The Winds of Change

March/April 2001

The Winds of Change

With skyrocketing fuel prices, deregulation, privatization and the restraints of an environmentally sensitive world, power producers everywhere are seeking creative new strategies for cost effective, clean alternatives to fossil fuels and nuclear power generation. And more and more, with the world's insatiable appetite for power, that search is leading them to the vast potential available from the wind and sun, and the rivers and oceans of the world.

Technological advances in all of the renewables during the latter part of the 20th century, plus the economies of production through increasing demand, and their acceptance in the power mix, are also bringing down the cost barriers to their use.

Wind power is a good case in point. Since 1987, the cost of this renewable has fallen by 30% and, with on-going technological improvements in windmill design and efficiency, it is expected to drop another 20-30% by 2003. In some areas of the world, utility scale wind projects are already on a competitive footing with their fossil-fuel counterparts.

For the fourth year in a row, the Washington-based Worldwatch Institute calls wind power "the world's fastest growing energy source." During 1998, wind power increased by 35% worldwide, growing to 9,600 megawatts, and by mid-1999 it had exceeded 10,000 megawatts. While Europe still leads the way in the commercial use of wind power, North America is beginning to catch up as new wind farms continue to spring up across the United States and Canada.

Go Ahead For Major Installation On Washington/Oregon Border

Although California remains the United States' top wind power market with 1600 MW of installed capacity, Texas took the title as the top growth market with the completion of 250 MW of new capacity by the end of 2000, another 500 MW scheduled for construction in 2001, and a further 300 MW under construction.

But barring any surprises, growth leadership honours in the U.S. for 2001 appears destined for Washington State. Early this year PacifiCorp Power Marketing (PPM) and FPL Energy, LLC, announced an agreement to build what will be the world's largest single wind development, the Stateline Wind Generating Project, along the Washington-Oregon border, southwest of Walla Walla, Washington. PacifiCorp spokesman Dave Kvamme said, "We're in the beginning stages of construction and we expect to be up and running by the end of the year. That's the beauty of wind power. It happens right away -- just put up the wind turbines and you're all set to go."

When fully operational the Stateline Wind Project, with more than 450 wind turbines, will have an installed capacity of 300 megawatts and make PPM the leading supplier of renewable resources in the U.S. Pacific Northwest.

FPL Energy is the largest developer and operator of wind energy facilities in the U.S., having more than 1,000 megawatts of wind turbines in operation or under construction in seven states. The company owns and operates the 24.9-megawatt Vansycle Wind Facility adjacent to the Stateline site.

Pincher Creek Is Canada's Hot Growth Spot For Wind Power

In Canada there are wind sites in Alberta, Yukon territories, Ontario, Quebec and Prince Edward Island (a world class test facility). However, Alberta and Quebec have the only utility scale production.

In Ontario, Hydro One is taking a look at wind power with a demonstration 600 kilowatt wind turbine near Tiverton, which, during its first year of operation, produced enough energy to supply about 152 homes. But in December of last year, one other producer entered Toronto's wind power generation scene. Deregulation was the springboard for the North Toronto Green Community to take power generation into its own hands. The group launched the Toronto Renewable Energy Co-operative (TREC) and, partnering with Toronto Hydro Energy Services, a retail arm of Toronto Hydro, received permission from the Ontario ministry of the environment for two sites on the Toronto waterfront. Installation of a 900-kilowatt wind turbine on the site of the Ashbridge's Bay Treatment Plant in Toronto's east end gets underway this spring, and will mark the first such structure to be located in a North American city. The precedent-setting project could be the beginning of a trend for other urban communities, too. Bryan Young, TREC's general manager, said "The reaction has been terrific -- we're getting requests for more information from communities all over Ontario. It's going to be interesting to see what happens."

The largest wind farm development in Canada, to date, is Le Nordais in Quebec's Gaspe region, inaugurated in the Fall of 1999. The $160 million project developed by the AXOR and M&N consortium occupies two sites on the Gaspe peninsula: one site with 57 wind turbines and the other with 76 turbines. The project's 133 @ 750 kW wind turbines have an installed capacity of 100 megawatts. Power generated by Le Nordais will be worth about $20 million annually and sold to Hydro-Quebec for distribution to its customers under a 25-year agreement.

But the hot spot in Canada for wind power growth is Pincher Creek, a town of about 3,800 tucked away in the southwest corner of Alberta, in the foothills of the Rocky Mountains. During the windy season, between October and the end of February, winds funnelling into this area through the Crowsnest Pass can reach speeds in excess of 150 kph, making it one of Canada's windiest locales. But this town has turned those winds into an asset that just keeps on appreciating.

The wind industry in Pincher Creek grew from the will and determination of the people. Town manager Leo Ludwig related that about twelve years ago , the down-sizing of a local gas plant, coming to the end of its production cycle, created concern about how the plant's slowdown might impact the area's economy. Mr. Ludwig said, "A community meeting of people from the town and surrounding area was organized to see what they could do to offset employment and revenue losses that might arise from what was happening at the gas plant. Out of that meeting, and subsequent ones, came the idea that those strong, steady winds this area gets might be just right for wind power generation. And that got the ball rolling."

And, as they say, the rest is history.

Area's First Wind Site Still Largest In Western Canada

Today, there are 81 wind-generating turbines towering over the area's landscape and ,according to the latest Canadian Wind Energy Association (Can-WEA) production figures, they represent an installed capacity of 33.8 megawatts.

The Cowley Ridge wind far, located along a 2.5 kilometer ridge near Pincher Creek, started in 1993 and was the area's first utility scale installation, comprising 52 @ 375 kW wind turbines with an installed power of 19.5 megawatts. The Cowley Ridge plant was originally installed by San Francisco-based Kenetech and Wind Power Inc. (WPI) of Pincher Creek, but then changed ownership for a short period before being purchased in 1999 by Canadian Hydro Developers Inc. (CHD). The Calgary-based company concentrates on low-impact power generation such as hydroelectric, run-of-river and natural gas-fueled plants. In 1998 it partnered with EPCOR Power Development Corporation in the development of the 12.75 MW Taylor Hydro-electric Plant not far from Pincher Creek, near Lethbridge. Cowley Ridge was CHD's first wind energy property.

John Keating, CEO of Canadian Hydro Developers said, "Until Le Nordais wind farm came on stream last year, Cowley Ridge was Canada's largest. In September of last year we commissioned an additional five 375 kW turbines so, at nearly 21 megawatts, Cowley Ridge is still the largest in Western Canada."

CHD has a 23-year contract with TransAlta Corp. for the major portion of its Cowley Ridge output and a 3-year agreement with Shell Canada for the output from three of its five new turbines. The remainder is offered for sale on the spot market.

Pincher Creek's other wind farm installation is owned by Vision Quest Windelectric (VQW) Inc. of Calgary. The company began its operation in Pincher Creek in 1997 and now has 20 turbines, 16 at Pincher Creek with a 10.4 megawatt capacity, and another 4 at nearby Hill Spring with a 2.46 megawatt capacity. The bulk of the company's production is sold to the Calgary utility Enmax. In May, 2000, Enmax Energy entered into a ten year contract with VQW to provide about 30,000 megawatt-hours per year of wind generated electricity in support of the utilitiy's Greenmax program. The program's subscribers, 2,000 to date, pay an extra $7.50 or $15 monthly premium on their bills for green sources of power being brought into the grid.

VQW executive director, Jason Edworthy, said, "Just recently, we signed two new agreements -- a 10-year contract with Calgary's transit department to deliver 21-million kilowatt hours annually for its "Ride the Wind!" project to run the LRT on wind power, and another 10-year contract with TransAlta for 8-million kilowatt hours annually to power its corporate headquarters in Calgary."

New Turbines Will Be Pacesetter For Canada

Pincher Creek is also now on the verge of reclaiming the honour as Canada's undisputed leader in the production of wind-generated energy. At the end of January this year, the municipal district council gave its blessing for expansion of its two existing wind farms and approval for the construction of two new projects. Vision Quest Windelectric has been approved for the addition of 44 new turbines over the next two years, Canadian Hydro Developers approved for 15, and two new applicants, Wind Power Inc. and Benign Energy Canada Inc. (partnered with B 9 Energy Services of Ireland) have been approved for installation of 56 and 35 machines respectively. The 150 new additions will bring the area's total to 231 turbines, and boost Pincher Creek's capacity to 230 megawatts.

Some of the turbines scheduled for Pincher Creek's expansion program will also be pacesetters for Canada's wind industry. Canadian Hydro Developers is planning to install 1.3-megawatt capacity units while WPI's wind farm will be using 1.8-megawatt machines. Allan Kettles of Calgary-based Benign Energy Canada said his company is not sure whether it will be installing 1.3 or 1.8 megawatt machines. Canada's largest turbines, at present, are the 750-kilowatt turbines at Le Nordais.

The 1.8-megawatt machines to be installed by WPI are gearless. WPI's Dave Green said, "Our turbines are direct drive so that means there are no high speed moving parts. With gear drive machines the rpms may vary anywhere from 600 to 1400 rpm, but our stay in the 10-22 rpm range, no matter what the wind speed. The turbine's rated wind speed for optimum efficiency is 29 miles per hour. It has a cut-in wind speed of 5.6 mph and a cut-out of 78 mph." Mr. Green also commented that the area's winds keep the local turbines generating about 60 to 70% of the time. "There is not too much idle time due to either inadequate or excessive winds," he said.

Incorporated in today's sophisticated turbines is cutting edge technology such as computerized micro processor control of hydraulics, electronic sensors and variable speed drives reacting to changing conditions, pitch control of aerodynamically shaped blades to maximize power recovery from the wind, and state-of-the-art communications relaying the machine's operating data in real time to the local control centre, or distant location, if required. Housing all this complex equipment is the sleek nacelle at the top of the tower, which, depending upon the size of turbine, can weigh in excess of 100 tons. For example, the weight of WPI's 1.8-megawatt nacelle, including hub, blades, generator, associated equipment is 105 tons.

Future Continues To Look Good For Wind power

About five years ago Pincher Creek's economic development council, looking for ways to jump start its fledgling wind power industry, appealed to the provincial government for concessions that would put the wind industry on an equal footing with conventional power generating systems, and also pave the way for the development of a wind turbine manufacturing facility in the area. The bid was unsuccessful on both counts. However, changing energy economics, environmental concerns and deregulation during the ensuing years were more than enough to put Pincher Creek on its way to becoming the leading wind energy producer in Canada, without any special assistance.

And wind power's growth looks even brighter for the future.

The International Energy Agency (the energy forum for industrialized countries founded in 1974 during another turbulent period of world oil crises) projected a 65% growth in energy demand between 1995 and 2020, and a corresponding 70% increase in C02 emissions. With the continuing restraints of an environment-conscious world, and the threat posed to climate by traditional generation sources, it seems certain that in the years ahead, wind power will be playing an increasingly important role in the power generation mix.

So it could be too, that Pincher Creek's manufacturing facility is an idea whose time has come.