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Category Archives: Wind Energy

Wind Power Capacity Perks Up in 3Q

Tuesday, October 20, 2009

But the United States is likely to see less wind energy capacities being added in 2009 than 2008, despite stimulus money and policies.

Wind energy developers installed 1.65 gigawatts of generation capacities in the United States during the third quarter of this year, though 2009 is shaping up to grow more slowly than 2008.

Overall, the developers have added over 5.8 gigawatts so far this year, said the American Wind Energy Association Tuesday. The third quarter saw more new capacities than the same period in 2008.

Cumulatively, the country has about 31.1 gigawatts of wind farms, which can generate enough power for 9 million homes, the AWEA said. The five states with the most wind farms, based on their cumulative capacities over the years, are Texas (8.8 gigawatts), Iowa (3.1 gigawatts), California (2.8 gigawatts), Minnesota (1.8 gigawatts) and Oregon (1.7 gigawatts).

The country installed about 8.55 gigawatts in 2008, and the AWEA is projecting somewhere between 6 gigawatts and 7 gigawatts for 2009.

But the wind market hasn’t been immune to the global recession, despite efforts by the federal government and some states to provide tax breaks and grants to manufacturers and project developers.

The AWEA reported that wind turbine makers aren’t churning out as many products as they did in 2008. The 5 gigawatts under construction now are roughly 38 percent lower than the over 8 gigawatts that were being built a year ago, the AWEA added.

Wind energy developers have been quite good at getting federal dollars, however. In a program to help renewable energy developers to offset 30 percent of each project’s cost, wind companies have snagged billions while solar and other types won only a small share (see Treasury Grant’s Big Winners: Wind Companies and Feds Issue $550.4M Green Energy Cash Grants).

Spain-based Iberdrola has been the biggest winner for this program so far.

Although Texas, Iowa and California have the most wind generation capacities, overall it was Arizona that saw the biggest growth during the third quarter. That was only because the state saw its first large-scale, 63-megawatt project during that period. Iberdrola built the wind farm to sell power to the Salt River Project.

Pennsylvania grew the second fastest by adding 29 percent more capacity in the third quarter.   (link)

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Siemens wins large US, Canada wind turbines order

Tuesday, October 13, 2009

Siemens AG has won orders worth some euro600 million ($888 million) to supply 250 wind turbines in the United States and Canada, the German-based industrial conglomerate said Tuesday.

A quarter of the order is destined for the Canadian province of Ontario, while the rest of the turbines will go to California, Oklahoma, Washington and Wyoming, Munich-based Siemens said.

The company said it expected the number of people working with Siemens’ North American wind power business to increase from the current 900, but didn’t offer details.

“These orders prove that the wind industry’s fundamentals are still strong, even in times of an economic downturn,” said Wolfgang Dehen, the chief executive of Siemens’ energy division.

“The continuing support for renewable energy from the administrations in the U.S. and Canada is having a positive effect on wind project development,” he added.

The company recently broke ground on a Hutchinson, Kansas turbine assembly facility and expanded its blade manufacturing facility in Fort Madison, Iowa.

Shares of Siemens were up slightly at euro66.60 in Frankfurt afternoon trading.  (link)

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Texas power suppliers facing wind challenges

Thursday, October 8, 2009

A doubling of wind-generated electric capacity anticipated in Texas by 2015 will alter operations of every power plant in the state, industry sources said on Wednesday.

The rise in wind to an expected 18,500 megawatts of installed capacity will force aging, natural gas-fired power plants to shut, limit output at times from coal-fired plants and create a need for nimble, simple-cycle gas plants that investors are wary to build in the current market, said members of an industry panel at the Gulf Coast Power Association conference.

“There will be epic changes,” said Dan Jones, director of the independent market monitor for the Electric Reliability Council of Texas (ERCOT), the state’s primary grid operator.

By 2015, more than 2,300 miles of new transmission lines will be built to move the abundant wind resource in West Texas and the Panhandle region to power-hungry cities like Dallas and San Antonio.

But because wind patterns don’t match consumer power use the grid operator and other generators will have to adapt to integrate wind-farm output to avoid problems that could lead to blackouts.

On an annual basis, 60 percent of the wind production will occur when the state’s power need is below 30,000 megawatts, or less than half that used during the hottest afternoon in the summer, Jones said.

That means when wind generation is high, coal plants and even nuclear generation would have to be pared, according to power models that dispatch power in the most economical manner.

Projections also show that in 2015 non-wind generators will need to react more often to dramatic, real-time changes in wind generation, by quickly increasing or reducing output to keep overall supply and demand in constant balance.

The state currently has few gas “peaker” plants to fill that need since peakers run only in times of high demand and are only profitable when power prices skyrocket.

“We don’t see the incentives we need to build the flexible gas capacity we will need,” said Mark Walker, director of regulatory affairs for NRG Energy, the state’s second-largest power producer that uses a mix of nuclear, coal, gas and wind generation.

Even with six new coal units planned or under construction and two proposed nuclear units, some in ERCOT worry that the pressure on wholesale prices from additional wind generation will deter investment in new gas plants in the years to come.

Not only will ERCOT need to carefully calculate the region’s power reserves in the future, but whether “we have the right units,” said Brandon Whittle, a vice president of Deutsche Bank’s energy trading unit who follows Texas regulatory issues.

In other U.S. power markets, capacity payments are required to encourage power-plant investment, but Texas regulators have rejected use of a capacity market, instead relying on energy price volatility to signal that new generation is needed.

While a capacity market is “not ideal,” Austin regulatory attorney Marianne Carroll said the current ERCOT market design and low wholesale prices creates a risk that power-plant developers will not be able to recoup their investment in Texas and will choose to invest elsewhere.  (link)

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IEA Says $10 Trillion Needed for Clean Technology

Wednesday, October 7, 2009

The International Energy Agency said Tuesday that a $10 trillion investment in renewable energy, biofuels and nuclear power over the next 20 years is necessary in order to stabilize greenhouse gas emissions.

The Paris-based agency, which serves as a policy adviser on energy issues to 28 industrialized countries, warned that if governments failed to commit to an investment capable of remaking the energy sector, greenhouse gas emissions would more than double above safe levels in the “longer term.” The energy sector—which includes the oil, gas and coal used to power industry and fuel vehicles—represents 85 percent of all global carbon dioxide emissions.

But the organization said if the money were poured into the right technology, leaders would succeed in preventing temperatures from rising 3.6 degrees Fahrenheit (2 degrees Celsius) above preindustrial levels—the threshold at which most scientists say serious climate change will ensue.

The IEA recommends that most of the spending until 2020 go into increasing energy efficiency, renewable energy and biofuels. In the following decade, more should be directed into nuclear power and the largely untested scheme of capturing carbon dioxide produced from burning coal and storing it underground, known as carbon capture and sequestration.

The IEA plan calls for 33 percent of energy to come from renewables, including nuclear power, by 2030—about triple today’s 18 percent. That would mean constructing 18 nuclear reactors and 17,000 windmills ever year. About 60 percent of vehicles worldwide would have to be either hybrid or electric.

“The message is simple and stark: If the world continues on the basis of today’s energy and climate policies, the consequences of climate change will be severe,” said IEA Executive Director Nobuo Tanaka, noting that under the agency’s plan, fossil fuel usage would peak by 2020 and emissions would be capped at 6 percent above 2007 levels.

“Energy is at the heart of the problem—and so must form the core of the solution,” he said.

The report was presented on the sidelines of the U.N. climate talks where negotiators are working feverishly to craft a new climate pact that would replace the Kyoto Protocol, which expires in 2012. World leaders are hoping to forge a new deal in December in Copenhagen.

But negotiators from industrialized countries have yet to commit to any budget to finance clean technology and the other measures needed to move to a low-carbon economy. They also haven’t agreed to the deep emissions cuts that the IEA plan endorses.

The agency said three-quarters of its plan should be financed by industrialized countries and more than 40 percent of the money would be spent in poor countries, mostly in world’s top emitter, China, which IEA estimates could account for about a third of global emission reductions by 2020.

The plan would require, among other things, “a major revolution on the car manufactures side, a big task,” IEA Chief Economist Fatih Biroh said. “They will change their business plans if they get a signal from Copenhagen. They will not change themselves.”

Most delegates and environmentalists Tuesday welcomed the IEA report as a reminder that negotiators need to put aside their differences and come to an agreement on the core issues.

“The IEA clearly states that the world needs a binding international climate agreement. The longer we postpone action, the more expensive it will be,” Danish Climate and Energy Minister Connie Hedegaard said in a statement. “That is why the world needs to act now.”  (link)

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E.ON Opens 780 MW Wind Farm in Texas

Tuesday, October 6, 2009

Global power and gas company E.ON recently announced that its Roscoe, Texas wind farm is officially in operation. According to the company, the 627-turbine, 780 MW-capacity farm is world’s largest. After a construction period of just over two years, the project can reportedly generate electricity for more than 230,000 homes.

E.ON says the wind farm consists of four sections and covers an area of no less than 400 square kilometers (154 square miles). Wind turbines for the project were manufactured by Mitsubishi, General Electric and Siemens.

“In just under two years we have increased our wind park capacities worldwide to 2,600 MW, with over half of that total 1,500 MW - in the United States,” said Frank Mastiaux, CEO of E.ON Climate & Renewables. “With large-scale projects like Roscoe we are helping renewables to achieve a faster breakthrough in economic and technological terms. For this purpose we will invest 8 billion euros worldwide up to 2011. Our aim is to reach a capacity of 10,000 MW in 2015. North America is one of the most attractive markets for renewables worldwide, especially for onshore wind plants.”

For a map of E.ON’s renewable power generation portfolio click here.   (link)

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Pike Research: 40,000-plus new wind turbines in North America by 2015

Tuesday, October 6, 2009

More than 40,000 wind turbines to generate power will be installed in North America over the next five years, with a now-stagnant market going back into growth mode in 2011, according to a forecast Monday by Pike Research of Boulder.

The market for wind turbines will grow through 2015, “driven by new generation additions as well as replacements of smaller, older turbines with larger, more efficient turbines,” the Pike report says.

“The turbine market will resume its growth in 2011, following three years of stagnation, and cumulative wind turbine deployments will exceed 40,000 units during the period from 2010 to 2015,” the report says.

“The year 2009 will be a defining moment for wind power markets around the world,” Pike managing director Clint Wheelock said in a statement. “The global economic crisis that began in late 2008 has thrown the industry into confusion, along with most global industries. Still, we see cause for optimism in the longer term as capital markets recover and the regulatory environment improves for wind energy.”

The company predicts that by 2015, 45 percent of all turbine installations in North America will be replacements, with older units replaced by more efficient models.

Pike Research is a market research and consulting firm that focuses on global clean-technology markets.  (link)

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Wind, solar execs eye U.S., China for growth

Thursday, October 1, 2009

U.S. and China markets are driving recovery in the global clean energy industry, after a sharp fall in investment this year, but uncertainty over government support is clouding the 2010 outlook.

“There are many uncertainties for 2010 but prices seem to be stabilizing in this half,” Aleo Solar Chief Financial Officer Uwe Boegershausen told a Jefferies cleantech conference in London.

 

He sees opportunities for the United States and China but acknowledges that the German election could mean cuts to solar electricity price support — called feed-in tariffs — in the world’s biggest solar market.

 

“The new government is definitely more supportive of nuclear and there are clear signals they will adjust the feed-in tariff,” he said.

 

Analysts said the main risk for the solar industry was a price war, sparked by Chinese producers such as Yingli Green Energy, obliterating the margins of higher-cost German producers.

 

“The optimistic part is that European pricing is holding up,” said Jefferies analyst Michael McNamara, adding that some European producers were comfortably selling out through 2009 at 2 euros ($2.91) per watt peak or more, compared with some Chinese company plans for a year-end price of 1.3 euros.

 

“The cautious part is that there is no price visibility for 2010,” he added.

 

The United States and China also offer opportunities for wind energy, the most mature market of the renewables sector.

 

Iberdrola Renovables, the world’s biggest operator of wind power assets, said it will spend more than half all its capital expenditure through 2012 developing its U.S. business.

 

China will be the world’s biggest wind market this year, with 10 gigawatts (GW) new installed power, followed by Europe and the United States, said Bernard Schaeferbarthold, chief financial officer of turbine manufacturer Nordex AG.

 

The emerging British offshore wind market will also be a big opportunity from 2013 — “We want to be there, it will be the next phase in developing wind energy, Iberdrola Renovables Chief Financial Officer Jose Angel Marra told Reuters.

 

McNamara said threats to the sector generally centered on long-term incentives, such as a possible “paralysis” of a U.S. bill which aims to cut greenhouse gas emissions by 20 percent by 2020 from 2005 levels.

 

“In the United States we’re seeing lots of signs things are picking up but not big turbine orders yet,” he added.  (link)

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AMSC and Sinovel Sign $100 Million Follow-On Electrical Components Contract for 3 Megawatt Wind Turbines

Tuesday, September 29, 2009

American Superconductor Corporation (NASDAQ: AMSC - News), a global energy technologies company, today announced that it and Beijing-based Sinovel Wind Corporation Limited (Sinovel) have signed a new contract worth more than $100 million (excluding value added tax) for core electrical components to be utilized in Sinovel’s 3 megawatt (MW) wind turbines, known as the SL3000. AMSC expects to begin shipping sets of core components under the new contract in March 2010 and to complete all shipments by the end of calendar year 2011. Sinovel is China’s largest wind turbine manufacturer and expects to be the world’s fifth largest wind turbine manufacturer by the end of 2009.

“Over the course of the past four years, Sinovel has transformed from start-up mode into China’s largest wind turbine manufacturer,” said Greg Yurek, founder and chief executive officer of AMSC. “This success was achieved through the production of thousands of 1.5 MW wind turbines. Sinovel is now exhibiting its technology leadership by entering volume production of its SL3000 wind turbines. We at AMSC are proud to be supporting Sinovel’s 1.5 MW and 3 MW platforms and look forward to the launch of the company’s 5 MW wind turbines in the not-too-distant future.”

With a 300-foot rotor diameter and tower height, Sinovel’s SL3000 is China’s most powerful domestically produced wind turbine. Sinovel has already erected several 3 MW turbines off the coast of Shanghai for the Shanghai Donghai Bridge Wind Farm, China’s first off-shore wind farm.

This is the second order AMSC has received from Sinovel for 3 MW core electrical components and follows an $18 million contract that was signed in early 2008. AMSC’s core electrical components include the company’s proprietary PowerModule™ PM3000W power converter and enable reliable, high-performance wind turbine operation by controlling power flows, regulating voltage, monitoring system performance and controlling the pitch of wind turbine blades to maximize efficiency.

At the end of calendar year 2008, China had an installed wind power capacity of approximately 12,000 MW (12 gigawatts). In its June 2009 report, industry research firm Emerging Energy Research projected that China’s wind power installed base would exceed 200,000 MW (200 GW) by 2020.   (link)

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Seven Careers in Wind Farm Development

Monday, September 28, 2009

Currently about 85,000 people are employed in the wind energy industry, up from 50,000 last year. These jobs are very diverse, and include turbine manufacturing, wind farm development, wind farm construction, and turbine maintenance.

Developing an industrial-scale wind farm requires a team of people with a variety of abilities. Here’s a look at some of the jobs involved as well as the skills necessary for this line of work.

Project Developer

This person brings together numerous aspects of a wind farm development. “I oversee land acquisition, engineering, permitting, and turbine micrositing decisions,” says Curt Bjurlin, Senior Wind Developer for EcoEnergy LLC, when describing his role.

A person in this role must be able to wear many hats and be very organized.  “In any given day, I might be reviewing legal documents, meeting with landowners, working on permitting or securing contracts.  Project developers also negotiate with potential investors and power purchasers,” says Bjurlin.

It is therefore crucial for project developers to be effective working with a variety of people.  “It’s important to have strong communications skills, be an active listener and be willing to ask questions of people you are in a conversation with,” says Taylor Henderson, Project Developer for Renewable Energy Systems America Inc. 

“I think the core skills for a developer are an ability to see the big picture, to focus on the complete project and not individual portions to the exclusion of others,” says Bjurlin.  In addition, Bjurlin considers an understanding of finance, agriculture, engineering, planning, permitting, renewable energy, policy and law to be important, although it is rare for someone to have knowledge in every area.

GIS Specialist

The creation of a wind farm requires a wealth of geographic information for effective planning.  A Geographic Information Systems (GIS) specialist provides much of this material through maps of site characteristics, such as land parcels boundaries, transmission lines, infrastructure, environmentally sensitive areas, land cover, wind resources, turbine micrositing and topography. These maps are used in every step of planning from energy analysis through construction.

GIS offers the level of sophistication necessary to incorporate numerous data layers. “GIS is our preferred mapping tool,” says Diane Reinebach, Senior Energy Specialist for RMT Inc.  “It can take so many layers from many of different sources. This is very important, not only in the planning phase, but also in the engineering and construction phases.  It’s crucial to have one base tool to put all the pieces in and that’s GIS.”

Strong computer skills and knowledge of GIS software are essential for this position.  As a member of the development team, background knowledge of wind farm development is useful. “I’ve had the most success working with GIS specialists in our teams who not only have an understanding of what they do from a technical aspect, but also the development process and how we successfully complete of a wind farm,” says Henderson. 

Meteorological Tower Services

Wind energy data needs to be collected and analyzed to determine the wind resources of a given site.  This involves erecting a tower with anemometers, wind vanes, a data logger and a device to transmit the collected information. A standard tower is 198 feet and instruments are typically placed at various heights at a specific orientation. 

Meteorological tower installation and maintenance is not an easy task- technicians must work under extreme conditions and stay mentally sharp.  Jason Vidas, owner of Pioneer WindWorks seeks employees who are physically fit, able to work in all weather conditions, and stay mentally strong during long, physical days.  Attention to detail is essential, as instruments need to be placed and documented with high accuracy to ensure quality data.  A background in engineering as well as computer, math and technical skills are desirable.

The data collected from meteorological towers is the foundation for the energy and financial analysis of the potential wind farm.  As the wind industry advances, so does the need for highly accurate information.

“I’ve definitely seen standards improve dramatically, both on towers that we have put up and towers that other companies have put up,” says Vidas.  “The field is maturing and that is part of the maturing process.”  

Wind Energy Analyst

Meteorological towers provide a large quantity of raw data that needs to be analyzed to assess the wind resources of a site. Desired information is frequently extrapolated from a data set, often with help from software.

Once a suitable wind resource is determined, turbine selection and layout can occur.  Turbines are designed for different wind conditions, so careful selection is important to maximize the energy output of a wind farm. The layout of a wind farm must optimize productivity, minimize construction costs and adhere to environmental restrictions.

“We develop a layout for wind farms based on many variables including characteristics of the turbine, the height, the blade and site conditions,” says RMT’s Reinebach.  “We do that as a team effort.  It isn’t just a meteorological study.”

A job in the energy assessment field draws on a variety of skills according to Reinebach.  She finds her background in mechanical engineering helpful for understanding turbine output and wind loads that affect structural integrity of a turbine.  Her 15 years of experience working with an electric utility boosts her understanding of customer needs.  Computer skills, a meteorological background, an ability to work with a large data set and an understanding of fluid dynamics are all beneficial.

Real Estate Manager

Wind turbines are frequently sited on parcels where the wind rights are leased from the landowner.  A long-term contract must be created that covers many aspects of the project, such as compensation, placement of turbines, access roads and the location of electric collection and transmission systems.  Financial institutions and title companies also have an interest in the wind energy development agreement as it impacts mortgaged property.  Communicating and organizing such matters typically falls under the role of the real estate manager.

Mike Powers, President of Local Productions LLC Wind, a consulting company, explains that on a typical day he spends “the better part of the day on the phone answering and responding to questions about wind energy development agreements, payments, terms, the clauses and the project itself.  Often it involves meetings with land owners, their legal counsel, local elected officials and negotiating the terms for the development.” 

As with other aspects of wind farm development, the standards are increasing due to advancement of the industry and the financial climate. “With the tightening of credit, it has become extremely important for projects to have a very high level of diligence for development agreements,” explains Powers.  “There have been a number of projects that were relying on lower standards for their leases and easements.  With the competition for scarce credit, they found that they had difficulty attracting investors to those projects.”

Like other aspects of wind farm development, a variety of skills and abilities are useful.  “A thorough understanding of all aspects of project development, ability to present, negotiate and obtain agreements and an understanding of contract law and real estate agreements are all important,” says Powers. 

His background includes heavy construction, experience with landowners and developers in real estate transactions, coupled with a decade of serving in the Wisconsin Legislature on the Utilities Committee establishing energy policy including Wisconsin’s first renewable portfolio standard.

Electrical Engineer

A wind farm can’t be created without input from electrical engineers.  Their initial role involves identifying transmission constraints and determining the cost to overcome them.

“When we find a new potential wind energy site, one of the first things we investigate is if there is an existing transmission infrastructure and it’s ability to take new power,” says EcoEnergy’s Bjurlin.  “That is very important.  You can’t have a wind project without having an outlet for the power generated by the turbines.”

The input of an electric engineer is also useful when determining the optimum layout and quantity of turbines.  “As the project moves forward, the electrical engineer becomes very involved in the design of the collection system that ties the turbines together, and the transmission lines and substations that bring the power to market,” he says.

A degree in electrical engineering, a background in wind energy and an ability to work with a team are essential.

Financial Analyst

The role of the financial analyst is to determine which proposed wind farms are financially sound.  “The financial analyst must understand and be able to translate various inputs, such as capital costs, operation & maintenance costs, land lease costs, taxes, wind resource potential, future power prices and project risks into a robust and defensible pro-forma model,” says Ari Pribadi, Senior Vice President of Marathon Capital LLC, an investment bank that is active in the wind sector.

Wind developers provide a lot of this information.  “You have to have a healthy auditors’ skepticism to push back on assumptions that are coming from the development team,” says Dan Rustowicz, Chief Manager for RedWind Consulting. 

Rustowicz points out that, “You only read about the projects that successfully achieve commercial operation.”  He says that only one in three proposed projects are actually developed, adding that some developers have invested hundreds of thousands of dollars into a project before realizing that it is not financially sound.

Under the current economic climate, financial analysts need to be even more diligent than before. “Banks are more conservative now as to technology choices and are really pressure testing the financial model,” says Rustowicz.  “If the model is not tight, you will lose credibility.”

In addition to an MBA, Marathon Capital’s Pribadi also finds his power plant design engineering background an asset.  Rustowicz earned a bachelor’s degree in accounting and has an MBA.  He finds an ability to comprehend finance theory and concepts, and strong interpersonal and research skills to be important qualities for a financial analyst. 

Construction and More

Once a wind farm moves into the construction phase, more employment opportunities are created. Currently Texas, Iowa, California, Minnesota and Washington are the leading states for wind energy capacity and wind farm development. However, although construction jobs of course need to be onsite, wind farm development jobs are not always based in the area where the wind farms are built.  (link)

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We Can Do That! U.S. States Scent Opportunity and Jobs in Wind Manufacturing

Tuesday, September 22, 2009
In early summer, state reps attended the AWEA 2009 event in Chicago in force, vying for the attention of the European wind manufacturers that they hope will bring their states much-needed jobs.
For years the renewable energy industry has struggled to convince government officials in the United States that they should embrace wind power. Now the roles are reversed; it is government that’s chasing the wind industry.
The new balance of power was unmistakable at the annual American Wind Energy Association conference in May, which drew a record 23,000 people to Chicago, Illinois. Among them were governors, economic development officials and public relations agents from 19 states or regions, there to make the case that they offer the land of opportunity for turbine, tower, component and other manufacturers of the approximate 8000 parts that comprise a utility-scale turbine.‘We’re here to play offence,’ said Michigan Governor Jennifer Granholm, one of five governors to address the conference. Michigan’s banner, displayed high in the room, was hard to miss, even in a hall crowded with some 1280 exhibitors. ‘We see this as opportunity to diversify in manufacturing, to make the Midwest go from being a rust belt to green belt,’ Granholm added.

Ohio Governor Ted Strickland described renewable energy as the ‘zeitgeist’ while Wisconsin Governor Jim Doyle observed that the chant ‘drill, baby, drill,’ popularized by pro-oil forces, holds little value in his state which has no oil or gas. But, conversely, ‘turn, baby, turn’ means money for Wisconsin, a state that already has 75 companies working in the wind industry supply chain.

The states are offering incentives such as tax credits, loan guarantees and streamlined permitting to wind manufacturers that choose to locate within their borders. Many are boasting about their access to water or land transportation, their skilled labour force, their renewable portfolio standards and vast wind generation potential.

According to the Apollo Alliance, a coalition of labour, business, environmental, and community leaders, manufacturing jobs will account for 70%–80% of the new jobs created from the US renewable energy expansion over the next 20 years. In 2008 alone, over 55 wind turbine and wind turbine component manufacturing facilities announced, added or expanded in 24 states, according to the American Wind Energy Association (AWEA).

State leaders hope these new jobs will help heal US manufacturing, a sector that has suffered the heaviest blows of the recession. US production fell 22% in the first quarter of 2009 in non-high-tech manufacturing, and is expected to close out the year with a 12% drop, according to the Manufacturers Alliance/MAPI.

Accustomed to Bending Steel

Michigan, home of the collapsed US auto industry, faces some of the greatest economic hardship. The state’s unemployment rate reached 14.1% in May 2009, its worst level since 1983, and far higher than the national rate of 9.4%. In total, Michigan lost 274,000 jobs between May 2008 and May 2009, plummeting by 67.2%.

So it was no surprise that Granholm buttonholed 10 major wind companies in private meetings at the AWEA conference. Where most see a defunct auto industry, Granholm sees empty factories waiting for wind manufacturers. She sees a ready and able workforce that is accustomed ‘to bending steel.’

‘With an industrial base that has the capacity to support as many as 24,000 wind energy jobs, we are actively assisting auto suppliers to diversify into wind component manufacturing,’ said Greg Main, President and CEO of the Michigan Economic Development Corporation, adding: ‘We offer innovative incentives for wind energy investment and job-training grants, and have 10 Renaissance Zones available to support wind energy businesses.’

Michigan already has drawn more than two dozen wind-related manufacturers. Among recent arrivals are Global Wind System, which has begun building a US$32 million (€23 million) wind turbine assembly plant in the state. Meanwhile, Great Lakes Towers has announced plans for a $19 million (€14 million) tower factory. The state offers large opportunities, given that it has 700 auto industry suppliers that could manufacture wind components, according to state officials.

Similarly, Oklahoma is pitching not only its wind potential, but its workforce training. Several of its colleges already train technicians for wind-related work. And now, with a grant from the US Department of Energy, the state is developing a centralized curriculum for wind technician safety training. No national standard exists for safety training of wind turbine maintenance technicians currently, so Oklahoma hopes its safety curriculum will be adopted nationwide in due course. The hope is this will put it on the map as it tries to create 7000 wind-related jobs over the next five years and up to 18,000 jobs within 10 years. Wind component manufacturing jobs are particularly attractive in Oklahoma because they pay an annual average salary of about $40,000 (€29,000) per year, 15% higher than the average wage in the state, according to the Oklahoma Department of Commerce.

Like other states, Oklahoma also advertises the advantages of its location. The state is part of a major wind corridor that includes Texas, Colorado, New Mexico and Kansas. In addition, its taxes are low – the fifth lowest in the nation – and it offers financial credits for job creation and property tax exemptions for manufacturers. Oklahoma’s leaders have set a goal to make the state the second largest wind generator in the US by 2030. ‘Whenever I feel the Oklahoma wind whip my hair into my eyes, I remind myself, baby, that’s just money. Those blades are turning,’ said Natalie Shirley, state Secretary of Commerce and Tourism, in a programme introduction to a June 2009 wind conference held in the state.

Iowa already holds the position that Oklahoma wants, as the second largest wind generator in the nation behind Texas. Iowa got out of the gate early in fostering the industry and is now home to nine factories built by international wind manufacturers. For instance, Clipper Windpower says it decided to manufacture in Iowa because the state offers good transportation, proximity to markets, availability of suppliers and leaders who support renewables.

‘One of the things we have done, that I think is a real advantage, is we focused on work force development,’ said Ohio state Governor Chet Culver. He went on: ‘We are encouraging the next generation of Iowans to be part of the renewable energy revolution.’ Indeed, Iowa’s ‘green’ job force already totals 2300 people. Five state community colleges and three universities have also joined forces to create wind energy training programmes.

Minnesota doesn’t generate as many megawatts of wind as Iowa, but wind makes up a higher percentage of the energy mix in Minnesota – 7.5% – than in any other state. Dan McElroy, Commissioner of the Minnesota Department of Employment and Economic Development, also touts the state’s ‘long history of entrepreneurial leadership in industries like medical devices and food production,’ experience it now applies to wind manufacturing.

Several wind factories have moved into Minnesota, among them Suzlon Rotor, which produces blade and nose cones. The state won the India-based company in 2006 with offers of tax incentives, and Suzlon now employs 500 people there. Looking ahead, Finland-based Moventas also announced (in the autumn of 2008) plans to build a facility in Minnesota that will produce gearboxes, employing about 100 workers.

Manufacturing in the DNA

State governments outside the nation’s windy midsection also are competing for renewable energy jobs. In the northeast, New York and Canada want to attract offshore wind farms, each to their own side of the Great Lakes, knowing that manufacturers tend to locate close to projects to avert transportation costs.

The Ontario Power Authority calculates a potential to generate 34,500 MW at 64 offshore wind sites in the shallow water on the Ontario side of the Great Lakes. To help realize some of the potential, in May the Canadian province passed a law offering a generous feed-in tariff of 19 CN cents/kWh (16.5 US cents/kWh, 12 € cents /kWh) for offshore wind. The tariffs, also available for other forms of renewable energy, are part of a new Green Energy Act that Ontario forecasts will attract 50,000 jobs over three years and help the province achieve its goal of closing its coal-fired plants by 2014.

To further spur manufacturing, Trillium Power Wind, a Toronto-based developer, has created TaiWind Consortium, designed to bring together research, development, demonstration and deployment of wind technology. ‘With the recently passed Green Energy Act there will now be the demand that is necessary to support a thriving renewable energy supply chain in Ontario,’ said John Kourtoff, Trillium’s president and CEO. ‘By encouraging renewable energy generation, the Ontario government also makes it financially feasible for businesses to invest in the necessary components to feed these generation projects. In my view, the Green Energy Act will lead directly to Ontario becoming a global leader in green power manufacturing,’ he concluded. [For more on Ontario’s energy bill, click here.]

Not to be outdone, the New York Power Authority (NYPA) on Earth Day launched the Great Lakes Offshore Wind Project, an initiative that offers long-term contracts for offshore wind farms in Lake Ontario or Lake Erie. As part of the programme, the authority issued a Request for Expressions of Interest for projects of at least 120 MW. The solicitation drew 14 responses by the 15 June deadline. ‘That is an extraordinary number coming from companies all over the country that have great interest in this project,’ said Richard Kessel, NYPA president and CEO. As a next step, the authority plans to issue a solicitation for definitive project proposals in late 2009 or early 2010.

NYPA wants to see New York build one of the nation’s first offshore wind farms – none have yet been constructed in the US – and make western New York a hub of wind manufacturing for the eastern seaboard. The initiative is in-keeping with New York Governor David Paterson’s goal to meet 45% of the state’s energy needs through renewables and energy efficiency by 2015.

Nearby Pennsylvania made significant inroads into the wind manufacturing market several years ago, when it drew the attention of Gamesa. This Spanish company, which has 7200 employees worldwide, spent 18 months studying states in search of a site for a US headquarters and two manufacturing facilities. It settled on Pennsylvania in 2004 from a shortlist that also included Texas, New Mexico and New York.

So what made Pennsylvania stand out? ‘First,’ says Michael Peck, Director of Media, Institutional & Labor Relations for Gamesa North America, ‘the energy vision articulated by state government and bipartisan legislative leaders. Pennsylvania had just enacted an advanced energy portfolio standard requiring the state to produce 18% of its energy from alternative sources, including wind, by 2020.

(See caption and credit information by clicking on this image in the image gallery at the bottom of this article.)

The administration even committed to purchasing a percentage of the electricity needed for state government operations from clean energy sources. That commitment is 25% today. On top of that, Pennsylvania-based utilities agreed to purchase wind power generated by Gamesa wind farm developments.’ Peck also cited Pennsylvania’s transportation and wind resources and its position in the regional transmission system PJM Interconnection, near Maryland, New Jersey and New York, each of which has its own renewable portfolio standard (RPS) and is a large energy consumer.

Finally, the company was drawn by Pennsylvania’s workforce. ‘Manufacturing is in the DNA of Pennsylvanians, as well as many throughout the Rust Belt,’ Peck said.

Gamesa employs about 800 workers in Pennsylvania, where it manufacturers blades and nacelles. In all, the company has invested $200 million (€143 million) in Pennsylvania, including $34 million (€31 million) to convert a brownfield US Steel industrial site in Bucks County into a manufacturing centre.

Oil or a Plan?

Despite the dragging economy, wind manufacturers continue their migration to the US. For example, Siemens Energy made a splash at the AWEA conference when it announced its choice of Hutchinson, Kansas, for its first US nacelle production facility. Siemens Energy Sector, which employs 83,500 people worldwide, plans to begin construction of the 300,000 square foot (27,600 m²) nacelle facility and an 80,000 square foot (7360 m²) service and repair plant as this article goes to press. The facility is expected to create 400 jobs. Meanwhile, manufacturing giant Bosch Rexroth has opened wind facilities in Germany and China and is now eyeing the US as part of its plan to invest $450 million (€322 million) in wind manufacturing capacity by 2015. The company produces gearboxes, pitch and yaw drives, and electro-hydraulic controls.

With Europe and China also vying for manufacturers, will US growth continue? Craig Moyer, co-Chairman of the Energy, Environment and Natural Resources practice at law firm Manatt, Phelps & Phillips, says that challenges exist. The US needs to focus more on guaranteeing that turbines and other wind parts find buyers, he said. ‘The missing link is off-take. If I’m going to build 50 MW of turbines, who will be my customer?,’ he said. More utilities or state governments need to commit to purchases, particularly now while economy is faltering, he concluded, noting: ‘I would hate to see us devote so many resources to converting to this low carbon economy and not get manufacturing jobs out of it.’ Moyer added: ‘In my mind, that is going to be the metric for success.’

At this point, state governments – with strong backing from the Obama administration – appear determined to meet this metric. They want the jobs. And, still reeling from the high gasoline prices of summer 2008, American consumers continue to crave liberty from foreign oil dependence.

T. Boone Pickens, the former oil man and now a wind developer, says it comes down to elected officials having an energy plan: ‘If they don’t have a plan, then their plan is foreign oil, because that is what you are going to get.’

And with a plan? Look to the Americans to get back to work bending steel, this time to catch the wind.  (link)

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