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Inv e nergy. The Power of Innovation. Discussion Outline. Introduction to Invenergy Wind generation development 101 The impact of HB 1871 – The Illinois state RPS. Invenergy Wind Overview. Operational Projects. Contracted Projects. Invenergy Offices. Invenergy Midwest Portfolio. - PowerPoint PPT Presentation
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InvenergyInvenergyThe Power of Innovation
Invenergy
Discussion Outline Introduction to Invenergy
Wind generation development 101
The impact of HB 1871 – The Illinois state RPS
Invenergy
Invenergy Wind Overview
OperationalProjects
Contracted Projects
Invenergy Offices
Invenergy
Invenergy Midwest Portfolio
Nelson CCLocation: IL Size: 600MWCOD: Mid 2009Interconnection: PJM
Grand RidgeLocation: ILSize: 350 MWCOD: Mid 2008Interconnection: PJM
Bishop HillLocations: ILSize: 400 MWCOD: Late 2008Interconnection: PJM/MISO
ForwardLocation: WISize: 200 MWCOD: 2007Interconnection: ATC
VictoryLocation: IASize: 99 MWCOD: December 2006Interconnection: MidAmWind Project
Gas-Fired Project
Wind Project
Gas-Fired Project
White OakLocation: IL Size: 150 MWCOD: Late 2007Interconnections: MISO
Invenergy
Wind Development 101 Wind
Wind turbines
Land
Interconnection agreement
A market for the energy
A market for the renewable energy credits
Invenergy
Wind Intensity in the U.S.
Invenergy
Wind Turbines How big are they?
Tower - 80 meters (about 25 stories) at the hub
Blades – 38 meters (about 100 feet) long
How are they put together Concrete footing poured Three tower pieces assembled in
place Three blades attached to the hub
and lifted into place How fast do they turn?
16 RPM (one rotation every four seconds)
Invenergy
Land Use Wind farms and agriculture are very compatible
Wind farms require from 50 – 100 acres per turbine, with a typical wind farm comprising of 100 turbines
When completed, each turbine only removes 0.25 acres from production
Hosting a wind farm greatly benefits the community Tax base increased by ~ $2.5 MM per turbine Affected landowners receive compensation through
easement and waiver agreements
Invenergy
Interconnection Agreement The interconnection agreement allows for the generator
to interconnect to the electric transmission system This process is one of the most time consuming steps of
the development process:
In recent experience, neither PJM nor MISO has been able to adhere to these timelines
Step MISO PJ M Feasibility Study 150 days 240 days System Impact Study 148 days 120 days Facility Study 175 days 120 days* Interconnection Agreement 210 days 30 days Commercial Operation 365 days* 365 days* Total Time (days) 1048 days 875 days * Timeline not limited in tariff
Invenergy
Marketing the Energy and RECs
How wind energy and RECs are sold varies by market In less actively traded markets, energy and RECs are
sold under long term contracts to load serving utilities Contracts typically 20 – 25 years long Pricing fixed for the term Common in CO and WI
In more actively traded markets, energy and RECs are often sold separately Energy sold into power pool Energy price risk managed through commodity risk
managers, typically for 10 years RECs sold to load serving entities Common in TX and PJM
Invenergy
Impact of HB 1871 On May 3rd, the IL House passed a bill providing for a
renewable portfolio standard (RPS) for IL Sets a requirement that 25% of IL’s energy requirements
are met by renewables by 2025, with implementation beginning in 2007
Requires in state generation through 2011 Protects ratepayers through caps on rate impacts
Clear ratemaking requirements will be critical to its implementation Provides for 20 year power purchase agreements Provides for the Commission to review and approve
solicitation processes
Invenergy
U.S. Renewable Portfolio Standards
State Goal
☼ PA: 18%¹ by 2020
☼ NJ: 22.5% by 2021
CT: 10% by 2010
MA: 4% by 2009 + 1% annual increase
WI: requirement varies by utility; 10% by 2015 goal
IA: 105 MW
MN: 25% by 2025;(Xcel: 30% by 2020)
TX: 5,880 MW by 2015
*NM: 20% by 2020 (IOUs)
10% by 2020 (co-ops)☼ AZ: 15% by 2025
CA: 20% by 2010
☼ NV: 20% by 2015
ME: 30% by 2000;10% by 2017 goal - new RE
State RPS
*MD: 7.5% by 2019
☼ Minimum solar or customer-sited requirement* Increased credit for solar or customer-sited
¹PA: 8% Tier I / 10% Tier II (includes non-renewables); SWH is a Tier II resource
HI: 20% by 2020
RI: 15% by 2020
☼ CO: 20% by 2020 (IOUs)*10% by 2020 (co-ops & large munis)
☼ DC: 11% by 2022
☼ NY: 24% by 2013
MT: 15% by 2015
*DE: 10% by 2019
IL: 8% by 2013
VT: RE meets load growth by 2012*WA: 15% by 2020
Solar water heating
Invenergy
Comparison on State RPSsState IL (as proposed) WI NJ TX Size of RPS (%)
08 – 2% 09 – 4% 10 – 5% 11 – 6% 12 – 7%
08 – 5.5% 09 – 5.5% 10 – 7.5% 11 – 7.5% 12 – 7.5%
08 – 5.5% 09 – 6.5% 10 – 7.4% 11 – 8.3% 12 – 9.2%
07 – 1.4% 09 – 1.9% 11 – 2.4% 13 – 2.9% 15 – 3.1%
Size of RPS (MWh/year)
08 – 2,960,000 09 – 6,003,000 10 – 7,608,000 11 – 9,253,000 12 – 10,941,000
08 – 4,135,000 09 – 4,212,000 10 – 5,850,000 11 – 5,957,000 12 – 6,063,000
08 – 4,723,000 09 – 5,693,000 10 – 6,620,000 11 – 7,566,000 12 – 8,569,000
08 – 6,079,000 09 – 7,166,000 10 – 8,252,000 11 – 9,338,000 12 – 10,424,000
Qualifying Technologies
Solar Water Heat, Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, CHP/Cogeneration, "Other Such Alternative Sources of Environmentally Preferable Energy"
Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric, Tidal Energy, Wave Energy, Fuel Cells using Renewable Fuels
Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric, Resource-Recovery Facilities approved by the DEP, Anaerobic Digestion, Tidal Energy, Wave Energy, Fuel Cells using Renewable Fuels
Solar Water Heat, Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric, Geothermal Heat Pumps, Tidal Energy, Wave Energy, Ocean Thermal
Qualifying Locations
08 through 11 – IL (subject to economic tests) 12 and beyond – IL, WI, IA, MO, KY and IN
Physical delivery to the utility (generally WI and IA)
Generators that deliver energy into PJM.
ERCOT
Invenergy
Meeting the IL RPS through Wind
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Annu
al G
ener
atio
n (G
Wh/
yr)
Currently Proposed Wind Capacity (GWh/yr)
Wind Capacity Under Construction (GWh/yr)
Existing Wind (GWh/yr)
REC Requirements to be Met by Wind (GWh/yr)
AWEA Estimated IL Wind Energy Potential (GWh/yr)
Invenergy
Proposed IL Wind Projects
Source - AWEA
Project Utility/Developer Location Status MW CapGSG Wind Farm Phase I Babcock & Brown and
FPC ServicesLee and LaSalle Counties under construction 80
Twin Groves I Horizon Wind Energy McLean County under construction 198
Twin Groves II Horizon Wind Energy McLean County Proposed 198
McLean Wind Energy Center (White Oak)
Invenergy McLean Proposed 150
Bishop Hill Invenergy Henry County Proposed 350
Grand Ridge Invenergy LaSalle County Proposed 400
Crescent Ridge II Midwest Wind Energy Bureau County Proposed 74
Big Sky Wind Farm Midwest Wind Energy Lee & Bureau Counties Proposed 200
Rail Splitter Wind Farm Horizon Wind Energy Logan, Tazewell Counties Proposed 100
Blackstone Wind Farm Horizon Wind Energy Livingston County Proposed 300-600
Baileyville Wind Farm Navitas Energy Ogle County Proposed 80
Benson Wind Farm Navitas Energy Woodford County Proposed 160
Invenergy
Summary Wind energy can contribute significantly to serving
Illinois’ energy supply needs going forward
HR 1871 sets a high, but attainable, goal for renewables in IL, and wind will play a leading role in meeting it
In order to meet that goal, developers, ISO’s, landowners, utilities, and those that oversee them will have to work together
Invenergy
Questions?