Taking Advantage of America’s Wind Resources

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Taking Advantage of America’s Wind Resources. Providing Infrastructure and Implementing Predictable, Long-Term Incentives. Ross Beppler Wise Presentation 7/25/12. What’s the Challenge?. - PowerPoint PPT Presentation

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Taking Advantage of Americas Wind ResourcesRoss BepplerWise Presentation 7/25/12Providing Infrastructure and Implementing Predictable, Long-Term Incentives

Whats the Challenge?Any way you look at it (yearly gross, per capita, historical) the United States emits large quantities of carbon dioxide

315,000 million metric tons of carbon dioxide have been emitted since 1900

315000 million metric tons of CO2 is equivalent emissions of 61,765,000,000CO2 last 50 200 years (EPA) in the atmosphere so curtailing it is the major impact2The Impact of the Power SectorThe Power Sector has a huge impact on the carbon dioxide emissions in this countryNearly 70% of power generation comes from fossil fuels92% of coal is used for electricity Wind can be used as a means of power generation

The Electric Power Sector Is the largest consumer of electricityNearly 70% of power generation is from carbon emitting sourcesElectric Vehicles are only as clean as the electricity they use3Why Wind?Part of a diverse portfolio Abundant Low Levelized Cost of Energy (LCOE)Minimal land impactDomestically produced: over 500 US manufacturers produce parts for turbinesDemonstrated Success: 90% reduction in cost since 1980, 35% of new generation the last 5 years

Domestically Produced Over 500 US manufactoring plants produce parts for wind turbines 60% of turbines value made in USA Construction Jobs plus if parts are built close by cost of wind is lowerTrend of Success- 90% reduction in cost since 1980 35% of all new us power capacity in the last 5 years4How Does Wind Work? Not a New Concept: 5000 B.C. first harnessing of wind energy 200 B.C. first windmill 1890 first electricity production WWII first U.S. use

Capacity Factor- Ratio of Maximum Potential Output to Actual Power GenerationWind Classes

Not a new concept: Harnessed wind beginning in 5000B.C. First Turbine 200B.C. Used for electricity in 1890 First Large Scale in Vermont 1940 during WWII

5Energy Policy in the United States1970 oil embargos begins federal investment in wind energy1978 Energy Tax Act establishes first federal tax incentive1992 Original Production Tax Credit set at 1.5 cents per kilowatt-hour

The Production Tax Credit has been the primary government incentivePTC will expire in 2013

Federal Support for Wind began when energy prices soared in the 70s R&D money increased and 1978 Energy Tax Act established the first tax credit for windEnergy Policy Act of 1992 established original PTC for wind energy2011 2012 both saw rises but 2013 levels expected to be extremely low6Does Wind Receive an Unfair Advantage from the Government?Not so fast!Long History of Government Subsidies for Energy ProductionFederal Subsidies for Fossil Fuels are part of the permanent Tax CodeResearch and Development funding is skewed in favor of fossil fuels

7VariabilityLower Capacity Factors than other forms of generation needs back up generationLeveling of costsKills birds and batsResults in Shadowing and NoiseTransmission Infrastructure

What Other Obstacles Does Wind Face?

ASCE gave energy infastructure a D+ because funding has increased That being said a 1.5 trillion dollar investment could be needed by 2030Chicken vs Egg Problem8What do we do?Policy Alternatives Something

Production Tax Credit ExtensionExtend the Production Tax Credit

ProsConsDemonstrated SuccessNot Technology Neutral Political SupportCosts the Govt Money Industry BackingLong-term Sustainability?Impact

Renewable Portfolio StandardsRequires electricity producers to provide a certain percentage of their generation from renewable sourcesPrimarily a state incentive thus far Success of state programs has garnered attention for a national model Bingaman, Markey, and Waxman sponsored bills with different priorities

Bingaman, Markey, Waxman11

Cap & Trade Sets a limit to the emissions allowed before a penalty is imposedCreates a market for Renewable Energy Credits which can be traded allowing market forces to set the pricePotential complications with offsets

Recommendation: Carbon TaxTechnology Neutral SolutionExisting infrastructure to put in placeNot as prone to corruptionContinuing incentive to reduce emissionsApplicable to all power generationCould be applied to gasoline consumptionAllow states to continue setting RPSRevenue Generation could pay for necessary grid Improvements

AcknowledgementsFor help with the paper the author would like to recognize:

Erica Wissolik, IEEE-USA, and everyone involved in the WISE program who made this opportunity possibleBill Behn, Factuly Member in ResidenceThe IEEE Energy Policy Committee for allowing access to their meetings and correspondenceCharlton Clark at the Department of Energy for providing an inside look at the DOEs Wind Program, and giving valuable information and contactsFormer WISE interns for their advice, specifically Levi Lyons for his guidance on transmission issuesJohn Buydos at the Library of Congress for providing assistance navigating the vast resources of the library, and selecting some initial resources To the many others in D.C. and beyond who were consulted as a part of this process and aided in the completion of this reportTo the authors parents for their moral support and editing help