Is Wind Power Affordable?

 

Traveling north on old logging roads below Blewett Pass, as you start to emerge from the forest above Ellensburg, with the sun setting in the west, look to the east.  You’ll see a far away ridge covered with shining, white towers.  Camelot? Minas Tirith?  No, it’s Kittitas County's Wild Horse Wind Facility, now owned by Puget Sound Energy .  Wild Horse’s 149 wind turbines have blades whose diameters are larger than a commercial jet’s wingspan, and they send clean renewable energy to more than 69,000 homes.  Energy not dependent on dams, gas or coal mining, nuclear reactors or offshore oil rigs. 

So are wind farms "the" answer for renewable and economically feasible electricity?

Maybe an answer, but not "the" answer.  According to the DOE, in 2009 all of the US renewable power sources (wind, solar, etc.) generated only 3-4% of all electrical power, while coal generated 48%.  Many advocate that future development should continue to provide incentives to generate more renewable power that is both affordable and responsible (does not cause costly long term damage to our lands and waterways, like Chernoble or the recent Gulf of Mexico disaster, etc.).

Like the Federal government and other states, Washington State and its voters have provided great incentives for the responsible development of wind power, like in 2006 with I-937.  Although I-937 was under siege even before the recession, thanks to some far sighted citizens it has been protected and remains largely intact.  Accordingly, by 2020 most WA utilities companies will have to produce 15% of all the electricity they generate from renewable sources.  Our state also provides other incentives such as sales tax exemptions and grants, loans and rebates, for the production of wind power.

How does Washington wind power generation compare to other states?  Actually we should be proud, because even though Washington’s geography is not ideal for wind power, and there are far bigger states like Texas and California that also have vastly greater wind potential, we still rank number 5!

So what do the economics of green energy look like since I-937 in 2006?  As construction costs rose in 2006-2008 it dramatically increased the cost of wind power.  Wind power requires negligible fuel costs but very high capital costs.  As construction labor and material cost (like steel) spiked, the cost rose so high some work slowed or was shelved.  However, as construction costs fell in the recession, wind projects became much more viable.  In May of this year, PSE ordered another 149 wind turbines for its Lower Snake River Wind Project, with an option for 110 more.

According to GE Energy’s recent Western Wind and Solar Integration Study (“WSIS”) the cost to consumers for wind generated electricity is becoming more affordable as an increasing number of wind power plants come on line.  Improvements in technology are lowering costs too.  Note that the WSIS cost analysis does not factor in the external costs that clean wind power reduces or prevents in the form of environmental contamination related clean up, associated health care claims, destruction of habitat and wildlife, the cost of military action to protect energy supplies, not to mention the potentially huge costs of global warming due to emissions from structures powered by fossil fuels.

While wind power is not yet less expensive than other energy sources, when you factor in the savings due to the external costs that wind power largely prevents, it seems that greater production of wind farms is a must for responsible development.

Greening the Big Apple... Or Not

Two outer limits of the sustainability tides are playing out in New York City. One of the Big Apple’s prized icons, the Empire State Building, is in the middle of an innovative, cutting edge building retrofit that is designed to reduce energy consumption by 38% and to generate $4.4 million annual energy cost savings. Over by the Hudson River, unit owners of a $4.2 million condo unit are suing the developers, architects, engineers, and city building authority because their unit is not green enough. The two limits offer guidance for all developers involved in sustainable building.

Photo via Flickr.com (bobcatnorth)Anthony Malkin, owner of the Empire State Building (ESB), has made a commitment not only to retrofit one of America’s best known buildings into one of the most energy efficient buildings in the Big Apple, but also to do it in a transparent manner that will provide a beacon to other property owners to follow with their own green retrofit projects. Beginning in early 2008, Malkin partnered with 5 entities to develop a proposal for the retrofit: The Clinton Climate Initiative, Jones Lang LaSalle, Rocky Mountain Institute, and Johnson Controls. The team’s charter describes their mission: 

The retrofit of the ESB into a Class A pre-war trophy building will transform the global real estate industry by transparently demonstrating how to create a competitive advantage for building owners and tenants through profitably greening existing buildings.

After assembling the data and design to do this, the retrofit project is scheduled to be completed by 2013, with 55% of the energy savings available by December 31, 2010.  See more of the details in a project white paper and hear Malkin talk about the unique aspects of the project.

Key to the project is a unique contract between ESB and Johnson Controls, called an energy services performance contract, whereby Johnson Controls guarantees certain annual energy savings, or pays the difference, for a period of 15 years. Contracts that specify the responsibilities—and consequences of non compliance---are essential to a well planned sustainable project.

Meanwhile, owners of a luxury condominium at The Riverhouse One Rockefeller Plaza are suing the developers (and its architects and engineers) for $1.5 million in damages because they say the building is not green enough. Among other claims, the owners allege their unit’s air-infiltration system and heating are not up to the green standards they were promised, having conducted an energy audit that showed cold air infiltration through doors, windows, and exterior walls that was more than 49% higher than LEED standards. See more details in a recent Wall Street Journal article.

The Riverhouse lawsuit is just the beginning as owners and tenants, promised sustainable buildings and commensurate energy savings, file suit when the actual building does not perform as promised. Courts will eventually have to determine what are green building best practices and assign liability among the potential defendants. Once again, development contracts that specify green building responsibilties and consequences of non-performance are essential to successful sustainable construction or conversion work.

Gregoire Asks SBCC To Delay Energy Code

Washington Governor Christine Gregoire just wrote a letter to John Cochran, the Chair of the Washington State Building Code Council asking him to defer the new energy code until April 2011.  Gregoire's concern is of the probable negative impact the code would have on the recovery of the economy and the construction industry.

The Governor's request is timely given the lawsuit filed recently by the BIAW (that we posted earlier).

We also posted two questions in April and May about green codes: "Can homebuying consumers bear the cost of new green and energy codes during recession?" and "Should green building codes be mandatory?"  Both questions appear to have been answered by the Governor.  In the long term, Green can be affordable, but in the short term, during hard economic times it may have to be deferred or remain voluntary.  

It seems that between the executive, legislative and judicial branches of our state government that until the recession is over, there should be no further mandates requiring taxpaying citizens and businesses to pay more for greener and more energy efficient homes.  However, once recovery happens and the construction industry exhausts existing supplies of non-green materials and components, that the cost benefit of green energy efficient materials and components may be mandated and embraced by all Washington residents for the obvious future long term benefits.