ANKUR VERMA
ARVINDERPAL SINGH
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Ancient Resource Meets 21st
Century
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Wind Turbines
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Wind Energy Outline
History and Context
Advantages
Design
Siting
Disadvantages
Economics
Future
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History and Context
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Wind Energy History
1 A.D.
Hero of Alexandria uses a wind machine to
power an organ
~ 400 A.D.
Wind driven Buddhist prayer wheels
1200 to 1850
Golden era of windmills in western
Europe – 50,000
9,000 in Holland; 10,000 in England;
18,000 in Germany
1850’s
Multiblade turbines for water pumping made and marketed in
U.S.
1882
Thomas Edison commissions first commercial electric
generating stations in NYC and London
1900
Competition from alternative energy sources reduces windmill
population to fewer than 10,000
1850 – 1930
Heyday of the small multiblade turbines in the US midwest
As many as 6,000,000 units installed
1930+
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Grid electricity rapidly displaces multiblade turbine uses
Increasingly Significant
Power Source
Wind
could
generate
6% of
nation’s
Wind currently produces less
than 1% of the nation’s
electricity
power. by 2020.
Source: Energy Information Agency
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Manufacturing Market Share
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Wind Power
Advantages
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Advantages of Wind Power
Environmental
Economic Development
Fuel Diversity & Conservation
Cost Stability
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Environmental Benefits
No air pollution
No greenhouse gasses
Does not pollute water with mercury
No water needed for operations
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Pollution from Electric
Power
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Economic Development
Example
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Fuel Diversity Benefits
Domestic energy source
Inexhaustible supply
Small, dispersed design
reduces supply risk
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Cost Stability Benefits
Flat-rate pricing
hedge against fuel price volatility risk
Wind electricity is inflation-proof
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Wind Power
Design
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Power in the Wind (W/m2)
Density = P/(RxT)
P - pressure (Pa)
R - specific gas constant (287 J/kgK) Area = π r2 Instantaneous Speed
T - air temperature (K) (not mean speed)
kg/m3 m2 m/s
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Wind Energy Natural
Characteristics
Wind Speed
Wind energy increases with the cube of the wind speed
10% increase in wind speed translates into 30% more
electricity
2X the wind speed translates into 8X the electricity
Height
Wind energy increases with height to the 1/7 power
2X the height translates into 10.4% more electricity
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Wind Energy Natural
Characteristics
Air density
Wind energy increases proportionally with air density
Humid climates have greater air density than dry climates
Lower elevations have greater air density than higher elevations
Wind energy in Denver about 6% less than at sea level
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How Big is a 2.0 MW Wind
Turbine?
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59.6
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Recent Capacity
Enhancements
2006
5 MW
600’
2003
1.8 MW
2000 350’
850 kW
265’
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Nacelle Components 10
16
17
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12
1. Hub controller 11. Blade bearing
2. Pitch cylinder 12. Blade
3. Main shaft 13. Rotor lock system
4. Oil cooler 14. Hydraulic unit
5. Gearbox 15. Machine foundation
6. Top Controller 16. Yaw gears
7. Parking Break 17. Generator
8. Service crane 18. Ultra-sonic sensors
9. Transformer 19. Meteorological gauges 25
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Improving Reliability
Drastic improvements since mid-80’s
Manufacturers report availability data of
over 95%
100
% Available
80
60
40
20
0
1981 '83 '85 '90 '98 Year
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Wind Project
Siting
DECIDING PARAMETERS FOR WIND POWER PROJECT
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Siting a Wind Farm
Winds
Minimum class 4 desired for utility-scale wind farm (>7
m/s at hub height)
Transmission
Distance, voltage excess capacity
Permit approval
Land-use compatibility
Public acceptance
Visual, noise, and bird impacts are biggest concern
Land area
Economies of scale in construction
Number of landowners
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Wind
Disadvantages
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Market Barriers
Siting
Avian
Noise
Aesthetics
Intermittent source of power
Transmission constraints
Operational characteristics different from
conventional fuel sources
Financing
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Wind Energy and the Grid
Pros
Small project size
Short/flexible development time
Dispatchability
Cons
Generally remote location
Grid connectivity -- lack of transmission capability
Intermittent output
Only When the wind blows (night? Day?)
Low capacity factor
Predicting the wind -- we’re getting better 32
Birds - A Serious Obstacle
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Wind – Characteristics &
Consequences
Remote location and low capacity factor
Higher transmission investment per unit output
Small project size and quick development
time
Planning mismatch with transmission investment
Intermittent output
Higher system operating costs if systems and
protocols not designed properly
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Wind Economics
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Wind Farm Design
Economics
Key Design Parameters
Mean wind speed at hub height
Capacity factor
Start with 100%
Subtract time when wind speed less than optimum
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Wind Farm Financing
Financing Terms
Interest rate
LIBOR + 150 basis points
Loan term
Up to 15 years
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Cost of Energy Components
Cost (`/kWh) =
(Capital Recovery Cost + O&M) / kWh/year
Capital Recovery = Debt and Equity Cost
O&M Cost = Turbine design, operating
environment
kWh/year = Wind Resource
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Costs Nosedive Wind’s
Success
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$0.40 cents/kWh
$0.30
$0.20
$0.00
1980 1984 1988 1991 1995 2000 2005
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Construction Cost Elements
Design &
Financing & Legal Engineering
Fees 2%
3% Land
Development Transportation
Activity 2%
4%
Interconnect/
Subsation Turbines, FOB
4% USA
49%
Interest During
Construction
4%
Towers
(tubular steel)
10%
Construction
22%
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Wind Farm Cost
Components
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Wind Farm Economics
Capacity factor
Start with 100%
Subtract time when wind speed < optimum
Subtract time due to scheduled maintenance
Subtract time due to unscheduled maintenance
Subtract production losses
Dirty blades, shut down due to high winds
Typically 33% at a Class 4 wind site
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Wind Farm
Development
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Wind Farm Development
Key parameters
Wind resource
Zoning/Public Approval/Land Lease
Power purchase agreements
Connectivity to the grid
Financing
Tax incentives
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Wind Farm Development
Wind resource
Absolutely vital to determine finances
Wind is the fuel
Requires historical wind data
Daily and hourly detail
Install metrological towers
Preferably at projected turbine hub height
Multiple towers across proposed site
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Wind Farm Development
Zoning/Public Approval/Land Lease
Obtain local and state governmental approvals
Often includes Environmental Impact Studies
Impact to wetlands, birds (especially raptors)
NIMBY component
View sheds
Negotiate lease arrangements with ranchers,
farmers, Native American tribes, etc.
Annual payments per turbine or production based
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Wind Farm Development
Connectivity to the grid
Obtain approvals to tie to the grid
Obtain from grid operators – WAPA, BPA, California
ISO
Power fluctuations stress the grid
Especially since the grid is operating near max
capacity
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Wind Farm Development
Financing
Once all components are settled…
Wind resource
Zoning/Public Approval/Land Lease
Turbine procurement
Construction costs
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Financing Revenue
Components
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Future Cost Reductions
Financing Strategies
Manufacturing
Economy of Scale
Better Sites and
“Tuning” Turbines for
Site Conditions
Technology
Improvements
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Future Tech Developments
Application Specific Turbines
Offshore
Limited land/resource areas
Transportation or construction limitations
Low wind resource
Cold climates
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The Future of Wind -
Offshore
•1.5 - 6 MW per turbine
•60-120 m hub height
•5 km from shore, 30 m
deep ideal
•Gravity foundation, pole, or
tripod formation
•Shaft can act as artificial
reef
•Drawbacks- T&D losses
(underground cables lead to
shore) and visual eye sore
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Wind Energy Challenges
Best wind sites distant from
population centers
major grid connections
Wind variability
Can mitigate if forecasting improves
Non-firm power
Debate on how much backup generation is required
NIMBY component
Cape Wind project met with strong resistance by Cape
Cod residents
Limited offshore sites
Sea floor drops off rapidly on east and west coasts
North Sea essentially a large lake
Intermittent federal tax incentives
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GE WIND ENERGY
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THANK
YOU
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