NANTUCKET WIND TURBINES
WHITE PAPER
by Whitey Willauer
ABSTRACT
WHITE PAPER
by Whitey Willauer
ABSTRACT
Nantucket has one of the highest average wind velocities in the US and also one of the highest electric rates. This makes the Island an ideal location to install land based wind turbines. With the new net metering regulations, the Town could off-set $3 million in municipal electricity expenses by locating wind turbines at the dump. After that, we could offset all the power requirements for the Island with approximately 20 to 30 1.5 megawatt turbines. This would enable the Island to become energy independent by having all electric heating and transportation.
WHITE PAPER TEXT
ENERGY COMMITTEE
The Nantucket Energy Committee (NEC) is an advisory committee appointed by the Nantucket Board of Selectmen. The NEC reports to the BOS on energy related issues affecting Nantucket energy users; recommends policy or code amendments; evaluates and explores potential energy production for Nantucket; and serves as a resource for information on renewable and sustainable energy including wind, tidal, solar, wave power, and energy conservation measures.
The following white paper introduces a concept to install 4-6 turbines with a size range of 660 KW to 1.5 MW in the landfill/Massasoit area, as well as a plan to install 2-3 smaller (250 KW- 660 KW) at the Waste Water Treatment Facility (WWTF).
BACKGROUND
The U.S. is now the world leader in wind electricity generation. While Germany still has more generating capacity installed (about 23,000 megawatts), the U.S. is producing more electricity from wind because of its much stronger winds.
Total U.S. installed wind power capacity now stands at 19,549 megawatts (MW). The industry installed 1,194 MW in the 2nd Qtr of 2008, down from 1,532 MW during 1st Qtr of 2008. This brings the year’s new capacity to 2,726 MW, more than was installed in any year except 2007.
Nantucket’s energy costs in winter are some of the highest in the United States. Massachusetts with an average cost of 17.85 ¢/kWh has the third highest electricity rates behind New York (19.42 ¢/kWh) and Connecticut (20.24¢/kWh).
Nantucket has two principal sources of energy. Electric power transmitted from the mainland via two under water cables and petroleum products shipped from the mainland. At present, electric power is delivered to Nantucket via two 35 and 41 MW cables. The electric power cost to the consumers includes delivery services (summer rate 7.74 ¢/kWh or winter rate 6.61¢/kWh ) and supply services (11.79 ¢/kWh). Nantucket imports approximately 10 million gallons of fuel per year. The retail cost per gallon is approximately $0.50 to $0.70 per gallon higher than the mainland.
Nantucket has some of the highest prevailing winds in the United States. The average wind speed (AWS) varies from approximately 13 MPH to 19 MPH. The wind velocity varies with land based location and time of year. The off-shore wind speeds are higher and averages of nearly 20 MPH are observed.
At the request of the NEC, The UMass Amherst surveyed 10 Nantucket land based sites for wind turbines. Considerations included distance from the airport, distance from housing, and average wind speed / directions. The results of the UMass survey were reported on June 16, 2008.
DATA ACQUISITION
1. (May 9, 2008) At the request of the NEC, the Massachusetts Technology Collaborative (MTC) provided a grant which enabled the UMass Renewable Research Laboratory (RERL) to visit ten potential sites on Nantucket Island in order to evaluate their suitability for medium and utility-scale wind turbines.
2. (June 26, 2008) Members of the NEC made a site visit to Hull, MA to discuss their wind turbines. We met with Richard Miller, Operations Manager of Hull Municipal Light Plant.
3. (July 7, 2008) Members of the NEC met with William M. Moore (Atlantic Renewable Energy Corp) developer of wind farms and wind turbine consultant.
4. (August 7, 2008) The NEC invited the following individuals to their monthly meeting for a discussion on wind energy: Chris Amory an engineer working in Shanghai, China for a company that manufactures wind turbine blades; Dave Fredericks is National Grid’s acting Vice President New England South; and William Moore a wind farm consultant.
5. (From October 27 to December 17, 2008) Four Students from Worchester Polytechnic Institute (WPI) Department of Management working on certain aspects of the Nantucket Wind Energy Project. The WPI Students:
(1) Explored the laws, regulations, and permits required to develop wind power on Nantucket.
(2) Analyzed financial and ownership arrangements
(3) Investigated concerns regarding wind power for Nantucket
6. (January 21, 2009) Edward Bodmer, financial modeling expert, presented a workshop on financing municipal wind projects @ MTC in Westborough, MA.
ISSUES & RESEARCH QUESTIONS
Optimum Build Out Plan
What is the optimum build out plan for wind generation on Nantucket? Should we ramp up slowly, allow technology to mature, await changes in regulations, and learn as we progress.
Bill Moore: There is a shortage of wind turbines world wide. Nantucket will probably select turbines less than 1MW capacity. The smaller turbines operate better in our high winds, lead towards redundancy, and are more easily serviced.
Bill Moore: The transmission cables may dictate the size of the turbines
RERL: Wind Turbine Siting Considerations
Predicted Wind Resource – the economics of wind power at a given site depends on many factors; one of the most important is wind speed. Understanding wind speed and turbulence is critical to estimating the energy that can be produced at a given site. Winds on the Island may be too high to accommodate full-scale turbines, which typically experience more stress than medium scale turbines at high wind speeds.
Because of the high wind velocities, it is assumed that Nantucket will use medium-scale turbines. The medium-scaled wind turbine has a hub height of 50 meters (164 feet). The average wind speed (AWS) at the DPW site is 8.1 m/sec or 18.1 mph. A 660 KW turbine at 100% capacity delivers 8766 x 660/1000 = 5,785 MWHrs per year. A 660 KW turbine at the land fill would deliver 2,180 MWHrs or 38% capacity. At $117.90 per MWHr, the output is worth $257,022.
Germany is the world leader in terms of installed wind power, with 20,621 MW installed, yet it has only a fraction of the wind energy potential that North Dakota alone has. Large wind systems require average wind speeds of 6 meters/second (13 mph).
Wind resource potential is divided into: “moderate” means wind speeds of 6.4-7 m/s at a 50-meter height, “good” means 7-7.5 m/s, and “excellent” means 7.5 m/s and higher. Nantucket sites are better than “excellent”.
Wind Turbine Component Transportation & Access – Transporting turbine components and the necessary installation equipment (cranes, flat bed trucks) could add to the cost of wind turbine installation on Nantucket. In addition, there would be some logistical challenges transporting wind turbine components from the harbor to the sites because of the trucks’ large turning radii needed to move from the dock to the turbine sites. An alternate method of transportation is using heavy lift helicopters.
Distance to transmission/distribution lines for power distribution – The power generated by any installed wind turbine must be transmitted to adequately sized lines. Proximity to utility distribution or transmission lines is an important cost consideration. All of the proposed sites are within 250 meters of either transmission or distribution lines.
Noise – MA State regulations do not allow a rise of 10 dB or greater above background at the property boundary. Modern turbines easily meet these criteria. From a distance of several hundred feet, utility scale turbines can be compared to the sound level of a refrigerator. Any eventual wind turbine should be sited so that it would be minimally audible at the nearest residences. Wind turbines should be sited at least three blade tip height from residences. Distances from mixed use areas may be shorter
Environmental issues and permitting – The majority of Nantucket Island is home to diverse wildlife and, as a result, the entire Island has been designated as a Priority Habitat of Rare Species. RERL recommends investigating all applicable environmental designations as soon as a particular site is chosen for a wind project.
Proximity to airport – Most sites that are not within about 3 to 5 miles of a public or military airport are not considered a hazard to air traffic. The FAA requires that any structure over 200 feet to be lighted. The WWTF site lies within close proximity to the Nantucket Municipal Airport and so airspace restrictions need to be investigated.
Initial Siting Plan
The initial siting plan is based on the recommendations of the RERL June 16, 2008 Report. The plan is to install 4 to 6 turbines at the DPW Landfill Site including: Massasoit A (located south west of the Landfill); Massasoit B (located west of Landfill); and Massasoit C (FAA 100 acre site). The Massasoit turbines would be in the 1.5 MW class. There would be 2 to 3 smaller turbines at the WWTF with a size range of 250 kw to 660 kw smaller due to the proximity of Nantucket Memorial Airport.
Financing Plan
The wind turbines can be publicly or privately financed. The NEC plans to explore a variety of funding sources. Some of these are described below. It might be highly desirable to seek private donations during the initial stages.
Richard Miller (Director of Hull Municipal Light Plant): Recommends publicly financed turbines.
Bill Moore (Atlantic Renewable Energy Corp): Recommends publicly financed turbines, but cautions that the large turbine suppliers prefer to own the turbines and have a lock on the supply of turbines.
The Renewable Energy Trust (RET) is funded through a monthly charge on electric bills. The Renewable Energy Charge is $0.50 per MWH per month or about $6 a year on average. Nantucket’s total charges for 2007 were $71,213.
MTC brings together leaders from industry, academia, and government to advance technology-based solutions that lead to economic growth and a cleaner environment in Mass. MTC energizes emerging markets in the high-tech sector by filling gaps in the marketplace, connecting key stakeholders, conducting critical economic analysis, and providing access to intellectual and financial capital. For additional information about MTC, visit http://www.masstech.org/.
MTC, as administrator of the RET Fund, is seeking applications for the Large Onsite Renewables Initiative (LORI) Feasibility Study and Design & Construction Grants. Nantucket is eligible for LORI funding, and we can certainly go that route. However, subject to application approval, a project in Nantucket (of size >500 kW) would be eligible for CWC funding, which does not require a cost-share. Given this, it probably makes more sense for Nantucket to pursue the CWC path.
The Production Tax Credit (PTC) is an income tax credit of 1.9 ¢/kWh that is allowed for the production of electricity from qualified wind energy facilities and other sources of renewable energy. The tax credit was created under the Energy Policy Act of 1992. The credit applies to electricity produced by a qualified wind facility placed in service between January 1, 1993, and December 31, 2008, and is adjusted annually for inflation. It applies for the first 10 years of production. The tax credit is useful only for utility-scale wind turbines, not smaller turbines used to power individual homes or businesses.
Cost estimates from feasibility 2008 studies of MA Community Wind projects ranged from $2,800/kW to $3,290/kW.
Laws and Regulations
What local, state, and federal laws and regulations need to be considered when developing this project, and how do they affect the development of a business model? Are there changes to state law and regulations for which Nantucket should advocate?
The MA Green Communities Act
of 2008 allows energy produced at customer-sited generation facilities of up to 2 MW to be sold to the grid as if it were offsetting the energy used at the customers meter.
Previous MA law only allowed facilities up to 60kW to benefit from net metering while for larger facilites only that portion of the production that coincided with load could be credited to the retail site.
Each municipality can net meter up to 10 MW of generation capacity providing that no individual unit exceeds 2 MW.
The net metering credit for generation used to offset load at a customer’s meter is credited at a rate equal to the “default service” kilowatt-hour charge.
Bill Moore: Thinks that there are federal laws that trump the Massachusetts Laws that could be invoked.
Richard Miller (Hull): Recommends using the surplus power sales to reduce the cost to the Nantucket user through an agreement.
Bill Moore: Feels that Richard Miller’s recommendation is not feasible
Business Model
What business model best suits the interests of Nantucket Island? The WPI Study recommended the following:
· Put municipal Light Department issue on hold
· Consider joint venture opportunities
· Best projected % return on investment
- Landfill: 660 kW turbine(s)
- SWWTF: 250 kW turbine (s)
Separate profit and loss account (enterprise fund)
Rent land from the Town @ approx $40K per acre adjusted by market forces
Profits used to reduce the cost of electricity to the consumers, support the operations of the Town, or both?
What is the microeconomics for particular wind turbine site?
What is the macroeconomics for the Island as a whole?
Public Utility Company Option
Should the Island become its own public electric utility? Not recommended by WPI Project.
1. What would be the relationship with National Grid?
2. Who would maintain the distribution system?
3. How would the existing electric company recover its delivery service costs?
Future Land Based Sites
Should the town consider using conservation land for wind turbines?
This is a very sensitive subject. Much of Nantucket’s conservation land has very stringent restrictions, and yet from a philosophical point of view wind farms have a significant conservation objective.
The amount of Town owned land available for wind farms is limited. Ideally the conservation land is an untapped resource for windfarms. It will be important to determine what can and can not be accomplished to determine the build out plan.
This would entail talking to the various conservation groups on the Island and discussing the pros and cons of using their land. On one hand there would be a strong negative push back, and yet on the other hand the windmill argument is compelling. This might be a very instructive project for a student to take on.
As of October 2007, Nantucket contains approximately 30,000 acres of which 16,626 or approximately 55 % is in open space as follows.
1. Nantucket Conservation Foundation has 8,858 acres;
2. Nantucket Islands Land Bank has 2,529 acres;
3. Trustees of Reservations has 987 acres;
4. Massachusetts Audubon Society has 947 acres;
5. Nantucket Land Council has 422 acres;
6. Boy Scouts, Sconset Trust, Madaket Conservation Land Trust have a combined 242 acres.
7. Federal, State or Local Government-owned properties have 2,641 acres.
Off-Shore Sites
Should the town consider using off-shore sites for wind turbines?
The advantage of off-shore wind farms sites is that the sites are available. The down side is that they are approximately 50% more costly than land based. In addition, there are all sorts of maintenance, environmental, and navigational risks.
More likely off-shore will require outside funding and governmental support. This would reduce the cost benefits to the Island.
Nantucket has an area south of Tuckernuck Island which is in fairly shallow water. The transmission cable could be brought ashore on Nantucket. However, Dave Fredericks believes that the electric power should be transmitted directly to the mainland via underwater cables. Underwater cables cost about $1.2 million per mile to install.
As production increases more cables can be laid to the mainland and Nantucket could become a significant exporter of electric power. Nantucket will have to rely on the cables as a defacto storage mechanism. Our highest elevation is less than 100 feet so that gravity storage is not an option.
Dependency on Petroleum Products
How rapidly can electric heating and electric cars come on line so as to reduce the dependency of petroleum products?
This is an ultimate goal which will be driven by the competitive market forces. As the cost of electricity is reduced through windfarms, electricity becomes more attractive. Nantucket is an ideal location for electric vehicles since the travel distances are short and the speed limits are low.
Nantucket Power Consumption
At present Nantucket has two undersea electric cables bringing power from the mainland. The first cable is rated at 35 MW and the second cable at 42 MW. The National Grid maintains a back up capability of 10 MW
In 2007 Nantucket used 143,688,965 kWh of electricity in CY 2007. Assuming that the supply cost was $0.11 per kWh, the total supply cost would be $15.80 million. Assuming that the transmission cost was $0.066 per kWh, the total transmission cost would be $9.48 million. Nantucket imports approximately 10 million gallons of fuel per year. Assuming that the cost per gallon is $4.50 per gallon, the total fuel cost would be $45 million.
Nantucket electric usage varies from a low of 9,680,462 kWh in May to 16,653,095 kWh in September. A 1.5 MW turbine produces 1,500 kWh x 30 days x 24 hrs x 40% efficiency = 432,000 kWh per month. It would take twenty two (22) 1.5 MW turbines to supply 100% of the Islands electricity in May and thirty nine (39) 1.5 MW turbines in September.
The estimated development cost of land based wind turbines is $2.5 million per MW. The estimated cost of water based wind turbines is 50% higher of $3.75 million per MW. A 1.5 MW turbine produces 1.5 MW x 365 days x 24 hrs x 40% efficiency (on Nantucket) = 5,256 MWh per year. At $110 per mWh, this equals $578 K in gross profit. This gross is 15.4% on a $3.75 million investment before debt service, O&M costs, land usage fees and depreciation.
As the cost of electricity becomes competitive, the attractiveness of electric automobiles and electric heating increases. The Cape has been able to keep its electric consumption constant by offsetting increased growth through conservation techniques.
The total cost of importing electricity and fuel oil would be approximately $70.14 million. Interestingly this amount is about the same magnitude of the Town Budget of approximately $100 Million. Much of these costs can be offset by conservation techniques, solar, and wind turbine generation.
Pros and Cons of Wind Turbines
Do costs of developing renewable energy outweigh benefits? The pros and cons of wind turbines need to be clearly developed in order to get the voters to accept land based wind turbines? The WPI Study used a sampling technique to rank the wind turbine concerns. The conclusion was that the three most difficult concerns to over come were human factors (aesthetics, public outreach), financial, and avian.
The WPI Study recommended:
· Working with MTC for Wind 101 presentation
· Select 660 kW turbines or lower transportation costs
· If 1.5 MW Turbines are selected, look into Carson Helicopters S-61 or Sikorsky Sky Crane
· Conduct a study of impacts at each site on avian life
· Form a bird sub-committee to determine when the turbines should be shut off to prevent bird kills.
· Conduct a study at the Landfill for rare plan species.
Examples of benefits
a. The amount of fuel replaced by windfarms will determine the future bulk fuel storage facility requirements
b. Wind farms will greatly reduce the tanker truck traffic on the Island.
c. Reduction in the cost of electricity
d. Reduce the cost of transportation and heating
e. Bring new revenue sources into the Nantucket economy
f. Nantucket average wind speed (AWS) between 16 and 19 mph
g. Bluewater’s offer in Delaware of stable-priced electricity — an inflation-adjusted 10 cents per kilowatt hour for the next 25 years
Certain Problems (numbers indicate relative importance of concern by WPI)
a. Human Factors (aesthetics) - 18
b. Financial -17
c. Avian (Migratory Birds) -16
d. DPW Land Use -15
e. Radar Interference - 14
f. Maintenance – (20 year life cycle) -12
g. Electrical Interference and Lightning -12
h. Transportation - 11
i. Decreased Property Values -11
j. Flora - 9
k. Land Management -7
l. Small Scale Turbine Purchases -6
m. Turtles / Vibrations -6
n. Bats -5
o. Salt Spray - Sand blasting -4
p. Air Traffic Interference - 4
q. Winter Issues ( Icing / Electrical) -2
r. Oil Leakage from Turbine - 1
s. Marine Life - 0
t. Flashing from sun reflections -0
u. Intermittence and power variability - 0
Action Items
Accomplished actions
1. (9/17/08) Obtained approval of the Nantucket Energy Committee Mission Statement from BOS.
2. (9/17/08) Obtained approval from BOS to seek grants which would provide further analysis of the two selected sites (landfill/Massasoit and Waste Water Treatment Facility), funding for feasibility studies, environmental permitting, public information forums, technical services and start-up costs.
3. (11/5/08) Kitt Johnson, Edgartown BOS appointee, presented findings on underwater turbines in Muskeget Channel.
4. (11/6/08) Edie Ray, Shorebird Biologist for Nantucket Conservation Foundation, Ken Blackshaw, author of Birding on Nantucket, and Vern Laux, Ornithologist at the Linda Loring Foundation spoke to the NEC on bird migration and other bird concerns on Nantucket
5. (11/21/08) Visited Esther’s Island site visit to study vertical turbine, solar arrays, and energy efficient house.
6. (12/17/08) Four WPI students completed a 7 week study on Island sponsored by the NEC entitled “Wind Generation on Nantucket” and presented a briefing on the results to BOS.
7. (1/7/09) BOS approved grant application for Feasibility Analysis for Wind Turbines with MTC.
Future Actions
1. Attend MA Wind Working Group (MWWG) workshop on Wed, Jan 21 @ MTC in Westborough for presentation by Ed Bodmer, an expert in financial modeling for renewable energy projects. The workshop will address public, private and hybrid approaches to ownership, management, financing, and risk.
2. Investigate and begin environmental permitting process. Investigate electrical interconnections to the grid.
3. Invitations to future meetings will be extended to local representatives from Marine and Wildlife groups, Marine Mammal Stranding, Maria Mitchell Association, Harbor Plan Implementation Committee, The Harbor Master, Board of Health, Non-Voting Tax Payers, School students, and others.
4. Begin public outreach with community based forum for informational purposes
This stage also includes a “Wind 101″ instructional public forum offered by MTC to answer questions from the community.
5. Execute MYC’s “free Standard Financial Offer Service portion of the CWC grant.
Technical services as well as a grant of up to $150K to support project development are provided. A standing offer to purchase Renewable Energy Certificates generated by the project is also available.
6. Apply to the MTC for a feasibility study by the CWC (Community Wind Collaborative ) toward the installation of a ARE442 (or similar) turbine at the Nantucket High School.
7. Investigate the costs and logistics of transporting and installing turbine components on Nantucket.
8. Obtain financing
8.
9. Select a wind turbine developer
10. Select a wind turbine vender
10.
11. Obtain servicing contract
ENERGY COMMITTEE
The Nantucket Energy Committee (NEC) is an advisory committee appointed by the Nantucket Board of Selectmen. The NEC reports to the BOS on energy related issues affecting Nantucket energy users; recommends policy or code amendments; evaluates and explores potential energy production for Nantucket; and serves as a resource for information on renewable and sustainable energy including wind, tidal, solar, wave power, and energy conservation measures.
The following white paper introduces a concept to install 4-6 turbines with a size range of 660 KW to 1.5 MW in the landfill/Massasoit area, as well as a plan to install 2-3 smaller (250 KW- 660 KW) at the Waste Water Treatment Facility (WWTF).
BACKGROUND
The U.S. is now the world leader in wind electricity generation. While Germany still has more generating capacity installed (about 23,000 megawatts), the U.S. is producing more electricity from wind because of its much stronger winds.
Total U.S. installed wind power capacity now stands at 19,549 megawatts (MW). The industry installed 1,194 MW in the 2nd Qtr of 2008, down from 1,532 MW during 1st Qtr of 2008. This brings the year’s new capacity to 2,726 MW, more than was installed in any year except 2007.
Nantucket’s energy costs in winter are some of the highest in the United States. Massachusetts with an average cost of 17.85 ¢/kWh has the third highest electricity rates behind New York (19.42 ¢/kWh) and Connecticut (20.24¢/kWh).
Nantucket has two principal sources of energy. Electric power transmitted from the mainland via two under water cables and petroleum products shipped from the mainland. At present, electric power is delivered to Nantucket via two 35 and 41 MW cables. The electric power cost to the consumers includes delivery services (summer rate 7.74 ¢/kWh or winter rate 6.61¢/kWh ) and supply services (11.79 ¢/kWh). Nantucket imports approximately 10 million gallons of fuel per year. The retail cost per gallon is approximately $0.50 to $0.70 per gallon higher than the mainland.
Nantucket has some of the highest prevailing winds in the United States. The average wind speed (AWS) varies from approximately 13 MPH to 19 MPH. The wind velocity varies with land based location and time of year. The off-shore wind speeds are higher and averages of nearly 20 MPH are observed.
At the request of the NEC, The UMass Amherst surveyed 10 Nantucket land based sites for wind turbines. Considerations included distance from the airport, distance from housing, and average wind speed / directions. The results of the UMass survey were reported on June 16, 2008.
DATA ACQUISITION
1. (May 9, 2008) At the request of the NEC, the Massachusetts Technology Collaborative (MTC) provided a grant which enabled the UMass Renewable Research Laboratory (RERL) to visit ten potential sites on Nantucket Island in order to evaluate their suitability for medium and utility-scale wind turbines.
2. (June 26, 2008) Members of the NEC made a site visit to Hull, MA to discuss their wind turbines. We met with Richard Miller, Operations Manager of Hull Municipal Light Plant.
3. (July 7, 2008) Members of the NEC met with William M. Moore (Atlantic Renewable Energy Corp) developer of wind farms and wind turbine consultant.
4. (August 7, 2008) The NEC invited the following individuals to their monthly meeting for a discussion on wind energy: Chris Amory an engineer working in Shanghai, China for a company that manufactures wind turbine blades; Dave Fredericks is National Grid’s acting Vice President New England South; and William Moore a wind farm consultant.
5. (From October 27 to December 17, 2008) Four Students from Worchester Polytechnic Institute (WPI) Department of Management working on certain aspects of the Nantucket Wind Energy Project. The WPI Students:
(1) Explored the laws, regulations, and permits required to develop wind power on Nantucket.
(2) Analyzed financial and ownership arrangements
(3) Investigated concerns regarding wind power for Nantucket
6. (January 21, 2009) Edward Bodmer, financial modeling expert, presented a workshop on financing municipal wind projects @ MTC in Westborough, MA.
ISSUES & RESEARCH QUESTIONS
Optimum Build Out Plan
What is the optimum build out plan for wind generation on Nantucket? Should we ramp up slowly, allow technology to mature, await changes in regulations, and learn as we progress.
Bill Moore: There is a shortage of wind turbines world wide. Nantucket will probably select turbines less than 1MW capacity. The smaller turbines operate better in our high winds, lead towards redundancy, and are more easily serviced.
Bill Moore: The transmission cables may dictate the size of the turbines
RERL: Wind Turbine Siting Considerations
Predicted Wind Resource – the economics of wind power at a given site depends on many factors; one of the most important is wind speed. Understanding wind speed and turbulence is critical to estimating the energy that can be produced at a given site. Winds on the Island may be too high to accommodate full-scale turbines, which typically experience more stress than medium scale turbines at high wind speeds.
Because of the high wind velocities, it is assumed that Nantucket will use medium-scale turbines. The medium-scaled wind turbine has a hub height of 50 meters (164 feet). The average wind speed (AWS) at the DPW site is 8.1 m/sec or 18.1 mph. A 660 KW turbine at 100% capacity delivers 8766 x 660/1000 = 5,785 MWHrs per year. A 660 KW turbine at the land fill would deliver 2,180 MWHrs or 38% capacity. At $117.90 per MWHr, the output is worth $257,022.
Germany is the world leader in terms of installed wind power, with 20,621 MW installed, yet it has only a fraction of the wind energy potential that North Dakota alone has. Large wind systems require average wind speeds of 6 meters/second (13 mph).
Wind resource potential is divided into: “moderate” means wind speeds of 6.4-7 m/s at a 50-meter height, “good” means 7-7.5 m/s, and “excellent” means 7.5 m/s and higher. Nantucket sites are better than “excellent”.
Wind Turbine Component Transportation & Access – Transporting turbine components and the necessary installation equipment (cranes, flat bed trucks) could add to the cost of wind turbine installation on Nantucket. In addition, there would be some logistical challenges transporting wind turbine components from the harbor to the sites because of the trucks’ large turning radii needed to move from the dock to the turbine sites. An alternate method of transportation is using heavy lift helicopters.
Distance to transmission/distribution lines for power distribution – The power generated by any installed wind turbine must be transmitted to adequately sized lines. Proximity to utility distribution or transmission lines is an important cost consideration. All of the proposed sites are within 250 meters of either transmission or distribution lines.
Noise – MA State regulations do not allow a rise of 10 dB or greater above background at the property boundary. Modern turbines easily meet these criteria. From a distance of several hundred feet, utility scale turbines can be compared to the sound level of a refrigerator. Any eventual wind turbine should be sited so that it would be minimally audible at the nearest residences. Wind turbines should be sited at least three blade tip height from residences. Distances from mixed use areas may be shorter
Environmental issues and permitting – The majority of Nantucket Island is home to diverse wildlife and, as a result, the entire Island has been designated as a Priority Habitat of Rare Species. RERL recommends investigating all applicable environmental designations as soon as a particular site is chosen for a wind project.
Proximity to airport – Most sites that are not within about 3 to 5 miles of a public or military airport are not considered a hazard to air traffic. The FAA requires that any structure over 200 feet to be lighted. The WWTF site lies within close proximity to the Nantucket Municipal Airport and so airspace restrictions need to be investigated.
Initial Siting Plan
The initial siting plan is based on the recommendations of the RERL June 16, 2008 Report. The plan is to install 4 to 6 turbines at the DPW Landfill Site including: Massasoit A (located south west of the Landfill); Massasoit B (located west of Landfill); and Massasoit C (FAA 100 acre site). The Massasoit turbines would be in the 1.5 MW class. There would be 2 to 3 smaller turbines at the WWTF with a size range of 250 kw to 660 kw smaller due to the proximity of Nantucket Memorial Airport.
Financing Plan
The wind turbines can be publicly or privately financed. The NEC plans to explore a variety of funding sources. Some of these are described below. It might be highly desirable to seek private donations during the initial stages.
Richard Miller (Director of Hull Municipal Light Plant): Recommends publicly financed turbines.
Bill Moore (Atlantic Renewable Energy Corp): Recommends publicly financed turbines, but cautions that the large turbine suppliers prefer to own the turbines and have a lock on the supply of turbines.
The Renewable Energy Trust (RET) is funded through a monthly charge on electric bills. The Renewable Energy Charge is $0.50 per MWH per month or about $6 a year on average. Nantucket’s total charges for 2007 were $71,213.
MTC brings together leaders from industry, academia, and government to advance technology-based solutions that lead to economic growth and a cleaner environment in Mass. MTC energizes emerging markets in the high-tech sector by filling gaps in the marketplace, connecting key stakeholders, conducting critical economic analysis, and providing access to intellectual and financial capital. For additional information about MTC, visit http://www.masstech.org/.
MTC, as administrator of the RET Fund, is seeking applications for the Large Onsite Renewables Initiative (LORI) Feasibility Study and Design & Construction Grants. Nantucket is eligible for LORI funding, and we can certainly go that route. However, subject to application approval, a project in Nantucket (of size >500 kW) would be eligible for CWC funding, which does not require a cost-share. Given this, it probably makes more sense for Nantucket to pursue the CWC path.
The Production Tax Credit (PTC) is an income tax credit of 1.9 ¢/kWh that is allowed for the production of electricity from qualified wind energy facilities and other sources of renewable energy. The tax credit was created under the Energy Policy Act of 1992. The credit applies to electricity produced by a qualified wind facility placed in service between January 1, 1993, and December 31, 2008, and is adjusted annually for inflation. It applies for the first 10 years of production. The tax credit is useful only for utility-scale wind turbines, not smaller turbines used to power individual homes or businesses.
Cost estimates from feasibility 2008 studies of MA Community Wind projects ranged from $2,800/kW to $3,290/kW.
Laws and Regulations
What local, state, and federal laws and regulations need to be considered when developing this project, and how do they affect the development of a business model? Are there changes to state law and regulations for which Nantucket should advocate?
The MA Green Communities Act
of 2008 allows energy produced at customer-sited generation facilities of up to 2 MW to be sold to the grid as if it were offsetting the energy used at the customers meter.
Previous MA law only allowed facilities up to 60kW to benefit from net metering while for larger facilites only that portion of the production that coincided with load could be credited to the retail site.
Each municipality can net meter up to 10 MW of generation capacity providing that no individual unit exceeds 2 MW.
The net metering credit for generation used to offset load at a customer’s meter is credited at a rate equal to the “default service” kilowatt-hour charge.
Bill Moore: Thinks that there are federal laws that trump the Massachusetts Laws that could be invoked.
Richard Miller (Hull): Recommends using the surplus power sales to reduce the cost to the Nantucket user through an agreement.
Bill Moore: Feels that Richard Miller’s recommendation is not feasible
Business Model
What business model best suits the interests of Nantucket Island? The WPI Study recommended the following:
· Put municipal Light Department issue on hold
· Consider joint venture opportunities
· Best projected % return on investment
- Landfill: 660 kW turbine(s)
- SWWTF: 250 kW turbine (s)
Separate profit and loss account (enterprise fund)
Rent land from the Town @ approx $40K per acre adjusted by market forces
Profits used to reduce the cost of electricity to the consumers, support the operations of the Town, or both?
What is the microeconomics for particular wind turbine site?
What is the macroeconomics for the Island as a whole?
Public Utility Company Option
Should the Island become its own public electric utility? Not recommended by WPI Project.
1. What would be the relationship with National Grid?
2. Who would maintain the distribution system?
3. How would the existing electric company recover its delivery service costs?
Future Land Based Sites
Should the town consider using conservation land for wind turbines?
This is a very sensitive subject. Much of Nantucket’s conservation land has very stringent restrictions, and yet from a philosophical point of view wind farms have a significant conservation objective.
The amount of Town owned land available for wind farms is limited. Ideally the conservation land is an untapped resource for windfarms. It will be important to determine what can and can not be accomplished to determine the build out plan.
This would entail talking to the various conservation groups on the Island and discussing the pros and cons of using their land. On one hand there would be a strong negative push back, and yet on the other hand the windmill argument is compelling. This might be a very instructive project for a student to take on.
As of October 2007, Nantucket contains approximately 30,000 acres of which 16,626 or approximately 55 % is in open space as follows.
1. Nantucket Conservation Foundation has 8,858 acres;
2. Nantucket Islands Land Bank has 2,529 acres;
3. Trustees of Reservations has 987 acres;
4. Massachusetts Audubon Society has 947 acres;
5. Nantucket Land Council has 422 acres;
6. Boy Scouts, Sconset Trust, Madaket Conservation Land Trust have a combined 242 acres.
7. Federal, State or Local Government-owned properties have 2,641 acres.
Off-Shore Sites
Should the town consider using off-shore sites for wind turbines?
The advantage of off-shore wind farms sites is that the sites are available. The down side is that they are approximately 50% more costly than land based. In addition, there are all sorts of maintenance, environmental, and navigational risks.
More likely off-shore will require outside funding and governmental support. This would reduce the cost benefits to the Island.
Nantucket has an area south of Tuckernuck Island which is in fairly shallow water. The transmission cable could be brought ashore on Nantucket. However, Dave Fredericks believes that the electric power should be transmitted directly to the mainland via underwater cables. Underwater cables cost about $1.2 million per mile to install.
As production increases more cables can be laid to the mainland and Nantucket could become a significant exporter of electric power. Nantucket will have to rely on the cables as a defacto storage mechanism. Our highest elevation is less than 100 feet so that gravity storage is not an option.
Dependency on Petroleum Products
How rapidly can electric heating and electric cars come on line so as to reduce the dependency of petroleum products?
This is an ultimate goal which will be driven by the competitive market forces. As the cost of electricity is reduced through windfarms, electricity becomes more attractive. Nantucket is an ideal location for electric vehicles since the travel distances are short and the speed limits are low.
Nantucket Power Consumption
At present Nantucket has two undersea electric cables bringing power from the mainland. The first cable is rated at 35 MW and the second cable at 42 MW. The National Grid maintains a back up capability of 10 MW
In 2007 Nantucket used 143,688,965 kWh of electricity in CY 2007. Assuming that the supply cost was $0.11 per kWh, the total supply cost would be $15.80 million. Assuming that the transmission cost was $0.066 per kWh, the total transmission cost would be $9.48 million. Nantucket imports approximately 10 million gallons of fuel per year. Assuming that the cost per gallon is $4.50 per gallon, the total fuel cost would be $45 million.
Nantucket electric usage varies from a low of 9,680,462 kWh in May to 16,653,095 kWh in September. A 1.5 MW turbine produces 1,500 kWh x 30 days x 24 hrs x 40% efficiency = 432,000 kWh per month. It would take twenty two (22) 1.5 MW turbines to supply 100% of the Islands electricity in May and thirty nine (39) 1.5 MW turbines in September.
The estimated development cost of land based wind turbines is $2.5 million per MW. The estimated cost of water based wind turbines is 50% higher of $3.75 million per MW. A 1.5 MW turbine produces 1.5 MW x 365 days x 24 hrs x 40% efficiency (on Nantucket) = 5,256 MWh per year. At $110 per mWh, this equals $578 K in gross profit. This gross is 15.4% on a $3.75 million investment before debt service, O&M costs, land usage fees and depreciation.
As the cost of electricity becomes competitive, the attractiveness of electric automobiles and electric heating increases. The Cape has been able to keep its electric consumption constant by offsetting increased growth through conservation techniques.
The total cost of importing electricity and fuel oil would be approximately $70.14 million. Interestingly this amount is about the same magnitude of the Town Budget of approximately $100 Million. Much of these costs can be offset by conservation techniques, solar, and wind turbine generation.
Pros and Cons of Wind Turbines
Do costs of developing renewable energy outweigh benefits? The pros and cons of wind turbines need to be clearly developed in order to get the voters to accept land based wind turbines? The WPI Study used a sampling technique to rank the wind turbine concerns. The conclusion was that the three most difficult concerns to over come were human factors (aesthetics, public outreach), financial, and avian.
The WPI Study recommended:
· Working with MTC for Wind 101 presentation
· Select 660 kW turbines or lower transportation costs
· If 1.5 MW Turbines are selected, look into Carson Helicopters S-61 or Sikorsky Sky Crane
· Conduct a study of impacts at each site on avian life
· Form a bird sub-committee to determine when the turbines should be shut off to prevent bird kills.
· Conduct a study at the Landfill for rare plan species.
Examples of benefits
a. The amount of fuel replaced by windfarms will determine the future bulk fuel storage facility requirements
b. Wind farms will greatly reduce the tanker truck traffic on the Island.
c. Reduction in the cost of electricity
d. Reduce the cost of transportation and heating
e. Bring new revenue sources into the Nantucket economy
f. Nantucket average wind speed (AWS) between 16 and 19 mph
g. Bluewater’s offer in Delaware of stable-priced electricity — an inflation-adjusted 10 cents per kilowatt hour for the next 25 years
Certain Problems (numbers indicate relative importance of concern by WPI)
a. Human Factors (aesthetics) - 18
b. Financial -17
c. Avian (Migratory Birds) -16
d. DPW Land Use -15
e. Radar Interference - 14
f. Maintenance – (20 year life cycle) -12
g. Electrical Interference and Lightning -12
h. Transportation - 11
i. Decreased Property Values -11
j. Flora - 9
k. Land Management -7
l. Small Scale Turbine Purchases -6
m. Turtles / Vibrations -6
n. Bats -5
o. Salt Spray - Sand blasting -4
p. Air Traffic Interference - 4
q. Winter Issues ( Icing / Electrical) -2
r. Oil Leakage from Turbine - 1
s. Marine Life - 0
t. Flashing from sun reflections -0
u. Intermittence and power variability - 0
Action Items
Accomplished actions
1. (9/17/08) Obtained approval of the Nantucket Energy Committee Mission Statement from BOS.
2. (9/17/08) Obtained approval from BOS to seek grants which would provide further analysis of the two selected sites (landfill/Massasoit and Waste Water Treatment Facility), funding for feasibility studies, environmental permitting, public information forums, technical services and start-up costs.
3. (11/5/08) Kitt Johnson, Edgartown BOS appointee, presented findings on underwater turbines in Muskeget Channel.
4. (11/6/08) Edie Ray, Shorebird Biologist for Nantucket Conservation Foundation, Ken Blackshaw, author of Birding on Nantucket, and Vern Laux, Ornithologist at the Linda Loring Foundation spoke to the NEC on bird migration and other bird concerns on Nantucket
5. (11/21/08) Visited Esther’s Island site visit to study vertical turbine, solar arrays, and energy efficient house.
6. (12/17/08) Four WPI students completed a 7 week study on Island sponsored by the NEC entitled “Wind Generation on Nantucket” and presented a briefing on the results to BOS.
7. (1/7/09) BOS approved grant application for Feasibility Analysis for Wind Turbines with MTC.
Future Actions
1. Attend MA Wind Working Group (MWWG) workshop on Wed, Jan 21 @ MTC in Westborough for presentation by Ed Bodmer, an expert in financial modeling for renewable energy projects. The workshop will address public, private and hybrid approaches to ownership, management, financing, and risk.
2. Investigate and begin environmental permitting process. Investigate electrical interconnections to the grid.
3. Invitations to future meetings will be extended to local representatives from Marine and Wildlife groups, Marine Mammal Stranding, Maria Mitchell Association, Harbor Plan Implementation Committee, The Harbor Master, Board of Health, Non-Voting Tax Payers, School students, and others.
4. Begin public outreach with community based forum for informational purposes
This stage also includes a “Wind 101″ instructional public forum offered by MTC to answer questions from the community.
5. Execute MYC’s “free Standard Financial Offer Service portion of the CWC grant.
Technical services as well as a grant of up to $150K to support project development are provided. A standing offer to purchase Renewable Energy Certificates generated by the project is also available.
6. Apply to the MTC for a feasibility study by the CWC (Community Wind Collaborative ) toward the installation of a ARE442 (or similar) turbine at the Nantucket High School.
7. Investigate the costs and logistics of transporting and installing turbine components on Nantucket.
8. Obtain financing
8.
9. Select a wind turbine developer
10. Select a wind turbine vender
10.
11. Obtain servicing contract
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