The United States is home to massive electricity demand and one of the best wind resources in the world. If harvested, US wind has the potential to produce 37 trillion kilowatt-hours of electricity annually – nearly ten times our existing power needs1.
Texas is currently the national leader in wind installations as well as a manufacturing hub for the wind energy industry. About 10,135 Megawatts of power are produced via wind in Texas which accounted for 6.4% of the state’s overall power in 2010.Texasis also home to the top five of ten largest wind farms. The runner up, Iowa, powers 15% of their electricity customers by means of wind power.
Wind Powers Economic Development
Developing, constructing and operating a wind turbine or farm require cooperating efforts of many individuals. Jobs created range from operations and maintenance to construction, manufacturing and many support sectors.
Wind is an ample and free resource which can stimulate the local economy by harvesting and selling power to regional users. Coal, natural gas or oil power plants often use fuel from different countries or regions to generate electricity. Reducing reliance on foreign sources of fuel will in turn strengthen national energy security.
Small Wind Systems
Small wind turbines provide clean power to individual homes, farms and small businesses. These turbines are scaled down from the utility turbines and can be suitable for use on properties as small as one acre. Prices to install a wind turbine vary depending on several factors. The federal government and individual states have rebate and tax programs to encourage land owners to invest in wind.
More than 98% of wind projects are located on private land leased from the landowner. Typically, a landowner signs a contract granting the developer the right to use his/her land and the wind above it for wind development, receiving compensation from the developer in the form of lease payments2.
For example, Blackwell Independent School District in West Texas brokered a deal with a wind farm company in 2005. Their on campus wind turbine produces nearly 40% of the school’s electricity. By 2019, the revenue Blackwell ISD will have made from the deal is estimated to be $35 million. Read more about wind farm money and Texas schools at: http://www.texastribune.org/library/multimedia/wind-farm-money-spending-schools/
Industrial Applications – Wind Farms
Wind Farms – both on and offshore – are gaining popularity across the world. Wind farms are used to distribute electricity through the grid to several entities rather than an individual home or business. MidAmerican, Green Mountain and Constellation NewEnergy are among several retailers in North America dedicated to purchasing a great amount of their renewable energy from wind farms. By doing so, they allow customers the option to purchase a percentage of renewable power.
Wind farms are usually built in areas with large regional power markets that facilitate smooth and cost-effective integration of wind into the overall electric system3. Wind turbines are also commonly found in rural areas as to not disturb the landscape and help mitigate noise.
Due to aesthetics and noise issues, off-shore wind farms are becoming more common. Europe is home to nearly 50 off-shore wind installations. While the United States does not currently have an off-shore wind farm, there are several projects in the developmental phase (i.e. Cape Wind).
Twenty Percent by 2030
Wind energy is abundant and clean unlike the fossil fuels used in many power plants today. Wind turbines do not release pollutants into the air; they do not require water for cooling; and they do not produce any harmful waste. These are a few of the many reasons why wind power is rapidly growing in the United States and why the Department of Energy is estimating that 20% of the nation’s electricity portfolio can be made up of wind power by 2030.
If your company is interested in a renewable energy source such as wind power, please contact JD Dodson at 469.855.5161 or at JD@rapidpower.net.
1 NREL, Wind Resource Potential, 2010
2 American Wind Energy Association – Economic Growth for Rural America
3 American Wind Energy Association – Offshore Wind and Wildlife in the US
GDP UPDATE
Private businesses increased their inventories $56 billion–after a $2 billion decrease in the third quarter—and consumers increased spending at the end of 2011. This has facilitated the nation’s gross domestic product (GDP) to grow at a 2.8% rate in the fourth quarter.
An increase of 3.2% was expected, making economists weary of a still-weak economy. The bulk of growth came from businesses building up their stock of goods. If consumers do not buy those goods, it can ultimately be a struggle on GDP increases.
GDP grew a total of 1.7% overall in 2011, only about half of the 3% growth seen in 2010. The Federal Reserve has lowered its outlook for the economy in 2012 and will keep federal fund rates near zero until late 2014 as the economy is still too weak to handle higher interest rates.
Oil and Gas Update
Average household heating oil expenditures are expected to increase by four percent this winter heating season (October 1 – March 31) compared to last winter. On the other hand, natural gas and propane expenditures are projected to decline by seven and one percent. Electricity expenditures are two percent lower than last winter’s levels.
EIA is expecting the price of West Texas Intermediate (WTI) crude oil to average about $100 per barrel in 2012. This is about $5 per barrel higher than the average price last year. The EIA expects WTI to continue rising in 2013, reaching $106 per barrel by the fourth quarter. This forecast assumes U.S. GDP grows by 1.8% in 2012 and 2.5% in 2013.
Natural gas inventories continue to set record highs. Working inventory in December 2011 ended at an estimated 3.5 trillion cubic feet (Tcf), 12% above the same time last year. The forecast for 2012 Henry Hub natural gas spot prices is $3.53/MMBtu – a decline of around fifty cents from the 2011 average spot price.
CREST EXPO
Save the date for the CREST EXPO, March 30th from 10 AM to 5 PM at the Dallas Convention Center. Visit Rapid Power Management at Booth 502.
