Southeast and Mid-Atlantic Challenges to Wind Development The Southeast & Mid-Atlantic Regional Wind...
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Southeast and Mid-Atlantic Challenges to Wind Development The Southeast & Mid-Atlantic Regional Wind Summit, Raleigh, NC September 19, 2005 © 2005 Community Energy, Inc.
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Transcript of Southeast and Mid-Atlantic Challenges to Wind Development The Southeast & Mid-Atlantic Regional Wind...
Southeast and Mid-Atlantic Challenges to Wind Development
The Southeast & Mid-Atlantic Regional Wind Summit, Raleigh, NC
September 19, 2005
© 2005 Community Energy, Inc.
Summary
• Community Energy, Inc. (CEI) Background
• The Economics of Wind
• The Wind Market
• Our 2005 Projects and Development Challenges
•
© 2003 Community Energy, Inc.© 2005 Community Energy, Inc.
• Founded in 1999, with headquarters in Wayne, PA and offices in NYC, Binghamton, Chicago, Connecticut, New Jersey and Colorado
• 37 employees
• Marketing/Sales Division- Over 2 Billion kWh of wind under
contract (supporting 200 MW of wind)
- 100% Growth Rate over past 3 years
- 20-year PPAs with Exelon
CEI Overview
• Supply Development Division- Long-term PPAs with PPL, ComEd, & ACUA- 350,000 MWh under contract - Over 200 MW of new CEI developments (PA, NJ, MA, IL) under long-term PPA’s
© 2005 Community Energy, Inc.
Business Model
Marketer DeveloperSupplier
• 20 utility partners• 40,000 residential & business customers• Pioneered sales to C&I customers• EPA Green Power Leadership Award Winner 2001-2004
• 350,000 MWh under contract• RPS Portfolio Management• RECs
Wind Solar Landfill Gas/
biomass Small hydro
• > 1500 MW wind farms under development• Developing the only 2 wind projects in Mid-Atlantic this year• Land under lease in more than 12 states © 2005 Community Energy, Inc.
The Vision A world powered by clean, responsibly
developed renewable energy
The Model Linking customer
purchases with the development of new
regional wind supply to flip economics in positive
direction© 2005 Community Energy, Inc.
Value of Wind Energy (in PJM): + $40-45/MWh
Cost of Wind Energy (in PJM): - $55-60/MWh
NET ECONOMIC IMPACT - $10-20/MWh Green Market Premium + $15-25/MWh
REVISED ECONOMIC IMPACT - $5 to +$15/MWh
The Economics of Wind
© 2005 Community Energy, Inc.
© 2005 Community Energy, Inc.
The Wind Farms
242 MW Wethersfield, NY 6.6MW on-line 2000
Somerset, PA 15MW on-line 2001
Mill Run, PA 9MW on-line 2001
Fenner, NY 30MW on-line 2001
Mountaineer, WV 66MW on-line 2002
Waymart, PA 64.5MW on-line 2003
Crescent Ridge, IL 51MW on-line 2005
Under development:
Atlantic City, NJ 7.5MW Fall 2005
Bear Creek, PA 24MW Fall 2005
Princeton, MA 3MW 2006
Lempster, NH 24MW 2006
Jordanville, NY 150MW 2007
Wind Supply
© 2005 Community Energy, Inc.
Deal Structure
Wind FarmWholesaler
(e.g., Exelon PPL, Enel, CEI,
etc.)
ISO (PJM)Bankable PPA
Wind kWh (with RECs) Wholesale Energy
Locational Marginal Price
RECs Premiums
REC Customers
© 2005 Community Energy, Inc.
A Key Piece of the Puzzle: Long-Term Creditworthy REC Purchases
The University of Pennsylvania
- Original 5 year, 20,000 MWh/yr. purchase in 2001 supported new PA projects - Last year doubled to 10-year, 40,000 MWh/Yr. purchase - Term & credit behind commitment will directly support PA project in 2005
© 2005 Community Energy, Inc.
CEI 2005 Projects
7.5-MW Jersey-Atlantic Project Atlantic City, NJOn-Line Late 2005
24-MW Bear Creek Project
Bear Creek, PAOn-Line Late 2005
© 2005 Community Energy, Inc.
- Clean energy showcase visible to 30 million people per year
- Leadership by the Atlantic County Utility Authority
- 5 GE Turbines, 7.5 MW capacity, 15,000 - 20,000 MWh/Yr.
- Partially behind the meter (BTM) to ACUA, balance is merchant power delivered to PJM
- NJ BPU providing grant support to offset costs
Atlantic City Wind Farm
© 2005 Community Energy, Inc.
• Visible from the Pennsylvania turnpike
• 12 Gamesa Turbines, 24 MW capacity, ~70,000 MWh/Yr.
• 20-year Power Purchase Agreement with PPL
• Central Hudson Group and Babcock and Brown
Bear Creek Wind Farm
© 2005 Community Energy, Inc.
Development Aspects• Road design• FAA Permits• Foundation design• Avian studies• Other general topics
© 2005 Community Energy, Inc.
Road Design – Bear Creek
• Heavy loads during brief construction period
• Pickup truck usage 20 years post-construction
• Erosion and sediment control• Discharges to streams
© 2005 Community Energy, Inc.
FAA Permits – Bear Creek• Micrositing is a necessary component of
every wind project • Every adjustment establishes a new
“obstruction record”• Process streamlining is underway at FAA• CEI received excellent support from FAA
to resolve possible last minute conflicts
© 2005 Community Energy, Inc.
Foundation Design - ACUA
• Design for hurricanes need to be considered– Foundation effect– Turbine effect
© 2005 Community Energy, Inc.
Avian – Bear Creek and ACUA
• Misconceptions• Pre-construction studies done at both
sites• NJ Audubon/CEI cooperating on advanced
post-construction avian studies• PA Game Commission/CEI performing
post-construction avian and bat studies
© 2005 Community Energy, Inc.
General Challenges
• Turbine size increase = transport vehicle size increase
• Land use compatibility– ACUA – co-located with County Sewage
Treatment Plant – existing brownfield site designed for utility use
• Role of community leaders
© 2005 Community Energy, Inc.
Contact Information :
Matt HeckCommunity Energy, Inc.150 Strafford Avenue, Suite 210Wayne, PA [email protected]
www.CommunityEnergy.biz
© 2005 Community Energy, Inc.
