the magnets which create a magnetic force within the coils, the system will operate indefinitely, such a system has been tested and it produces 5 times as much power as it requires to keep itself in motion. The theory behind the system has been understood for many years , but it has only in recent years been refined and enhanced so that you can build your version of a magnetic power generator using an online guide at a very inexpensive cost.
So how do you construct your own magnetic generator?
As already mentioned the main tennet of a magnetic power generator has been understood for a long time , in fact it resembles a standard transformer, with some changes that encompass a permanent magnet and actuator coils. This magnet is the magnetic core's centre point and produces a magnetic flux which moves in the central component and it extends in magnetic pathways (left as well as right).
There are input and output coils extending from the magnetic core. The driving current goes through the input coil and lowers the flux level generated from permanent magnets. The magnetic area in movement result in coil charges thus once it is positioned between 2 metal plates, the magnetic flux is then evenly produced.
The magnetic flux moves in the direction of the plates , when the current passes across the input coil, the magnetic flux changes. Developmental improvements in metal alloys have developed to a point where they can swap the magnetic fluxes extremely quickly, which allows you to construct your own version of a zero point magnetic generator.
This sounds almost like science fiction but by utilizing one of the better guide accessible  online with step by step instructions, the system can be easily and quickly made in your own home . The guide will take you through all the technical aspects of the build in both written and video form and when finished  you will have your own alternative power source that will produce  electricity 24/7 daily all year round regardless of the weather conditions ourtside .
The system is possibly  the most environmentally friendly system obtainable  that will make savings on your electric bills completely automatic. So click on  the links and gets get started
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Wind turbine What is a wind turbine? A wind turbine is also referred to as a windmill or wind generator. Though the terms are used interchangeably, there is a minor difference. The wind turbine is the device that makes use of the wind energy to produce mechanical energy. This mechanical energy is then used as is or converted into electrical energy. A windmill uses the mechanical energy as is for pumping out water or for grinding purposes whereas the wind generator is the one that produces electrical energy. Wind turbines are classified into two kinds based on their orientation: • Horizontal axis turbines – The blades in these wind turbines rotate along a horizontal axis. • Vertical axis turbines – The blades in these turbines rotate along a vertical axis. The horizontal axis wind turbines are more commonly used. They are more efficient that vertical axis turbines. What are the advantages of installing a wind turbine? Let’s look at the major advantages of a wind turbine: • Power-saving: Since the wind turbines use a free energy, the wind energy, they prove to be a very cost-effective mechanism for generating electricity, thus helping not only save power but also generate power for the world. • Cost-effective: The only cost involved in installing a wind turbine is the initial cost and the cost of maintenance. The energy comes free and there is no other fuel. • Environment-friendly: The wind turbines are environment friendly in a way that they do emit harmful gases or affect the environment in any way. • Uninterrupted power supply: A wind generator helps you become independent of government’s electricity supply. Moreover, you overcome the hurdles of power outages. What are the factors you should consider for installing a wind turbine? Make sure the following two pre-requisites are met: • The site for installation is at least of one acre area. • The average wind speed is around 11 miles per hour. • Make sure the tower and the base are sturdy. It is important to foresee the turbulence in the wind before you invest in the wind turbine. • Make sure the tower’s height and the distance between the wind generator and the cells are optimum. |
If you are interested in getting to know how solar energy works and reducing a little from your home energy bill, facts about solar energy will help you. Solar energy is a inexhaustible resource and of the oldest method of energy use that is available at present. The critical fact about solar energy is that the sun s rays are so powerful that if we are to convert that into energy it would mean that Earth will never run out of energy for at least another 4.5 billion years according to scientists. Sun never create any hazardous by-product which could harm the environment.
During the early 1950s solar energy was looked upon as an alternative to man made energy resources. Over some studies it was found energy could be obtained at some cheaper source. With a constant figure of 20% - 25% demand growth year-by-year, the solar energy demand increases for last two decades. Solar energy is able to support home appliances, lighting and water heaters. As of the minute, solar energy is more heavy priced but in the near future with the growth in technological studies, it will bring down the costs and also increase its efficiency. Solar energy is to generate 2.5% of the world s energy use by 2025. Solar energy is the fastest growing technology.
There are some basic facts about solar energy that one needs to be acquainted to; solar energy is measured in kilowatt hours and 1 kilowatt=100 watts. One kilowatt hour is equal to the amount of electricity which is necessary to burn 100 watt light bulb for around 10 hours. An average American home consumes 866 kilowatt hours per month. The Residential Energy use Survey conducted in 2001 shows that an annual energy bill was around $2000.
A reduction in unit costs has contributed towards an increase in growth rates and thereby making it an significant energy resource. After year 2000, solar energy has shown a growth rate of 40% per annum. Solar energy is moving at a raising rate in the developing countries too as the use of fossil fuel has doubled over the years. When compared to solar energy which is inexhaustible, fossil fuel reserves are diminishing. Setting up solar energy gadgets is relatively easier in the more remote areas in comparison for setting up an expensive power grid structure. A disadvantage of fossil fuels is that the prices have risen together with the price of transporting coal, oil and gas.
Ryan Wiser and Mark Bolinger, Berkeley Lab
Although dramatic cost reductions have allowed wind power to become the least-cost energy option in some regions of the United States, state policies still play an essential role in stimulating wind power development in most areas. The range of available policy options for large-scale wind projects is broad. Some of the prominent state-level approaches used in the past to promote wind power include renewable energy purchase mandates, renewable energy funds, tax incentives, resource planning, and environmental credit markets. Each of these options, along with its advantages and disadvantages, is briefly described below.
Renewable Energy Purchase Mandates
Renewable energy purchase mandates include traditional set asides directed at individual utilities in a regulated setting and renewables portfolio standards (RPS) that require all retail suppliers to serve a minimum portion or their load with eligible renewable energy. Examples of traditional purchase mandates can be found in Iowa and Minnesota. In Iowa, certain in-state investor-owned utilities are required to develop 105 average megawatts (MW) of eligible renewables. In Minnesota, Northern States Power (now Xcel Energy) is required to develop 425 MW of wind by 2002 and another 400 MW by 2012 as part of a radioactive waste settlement agreement. Meanwhile, 11 states—Arizona, California, Connecticut, Maine, Massachusetts, New Jersey, New Mexico, Nevada, Pennsylvania, Texas, and Wisconsin—have enacted some form of RPS. Of all the state policy types discussed here, renewable energy purchase mandates will likely have the largest impact on wind development. Set-asides and RPS policies are attractive in some states because they create a strong demand for wind generated electricity, offer incentives for wind power cost minimization through a competitive process, can be used in regulated and restructured market settings, and rely on the private market to make renewable energy investment decisions. In other states, however, political considerations make purchase mandates difficult to implement in legislatures. In states where politics allow the creation of RPS policies, the policies must be designed carefully to have the desired effect. Experience shows that effective RPS policies in restructured markets require a strong level of political support and regulatory commitment, clear and well-thought-out renewable energy eligibility rules, predictable long-term renewable energy targets that ensure new wind power supply, standards that are achievable given permitting and transmission challenges, credible and automatic enforcement, and credit-worthy electricity suppliers that are in a position to enter into long-term contracts with renewable energy generators. Texas is typically identified as the “model” for an effective RPS. The design of an RPS policy is typically easier in a regulated setting than in a competitive setting. The key issues should focus on utility cost recovery and standardized power-purchase contract terms.
Renewable Energy Funds
Most often funded through system-benefits charges (a small surcharge on electricity rates) but occasionally through regulatory or merger settlements, state renewable energy funds provide major support for utility-scale wind development. Present in 15 states (most are restructured), these funds are expected to generate $3.5 billion for the development of renewables from 1998 through 2012. Production incentives (cents/kWh supplemental financial payments) are the most common form of incentive employed by renewable energy funds in support of utility-scale wind power, although up-front grants, forgivable loans, and subordinated debt have also been used. To date, nine states have obligated $160 million to support 1,630 MW of new wind power. As of the date of this publication, 148 MW had been installed. Several lessons have been learned from experience with renewable energy funds. First, certain types of state support— such as up-front grants and subsidized financing—appear to trigger the “double-dipping” provisions of the federal production tax credit (PTC), thereby reducing the value of the PTC. Second, receipt of a state incentive does not guarantee that a wind project will secure financing; renewable energy fund administrators must remain mindful of the need for a project to secure a long-term power purchase agreement as well. Despite some limitations, renewable energy funds can provide useful supplemental income to wind power projects, providing essential cash flow for project development.
Tax Incentives
Various types of tax incentives have been used at the state level in support of utility-scale wind projects. Whereas investment tax credits were common in the past, property and sales tax reductions and exemptions are now most common, with state production tax credits also gaining popularity. As with other types of incentives, tax incentives can reduce the cost of wind power. However, state tax incentives alone have seldom been sufficient to stimulate significant wind power development. Tax incentives can provide a useful supplemental revenue stream to wind plant owners. States contemplating tax incentives for wind, however, might keep several considerations in mind. First, although far from clear, state tax incentives might trigger the “double-dipping” provisions of the federal PTC, thereby reducing the value of the PTC to the wind project. Second, a wind developer or project owner may not have sufficient in-state tax liability to take full advantage of a state income tax incentive (note that this concern only applies to income tax credits, not to sales and property tax incentives). Allowing wind plant owners to carry forward the incentive into future tax years or to trade the incentive to other in-state taxable entities would address this issue. Finally, granting wind projects a property tax exemption could result in a lower level of local community support for wind power.
Resource Planning
In some parts of the United States, the cost of wind power is arguably competitive with the cost of fossil-fueled generation. In areas of the Pacific Northwest, the Midwest, and Texas, wind projects are selling their output at 3 cents/kWh or less. In such cases—particularly in regulated states—wind should be considered as a potential least-cost resource within an integrated resource planning (IRP) framework. Fairly treating wind power in utility resource planning involves fully considering the costs (e.g., cost of firming) and benefits (e.g., price stability and environmental benefits) of wind power within an integrated planning context, which typically occurs within public utilities commission proceedings. In one such IRP proceeding in Colorado, regulators deemed a wind plant to be the least-cost supply option, given the volatility of natural gas prices, and ordered the local utility to add wind power instead of gas-fired generation. As was the case in Colorado, however, such regulatory battles will typically be hard-fought and controversial because utilities are often inclined to resist wind power. Wind energy integration issues and forecasts of future natural gas prices are common areas of debate.
Environmental Credit Markets
If designed properly, state and regional policies that limit the emissions of pollutants such as NOx could present opportunities for wind power. In most permit trading programs, however, credits or permits are allocated only to polluting forms of generation, thereby denying the ability of nonpolluting forms to directly benefit. Several states, including Indiana, Maryland, Massachusetts, New Jersey, and New York have designed emissions trading programs to include limited set-asides for eligible renewable forms of generation. These programs can offer a modest additional revenue stream to wind projects.