Reasons for Developing Wind
NPPD Board has a long-term goal in its Strategic Plan to evaluate all forms of renewable resources feasible in Nebraska and incorporate them in the total mix of NPPD-owned generation and contract purchases with a goal of achieving 5 percent of our energy supply from renewable resources when it can be shown that their performance will meet the needs of our customers and provide sufficient value as compared to their cost.
A 60-MW facility will equate to approximately 1.7 percent of NPPD’s generated power.
NPPD’s business case is based mostly on offsetting winter energy purchases or selling excess energy to the market, not the dependency on the megawatt capacity itself or the need for the wind to blow at certain times; therefore, the intermittent nature of wind energy has little overall impact on the system or the project economics.
Wind generation is within NPPD’s core business.
Wind power takes advantage of a natural energy sources (provides energy without exporting Nebraska dollars to pay for fuel) and offers low-cost energy with a stable price.
The wind project encourages partnering with other utilities and contributes to its feasibility.
Adding wind power to NPPD’s generation mix solidifies NPPD’s position in the renewable energy market.
Wind generation allows NPPD to reduce its wintertime purchases of power.
Wind power has a return-on-investment potential through greater development of the wind resource for others. If NPPD is able to receive financial incentives for the wind power, the farm could be even more economical.
A wind facility can cut down on the importation of fuel, provide additional revenue to landowners and create jobs in rural areas.
Wind generation produces no emissions and produces no wastes requiring disposal.
Environmental attributes of wind generation are well received by customers and political interests.
Economics of Wind Power
The business case for the wind project has calculated a $10.8 million value to NPPD over a 30- year time frame without any renewable energy production incentives or renewable energy credits. It assumes a $19.3 million value to NPPD over 30 years should NPPD receive one fourth of the renewable energy production incentives and renewable energy credits.
The project would have a minimal impact on NPPD’s rate track, due to a portion of the funds already budgeted (.22 percent rate increase), and the estimated costs of the facility. The impact could be positive if the anticipated incentives are realized (green tags, REPI credits and interested utilities).
NPPD is closely monitoring both federal and state legislation regarding renewable incentives and policies.
Potential credits from Renewable Energy Production Incentives (REPI) and possible sale of green tags are not relied upon in the business case, but have been evaluated for the beneficial impact.
NPPD is committed to building renewable resources when and where possible, but we are also engaged in efforts to win approval of Federal incentive programs which would help these kinds of projects.
Environmental Activities
NPPD began investigating the general area of the Ainsworth wind site in 1996 as part of the Springview wind project. NPPD also conducted a night call monitoring study at the Ainsworth site.
In June 2003, the Ainsworth site was reviewed for environmental conditions. The assessment indicated that there are no concerns regarding contamination of the site and no further investigations were recommended.
A study conducted by Western EcoSystems Technology, Inc. of Cheyenne, WY, concluded that the proposed wind plant should not have significant impact on state/federally listed species, migratory birds, or general wildlife.
The contractor for the wind turbines will be using underground wiring and will also install bird flight diverters on guy wires for the meteorological towers.
American Burying Beetles exist on the Ainsworth site, however, NPPD began baiting away for the species began in fall of 2003 prior to construction of the substation and will continue during the construction of the wind energy facility.
