Emerging economies in Asia Pacific reach 41 gigawatts of wind power generation in 2009

The 2009 total is twice bigger than 2008 figures, as growth in Asia-Pacific reached the point where wind installations can be duplicated in a single year.

Emerging economies in Asia-Pacific have reached 41 gigawatts of wind power capacity as of 2009 from only 1.7 GW in 2000 but the sector faces technological problems toward further growth, warned an investment consultancy.

According to a new study from investment analyst Frost & Sullivan, government support and the region’s favorable geographical location were the main contributors to the leap in generation capacity.

The analyst said recognition of the region’s resource potential and energy security concerns are driving activity in the renewable energy sector.

The 2009 total is twice bigger than 2008 figures, as growth in Asia-Pacific reached the point where wind installations can be duplicated in a single year.

Frost & Sullivan also noted that the Asia-Pacific wind industry mitigated the negative effects of the economic downturn thanks to wind energy project funding provided by government-aided institutions and local utilities.

The analyst said tremendous wind potential is being transformed into tangible projects especially due to China’s explosive growth and the increase in Chinese installations, which has uplifted the global wind energy market.

Concerns

However, a number of concerns require attention to avert stagnation. For instance, around 30 percent of power produced by wind farms could not be transmitted to the electricity grid because of inefficiencies resulting from existing infrastructure that cannot handle renewables.

And although Asia-Pacific and Australia possess great offshore potential, the high costs involved in developing offshore wind power – which is two to three times higher compared with onshore wind – hinders development in this area.

A number of technological innovations in deepwater floating and shallow-water turbines have been explored to make harnessing offshore power more feasible.

To address grid problems, India, China, Australia, Vietnam and Thailand are investing heavily in high-voltage direct current systems to support their countries’ increasing power load. These systems support offshore wind by enabling transmission over long distances and connecting offshore wind power through efficient underwater cabling.

“Wind power capital costs are the lowest in Asia-Pacific and it is expected to be reduced by another percent to 30 percent in the next decade,” said Frost & Sullivan, which expects steady wind market growth if cost reduction and grid upgrade efforts are achieved.

Domestic investments currently dominate the Asia-Pacific wind energy market. But the study forecasts foreign investment to increase in 2010 as new regulations encourage markets to open up.

Still, challenges remain in the ambiguity of some renewable energy policies and the competition that wind energy would face from another renewable sector, solar energy.

Solar energy is reportedly nearing large-scale commercialization and its attractiveness could eventually surpass that of wind’s, the analyst said.

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Puerto Rico Electric Power Authority will purchase power from 75-MW wind farm in Santa Isabel

Statistics compiled by the United States Department of Energy reveal that Puerto Rico is heavily surrounded by class 3 winds and is capable of supporting utility-scale development.

The Puerto Rico Electric Power Authority has agreed to purchase the power output of a 75-megawatt wind energy project in Southern Puerto Rico.

The power authority signed a 20-year power purchase and operating agreement with Pattern Energy Group L.P. for the Pattern Santa Isabel Wind Project located in the municipality of Santa Isabel. The agreement will also grant the power authority rights to operate the wind farm for two decades.

The Santa Isabel project is expected to generate enough clean, renewable energy for up to 25,000 Puerto Rican households, making it the largest wind energy project in the United States commonwealth.

The wind farm is scheduled to begin operations during the latter part of 2011.

"The Pattern Santa Isabel Wind Project will be a premier project that will harness the winds on the southern side of Puerto Rico, which are consistent during the peak hours of energy consumption, making them a unique, local resource for the people of Puerto Rico,” said Mike Garland, chief executive of Pattern Energy.

Statistics compiled by the United States Department of Energy reveal that Puerto Rico is heavily surrounded by class 3 winds and is capable of supporting utility-scale development. Wind class at a site is rated from a low of one to a high of seven based on average wind speed and power density.

The Puerto Rican government is trying to develop its rich wind energy resource with projects such as the one in Santa Isabel.

The wind farm is widely regarded as a huge step to help the country steer away from crude oil dependency.

“We must diversify our sources of energy – away from our traditional dependence on crude oil – lower energy costs to consumers and businesses and protect the environment, all at the same time,” said Luis Fortuno, governor of Puerto Rico.

“A viable wind energy project would be a significant piece in our overall energy strategy,” he continued.

Meanwhile, the government also approved a plan by Windmar Renewable Energy Inc. to build 25 wind turbines capable of generating approximately 120,000 kilowatts annually. The wind turbines will be placed on a 45-acrea area of dry forest near the coastal town of Guayanilla.

However, activists and environmentalists opposed the idea, claiming that the project would put several endangered species at risk.

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C.L.P. India’s new 39.6 MW wind project brings total wind generating portfolio to 485.6 MW

C.L.P. India, the largest foreign investor in India’s wind sector, will develop a 39.6-MW wind farm in Harapanahalli, Karnataka.

China Light and Power India reaffirmed its commitment to clean energy with its latest wind project in India, which will bring the company’s total wind generating portfolio to 485.6 megawatts.

C.L.P. India, the largest foreign investor in India’s wind sector, will develop a 39.6-MW wind farm in Harapanahalli, Karnataka. The wind farm will consist of 24 Vestas V82-geared wind turbines, each with a capacity of 1.65 MW.

Construction of the wind farm has commenced and is scheduled to be completed by the first quarter of 2011.

The Harapanahalli wind project is expected to qualify as a Clean Development Mechanism project under the Kyoto Protocol, which will beef up its financial viability.

C.L.P. India already started operations in five wind farms across the country, accounting for 302 MW of its total wind energy portfolio. The remaining 183.6 MW are under various stages of implementation in the states of Gujarat, Karnataka, Tamil Nadu and Maharashtra.

“We have already committed an investment of over 97 billion Indian rupees (.12 billion) in Indian power projects and with our intention to broaden our involvement in the Indian wind sector we expect our portfolio to grow steadily,” Rajiv Mishra, managing director of C.L.P. India, said.

This investment will support the company’s plan of adding 200 MW of wind power installations in India every year.

The Indian wind market is experiencing a steady rise over the last five years, with over 10.9 gigawatts of installed wind capacity recorded in 2009.

The southern state of Tamil Nadu has 4.3 GW installed last year, representing 42 percent of India’s total wind capacity. The states of Maharashtra, Gujarat and Karnataka have 1.9 GW, 1.5 GW and 1.3 GW installed, respectively.

India’s Ministry of New and Renewable Energy intends to add 6,000 MW of wind power by 2012 to meet the government’s goal of 10 percent renewable energy capacity by that same year.

In addition to its wind business sector, C.L.P. India, a wholly-owned subsidiary of Hong Kong-based C.L.P. Holdings Limited (HKG:{yootooltip mode=[cursor] title=[2] width=[556] display=[inline]}

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The company pledged to reduce its carbon intensity by 75 percent in 2050, as well as produce 20 percent of its generating capacity from renewable energy sources, such as wind, hydro and biomass, by 2020.

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Exelon will branch out to wind generation with 0 million acquisition of John Deere Renewables

Demand for wind power is expected to grow rapidly in the coming months.

Exelon Corporation, the United States’ biggest nuclear power generator, will branch out to wind energy generation by acquiring John Deere Renewables, a subsidiary of engineering firm Deere & Company, for 0 million.

The deal will add 735 megawatts of installed wind energy capacity, as well as an additional 230 MW in advance stages of development, to Exelon’s generation portfolio. It covers 36 wind projects in eight states, which will generate enough energy to power up to 220,000 households.

Roughly 75 percent of John Deere’s (NYSE:{yootooltip mode=[cursor] title=[ DE] width=[556] display=[inline]}

{/yootooltip}) operating portfolio is already sold under long-term power purchase agreements. Exelon also has the option to purchase 1,468 megawatts of new wind projects that are in various stages of development, including the 230 MW nearing completion.

Aside from the 0 million payment, the utility will also pay another million once construction begins on projects that are almost completed. Exelon will finance the transaction with the help of one of its subsidiaries, Exelon Generation.

The acquisition will become part of the utility’s Exelon power division, which already includes 1,000 MW of owned and contracted renewable energy, such as hydroelectricity, wind, landfill gas and solar. Before the acquisition, the utility was already the largest wholesale marketer of wind energy east of the Mississippi, with 352 MW of wind capacity from five wind farms in Illinois, Pennsylvania and West Virginia.

Exelon expects to close the acquisition in the fourth quarter of 2010.

John Rowe, chairman of Exelon, believes that entering the wind generation business is a strategic move for the company because demand for wind power is expected to grow rapidly in the coming months.

"Not only does this acquisition add value for Exelon shareholders, providing incremental earnings in 2012 and cash flows in 2013, but it is also one more way to implement a clean energy future," he added.

The planned acquisition is part of a company-wide strategy to reduce Exelon’s greenhouse gas emissions equivalent to its 2001 carbon footprint by 2020.

Exelon (NYSE:{yootooltip mode=[cursor] title=[EXC] width=[556] display=[inline]}

{/yootooltip}), one of the United States’ largest electric utilities, also owns the largest group of nuclear reactors in the country. Utilities have been banking on nuclear as the energy source of the future, given the momentum for carbon reduction in recent years. However, as the renewable energy market grew, the nuclear industry slowed down considerably.

As a matter of fact, a string of nuclear reactors will be shut down in the next coming months. Exelon’s Zion Station nuclear plant will be torn down under a deal with EnergySolutions, while eight other nuclear plants across the country are awaiting demolition, according to the United States Nuclear Regulatory Commission.

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Coillte Teoranta agrees with two power companies to develop wind power project in County Galway

Coillte owns over 445,000 hectares of land, about 7 percent of the land cover of Ireland.

State-sponsored forestry company Coillte Teoranta has agreed with two power companies to develop a wind power project in County Galway that will be one of the biggest of its kind in Ireland.

Coillte will build the wind 105-megawatt wind arm on the Cloosh Valley on its own land near the village of Moycullen with Finavera Renewables and Scottish and Southern Energy, a major British company which owns over 2,300 MW of renewable energy capacity.

Under a codevelopment agreement, Coillte and Scottish and Southern (LSE:{yootooltip mode=[cursor] title=[SSE] width=[556] display=[inline]}

{/yootooltip}) will each hold a 45 percent stake in the project, while Finavera will hold 10 percent.

Finavera (TSXV:{yootooltip mode=[cursor] title=[FVR] width=[556] display=[inline]}

{/yootooltip}) is a development-stage company which builds wind power projects mainly in Canada.

Coillte has secured permission for the first phase of the project, which involves 22 wind turbines to produce 50 MW of electricity, enough to power 30,000 homes.

Project developers say County Galway in western Ireland attract winds that top 7.5 meters to 8 meters per second, way above the minimum wind speeds required to drive a 50-meter-high wind turbine at 6.4 meters to 7 meters per second.

However, the Irish Wind Energy Association said Galway currently only has 72.64 MW of wind power. Donegal owns the largest wind energy capacity with over 264 MW, followed by the counties Cork and Kerry with 253 MW and 224 MW respectively.

“We identified the potential of the Cloosh Valley site as part of our long-term strategy to manage our assets in a sustainable way and to deliver on key national policy objectives,” said David Gunning, chief executive officer of Coillte.

Coillte is a commercial company operating in forestry, land-based businesses, renewable energy and panel products. It owns over 445,000 hectares of land, about 7 percent of the land cover of Ireland.

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U.S. increasingly relies on renewables for electricity generation than on coal and petroleum

Wind increased dramatically in 2009 to 0.70 quadrillion of primary energy, compared with 0.51 quadrillion in 2008.

The United States is increasingly relying on renewable energy resources, particularly wind energy, for electricity generation than on coal and petroleum, although government audits revealed that stimulus funding for renewables went largely unspent.

Analysts at the Department of Energy’s Lawrence Livermore National Laboratory found that coal, petroleum and natural gas use dropped in 2009 – though they remain the largest power sources – while wind, solar, hydro and geothermal power generation went up.

Overall energy use fell from 99.2 quadrillion British thermal units in 2008 to 94.6 qaudrillion British thermal units last year. One British thermal unit is equal to approximately 293 billion kilowatt-hours.

A large part of the decline came from the industrial sector, where energy use plummeted by as much as 2.16 quadrillion. Energy use in transportation, residential, and commercial sectors also dropped by 0.88, 0.22, and 0.09 quadrillion, respectively.

A.J. Simon, an energy systems analyst for the laboratory, attributed much of the decline in energy use to the recession and lesser economic activity. Higher efficiency appliances and vehicles reduced energy use even further.

The growth of renewable energy, which displaced significant amounts of coal, was also a contributing factor.

Wind energy increased dramatically in 2009 to 0.70 quadrillion of primary energy, compared with 0.51 quadrillion in 2008. Most of the power generated is connected to electricity generation, thus decreasing the need for fossil-fueled electricity, Mr. Simon pointed out.

"It’s a result of very good incentives and technological advancements. In 2009, the technology got better and the incentives remained relatively stable,” he added.

Renewable energy now accounts for almost 17 percent of the United States’ annual energy supply, and that figure would likely to grow if current trends and government support continue.

However, recent audit reports from the Energy Department reveal that billions of federal funding allocated for renewable energy and energy efficiency development are still unspent. Gregory Friedman, the department’s inspector general, feared that the funding may not be distributed in time to meet its deadline.

The department received billion in stimulus funds from the 7 billion American Recovery and Reinvestment Act. In an audit report on August 4, Mr. Friedman found that the department already allocated 90 percent of the funding as of July, but is at the risk of losing the remaining .4 billion if it fails to dole it all out before September 30.

Meanwhile, another audit report dated August 11 shows that less than 9 percent of the .2 billion stimulus funding allocated for the energy efficiency and conservation block grant has been spent.

New York only spent .5 million, or less than 2 percent, of its total funding of .8 million for energy efficiency retrofits and recycling programs. Chicago under spent even worse, consuming only ,000, or 0.1 percent, of the .6 million it received from the program.

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Project investors join Idaho governor at groundbreaking of 183-MW Idaho Wind Partners complex

The wind facilities will be scattered across 10,000 acres of farmland in southern Idaho’s Magic Valley. Photo from General Electric Energy Financial Services

Idaho is on its way to becoming one of the United States’ leaders in wind energy as the state starts construction of its largest wind power project – the 183-megawatt Idaho Wind Partners.

Project investors General Electric Energy Financial Services, Atlantic Power Corporation (TSX:{yootooltip mode=[cursor] title=[ATP] width=[556] display=[inline]}

{/yootooltip}), Exergy Development Group and Reunion Power joined Idaho Governor Clement Leroy Otter at the groundbreaking ceremony of the 0 million project.

Located eight miles from the Oregon Trail, the wind complex comprises 11 wind farms equipped with 122 G.E. turbines with a capacity of 1.5 MW each. The wind facilities will be scattered across 10,000 acres of farmland in southern Idaho’s Magic Valley.

The project is expected to generate enough renewable energy to power almost 40,000 average Idaho homes annually, as well as offset approximately 331,000 tons of greenhouse gas emissions each year – equal to removing 57,000 cars from the road.

Idaho Power Company signed 20-year power purchase agreements for each of the 11 wind farms to acquire all the power generated by the facilities.

The Idaho Wind Partners project is expected to create 175 construction jobs and 25 permanent jobs for operations and maintenance. The project is expected to begin operations by the end of the year.

Once completed, the wind complex will be eligible to source funding from the federal Treasury Grant program for renewable energy projects. However, the program is due to expire by the end of 2010.

“While we are delighted to embark on this new renewable energy project in Idaho we are concerned that such projects will become increasingly difficult without imminent passage of federal clean energy legislation,” said Alex Urquhart, president and chief executive of G.E. Energy Financial Services, a subsidiary of General Electric (NYSE:{yootooltip mode=[cursor] title=[GE] width=[556] display=[inline]}

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“Extending that program and other federal incentives would provide the long-term certainty that investors and manufacturers such as G.E. need to ensure continued expansion of renewable energy throughout the country,” he pointed out.

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Gamesa and Iberdrola will start building 102-MW Cerro De Hula wind farm in Honduras

The wind farm will supply about 6 percent of the country’s total power requirement.

A Spanish consortium will start building the 102-megawatt Cerro De Hula wind farm in Honduras after securing a 9 million direct loan from the Export-Import Bank of the United States.

The consortium, made up of Gamesa Corporation (BMAD:{yootooltip mode=[cursor] title=[GAM] width=[556] display=[inline]}

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) and Iberdrola Ingeniería y Construcción, a subsidiary of Iberdrola S.A. (BMAD:{yootooltip mode=[cursor] title=[IBE] width=[556] display=[inline]}

{/yootooltip}), received the contract from Mesoamerica Energy, early this month to build the wind farm. Gamesa controls 76 percent of the venture, while Iberdrola owns the remaining 24 percent.

The 0 million contract not only includes the construction of the wind facility, but also the development of an electricity grid. The consortium will also perform maintenance services on the wind farm for two years from the beginning of operations in early 2012.

In addition to the 9 million loan from the Export-Import Bank, the project will also secure funds from the Central American Bank for Economic Integration.

The Cerro De Hula wind farm will be situated in the territories of Santa Ana and San Buenaventura, 20 kilometers south of Tegucigalpa. The wind farm will use 51 Gamesa G87-2 MW wind turbines, which will be manufactured at the Spanish wind turbine manufacturer’s facilities in Pennsylvania.

"It’s a remarkable story when a Spanish company such as Gamesa invests in high-paying United States jobs in Pennsylvania and is then able to export wind turbines to customers in Central America," said Dirk Matthys, chief executive of Gamesa Wind United States L.L.C., the North American subsidiary of Gamesa.

"Export projects are taking on a greater significance because they help support and sustain employment for our 800 Pennsylvania workers during difficult economic times," he added.

Upon its completion, the wind farm will be the largest wind power facility in Central America and the fourth largest power producer in Honduras, capable of supplying about 6 percent of the country’s total power requirement.

Local utility Empresa Nacional de Energía Eléctrica already secured a power purchase agreement to purchase the energy generated from the facility for 20 years.

Mesoamerica Energy, which develops renewable energy projects in Central America through its local subsidiary, Energía Eólica de Honduras, handed 70 percent controlling interest to emerging markets power company Globeleq Generation Limited in January.

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Vestas secures orders for wind turbines reaching 392 megawatts’ worth of capacity in North America

Vestas said it will supply 139 units of its 1.8-MW wind turbine for the 250-MW Cedar Point wind energy project of RES Americas Inc. Photo by Vestas Wind Systems

Vestas Wind Systems A/S (OMX:{yootooltip mode=[cursor] title=[VWS] width=[556] display=[inline]}

{/yootooltip}
) has secured orders for wind turbines reaching 392 megawatts’ worth of capacity that will be used in two wind farms in the United States and Canada.

Vestas said it will supply 139 units of its 1.8-MW wind turbine for the 250-MW Cedar Point wind energy project of Broomfield, Colorado-based RES Americas Inc. The wind farm is located in the counties of Lincoln, Elbert and Arapahoe in Colorado.

Vestas also received an order for 79 units of similar turbines from Capital Power Corporation, which is building the 142-MW Quality wind project located about 10 kilometers northeast of Tumbler Ridge, British Columbia, Canada. The project is anticipated to go online early in 2013.

RES Americas will connect Cedar Point to the local grid using a 42-mile transmission line. The company has signed a deal with the Public Service Company of Colorado to sell the wind farm’s electricity at a fixed price.

RES, which develops, builds, owns and manages projects across the United States, Canada, Mexico and the Caribbean, said the wind project will generate approximately 875,000 megawatt-hours of electricity while offsetting about 710,000 tons of carbon dioxide emissions every year. The project is slated for commercial operations in 2011.

“Cedar Point Wind will benefit Colorado in two ways – by supplying clean energy to Colorado homes under a 20-year power purchase agreement with the Public Service Company of Colorado and by providing employment in the form of up to 200 new construction jobs with more jobs to follow once construction is complete,” claims Martha Wyrsch, president of Vestas Americas.

In Canada, Capital Power (TSX:{yootooltip mode=[cursor] title=[CPX] width=[556] display=[inline]}

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), an independent power producer based in Edmonton, Alberta, has stipulated in its deal with Vestas an option for additional wind turbines worth 375 MW for two other wind projects in Ontario.

Its 105-MW Port Dover and Nanticoke wind project will use 58 wind turbines while its 270-MW Kingsbridge II project will comprise 150 turbines. Capital Power said Vestas could deliver 287 turbines to it under all the agreements.

“These turbine agreements with Vestas represent a significant milestone as the majority of the capital costs for the projects are now fixed, providing cost certainty and capitalizing on economies of scale,” said Brian Vaasjo, president and chief executive officer of Capital Power.

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AGL Energy and Meridian Energy finalize contracts to develop 420-MW Macarthur wind farm in Victoria, Australia

Upon its completion in the first half of 2013, the Macarthur wind farm will provide clean, renewable power to over 220,000 homes.

AGL Energy Limited and New Zealand-based Meridian Energy have finalized contracts to develop a 420-megawatt wind power facility in the western district of Victoria, Australia, which would become the largest wind farm in the southern hemisphere.

The 1 billion Australian dollar (9.72 million) Macarthur wind project will rise in the Shire of Moyne near the city of Hamilton, 260 kilometers west of Melbourne. The project will create approximately 400 direct jobs and 800 indirect jobs during the construction phase, as well as 30 full-time jobs once operation starts.

The wind farm will feature 140 new V112-3.0 MW wind turbines from Vestas Wind Systems A/S. Michael Fraser, chief executive and managing director of AGL Energy, said that the wind farm initially required 174 wind turbines to generate the same amount of capacity, but Vestas’ new 3-MW wind turbines allowed them to reduce the number to 140 units without compromising the generating capacity.

Vestas (OMX:{yootooltip mode=[cursor] title=[VWSA] width=[556] display=[inline]}

{/yootooltip}) also committed to a 10-year service agreement for the project. The first batch of wind turbines will be delivered by the third quarter of 2011.

Upon its completion in the first half of 2013, the Macarthur wind farm will provide clean, renewable power to over 220,000 Victorian homes, as well as offset more than 1.7 million metric tons of greenhouse gases annually – equal to taking over 420,000 cars off the road every year.

The wind farm will also help Australia achieve its new renewable energy objectives. In August 2009, the country expanded its renewable energy target to 20 percent by 2020 – four times the percentage that the previous standard required in 2001.

“The changes to the renewable energy target scheme provided the investment certainty we needed to make Macarthur viable,” said Mr. Fraser.

“We expect wind farms – and Macarthur in particular – to make a substantial contribution to Australian retailers meeting commitments under the Renewable Energy Target,” added Tim Lusk, chief executive of Meridian Energy.

AGL Energy and Meridian Energy agreed to equally divide the capital construction cost of the wind project. AGL Energy will source funding internally, while Meridian will cover its share with a combination of equity and project finance drawn from its joint venture partners.

Both companies will also establish the Macarthur wind farm community fund to provide grants for communities around the project site.

Direct construction expenditure in the region is expected to hit 245 million Australian dollars between 2010 and 2013, with regional construction projected to contribute about 1.5 percent to the gross regional product in 2013.

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