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Cape Cod Commission Cape Light Compact

produced in collaboration with


Boreal Renewable Energy Development/Serchuk Associates

Assessment of Distributed
Generation Technology

Report funded by a grant from the Massachusetts Technology Collaborative


under the Community Planning and Development Solicitation (#2003-CP-01)

June, 2004
Acknowledgments
The Cape Cod Commission and Cape Light Compact would like to thank Boreal Renewable
Energy Development and Serchuk Associates for the research and analysis conducted for this
report.

Sincere thanks are extended to those individuals who volunteered to peer review early drafts
of this report, and provide feedback and comment. These individuals included:

Nils Bolgen, Massachusetts Technology Collaborative


Dwayne Breger, Massachusetts Division of Energy Resources
Kristen Burke, Massachusetts Technology Collaborative
Fred Fenlon, Cape Light Compact
Peter Gish, UPC Wind Management, LLC
Joe Hackler, Woods Hole Research Center
Hans Keijser, Town of Barnstable
John Moskal, Environmental Protection Agency
Charlie Salamone, NSTAR
Eric Simons, Disgen Systems
Bo Thisted, General Electric
Bill Veno, Martha’s Vineyard Commission
Tom Wineman, Energy Consultant
Sally Wright, University of Massachusetts, Amherst
Barry Worth, Cape Light Compact
Table of Contents
SECTION 1: EXECUTIVE SUMMARY 1
Research and Analysis 1
Environmental Permitting and Siting Issues 2
Analysis of Interaction of Economic and Zoning Issues 2
Assessment of Microturbines, Fuel Cells and Photovoltaic Systems 3

SECTION 2: INTRODUCTION 5
Methodology 5
Units of Measurement 6

SECTION 3: WIND SYSTEM BASICS 7


Available Energy 7
Basic Wind Turbine Systems 7
Wind Resources 8
Extractable Wind Energy, Power Curves and Capacity Factors 9
Certification 10

SECTION 4: ECONOMICS 11
Introduction 11
Avoiding Utility Bill Charges 11
Wholesale Market Energy Sales 12
Renewable Energy Certificates 13
Dampen Price Volatility 13
Conclusions 14

SECTION 5: ENVIRONMENTAL/SITING ISSUES 15


Background 15
Environmental Permitting and Siting Issues 15

SECTION 6: WIND TECHNICAL SURVEY AND ANALYSIS 25


Introduction 25
Purpose and Structure of Survey 26
Quality and Rate of Survey Response 26
Analysis of Survey Results 27
Analysis of Customer Class and Zoning Scenarios 30
Summary of Findings 32
Conclusion 33

SECTION 7: NON-WIND ASSESSMENT: MICROTURBINES, FUEL CELLS 35


AND PHOTOVOLTAIC SYSTEMS
Introduction 35
Microturbines 35
Fuel Cells 37
Photovoltaic Systems 38

(continued on page ii)

i
Table of Contents (continued)

SECTION 8: RECOMMENDATIONS FOR A WIND POWER RELATED 41


MODEL BYLAW

APPENDICES 43

Appendix A: Review of Wind Energy and Turbine Design


Appendix B: FAA Supplemental Obstruction Analysis Information
Appendix C: Survey of Wind Turbine Manufacturers
Appendix D: Tables Used for Survey Analysis in Section 6
Appendix E: Zoning Analysis
Appendix F: References/Bibliography

ii
Section 1
Executive Summary
The purpose of this report is to provide a review of sizes have increased tower heights to over 400 feet
the current technology available for land-based, with blade diameters in excess of 300 feet. This growth
distributed generation (DG) facilities with a focus on in wind turbine dimensions has resulted in enhanced
wind energy technologies.1 This technology review is economic performance, but has also prompted
part of a study funded under a Community Planning additional siting and permitting review considerations.
and Development Grant from the Massachusetts This report aims to provide up-to-date information on
Technology Collaborative to the Cape Cod the scale of distributed generation technologies to
Commission and Cape Light Compact. The scope of inform the development of a model bylaw for use in
the grant also includes the production of a Suitability the region.
Map and Model Bylaw for distributed, wind generation
facilities on Cape Cod. This Technology Assessment BRED conducted interviews with U.S. and European
aims to provide current information on wind turbine planning officials in an attempt to learn from other
technology, but also includes a section on other non- regional planning experiences concerning wind turbine
wind technologies, both for context and to provide development. In the U.S., there is generally a lack of
information to the County’s constituents on other extensive regional planning activities for wind turbine
distributed generation options. development and therefore interviews were conducted
with European planning officials to gather some
Boreal Renewable Energy Development (BRED) and context for the report. This limited survey revealed
Serchuk Associates were hired to perform a thorough that in certain parts of Europe, as the size of the
technology review of wind and non-wind energy technology has grown, greater regional planning
renewable distributed generation technology, and the measures have been adopted. This European
results of this detailed analysis form the basis of this experience highlights the need for the Cape Cod
report. Final editing and presentation of the report have Commission and Cape Light Compact to develop a
been completed by the Cape Cod Commission and model bylaw that accommodates this new technology,
Cape Light Compact in consultation with the while protecting the resources and values of Cape Cod.
Massachusetts Technology Collaborative.
The report also aims to provide extensive analysis of
anticipated system costs and availability, wind
■ Research and Analysis resources, customer electricity consumption
characteristics and avoidable electric rates over the
The technology review conducted by BRED included life of the turbine system. This information will
a review of wind turbine technology, analysis of provide insights into the benefits of utilizing this type
turbine economics, interviews with U.S. and European of technology and provides the basis for many of the
wind turbine planning officials and a review of recommendations on DG wind systems presented in
environmental permitting and siting criteria. With the report.
recent wind turbine technology advances, wind turbine

1
For purposes of this report, distributed generation (DG) and wind energy generation are combined and frequently referred to as DG Wind
throughout. The pure definition of DG, however, is the generation of electricity by scalable generating facilities that are located at or near
the point of end-use consumption. These facilities can be located on either the customer side of the meter or the utility side of the meter and
may be owned by the individual customer, the utility or a third party generator. They are usually connected to the power grid, but may be
disconnected from the grid as stand-alone systems.

June, 2004 1
1 Executive Summary

■ Environmental Permitting • Modern wind turbines are designed to generate


and Siting Issues less noise than earlier models. The report notes
that most turbines will be able to comply with
The report provides a brief discussion of possible state and local noise regulations and that
permitting requirements for wind generation engineering studies could be required to verify
development, and the potential environmental review compliance with these standards.
that could be required under the state’s environmental
review process. In addition, the report identifies a • Avian impacts remain a concern for wind
number of potential environmental/siting issues that turbine development, although smaller
could be addressed as part of a development bylaw. facilities located away from fly-ways and
The key issues are briefly summarized below: significant bird habitat may have a reduced
impact. The report recommends initial site
• The research conducted for this report found evaluation to identify the potential risk.
that turbine blade failure (and its associated
public safety concerns) is not considered to be • Visual impacts are identified as the primary
a significant issue with modern, commercially concern in planning for DG wind development
certified wind turbines. on the Cape. The report recommends that visual
assessment and simulations be completed.
• The report also finds that ice throw (i.e. ice on
the wind turbine blades falling onto the ground)
is mostly a consideration on ridge top locations ■ Analysis of Interaction of
and less likely to be an issue on Cape Cod and Economic and Zoning Issues
the Islands. Ice falling from wind turbine
blades is generally not expected to be of the The report identifies the many factors that affect the
mass or characteristics that would pose an economic payback of DG wind development (see
unacceptable risk to humans or property and Figure 1).
according to recent studies, there are no
reported injuries from ice thrown from wind The factors that affect DG wind economics are wind
turbines worldwide. resources, size of customer energy consumption and
size of wind turbine system. A summary of their
• Shadowing and flickering from wind turbines interactions include:
can occur, potentially affecting sensitive
neighbors depending on their proximity to the • The output of a turbine is a function of the area
turbine and tower location, and on the time of swept by its rotor blades. A small increase in
day and season. This effect can be predicted rotor diameter means a big increase in expected
through careful analysis and this type of impact production. This is one reason why there are
may be avoided by careful turbine placement. great economies of scale for the increased size
of wind turbine systems, as generally the larger
• Federal Aviation Administration (FAA) air the wind turbine (in kW), the more cost-
navigation standards will likely require safety effective the system will be.
lighting on top of turbines over 200 feet, and
in some instances on towers less than 200 feet. • Generally, the higher the elevation, the faster
The report concludes that most DG wind the average wind speed. Because the theoretical
facilities on the Cape will exceed this height. output of a wind turbine is the cube of the wind
speed, wind speed is the most important factor
• The report highlights a number of potential in determining a turbine’s expected electricity
siting and regulatory constraints associated production.
with locating DG wind facilities in or adjacent
to wetlands or rare species habitat on the
Cape. The report recommends that these areas
generally be avoided.

2 Assessment of Distributed Generation Technology


1 Executive Summary

Figure 1
Schematic of Factors Affecting Economic Payback of a DG Wind Installation

Customer Characteristics
Consumption Level (kWh/yr)
Consumption Patterns
Rate Class

Wind System Configuration


Turbine Configuration ➤
Power Curve
Costs
Tower Configuration
Height
System Specific
Class Economic Rate of
Wind Resources
➤ Return/Investment


(a function of tower
Payback Period


Site Characteristics height & site wind
Wind Resources resources)
Lot Size
Environmental Attributes ➤

Permitting
Abutters

Market Characteristics
Utility Charges
Energy/REC Prices
Interest Rates/Tax Policy

• Medium (>30 kW) and large wind systems are • A customer gets more revenue from offsetting
only available in a finite number of turbine / higher utility rates than selling (excess)
tower combinations. Generally, larger turbines generation output to the wholesale market.
will have larger rotor blades and thus will Thus appropriately sizing the turbine with the
require higher towers. This correlation is customer’s load in order that most of the energy
influenced both by a need for the rotor blades produced by the turbine is consumed on-site is
to have ground clearance, and the desire to reach important to get a better economic payback.
the faster winds that will be caught by the
system at higher elevation.
■ Assessment of Microturbines,
• For any given turbine system, it is unclear Fuel Cells and Photovoltaic
whether the costs of a higher tower are offset Systems
by the benefits of increased annual energy
production as the result of higher wind speeds This part of the analysis provides technical
at greater elevations. Manufacturers only specifications for twenty-two distributed energy
engineer and sell a handful of tower sizes (2 to products in three categories: microturbines, fuel cells
6, generally) with each turbine. Thus placing a and photovoltaic systems. This information is
very large turbine on a very short tower (with provided for context and comparison purposes and to
enough ground clearance) is not possible in provide an insight into the current state of other DG
practice; as such configurations are not sold in technologies. The report finds that microturbine, fuel
the market today. cell and PV systems in some ways present milder
challenges than wind turbines for planners, policy
• Zoning height restrictions could have a makers and the communities seeking to accommodate
significant effect upon DG wind development them. However, wind technology is in general more
on Cape Cod, given the scale of modern wind market-ready and more economic than most other
turbines and limited models available. distributed energy technologies. The report notes that

June, 2004 3
1 Executive Summary

large amounts of microturbine, fuel cell or PV capacity than wind in the near future.2 In most or all cases,
are not expected on Cape Cod and Martha’s Vineyard these will be pilot and demonstration projects driven
in the near future. largely by grants and other subsidies. Indeed, in the
case of photovoltaic systems, some development is
However, the report notes that it is conceivable that underway already, and at least one 200-kW fuel cell
jurisdictional entities may seek to develop smaller has been installed.
distributed energy projects using technologies other

2
A recent study found that Cape Cod customers would have cost-effective opportunities to deploy 105 MW of advanced fuel cells, 32 MW
of microturbines and 1 MW of photovoltaic technology by 2015, and that Martha’s Vineyard customers could deploy 0.1 MW of advanced
fuel cells, 2.2 MW of microturbines and 0.2 MW of photovoltaic systems. Ridley & Associates for the Cape Light Compact, Regional
Options Study (undated review copy), p. 7.

4 Assessment of Distributed Generation Technology


Section 2
Introduction

The primary purpose of this technology review is to ■ Methodology


analyze the tradeoffs and potential impacts of modern
distributed generation (DG) development, particularly Given the complexity of the issues at hand and the
wind turbine development, on the unique natural and report’s intended function to provide information for
cultural landscapes of Cape Cod. This analysis is drafting a model bylaw, this document provides
intended to inform the creation of a model bylaw that significant detail and technical analysis. The report is
can be used by municipalities to plan for this mainly directed at non-technical readers, and the more
technology within their communities. The focus of complex technical analysis is provided in a series of
the evaluation is the interaction between the scale, appendices.
economic viability, and environmental benefits and
detriments of wind energy conversion systems (wind The goal of this analysis was to provide appropriate
turbine systems). In addition, an overview of other background to understand the issues related to wind
distributed generation systems is provided for context power development, rather than provide an exhaustive
and comparison. review of the technology. This analysis weaves
together publicly available information on wind
To perform this study, Boreal Renewable Energy energy, planning and zoning criteria with information
Development (BRED) was hired to complete a survey garnered from interviews with U.S. and European
of wind system vendors and planning and regulatory experts on wind issues, and a technical survey of all
officials, review siting and permitting criteria, and manufacturers currently offering wind systems in the
assemble, synthesize, and analyze a database of wind U.S. This has been accomplished by BRED through
system technical and cost information. The wind the design of a technical survey that was distributed
assessment includes information and analysis on to wind turbine manufacturers or their representatives.
turbines ranging from small residential systems (1 Using this data and a proprietary pro forma spreadsheet
kilowatt (kW)) to utility scale systems (1 megawatt tool developed by BRED, analysis was performed on
(MW)). Serchuk Associates were retained by BRED the economic feasibility of wind turbines for a wide
to develop a non-wind assessment that relies mostly variety of customer types, turbine systems, and height
on publicly available data and market expertise. The scenarios.
non-wind assessment includes information about fuel
cells, microturbines, and photovoltaics. For the Section 3 “Wind Basics”, provides a review of wind
purposes of this report, distributed generation (DG) is energy and wind energy systems, as well as
defined loosely, but generally means a system installed information regarding turbine certification.
to offset all or part of the utility consumption by an
on-grid consumer. Neither off-grid applications nor Section 4 provides a broad overview of the economics
large generating plants (e.g., wind farms) were a focus associated with DG wind applications.
of this report, however, some information about
smaller applications is provided for context.

June, 2004 5
2 Introduction

Section 5 provides details on potential environmental Section 8 provides preliminary recommendations and
impacts and siting considerations for wind systems, findings that are relevant to overall planning efforts
and applicable regulations. Perspective of other to develop a model bylaw.
regional planning experiences is also provided from
interviews with US and European wind experts. The remaining sections are appendices that provide
further background, and in many cases provide context
Section 6 contains a quantitative analysis on the and support for declarations made in the main body
tradeoffs and economics of wind turbine systems. In of this document.
this section the results from the technical survey are
described, and an analysis of the various turbine-tower
configurations is provided. ■ Units of Measurement
Section 7 includes the assessment of non-wind DG European manufacturers dominate the wind industry,
technologies that were included in the scope of work, therefore the industry convention is to use the metric
namely microturbines, fuel cells and photovoltaic system of measurement (e.g., meters) rather than the
systems. The analysis provides technical specifications English system (e.g., feet). This report follows the
for twenty-two illustrative non-wind distributed energy industry convention and uses the metric system, but
products. The intent is not to provide encyclopedic for reference purposes, Table 1 provides a simple
information on these systems in this report, but, rather, conversion.
to provide a context and comparison between other
types of DG technologies.

Table 1
Metric to English Conversion of Distance Measurements

Unit Equivalent
Feet Meter Miles
Meter 3.281 1 6.214 x 10-4
Feet 1 0.3048 1.894 x 10-4
Miles 5280 1609 1

6 Assessment of Distributed Generation Technology


Section 3
Wind System Basics

This section provides an overview of wind turbines Additional technical information on wind turbines can
by providing information on wind resources, available be found in Appendix A.
energy, the general components of turbine systems and
some of the economic considerations associated with
developing wind facilities. ■ Basic Wind Turbine Systems
Wind turbine design varies substantially, but almost
all modern, commercially available electric wind
■ Available Energy turbine systems are of a three-bladed, upwind design
A good wind resource contains enough kinetic energy with a horizontal axis, such as the Vestas V47 turbine
with which modern wind turbines can economically used in Hull, MA and depicted in Figure 2. In general,
produce electric energy. The amount of kinetic energy the major components of a wind turbine system include
in the wind is a function of three factors: the rotor blades, the nacelle (which sits on top of the
tower and includes the generator, gear box, controller,
• The area through which the wind is blowing. shown in Figure 3), the tower, the tower foundation,
The larger the area, the more energy is available ancillary components such as transformer / inverter,
and thus the greater theoretical power that is and fencing.
potentially available in the wind. This
theoretical power is a function of the area swept
by the rotors, or the square of the rotor radius. Figure 2
• The density of the wind. Air at sea level is denser Photograph of Vestas V47 660 kW Wind Turbine.
[higher pressure] than wind at higher altitudes, Hull, Massachusetts4
and cold air is denser than warm air; and,
• The velocity of the wind. The faster the wind
blows the more energy in the wind.

Of these factors, the velocity of the wind is the most


important variable to consider when assessing wind
resources. This is because the kinetic energy in the
wind is a cubic function of the velocity of the wind,
and thus small increases in velocity result in larger
increases in the energy potential in the wind. On Cape
Cod, changes in elevation will probably have very little
impact on the density of the potential energy contained
in wind as the region is uniformly close to sea level.3

3
Further anemometry studies (some currently ongoing) will be required to fully ascertain the change in wind resources with elevation,
also known as vertical wind shear.
4
Photographed By Robert Shatten 2/10/04

June, 2004 7
3 Wind System Basics

Figure 3
Cut Away of Typical Modern Wind Turbine5

Towers come in two basic types: lattice (i.e., metal Because of economic considerations, the average
tower with a series of cross braces, often used for cell turbine system size has been growing in order to more
towers) and tubular or monopole design (as seen in efficiently extract energy from the wind. Thus the
Figure 2). The smallest systems have towers that use larger the system available on the market today, the
guy wires that increase the footprint of a tower. Large more likely it will incorporate more recent
towers generally have a small foot print and no guy technological innovations. This is particularly relevant
wires. The size of the buried foundation will vary for noise generation (as the newest turbines generally
depending on soil conditions and other geotechnical do not create much noise) and blade design. Appendix
site constraints. Sandy soils found on Cape Cod may A describes some of the basic principles of rotor system
require bigger or deeper foundations to stabilize the design.
tower and turbine.

Manufactures usually offer a small number of towers ■ Wind Resources


(generally 2 to 6) that work with each turbine and vary
in height. Nonetheless, a good rule of thumb is that Good wind resources are the exception, not the norm,
the tower height approximates the diameter of the rotor as illustrated by the following statement.
blades. As noted above, the theoretical energy that
can be extracted from the wind is a function of the Good wind areas, which cover 6% of the
square of the radius of the turbine blade. Therefore contiguous U.S. land area, have the potential
bigger wind generating systems take advantage of this to supply more than one and a half times the
fact by having longer blades, and are subsequently current electricit consumption of the United
placed on higher towers. In-depth analysis of this issue States.6
is addressed in Section 6.

5
http://www.eere.energy.gov/windandhydro/wind_how.html#types
6
http://www.eere.energy.gov/windandhydro/wind_potential.html

8 Assessment of Distributed Generation Technology


3 Wind System Basics

Any factors that affect wind speed (velocity), even to (available from Massachusetts Technology Collaborative)
a small degree have large impacts on the energy that estimate wind resources at 70 meters above the surface
can be derived from a wind turbine system. Wind across the region, and show that the vast majority of
speed generally increases with elevation above ground the County has a class 4 resource or better.
level, because at lower elevations friction caused by
the earth’s surface lowers the wind speed. Therefore,
before a turbine size can be selected and its ■ Extractable Wind Energy, Power
performance determined, it is important to know what Curves and Capacity Factors
the wind resource is at a particular height. Given the
sensitivity of energy production to wind speed and the To this point the report has centered on the theoretical
sensitivity of wind speed to height, all things being amount of kinetic energy that can be extracted from
equal, it is much more efficient to put a turbine on a the wind. In actuality, only a portion of the potential
higher tower (described in more detail in Section 6). energy is converted into electricity. Turbines are rated
by size at their maximum production output, however,
Wind is rated in classes that delineate specific ranges in reality this output is not achieved at all wind speeds.
of wind resources on a scale of 1 to 7, with Class 1 For example, when the wind does not blow, there is
being a very low wind power resource and Class 7 no electricity produced. As the wind speed increases
being a very high wind power resource. Class 4 is the power produced by the turbine increases until very
used as the standard by the wind industry as being the high winds occur (e.g., over 25 m/s or 56 mph) at
lowest possible class for economically capturing wind which point the system reaches a cut-off speed. When
power with modern wind turbines. Table 2 displays the cut off speed is reached, the turbine is braked or
the wind power classes and associated wind speeds at the rotor blades are furled to prevent system damage.
10 and 50 meters (33 and 164 feet).
This relationship is known as the power curve of a
Cape Cod and Martha’s Vineyard have significant wind turbine system, and is illustrated in Figure 4 with
wind resources as illustrated by maps prepared in the Fuhrlander family of turbines, which cover a wide
collaboration between TrueWind Solutions and the range of turbine sizes. As Figure 4 shows, the turbine
Massachusetts Technology Collaborative. These maps does not reach its maximum output at lower wind

Table 2
Classes of Wind Power Density at 10 m and 50 m(a) 7

10 m (33 ft) 50 m (164 ft)


Wind Power Speed m/s (mph) Speed m/s (mph)
Class
1 <4.4 (9.8) <5.6 (12.5)
2 4.4 (9.8)/5.1 (11.5) 5.6 (12.5)/6.4 (14.3)
3 5.1 (11.5)/5.6 (12.5) 6.4 (14.3)/7.0 (15.7)
4 5.6 (12.5)/6.0 (13.4) 7.0 (15.7)/7.5 (16.8)
5 6.0 (13.4)/6.4 (14.3) 7.5 (16.8)/8.0 (17.9)
6 6.4 (14.3)/7.0 (15.7) 8.0 (17.9)/8.8 (19.7)
7 >7.0 (15.7) >8.8 (19.7)

(a) Vertical extrapolation of wind speed based on the 1/7 power law

7
http://www.awea.org/faq/basicwr.html

June, 2004 9
3 Wind System Basics

Figure 4
Power Curves of Fuhrlander Family of Turbines @ Sea Level
1100

1000

900 FL-30
FL-100
800
FL-250
700 FL-800
FL-1000
600 FL-1000+
kW

500

400

300

200

100

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Meters per Second

speeds. The primary industry standard for the power times 20% capacity factor) and 766,500 kWh (250 kW
derived in kW from a turbine for a given windspeed times 8760 hours/year times 35% capacity factor).
assumes a turbine at sea level air density (1.226 kg/
m3), with a moderately smooth terrain, and a ■ Certification
temperature of 15 degrees Celsius (59 degrees
Fahrenheit). The power curve takes into account the Independent third-party certifications of technologies
inefficiencies of the turbine in generating electricity, are used in many cases in order to obtain outside
but does not, for example, take into account line losses financing and to prevent legal difficulties over non-
from transmitting the electricity. attainment of performance guarantees. Certifications
of wind turbines relate to independent third party
The power curve of a turbine is important to wind validation/verification of a manufacturers performance
turbine developers as this information is combined capabilities and claims, and where necessary, to assure
with information about the wind resources to make that they meet international standards.
estimates of annual energy output. For instance, with
the variations in the wind resource over time (i.e. The U.S. Department of Energy (DOE’s) National
factoring in times when the wind blows lightly or not Renewable Energy Lab (NREL) is responsible for the
at all), a modern wind turbine on Cape Cod will likely independent review of wind turbine technology. Under
produce between 20% and 35% of what it could the Certification Program, NREL will assist the U.S.
produce if it was generating at maximum output all industry in obtaining American Association for
year. This percentage is known as the capacity factor Laboratory Accreditation (A2LA)-type certification
for the turbine. For example, the Fuhrlander FL-250 for wind turbines and is conducting a suite of
has name plate maximum output of 250 kW. Thus certification tests that are specified by the International
annual energy production can be estimated to be Electro-technical Commission (IEC) standards. For
between 438,000 kWh (250 kW times 8760 hours/year more information on this topic see Appendix A.

10 Assessment of Distributed Generation Technology


Section 4
Economics
■ Introduction (vi) renewable energy surcharges; and,
(vii) energy efficiency surcharges.
This section is intended to provide a very broad
overview of the economics of a distributed generation The electricity generation portion of the bill, that
wind facility. There are three types of energy revenue accounts for about one-quarter to one-third of the total
and/or avoided costs that can be anticipated from DG cost, is the cost for the actual production of the
wind turbines.8 First, and generally most valuable, is electricity. Customers may have chosen their power
to avoid paying utility bill energy charges.9 Second is to come from a competitive power supplier (e.g.,
to sell part or all of the production of a wind turbine municipal aggregator like the Cape Light Compact)
into the wholesale market. Third is to capture revenue or may be on the standard offer or default services
from selling renewable energy credits (RECs) that are that the utility (local distribution company) is required
available for “new” wind turbines installed after March to provide by law as the supplier of last resort.
1, 1998, under the Massachusetts Renewable Portfolio
Standard (RPS). Unless a customer opts to totally disconnect from the
grid and rely on a combination of wind turbines and
■ Avoiding Utility Bill Charges other sources of electricity supply (e.g., solar/
photovoltaics, banks of batteries, micro-turbines),
Electric bills distributed to NSTAR customers are neither monthly customer charges nor demand (kW)
made up of two primary components: electricity charges 10 can be avoided. However, the energy
delivery charges and electricity generation (or power consumption-related charges a customer pays may be
supply) charges. avoided in part. The amount of energy charges a
customer pays on the utility bill varies by rate class
Electricity delivery (non-generation) charges include: and in many cases consumption patterns. These non-
(i) customer charges; generation charges usually constitute a significant
(ii) demand (kW) charges (typically fraction of an electric bill, though the actual amount
applicable to large users); will depend on a customer’s actual consumption
(iii) transmission charges; pattern and rate class (see estimates in Table 3). These
(iv) distribution charges; charges are in addition to generation charges that have been
(v) transition (i.e., stranded costs); in the 5.0 to 6.0 cents/kWh range for the last few years. 11

8
We have only addressed those financial benefits that are assured currently but, additional monetary benefits are possible. They include
stripping away the emission allowances (e.g., NOx) and selling those allowances. In addition it is possible in the future that wind systems
might be able to receive other payments from ISO-NE and might include “black start” and “capacity” payments.
9
Customers that sign-up for competitive generation supply (e.g., Mirant, Select Energy, Constellation New Energy) may be able to get two
bills one from NSTAR and one from their competitive generation supplier, though this is a rare case. For simplicity sake we assume,
regardless whether a customer is procuring generation from a competitive supplier, default service, or standard offer, that they only receive
one bill from NSTAR and that that bill includes generation and all other charges.
10
As the wind does not blow all the time, monthly peak demand (kW) nor the associated peak demand charges will not decrease significantly.
Demand charges are not assessed on residential customers.
11
Projections of future generation costs vary substantially. The Energy Information Administration generally projects lower electric and
gas prices through 2025 (see http://www.eia.doe.gov/oiaf/aeo/index.html#prices), in contrast one reviewer of a draft report stated “Our
information shows potentially much higher (generation) rates over the period in question because of the shortage of natural gas and certain
infrastructure problems.”

June, 2004 11
4 Economics

Table 3
Estimated Average Non-Generation
Commonwealth Electric Energy Charges for 2006

Rate Class Cents / kWh


R1 4.1
R3 3.5
G1 4.1
G2 3.9
G3 3.0

Table 3 only displays estimates of the average non- system (net metering). In these systems the meter runs
generation charges for 2006. With the end of the backwards when the turbine is producing more energy
transition period in March 2005 it is expected that these than is being consumed on-site and forwards when
charges will change, and most likely increase by a the turbine is generating less power than used on site.
small amount. The exception, in the long term, will Thus customers will pay only for the net amount of
likely be transition charges. Except for 2005 for which kWh consumed.13
NSTAR has estimated much higher rates, they are
estimated to decrease slowly over the next 23 years
and end in 2026.12 ■ Wholesale Market Energy
Sales
Current regulations have established a 60kW threshold
for how DG wind systems connect to the grid. For Whereas a wind farm would sell all or almost all of
wind DG systems over 60kW, the customer generally their output into the wholesale energy market, most
will have two meters (bi-metering), one measuring DG wind applications will consume a majority of their
consumption from the NSTAR distribution system and energy production on-site. Nonetheless, when the
a second measuring energy from the turbine sold into turbine is producing more energy than is being
the wholesale market. For example, when the turbine consumed on-site, the excess is sold to the wholesale
is not generating energy, the customer will use power energy market. There are four options for selling
from the NSTAR system that will be measured on one excess power beyond entering into a bilateral power
meter and when the turbine is producing more energy purchase agreement with a third party. They are:
than is being consumed on-site, the second meter will
measure the amount of energy being supplied to the 1) Enter a separate customized bi-lateral
grid. power purchase agreement
with NSTAR.
For wind DG systems less than or equal to 60 kW, the 2) For those systems 1 MW or greater in
customer generally will have one meter that measures size, receive the hourly ISO-NE
the net consumption from the NSTAR distribution spot price.

12
See D.T.E 03-118 Cambridge Electric Light Company & Commonwealth Electric Company 2003 Reconciliation of the Transition Charge,
Transmission Charge, Standard Offer Charge, Default Service Charge. http://www.state.ma.us/dpu/catalog/7213.htm Further, NSTAR
has proposed new standby rates for DG under DTE Docket 03-121 (http://www.state.ma.us/dpu/catalog/7206.htm). The proposed rates
would significantly decrease most DG project’s ability to avoid distribution costs, and thus decrease the economic incentive of installing
DG systems, while not decreasing the average charges imposed on customers. As of this report, the proposed standby rates are being
contested by many parties.
13
Even with “net metering” customers still have to pay monthly customer charges, and demand charges if applicable. Further, if a DG
owner produces more than they consume, they will receive a credit for the average short-run ISO-NE rate for their production.

12 Assessment of Distributed Generation Technology


4 Economics

3) For those systems less than 1 MW, resources by 2004. These levels increase by 0.5% each
receive the arithmetic average of year though 2009, and at the discretion of the
the ISO-NE spot price for the previous Department of Telecommunications and Energy
month. (DTE), a further 1% for each year from 2010 through
4) For those systems less than 60 kW, the 2014 (for a total of 9%). Failure of a supplier to meet
option of “net metering” as these levels will result in a requirement to make the
described above. alternative compliance payment (ACP, i.e., penalty).
The ACP for an electricity supplier that does not reach
In general the average wholesale spot price will be these mandates is currently $51.41 / MWh for
higher than what can be negotiated for wind output in Massachusetts served load. Output from new wind
a bi-lateral contract. The downside, of course, is that turbines installed on Cape Cod and Martha’s Vineyard
there is no certainty of revenue associated with (or anywhere in the ISO-NE area, including off-shore
wholesale spot prices, and this may be considered an locations) would create RECs that could be used to
unacceptable risk for investors or a likely impediment satisfy either the Massachusetts or Connecticut RPS
for projects trying to obtain third party financing. If mandates.14
only a small fraction of the turbine output is expected
to be sold on the wholesale market, then these issues In the short-term, there is a severe shortage of RECs
may be less significant. due to the small number of new renewable projects in
Massachusetts and high demand as generators seek to
avoid the ACP payment, and thus prices are currently
■ Renewable Energy Certificates hovering near $40 / MWh. The market for long term
RECs is much less certain. This issue is an important
An additional revenue stream for wind turbines in part of the financing of DG wind applications.
Massachusetts comes from a legislative mandate to
promote renewable energy sources called the
Renewable Portfolio Standard (RPS). The potential ■ Dampen Price Volatility
revenue comes from the sale of Renewable Energy
Certificates (RECs), or “green certificates”. These For most larger customers, the overall cost and
RECs are attributable to renewable energy generated fluctuating price for energy is a key component of their
and may be sold to other generators needing to be in budgeting forecasts. Fuel costs for the wind turbines
compliance with the RPS. The primary purpose of will be zero, in contrast to very volatile natural gas,
the RPS legislation is to create demand for new fuel oil and electricity prices. While a DG wind turbine
renewable electric generation sources and to help may only provide a portion of the energy consumed
diversify the domestic electricity generation mix on-site (the most likely sizing will be between 20% to
thereby leading to greater long-term price stability. 50% of on-site consumption for larger commercial,
industrial, and institutional customers), even this will
The Massachusetts RPS mandates that 1% of all in- dampen the risk associated with volatile energy prices,
state investor owned utility service territory electric and make budgeting and forecasting of energy costs
consumption come from new (post-1997) renewable more certain.

14
No “double-counting” is allowed. That is 1 MWh of energy produced from a wind turbine would create 1 REC. A specific REC can be
used only to satisfy the Massachusetts RPS requirement or the Connecticut RPS requirement, but not both simultaneously. What is important
is the output from a turbine would be eligible to satisfy both State’s RPS requirements, and would thus command the higher price of the two
markets. Also note, Connecticut has not finalized their RPS rules, and it appears likely they will allow for easier use of non ISO-NE plants
to be certified as compliant for the Connecticut RPS.

June, 2004 13
4 Economics

■ Conclusions
The various benefits described above are proportional benefits described are variable as the future levels of
to the amount of energy wind turbines produce, which generation, distribution, transmission, transition and
is closely related to the wind resources where they are other utility rates are unknown and wholesale market
sited. Thus, DG turbine developers will seek the best prices for both energy and RECs are variable.
combination of wind resources and end-use customers Nonetheless, it is likely that economic benefits will
with high utility costs or loads (i.e. energy accrue from wind turbine installations; Section 6
consumption). Cape Cod and Martha’s Vineyard explores the level of those benefits (and costs) for
currently has an abundance of both attributes. The various turbine system configurations.

14 Assessment of Distributed Generation Technology


Section 5
Environmental/Siting Issues

This section provides an overview of potential 1) Federal Communication Commission (FCC)


environmental and siting issues affecting DG wind
facilities. The National Wind Coordinating Council’s If a remote telemetry system is installed on a wind
Permitting of Wind Energy Facilities: A HANDBOOK turbine to monitor system performance and transmit
provides additional information in these topics and is data (typically to the turbine manufacturer or project
available at the following web site: http:// developer), an FCC license would be required under
www.nationalwind.org/pubs/permit/permitting.htm 47 CFR Part 90 - Private Land Mobile Radio Services.
In most instances on Cape Cod, telemetry system
information will utilize telephone lines and therefore
■ Background in most cases on Cape Cod, no approvals will be
required from the FCC.
As part of their research, BRED conducted a number
of telephone interviews with wind energy experts and However, in some instances tall metal structures such
planners in the US and Europe in order to gather some as wind turbine towers have produced interference
insight into issues facing the siting of DG wind affecting AM radio transmissions. The FCC would
applications elsewhere. This survey included get involved in an interference issue if one occurred
discussion with representatives from the U.S. after the installation of a turbine. These problems can
Department of Energy, Bennington Vermont County be mitigated through tower placement and other
Regional Commission, TRC Planning consultants, methods.15 (see http://wireless.fcc.gov/antenna/)
American Wind Energy Association (AWEA),
European Wind Energy Association, Gamesa Eolica 2) Massachusetts Environmental Policy Act
and the German Wind Energy Association. While the (MEPA)
sample size was small, the issues experienced by this
group had common themes, including issues relating The Massachusetts Environmental Policy Act,
to height, visual impacts, community acceptance, implemented by the Executive Office of
employment, economic development and turbine Environmental Affairs (301 CMR 11.00), requires that
configuration. In the case of the European interviews, state agencies study the environmental consequences
it was understood that as the scale of the technology of their actions, including issuing permits or providing
has increased, greater regional planning efforts have financial assistance. MEPA requires state agencies to
been adopted to address potential impacts. take all feasible measures to avoid, minimize, and
mitigate damage to the environment. An
Environmental Impact Report (EIR) may be required
■ Environmental Permitting for certain projects if the nature, size, or location of a
and Siting Issues project are likely, directly or indirectly to cause damage
to the environment. These thresholds can be found at
This section provides an overview of environmental the following link:
permitting and siting issues but should not be http://www.state.ma.us/envir/mepa/thirdlevelpages/
considered an exhaustive list. Individual sites may meparegulations/301cmr1103.htm
trigger additional requirements based on specific site
conditions.

15
Telephone conversation 2-4-04 between Darryl Duckworth (FCC) (717) 338-2736 and Bob Shatten

June, 2004 15
5 Environmental/Siting Issues

The most likely requirement for MEPA review would According to the FAA’s Obstruction Marking and
be for a project that exceeded a capacity of 25MW or Lighting Advisory Circular Document number: AC 70/
construction of a transmission line with a capacity of 7460-1K, recommended lighting would be:
69kv or more for more than a mile. Considering these
thresholds only, most DG wind energy projects on the Wind turbine structures should be lighted
Cape are unlikely to require MEPA review. However, by mounting two flashing red beacons
individual site characteristics of a location may trigger (L-864) on top of the generator housing.
MEPA review if certain environmental impacts can Both beacons should flash simultaneously.
be foreseen (for instance, impacts to wetlands, cultural Lighting fixtures are to be mounted at a
resources, or significant land clearing). Any project horizontal separation to ensure an un-
determined to require preparation of an EIR obstructed view of at least one fixture by
automatically becomes a Development of Regional a pilot approaching from any direction.16
Impact (DRI) under the Cape Cod Commission
regulations and thus a DG wind project would have to This Advisory Circular is currently being reviewed
meet all the minimum performance standards of the by the FAA although the study has not been concluded
Regional Policy Plan. at the time of this report. Also, the U.S. Fish and
Wildlife Services may be requesting additional lighting
3) Federal Aviation Administration (FAA) associated with water-based wind turbine systems.17

The requirements governing standards for aviation 4) Wetlands


obstructions and their marking is regulated under 14
CFR Part 77 - Objects Affecting Navigable Surfaces Cape Cod and the Islands have many wetland resource
by the FAA. In order to be allowed to construct a areas, including salt marshes, bordering vegetated
wind turbine tower and utilize a construction crane, wetlands, cranberry bogs and vernal pools, all of which
the FAA requires a “Notice of Proposed Construction play significant roles in maintaining the health of the
or Alteration” be filed. (The application form can be natural environment. Consistent with the purposes of
found at: www.faa.gov/region/ane/ane40/foia/7460- local, state, and regional wetland regulations, which
1n.doc.) strive to preserve and protect wetland functions, siting
wind turbine facilities within wetlands or their buffers
The FAA requirements are site specific and variable, should be an option of last resort. There may also be
requiring geometric analysis by the FAA incorporating significant engineering challenges associated with
the proximity to airports, terrain and ground elevations, establishing stable foundations within wetland
and wind turbine tower height. Additional background environments, ultimately posing considerable cost and
information on the analysis that is performed by the ongoing maintenance concerns.
FAA can be found in Appendix B.
However, should wetland locations become a feasible
Depending on the proximity to an airport, it is not alternative for a given turbine project, the following
anticipated that FAA will require obstruction lighting potential permitting requirements/siting constraints
of any kind if the proposed wind turbine is lower than should be kept in mind:
200 feet. Generally all structures higher than 200 feet
are required to be lit, which, in the case of wind • Any proposed alteration of a wetland or work
turbines, is measured to the top of the hub rather than within 100 ft of a wetland, or work within 200
the tip of the blade. However, even structures lower ft of a river, as defined by the Rivers Protection
than 200 feet may be required to be lit at the FAA’s Act, will require filing with the local
discretion. In addition, clustering of wind turbines conservation commission office. Local
may provide variations in lighting schemes that differ commissions administer the state Wetlands
from those required for a single tower structure.

16
http://wireless.fcc.gov/antenna/documentation/faadocs/7460-1K.pdf - 4965.4KB
17
Telephone conversation 2-04 between Sue Dempsey, FAA and Bob Shatten

16 Assessment of Distributed Generation Technology


5 Environmental/Siting Issues

Protection Act (WPA), as well as any local habitat. However, where an otherwise feasible project
wetlands bylaw that the town may have site may affect rare species (including both terrestrial
adopted. Most towns on Cape Cod and the habitats and the “airspace” habitat associated with rare
Islands have adopted bylaws, which may be birds), the following permitting requirements will have
more restrictive than the state Act. to be met.

• The state Department of Environmental • A conservation permit from the Massachusetts


Protection (DEP) handles appeals of decisions Natural Heritage and Endangered Species
made by a local conservation commission Program (NHESP) may be issued consistent
under the state WPA. DEP will also provide with the requirements of the Massachusetts
comment to the MEPA office for projects Endangered Species Act (MESA). The
undergoing MEPA review (ENFs and EIRs) proponent will have to demonstrate that the
regarding a project’s consistency with the DEP project will have no adverse impact on the
Wetland Regulations. species in question
or its habitat. Mitigation may be an appropriate
• Projects which are required to prepare an EIR alternative, to be determined by NHESP.
also become a Development of Regional
Impact (DRI) under the Cape Cod Commission • As discussed above, projects meeting a MEPA
Act, and must undergo DRI review. threshold may require the filing
Commission review of a project under the of an ENF and possibly an EIR.
requirements of the Regional Policy Plan will
require compliance with wetland and wetland • Projects requiring an EIR will also require DRI
buffer requirements that are far more restrictive review by the Cape Cod Com-mission. Cape
than the state Act and most local bylaws. Cod Commission standards for protecting rare
species and their habitat may be more
• It is possible that projects located within restrictive than MESA. Mitigation is generally
wetlands associated with navigable waterways not an option
may also be required to acquire permits from for Commission approved projects.
the U.S. Army Corps of Engineers.
• Federal permits may be required for impacts
• It may also be useful to keep in mind the effects to federally listed rare species.
of the Coastal and Inland Wetlands Restriction
Acts (c.130, s. 105 and c.131, s.40A 6) Stormwater Discharge Permitting
respectively), which resulted in the placement
of restriction orders on selected wetlands (Including National Pollutant Discharge Elimination
throughout the commonwealth (and many on System (NPDES) Stormwater General Permit Notice
Cape Cod and the Islands) limiting the type of of Intent for Discharges to Outstanding Resource
activities that may occur within or impact these Waters (ORWs) from Construction Sites or Industrial
wetland resource areas. Sites)

5) Rare Species Stormwater requirements derive from the Clean Water


Act and apply when construction activities disturb
As with wetlands, Cape Cod and the Islands are host more than one acre of land. Both the EPA and
to a wide variety of rare species, and the protection of Massachusetts DEP have authority over stormwater
those species and their habitat is a priority reflected in discharges so it is a joint, two-stop permitting process.
state, regional and local regulations. All efforts should In addition, some municipalities may have local
be made to avoid impacting rare species or their ordinances that regulate stormwater.

June, 2004 17
5 Environmental/Siting Issues

The requirements apply if the owner/developer for No landscape is ever completely quiet. Background
point source stormwater discharge into the “waters of noise is always present in the form of noise from birds,
the United States.” For non-point discharge, human activities, and, at wind speeds around 4-7 m/s
construction that disturbs one or more acres must apply and up, the noise from the wind in leaves, shrubs, trees,
for a permit. The permit is administered by EPA masts etc. will gradually mask (drown out) any
through Phase II of the NPDES program under the potential sound from a wind turbine.19
Clean Water Act.
This makes it extremely difficult to measure sound
For wind power development, unless access roads or from wind turbines accurately. At wind speeds around
wind farm development are occurring it is unlikely 8 m/s and above, it generally becomes difficult to
that more than one acre of land will be affected during attribute sound emissions from modern wind turbines,
construction. However, in the event that these impacts since background noise will generally mask any
exist, stormwater permitting and surface water turbine noise completely.20
discharge control will be required during construction.
Additional background on modern wind turbine noise
The following link contains the relevant Massachusetts and predictive noise estimation tools can be found on
(BRP WM 08A) permitting form relating to this the Danish Wind Energy association web site:
program: http://www.state.ma.us/dep/brp/stormwtr/ http://www.windpower.org/en/tour/env/sound.htm
strmfms.htm
Figure 5
7) Noise
Examples of Common Sound Levels

Early wind turbine designs did create noise complaints


from neighbors. There are two sources of wind turbine
noise, aerodynamic and mechanical. . The predominant
sound is the aerodynamic noise (a “swish”, “swish”,
“swish”) from the wind rushing through the three
turning blades. This varies depending on the rotor
radius, wind speed, blade surface finish and trailing
edge thickness. Significant noise reductions have
occurred through improved engineering by adjusting
the thickness of the blades’ trailing edges and by
orienting blades upwind of the turbine tower. A small
amount of noise is generated by the mechanical
components of the turbine, generally housed within
the nacelle. The meshing gears and generator are the
main sources of mechanical noise. It should be noted
that generally, noise falls off sharply with distance from
its emanating source.

For example, a typical wind turbine 250 meters from


a residence is no noisier than a kitchen refrigerator.18
Examples of common sound levels are provided in
Figure 5.

18
Adapted from AWEA web page: http://www.awea.org/faq/noisefaq.html
19
Danish Wind Energy Association web Page: http://www.windpower.org/en/tour/env/sound.htm#mask
20
Ibid.

18 Assessment of Distributed Generation Technology


5 Environmental/Siting Issues

NOISE METRICS STATE NOISE REGULATIONS


There are a number of ways in which sound levels Massachusetts has a noise regulation that is listed
(noise) are measured. All of them use the logarithmic below, as part of DEP’s noise, odor and dust
decibel (dB) scale. For environmental measurements regulations (310 CMR 7.09-7.10).
the most commonly used network is the A-weighted
scale, which is a scale that emphasizes the middle A noise source will be considered to be
frequency sounds “weighted” to adjust the frequency violating the Department’s noise regula-
response of the measuring equipment to that of the tion (310 CMR 7.10) if the source:
human ear. Since the scale is logarithmic, the addition Increases the broadband sound level by
of two sounds of equal magnitude does not represent more than 10 dB(A) above ambient, or
a doubling of sound level. For example, two wind Produce a “pure tone” condition—when
turbines of 35 dBA at 500 ft would combine for a total any octave band center frequency sound
sound level of approximately 36-38 dBA, not a pressure level exceeds the two adjacent
doubling to 70 dBA. Based on BRED’s survey of center frequency sound pressure levels
manufacturer data noise ranged between 27.9 and 48 by decibels or more.
dBA at a distance of 500 feet (approximately three
blade diameters). According to the American Society These criteria are measured both at the
of Heating, Refrigeration and Air Conditioning property line and at the nearest inhabited
Engineers, Inc. for broadband sounds, experiments residence. “Ambient” is defined as the
have shown that 3 dBA is the minimum perceptible background A-weighted sound level that is
change to the human ear.21 exceeded 90% of the time, measured dur-
ing equipment operating hours. “Ambient”
Both the state and federal government have regulations may also be established by other means
or guidelines that must be followed. It is possible that with consent of the Department.
local authorities, typically through the Board of Health,
have noise policies relating to nuisance complaints. 8) Avian Impacts

FEDERAL NOISE STANDARD The issue of avian deaths from wind turbines is often
Modern wind turbines are unlikely to reach any federal cited as a potential impact of wind development.
noise limits. There are Federal noise standards Because more wind farms are located in the west, the
applicable to motor vehicles [Noise Emission Standard bulk of the research in the U.S. has related to western
for Medium and Heavy Trucks (40 CFR 205)] that land-based, wind farms that may have limited
could be applicable if construction activities are application to New England bird species and behavior.
extensive, for example temporary road construction
for turbine site access. Also, there are OSHA noise The lighting of tall structures (including communication
standards applicable to the construction activities. towers and wind turbines) is also a factor affecting
numbers of deaths for certain species, as studies have
EPA does not have specific noise regulations but shown that, in bad weather, certain types of lights (red,
recommends that noise does not exceed a value of 55 pulsating lights) can attract birds at night. Birds may
dBA in residential areas.22 For a wind turbine, the become disoriented and fly towards towers, colliding
average sound level, based on manufacturer’s data at with rotors or guy wires supporting the structure.
a distance of 500 feet was estimated to be 35 dBA. However, the US Fish and Wildlife service has
developed recommendations aimed at minimizing these
impacts.

21
American Society of Heating, Refrigeration and Air Conditioning Engineers, Inc. 1989 ASRAE Gabdbiij - Fundamental (I-P Edition),
Atlanta, Georgia, 1989, p.7.7
22
Information on Levels of Environmental Noise Requisite to Protect Public Health and Welfare with an Adequate Margin of Safety,
U.S. EPA Docurment 55/9-74-004

June, 2004 19
5 Environmental/Siting Issues

Based on a study in the U.K., wind turbines kill one/ site evaluation should be conducted which identifies
two birds per turbine per year on average, (or 1 out of any possible risk to native or migratory species,
10,000 birds encountering a wind farm in a busy fly particularly if these species are known to be threatened
through). However, this is an average figure and or endangered.
therefore there will be locations where the number of
deaths attributable to a wind turbine are both above The National Wind Coordinating Council (NWCC)
and below the average. The Executive Summary of among others has funded research and prepared
the 2001 report “Avian Collisions with Wind Turbines: publications linked below relating to potential avian
A Summary of Existing Studies and Comparisons to impacts (http://www.nationalwind.org/pubs/
Other Sources of Avian Collision Mortality in the default.htm)
United States” highlights some of these issues.
9) Visual Impacts
Making projections of the potential
magnitude of windpower-related avian Visual impacts are likely to be of primary concern in
fatalities is problematic because of the planning for wind turbine development on Cape Cod.
relative youth of the wind industry and the The degree to which a turbine has visual impacts is
resulting lack of long-term data. ...Newer also related to its height, particularly given the scale
generation windplants incorporate of modern wind turbines. By their nature, wind
improvements in site planning and changes turbines need to be tall structures to make use of the
in the design of the wind turbines. Also, better wind resources at higher elevations. The general
many of the newer generation turbines are industry rule of thumb is that the bottom of the turbine
designed to provide little perching and no rotors should be at least 10 feet above any obstacle
nesting structure (tubular towers, enclosed within 300 feet, to avoid turbulence in the air column.
nacelle). ...Although it’s not clear that As a result, the rotors are by necessity located well
perching increases risk of collision, the lack above most other landscape features.
of perching and nesting opportunities may
dis-courage some bird species from using the Visual impacts are a subjective matter depending on
Wildlife Refuge Area (WRA).... Finally, most whether members of the general public view wind
wind plant developers are required to carry turbines either as a positive (improvement) or a
out site evaluations at proposed wind plant negative (detraction) on the viewscape. Visual impact
sites to determine impacts on birds and other is assessed largely by qualitative judgments, as it is
wildlife. While newer gen-eration turbines concerned with the human appreciation of, and
may be considered more representative of interaction with, the landscape. Generally, when wind
future developments, they have only been in turbines are seen spinning, they are perceived as being
operation in the recent past (i.e. <10 years), useful and therefore, beneficial by some, while others
and less information on avian collision may view them as a blight on the natural environment.
hazards is available for these turbines. On Cape Cod, where tall man-made structures are
relatively rare, careful siting of larger wind turbines
Advances in tower design (tubular has replaced lattice will be necessary to insure the success of these projects.
towers), turbine technology (the increased blade size
resulting in greater visibility), larger rotor diameter, For instance, there are federal, state and local
reduction in turbine blade speed and increased power designations that affect landscape in terms of its
output per turbine (requiring fewer turbines for a given conservation value, such as, wildlife preserves
land area) are advantageous for bird survivability (Massachusetts Audubon Wellfleet Sanctuary), state
versus earlier wind turbine technology. However, parks (Nickerson State Park) and national parks (Cape
whereas avian studies are commonly conducted as part Cod National Seashore). These areas are sensitive
of federal and state environmental review, such studies resources and may be impacted if siting is not carefully
are rare for projects that are not subject to considered. There are other designated areas that may
environmental review. Nonetheless, even with the be sensitive visual resource areas and further affect
advances in wind turbine technology design, an initial decision-making regarding viewshed (e.g., historic
districts, archaeological sites, etc.).

20 Assessment of Distributed Generation Technology


5 Environmental/Siting Issues

The Macaulay Land Use Research Institute, Aberdeen, modeling and 3D-computer modeling. The Vermont
UK has performed extensive targeted research relating Public Service Board provides guidance and a ranking
to visual impacts from wind farm development in the system for wind turbines that take into account the
U.K. The following is summarized from their web appropriateness of the site. Although this guide is
page: aimed at residential turbines, many of the principles
employed have merit for smaller, DG applications. It
“Wolsink and van de Wardt (1989) cited van de Wardt should be noted that in Europe, only major wind
and Staats’s (1988) study which used semantic projects (wind farms) are required to perform visual
differentials to investigate the impact of wind turbines impact studies, not individual turbine development.
on scenic quality in Holland. The latter’s study A summary of visual impact methods, hardware and
concluded that the strongest influence was caused by software tools can be found in:
the number of visible wind turbines in the landscape http://www.macaulay.ac.uk/ccw/appendix/app4.html
(i.e., the greater the number the greater the intrusion).
The effect of the size of wind turbines: 1MW (50m 10) Local Historic Districts
high tower and rotor diameter) and 200kW (30m high
and 24m rotor diameter) was also considered. The The Cape has a number of Local Historic Districts
study found that smaller turbines have less negative that establish a process for review of exterior
impact on the landscape than larger turbines. The alterations of structures visible from a public way.
influence of size was found to be relatively small Local Historic Districts in the towns of Barnstable,
compared with the influence of the number of units. Dennis, Eastham, Harwich, and Provincetown were
Using principal component analysis on the semantic created under Chapter 40C (the Historic Districts Act)
differentials, the authors found a latent dimension of of Massachusetts General Law. The towns of Chatham
perception: landscape coherence. The negative and Falmouth have established local historic districts
influence of the ‘introduction and the number of under special legislation. The Old Kings Highway
turbines’ was attributed to a “decrease in coherence Regional Historic District, covering portions of
of the landscape” and consequently a decrease in Sandwich, Barnstable, Yarmouth, Dennis, Brewster
people’s scenic preference of scenic quality. This is and Orleans, was also created by a special act of
consistent with studies by Kaplans which have found legislation. Locally appointed Historic District
that coherence is directly related to preference.” Commissions hold public hearings as part of their
review process and determine whether a proposed
Part of Thayer and Freeman’s (1987) structure is appropriate in the district.
investigation into observer attitudes,
symbolic or connotative meanings of wind 11) Blade Failure
energy developments found that people
tend to prefer fewer larger turbines to more Blade failure (often referred to as blade throw) is
smaller ones. The finding supports van de generally not an issue with modern, commercial
Wardt and Staats’s (1988) conclusion that certified turbines. Its importance for siting relates to a
number of turbines have greater effect on potential public health and safety concern should a
landscape quality than size of turbines. For piece of the machinery comes loose. Failures
similar reasons, the Scottish Office’s (1993) sometimes occurred with a low frequency in the early
planning advice on wind farms also favored 1980’s when turbine blades were constructed of wood,
the installation of fewer larger turbines.23 aluminum and steel. During the 1990’s construction
materials have changed to fiberglass composites and
A variety of tools are available to analyze and possibly more recently, carbon/fiberglass composites are being
mitigate adverse impact from a proposed development. introduced. These new materials have made
These include geographic analysis, photographic significant improvements in relation to fatigue and

23
The Macaulay Land Use Research Institute, Aberdeen. UK - http://www.macaulay.ac.uk/ccw/task-two/strategies.html

June, 2004 21
5 Environmental/Siting Issues

failure of the rotors and severe failures are rare. If a turbines stop the rotors if the blades become
blade failure does occur it is typically characterized unbalanced (when iced). This prevents damage to the
by splits or cracks on the leading or trailing edge, rather rotating equipment and also provides a safety
than catastrophic failure. The probability of failure mechanism.
likely increases in severe wind events such as
hurricanes. An expansive discussion of aerodynamics of falling
ice from wind turbines can be found on the AWEA
Modern wind turbines incorporate a number of safety web page (http://www.awea.org/faq/sagrillo/
features to protect against damage to the machinery ms_ice_0306.html) that notes that it is a valid safety
and as fail-safe mechanisms in the event of a concern. However, the AWEA also notes that as the
malfunction. For instance, vibration detectors, ice sheds, it falls to the base of the tower unless there
overspeed sensors and braking mechanisms are all is a wind, in which case it will fall with the wind.
designed to shut down the turbine immediately if it Wind farm operators report that the ice does not fall
begins to operate abnormally. beyond the tower base during light breezes, and not
even as far as the tower’s fall zone during heavier
The U.S. Department of Energy’s Sandia National winds.
Laboratory (Sandia) has published numerous technical
papers relating to fatigue analysis of wind turbines The AWEA concludes by stating:
and completed research projects where wind turbine “In the work entitled “Assessment Of Safety
composite blades are bent, twisted, warped and placed Risks Arising From Wind Turbine Icing,” by
under tension. Modern wind turbine blades are Colin Morgan, Ervin Bossanyi, and Henry
designed to be very durable and the design life of a Siefert. The study notes that, “there has been
wind turbine blade is equivalent to a commercial no reported injury from ice thrown from wind
airplane operating in take-off mode for approximately turbines, despite the installation of more than
30 years. 6,000 MW of wind energy worldwide.” The
paper concludes that the risk of anything or
A link for those interested in further in depth research anyone being hit by ice from a wind turbine
on material science and material fatigue issues relating is “10-6 strikes/m2/year, which is the typical
to turbine blades can be found at: probability of (being hit by a) lightning strike
h t t p : / / w w w. s a n d i a . g o v / R e n e w a b l e _ E n e rg y / in the UK” (The authors are from the UK.)24
wind_energy/topical.htm#PROBABILITY
13) Lightning
12) Ice Throw
According to a 2002 study called the Wind Turbine
Icing of blades can occur in colder climates. In New Lightning Protection Project published by the National
England, ice accumulation on wind turbines is Renewable Energy Laboratory, the early development
typically of greater concern for ridge-line installations of modern wind turbine generators in the United States
versus other land-based locations. Significant ice were primarily located in California, where lightning
accumulation on Cape Cod on wind turbines is not activity is the lowest. As such, lightning protection
anticipated to occur with great frequency, although for wind turbines was not considered to be a major
when temperatures are below average some issue for designers or wind farm operators during the
accumulations are possible. 1980s. However, NREL indicates that “wind turbine
installations have recently increased in the Midwest,
This issue is of concern in terms of public safety but it Southwest and other regions of the United States where
also affects turbine aerodynamics and performance as lightning activity is significantly more intense and
ice slows the rotor blades. Control systems on the lightning damage to wind turbines is more common.”

24
American Wind Energy Association: http://www.awea.org/faq/sagrillo/ms_ice_0306.html

22 Assessment of Distributed Generation Technology


5 Environmental/Siting Issues

Lightning strikes are capable of damaging turbines and establish themselves in the cleared area. If access roads
in areas where lightning is a potential issue, protection are needed, further clearing may be necessary. Without
systems can be installed to limit the effects of the strike. proper controls, erosion may also be an issue in some
locations. The impacts of land clearing will vary from
14) Shadow Casting and Flicker site to site and should be adequately addressed through
careful siting and mitigated where appropriate.
Shadows cast from wind turbines generally occur in
close proximity to the turbine, although this will vary 16) Avoided Emissions
depending on the time of year, latitude and turbine
height. Flicker affects can occur when the sun shines Renewable forms of energy have the environmental
through the rotor blades at certain times of day and benefit of avoiding emissions from other non-
results in the temporary blocking of the suns rays with renewable generators. To establish the potential
each pass of a rotor blade. Concerns about these avoided emissions resulting from DG wind
temporary phenomena are usually perceived as a applications, BRED developed a tool to predict the
nuisance by nearby receptors (i.e. homes and area-wide offset of emissions from the installation of
businesses) rather than a potential hazard, but are renewable energy. The basis for the analysis is unit
nonetheless important considerations in siting turbines. pollutant emission rates of the New England power
pool (NEPOOL) contained in an annual report (2002)
These effects are predictable as the location and that they publish for the purpose of predicting benefits
position of the sun can be accurately plotted and from demand side management programs (e.g., energy
computer-modeling tools are also available to predict conservation programs). The NEPOOL study uses
the area that will have a shadow cast upon it or will be both real power plant dispatch history and their
subject to flicker. Careful siting of turbines to account associated emissions as reported to EPA, and electric
for these effects can often remedy any potential production simulation software (PROSYM)
conflict. modeling.25

The affects on neighboring properties can also be The modeling predicts “marginal emission rates”, that
mitigated, thus avoiding potential negative aesthetic are the emissions associated with the last power plant
impacts. For instance, tree planting in key locations that is required to be dispatched onto the grid. The
can block the shadow of the turbine from sensitive report provides unit emission rates for NOx, SO2, and
receptors CO2. The underlying theory for this analysis is that if
the load is decreased through conservation or if
Additional reading and a graphic calculation tool to renewable energy replaces conventional fossil-fuel
predict shadow casting and flicker can be found at the generating plants in meeting the load, that the last and
Danish Wind Industry Association web page: least economic power plant would not be dispatched
http://www.windpower.org/en/tour/env/shadow/ by NEPOOL. For more background on the report see
index.htm http://www.iso-ne.com/Planning_Reports/Emissions/

15) Land Clearing The example presented in the following Table 4 (next
page) shows the potential offsets associated with the
The amount of land clearing necessary will vary theoretical installation of ten -1.5 MW turbines
depending on the topography of the site, wind speed/ throughout Cape Cod running at a capacity factor of
direction, turbine size and the surrounding vegetation/ 26.3% and estimates the following benefits in terms
land use. Clearing could affect natural habitat and of emissions offsets in the region of the New England
provide an opportunity for non-native species to power grid:

25
2002 NEPOOL Margin Emission Rate Analysis - December 22, 2003 by ISO New England

June, 2004 23
5 Environmental/Siting Issues

Table 4
Annual Potential Environmental Benefits
of Ten 1.5 MW Cape Cod Installed Turbines

Pollutant Annual Potential


Average Annual
Emission Avoided
Rate (lb/MWh) Emissions
(ton/yr)
SO2 3.27 57
NOx 1.12 19
CO2 1337.8 23,116

In addition, according to EPA, every megawatt-hour these kinds of DG applications. For example, in many
of electricity generated by wind energy also offsets instances, the siting of a wind turbine can have
particulates, 3.5 ounces of trace heavy metals (e.g. educational benefits for a broad spectrum of the
mercury) and more than 440 pounds of solid waste population. In Beverly, the Centerville Elementary
from fossil-fueled generation.26 School has installed a small 10kW turbine and
incorporated other elements of green design to use
17) Other Benefits energy more efficiently and provide an opportunity to
educate community members, Similarly, the wind
Renewable energy facilities also have other benefits, turbine installed in Hull, MA has also provided
not necessarily related to siting, but which may be educational opportunities for residents of that
important as part of a broad strategy of public outreach community and those in the surrounding regions.
and education for gaining support for development of

26
U.S. EPA January 2000 Climate Change Technologies - Wind Energy

24 Assessment of Distributed Generation Technology


Section 6
Wind Technical Survey and Analysis

■ Introduction • how wind system technical information and


costs were gathered;
The main focus of this section is to provide a summary
of the information gathered as part of the survey of • the availability of wind systems configurations
manufacturers completed by BRED for this report. (e.g., what systems are sold as standalone
The survey was conducted to gain an understanding DG installations in the USA, and which tower
of the current state of the technology and to quantify sizes are available with which turbine models);
the expected scale of modern wind turbines. This
analysis was needed before a model bylaw could be • the relationship of system size in nominal output
developed for DG wind turbines on Cape Cod, as (kW), system height, and system costs;
zoning restrictions (e.g. height, setback, noise limits)
can have a significant affect on the feasibility of a • the relationship between on-site electric
project. This section partly places the analysis within consumption and NSTAR rate class and charges;
an economic context to provide the most realistic view and,
of likely DG developments in the region. Many factors
affect system payback and its relative economics • the results of economic payback calculations for
(shown schematically in Figure 6), and therefore this various scenarios of customer/system
section provides a step-by-step description of the configurations.
following:

Figure 6
Schematic of Factors Affecting Economic Payback of a DG Wind Installation

Customer Characteristics
Consumption Level (kWh/yr)
Consumption Patterns
Rate Class

Wind System Configuration


Turbine Configuration ➤
Power Curve
Costs
Tower Configuration
Height
System Specific
Class Economic Rate of
Wind Resources
➤ Return/Investment

(a function of tower
Payback Period

Site Characteristics height & site wind


Wind Resources resources)
Lot Size
Environmental Attributes ➤

Permitting
Abutters

Market Characteristics
Utility Charges
Energy/REC Prices
Interest Rates/Tax Policy

June, 2004 25
6 Wind Technical Survey and Analysis

■ Purpose and Structure • Description of Ancillary Facilities


of Survey • Access Requirements / Minimum Site
for Erecting Turbine
In order to understand the impact that zoning • Noise Levels dBA 50/250/500 feet
restrictions or bylaws might have on wind turbine • Delivery Lead Time in Months
development on Cape Cod, it was necessary to obtain • Representative Location(s) of Turbine
technical and cost information on turbines currently • Certifications
available in U.S. markets. With this information and • Comments (add anything extra you think
the appropriate analysis tools, an analysis was is important)
conducted for tradeoffs associated with various zoning • Retrofit Costs over a 20 year lifetime
scenarios. • Power Curve 0-25 mps

A technical survey was designed and conducted with Tower Data requested included:
wind turbine manufacturers and/or their
representatives. Prior to contacting turbine • Manufacturer
manufacturers, publicly available information was • Tower Model
added in order to increase response rates and decrease • Tower Type (Lattice, Tubular, Other)
respondent burden. Data came from manufacturer • Uses Guy Wires (Yes, No, Depends)
websites and the “Wind Energy 2003 Market Survey” • Height (meters) Base Width/Length (meters)
published by the German Wind Energy Association • Weight (kg)
(www.wind-energie.de). —Compatible Turbine Information
(Up to six)
The turbine data requested included: —Hub Height (meters)
—Top of Blade Height (meters)
• Manufacturer —Crane Capacity (kg) with Turbine
• Model Model
• Nominal Output (kW) • Tower & Foundation
• Model Availability in USA (Yes, No, Soon) • Example Shipping Costs (Barnstable,
• Wind Class (per IEC 61400-1) MA - USA)
• Grid Frequencies (50 Hz / 60 Hz/ Both) • Primary Erection Equipment Needed
• Voltage (e.g., crane, other - please describe)
• Initial Commercial Operation Year • If Crane needed, Crane Boom Length (meters)
• System weight in kg (Turbine + Nacelle + • Description of Minimum Requirement for
Blades Weight) Staging Area
• Rotor Diameter (meters) • Certifications
• Survival Wind Speed (meters / sec.)
• Compatible Towers (up to five models)
• Turbine Cost Commissioning Cost ■ Quality and Rate of Survey
• Warranty Length in Years Response
• Warranty Coverage (.e.g., turbine, blades, not
foundation) As part of the survey, BRED contacted 19 turbine
• Warranty Cost manufacturers (see Table C1 in Appendix C) who
• Example Shipping Costs (Barnstable, MA) indicated by their marketing efforts that they sold
• Manufacturer Liability Insurance Availability turbines into the US market. These manufacturers
(Yes, No, Soon) covered all size ranges of turbines, from 1 kW to over
• Manufacturer Liability Insurance Cost 1000 kW. Only fifteen of the manufacturers indicated
• O&M Costs that they offered turbines in the US market, and
• Typical Construction Costs although thirteen agreed to participate initially, only
• Typical Interconnection Requirements seven participated by making available cost and power

26 Assessment of Distributed Generation Technology


6 Wind Technical Survey and Analysis

curves on available turbine models. It should be noted because of the demand for offshore projects where
that even among the seven fully participating vendors, construction costs favor larger machines, but also due
the number of fields entered varied widely. Data was to greater wind resources at higher elevations. While
collected on 84 turbines, 103 towers, and 145 unique only a few years ago wind turbines over 1 MW were
turbine-tower combinations. rarities, now turbines less than 1.5 MW used in wind
farms are a rarity. We assume that with the current
state of the technology, turbines larger than 1.5 MW
■ Analysis of Survey Results will be a rare exception for DG applications.

For this analysis, the report assumes that only standard By studying Figure 7, the relationship between the
(and not custom) systems will be available for DG nominal (or maximum theoretical) output of individual
wind development. Much of the analysis presented turbines and their rotor diameter can be seen. This
here relies on work conducted by BRED, and many figure shows that larger rotor diameters have
of the conclusions are supported by graphs presented correspondingly greater nominal output. This is not
in D for reference. surprising given the earlier discussion that the
theoretical power extracted from the wind is directly
1) Relationship between Nominal kW related to the area swept by the turbine blade.
and System Size
The importance of this for production of a model bylaw
Commercially available wind turbine sizes range is that larger rotor diameters will result in greater
substantially from 0.4 kW to 4.5 MW (see Table 5). heights to the tip of any wind turbine.
Turbine sizes keep increasing, in large measure

Table 5
Range of Turbine Sizes Currently Offered by Manufacturers in US or Europe

Manufacturer # of Turbines Min kW Max kW


AOC 1 50 50
Bergey 4 1 50
Bonus Energy 5 600 2300
Ecotecnia 4 640 1670
Enercon 6 300 4500
Fuhrlander 5 30 1000
Gamesa 5 660 2000
GE 6 900 3600
MADE 4 660 2000
Mitsubishi 6 200 2000
NEG Micon 8 750 4200
Nordex 6 600 2500
Northern Power 1 100 100
SouthWest 4 0.4 3
SPS-Norwin 3 225 750
Suzlon 5 350 2000
Vestas 6 660 3000
WTI 5 10 20
Total / 84* 0.4 4500
Average

June, 2004 27
6 Wind Technical Survey and Analysis

Figure 7
Comparison of Nominal kW to Rotor Diameter

100

90

80

70

60
Meters

50 Rotor Diameter

40

30

20

10

0
0 500 1000 1500 2000 2500 3000
Turbine kW

A general rule of thumb is that the rotor diameter will about $2000/kW, a 250 kW turbine has a base purchase
be equal to the hub height of the turbine. The higher price of about $1200/kW, and a 1000kW turbine has
the hub height and rotor, the less turbulence there is less than $1000/kW purchase price. Note: there was
likely to be in the wind and the higher the wind speed. a far lower response rate on cost of turbines (as it is
Hub height is also related to the radius of the rotor to considered proprietary by many vendors), than there
provide adequate clearance from the ground. was on turbine size (kW), which is always publicly
available. Nonetheless, it is clear manufacturers have
2) Relationship between scale of the good reason to move to larger and larger turbine kW;
turbine and costs. they can provide much more energy for only a marginal
increase in costs with larger turbines. More specific
The costs associated with buying and running the information on this relationship can be seen in
equipment are very important considerations for Appendix D, Figure D3 and D4. Furthermore, when
development of DG wind facilities. Many of the the installed cost of the turbine is considered (without
turbines sold have a relatively long payback or even tower) a similar pattern emerges, in that the cost per
negative paybacks for grid connected DG applications. kW decreases with the size of the turbine selected as
The following analysis helps provide an understanding shown in Appendix D, Figure D5. Operation and
of DG wind system economics, and is a prelude to maintenance costs also have economies of scale that
analysis of how zoning restrictions might affect the are shown in Appendix D, Figure D6.
economic viability of wind turbine development.
The implication of this is that the economies of scale
TURBINE COSTS of larger output turbines make them generally a much
There are substantial economies of scale related to the more cost-effective purchase than turbines with
cost of wind turbines. The survey conducted by BRED smaller output. This observation, when considered
as part of this report revealed that the cost per kW of with the above findings that larger turbines are also
purchasing turbines (exclusive of tower) decreased the taller, implies that taller turbine systems will be more
larger the nominal output of the turbine became. For cost effective than shorter turbine systems.
instance, a 25 kW turbine has a base purchase price of

28 Assessment of Distributed Generation Technology


6 Wind Technical Survey and Analysis

TOWER COSTS higher towers are far heavier, are manufactured to work
Tower costs are substantial (Figure 8) and unlike the with ever heavier turbine systems, need more
costs associated with turbines, tower costs per unit size substantial foundations, must be engineered to more
(i.e., $/meters in height), increase as height increases exacting standards, require more specialized transport,
as shown in Figure 9. The reasons for these and require very large cranes which are extremely
diseconomies of scale are many fold, for instance expensive to mobilize and demobilize. Conversely,

Figure 8
Tower Height Compared to Tower Installation Cost
$250,000

Tower
Investment
$200,000
Cost
Installed Cost
Cost

$150,000
$$Installed

$100,000

$50,000

$-
0 20 40 60 80 100 120 140
Tower Height - Meters

Figure 9
Tower Height Compared to $ Installed Cost / Meter Height
$3,500
Tower Height
Height

$3,000

$2,500
/ Meter Tower

$2,000
Cost/Meter

$1,500
Installed Cost
$$ Installed

$1,000

$500 $ Cost / Meter


Tower Height

$-
0 20 40 60 80 100 120 140
Tower Height - Meters

June, 2004 29
6 Wind Technical Survey and Analysis

the smallest towers are likely to be lattice rather than However, some manufacturers (e.g. GE, Furhlander,
the tubular design favored for most large modern and Vestas) are willing to provide confidential quotes
towers. for delivery for large size (> 1MW) single turbine
systems. In addition the company(ies) that wins the
The implication here is while higher towers will MTC Community Wind preferred manufacturer
produce more energy because the average wind speed contract presumably will have to build-up
generally increases as elevation increases; there is a Massachusetts’s infrastructure, and is likely to readily
significant tower cost to be paid for the increased provide bids for single turbine installations as the
system height. Whether this tradeoff is worthwhile preferred manufacturer process includes a bid for
from an economic standpoint will depend on the site installing single turbines. The companies offering
and will be system specific. For instance, would the turbines in the mid-range 100 kW to 1 MW size
increased system purchase and installation costs be (Fuhrlander, Northern Power, and Specialized Power
offset by the additional benefits of increased energy Systems) were willing to provide hard quotations for
production caused by the average higher wind speeds actual installation, and see the single installation
at the higher hub height elevation? market as an important part of their sales strategy.

This issue could be important as communities review As noted in the description of the survey above, at
proposals for turbines, in that the relative benefits of least three large foreign manufacturers do not sell into
ever-taller turbines may be somewhat limited, while the US market. The reasons include:
the community perception of the visual impact of those
towers may be significant. • Need to build 60 Hz rather than 50 Hz systems
• A GE US North American patent on variable
3) Availability of Models speed machines has kept some manufacturers
or some models out of the US market.
The smallest turbines (1-20 kW) applicable for home • The high start-up costs to sell into the US
or small business use are readily available, although market.
this kind of technology is not the focus of the report
or model bylaw. Larger systems (50+ kW) require
between a 4-month and 8 month delivery lead time ■ Analysis of Customer Class
from purchase order date, and delivery lead time is and Zoning Scenarios
generally positively correlated with the size of the
system. In addition, at least one manufacturer In order to assess the potential impact of zoning height
(Gamesa) noted that their quotes of costs for the survey restrictions on wind power development, BRED
were based on the assumption of a wind farm analyzed several scenarios of economic payback for
installation. Currently it would be difficult for them various turbine/tower combinations for different
to support a sale of a single turbine on the East Coast prototypical customers.
of the United States, as their entire support
infrastructure is in the Great Plains. Gamesa was not It should be emphasized that the assumptions made
alone in their focus on wind farms to the detriment of for this analysis in large part dictate the economic
single turbine sales. The same was heard from conclusions of the analysis. The assumptions are
manufacturers of large wind farm type systems (1.5+ specific to a private, commercial developer at a
MW). To induce some companies to provide a “hard” location where the average wind speed is 7m/s (near
quotation for a single turbine would be difficult and the minimum wind speed for economically viable
likely, at a minimum, would have to include higher turbines). These assumptions are appropriate for this
warranty costs and an agreement for longer warranty report in that they help to define the scale of turbines
response time. This problem of availability will only that could be expected on the Cape (i.e. it assumes
be exacerbated if the Production Tax Credit (PTC) is lower wind speeds and that the developer will seek to
renewed, thus prompting much more wind farm maximize the return on investment for its stakeholders
demand in the US, and less interest in the sale of single by utilizing the largest turbine/tower combination
turbines by some manufacturers. possible). Therefore, the analysis aims to anticipate

30 Assessment of Distributed Generation Technology


6 Wind Technical Survey and Analysis

the largest possible turbine/tower combinations. 2) Large Commercial & Industrial (G3)
However, as indicated earlier, small increases in wind Customers
speed at individual sites could dramatically change
the economic picture and thus affect the size of the There are seven G3 customers on Cape Cod and
turbine. Similarly, municipalities may have different Martha’s Vineyard that consume three percent of the
parameters that affect the viability of a capital project total energy. Customers in the G3 rate class have such
that may be different than those acceptable to private large electricity consumption that they provide the best
developers. Therefore, it is essential for all turbine economic payback on average of any rate class for
developments to have specific site data on the wind DG wind applications.
regime and to conduct a complete feasibility analysis
to establish specific economic viability. BRED matched the most economic tower/turbine
combinations (which range from 800 kW to 1800 kW
1) Description of Base Case Conditions (1.8MW)) to the prototypical G3 customer. This
analysis showed that the top of blade height for all of
An infinite number of scenarios could be considered the commercially available turbine/tower
because of the numerous factors affecting the combinations exceeds 230 feet and in the majority of
economic viability of the facility. Therefore “base combinations, exceeds 300 feet (see Appendix E, Table
case” conditions were assumed for the analysis (shown E4). This has obvious implications for development
in Appendix E, Table E1). of a model bylaw for these facilities on the Cape.
BRED’s analysis also showed that the choice of
For this analysis, prototypical customers were defined different tower height does not make a dramatic
based on each of the major rate classes and load difference on internal rate of return (IRR).
profiles for customers in the NSTAR service territory.
The five major categories that exist under this system BRED also conducted a similar analysis for smaller
are listed below, together with average annual turbines, with correspondingly smaller overall turbine/
consumption. More detailed information on these rate tower heights (see Appendix E, Table E5). The analysis
classes may be found in Appendix E, Table E2. showed that the years to positive cash flow increases
dramatically when the system size (and height) is
• Residential (R1) - Average consumption of reduced, and the IRR decreases as turbine height
6,000 kWh decreases. This analysis illustrated that none of the
• Residential Electric Heating (R3) - Average turbine-tower combinations for sub-800 kW systems
consumption of 11,000 kWh will likely have an acceptable payback period for
• Small Commercial (G1) - Average private companies (likely 3 years or less) for any but
consumption of 26,000 kWh the most extraordinary customer.
• Medium Commercial (G2) - Average
consumption of 1,200,000 kWh Municipally owned DG systems may have different
• Large Commercial & Industrial (G3) - economic constraints and models that would affect the
Average consumption of 6,000,000 kWh economic viability of different sized tower/turbine
combinations. Further analysis of the factors affecting
The largest rate class by number of customers is the public development of DG wind facilities is beyond
basic residential class (R1), but this class also has the the scope of this report, however, a more detailed
lowest average usage and annual sales by customer. analysis would be a useful tool for Municipalities as
The G2 and G3 class customers are small in number, they consider their options for renewable energy
but have a large consumption of energy on a per consumption.
customer basis. See Appendix E, Table E3 for more
detailed information on the consumption/kWh for each
class of customer.

June, 2004 31
6 Wind Technical Survey and Analysis

3) Medium Commercial (G2) Customers ■ Summary of Findings


There are 157 G2 customers on Cape Cod and Martha’s The most important factors contributing to the
Vineyard that consume eleven percent of the total economics of DG wind development are wind
energy. Customers in the G2 rate class have the second resources, size of customer energy consumption and
best economic payback opportunity of any rate class size of wind turbine system. The summary results are:
for DG wind given their large electricity consumption
and rate structure. • There are economies of scale for wind
turbines, thus all things being equal, the larger
As with G3 customers, the payback period for sub 800 the wind turbine (in kW) the more cost-
kW systems is likely to be unacceptable to most effective the system.
investors/customers (see Appendix E, Table E6). • Generally, the higher the elevation the faster
BRED’s analysis also showed that IRR for G2 the average wind speed.
customers decreased rapidly and the years to positive • Medium (>20 kW) and large wind systems
cash flow increased dramatically for larger turbines, only come in a finite number of turbine / tower
as compared with the G3 customers (see Appendix E, combinations. Generally the larger the
Figure E7). This decrease in financial returns for the turbine, the larger the rotor blade, and the
larger turbines results from the turbine being over- higher the turbine tower. This correlation is
sized for the on-site consumption (see Appendix E, influenced both by a need for the rotor blades
Figure E8). This means a much higher portion of to have ground clearance and a desire to reach
energy is being sold back into the wholesale market faster winds that will be caught by the system.
rather than being consumed on-site to avoid utility • For any given turbine system, it is unclear
generation charges. This is an important consideration whether the costs of a higher tower are offset
when determining the appropriate size facility for a by the benefits of increased annual energy
given electricity customer. production as the result of higher wind speeds
at greater elevations. Conversely,
4) Small Commercial (G1) / Residential (R1) manufacturers only engineer and sell a handful
and Electric Heating (R3) Customers of tower sizes (2 to 6, generally) with each
turbine. Thus placing a very large turbine on
The vast majority of the customers on Cape Cod and a very short tower (with enough ground
Martha’s Vineyard are associated with a relatively clearance) is not possible in practice as such
small amount of annual consumption of the R1, R3, configurations are not sold in the market today.
and G1 customer classes. As they consume fewer kWh • A customer gets more revenue from offsetting
annually, there is less electricity to avoid, and generally higher utility rates, than selling (excess)
should be matched up with smaller turbines. generation output to the wholesale market.
Thus appropriately sizing the turbine with the
BRED’s analysis concludes that DG wind becomes customer’s load in order that most of the
untenable for the smallest customers and systems when energy produced by the turbine is consumed
grid connected. In fact, for grid connected on-site is important to get a better economic
applications, the net present value (NPV) becomes payback.
negative, and IRR and years to positive cash flow
becomes undefined (see Appendix E, Tables E9, E10
and E11). However, from an environmental
standpoint, smaller turbines may be utilized by users
looking to reduce consumption from fossil fuels and
could be subsidized by grants and other philanthropic
sources. Furthermore, as the technology develops in
the future and becomes more efficient, these
economies may change.

32 Assessment of Distributed Generation Technology


6 Wind Technical Survey and Analysis

■ Conclusion systems to those with a much worse economic


payback. In essence, a 200-foot height restriction
Given the constraints of these physical and market would be a de facto economic prohibition on wind
realities, the analysis shows that best economic turbine DG development.
payback for wind systems are for larger turbines (over
750 kW) matched with the largest electric loads. These Finally, it is important to remember that this analysis
larger systems all have a top of blade height well over focused on stand-alone DG wind turbine applications,
200 feet, and some have a minimum top of blade height and did not consider merchant wind farms that would
greater than 300 feet. It is likely that the type of DG be selling directly into the wholesale market and not
applications on the Cape will include turbines of this be attempting to offset a customer’s load. The
scale. Therefore, any model bylaw with a height limit economic realities of a wind farm would have a
below 200 feet would restrict the system size that could different economic dynamic, though restricted to the
be sold, and thus restrict the choice of wind turbine same physical and market realities.

June, 2004 33
34 Assessment of Distributed Generation Technology
Section 7
Non-Wind Assessment: Microturbines,
Fuel Cells and Photovoltaic
■ Introduction propane. However, even when operated on
conventional fuels, both fuel cells and microturbines
The information compiled in this section is a result of have significantly cleaner emissions than combustion-
research conducted by Serchuk Associates and based central station power plants or conventional
provides technical specifications for twenty-two distributed generators such as diesel or natural gas
distributed energy products in three categories: engines. For that reason, they are often grouped with
microturbines, fuel cells and photovoltaic (PV) renewable technologies in qualifying for public
systems. The intent is not to provide exhaustive or subsidies, albeit sometimes with built-in handicaps that
encyclopedic information on the areas covered, but give an advantage to true renewables. This analysis
rather to provide a context and comparison for wind includes data on systems using both conventional and
technology, the main focus of this report. This analysis renewable fuels.
found that microturbine, fuel cell and PV systems in
some ways present milder challenges for planners, The analysis relies heavily on publicly available
policy makers and the communities seeking to information such as on-line technology specifications
accommodate them than do wind turbines. However, and websites. This section includes only products that
wind technology is generally more market-ready and were generally available on a commercial basis to the
more economic than most other distributed energy public, rather than pilot, demonstration or experimental
technologies. The analysis does not expect large systems. However, the fuel cell and microturbine
amounts of microturbine, fuel cell or PV capacity in industries are pre-commercial. It is not clear whether
Cape Cod and Martha’s Vineyard in the near future. the manufacturers are consistently shipping all the
systems described here, and even some of the most
It is conceivable that jurisdictional entities will seek visible manufacturers are in financial difficulty.
to develop distributed energy projects using
technologies other than wind in the near future.27
Initially, these will be pilot and demonstration projects ■ Microturbines
driven largely by grants and other subsidies. Indeed,
in the case of photovoltaic systems, such development 1) Microturbine technology
is to some extent underway already, and at least one
200-kW fuel cell has been installed. A microturbine is a small, gas-driven turbine connected
to a generator. Capacities range from 30 to 400 kW.
Fuel cells and microturbines can be operated on Compared to engine-driven generator sets,
renewable fuels such as landfill gas or gas produced microturbines have relatively few moving parts and
from animal waste (although such configurations have relatively low air emissions. Microturbines can be
been limited so far to pilots and demonstrations), as used in cogeneration applications (also known as
well as conventional fuels such as natural gas or combined-heat-and-power or CHP). Indeed, it can be

27
A recent study found that Cape Cod customers would have cost-effective opportunities to deploy 105 MW of advanced fuel cells, 32
MW of microturbines and 1 MW of photovoltaic technology by 2015, and that Martha’s Vineyard customers could deploy 0.1 MW of
advanced fuel cells, 2.2 MW of microturbines and 0.2 MW of photovoltaic systems. Ridley & Associates for the Cape Light Compact,
Regional Options Study (undated review copy), p. 7.

June, 2004 35
7 Non-Wind Assessment: Microturbines, Fuel Cells
and Photovoltaic Systems

difficult for microturbines to satisfy users’ economic are moving to larger-capacity systems in an attempt
criteria without cogeneration. Such uses raise the to expand margins. Many firms are also focusing on
overall system efficiency significantly through niche markets, especially those featuring waste (or
employing the hot, relatively clean exhaust gas to heat “opportunity”) fuels, such as landfills, breweries, food
water or space, to drive an absorption chiller, to processing facilities, or other sources of energy-rich
regenerate a desiccant dehumidifier, or in industrial waste gas. Many firms also continue to develop
drying processes. integrated cogeneration packages that produce both
power and useable heat.
An installed microturbine system consists of three
basic components: the fuel handling subsystem, the As of early 2004, the industry remains unstable. For
microturbine itself, and the power electronics. Because instance, British firm Bowman Power Systems Limited
microturbines require fuel at comparatively high failed to raise needed capital, and called in an
pressure (generally from 64 - 90 psig), the fuel Administrator to help it resolve its financial
handling subsystem must include at least a compressor. difficulties. Meanwhile, Capstone Turbine’s 2003
Some models include an integral compressor (e.g., shipments were well below those of 2002, and far
Ingersoll-Rand’s units), while others may not. This below 2001 levels. However, Capstone has announced
subsystem may also include a gas clean-up module that its 200-kW unit is nearly ready for beta testing
for renewable or other non-conventional fuels, the and may be ready for sale in 2004. Ingersoll-Rand
impurities in which may damage the turbine. has not announced sales figures for its own new 250-
kW system, but reports that sales have been somewhat
At the other “end” of the microturbine, the power disappointing.
electronics subsystem converts the system’s alternating
current, which is very high frequency due to the rapid 3) Selected Microturbine Models
rotation of the turbine element, into direct current, and
then back to useable 60-cycle alternating current. The The Specification Spreadsheet (see attachment)
required power electronics will vary with the contains data on the following models:
customer’s needs, depending, for example, on whether
the microturbine is intended to shut down if grid power • Capstone C30 Landfill or Digester Biogas
fails so as to protect line workers repairing the outage, • Capstone C60 Natural Gas
or if in those circumstances the customer wishes the • Capstone C60 Integrated CHP
unit to isolate itself from the grid and continue • Elliott 100-kW CHP Microturbine
generating independently. Finally, microturbines • IR PowerWorks 70L for Grid-parallel
intended for cogeneration applications (e.g., some Electric Power
Ingersoll-Rand and Bowman models) include a heat • IR PowerWorks 70S for Continuous Electric
recovery module. Power
• IR PowerWorks 250 for Continuous Electric
2) The microturbine industry Power

Microturbines entered field-testing around 1997, and 4) Microturbine costs


most products arrived at the market in 1999 or 2000.
After a period of publicity, it became clear by late 2001 None of the publicly available specification sheets list
that significant hurdles obstructed market acceptance prices for microturbine products. However, a set of
of the technology. Most companies have failed to technology characterizations28 released recently by the
achieve their sales goals and, partly as a result, many National Renewable Energy Laboratory and the Gas

28
L. Goldstein et al., Gas-Fired Distributed Energy Resource Technology Characterizations, NREL/TP-620-34783 (Golden, CO: NREL
and GRI, December 2003), p. 4-11, at http://www.osti.gov/dublincore/gpo/servlets/purl/15005819-mO4BBN/native/.

36 Assessment of Distributed Generation Technology


7 Non-Wind Assessment: Microturbines, Fuel Cells
and Photovoltaic Systems

Research Institute (now the Gas Technology Institute) microturbines: a fuel-handling subsystem, the
offers the following ranges (2003 dollars) for four electricity-generating fuel cell stack, and the power
representative gas-fired microturbine models, electronics.
including products offered by the manufacturers in our
survey. Note that this data set excludes microturbines In the case of PEM cells, the fuel-handling module
configured for renewable fuels. may contain a reformer to remove the hydrogen from
natural gas fuel. (Due to doubts about the quality of
• Installed cost (power only): $1,576 - $2,263 available reformers, some manufacturers have released
per installed kilowatt PEM products that accept only pure hydrogen.) The
• Installed cost (cogeneration configurations): higher temperatures of other varieties may function
$1,769 - $2,636 per installed kilowatt to remove the hydrogen without a separate reformation
• Operation and maintenance costs (excluding step. If the fuel cell is operating on landfill or other
fuel): $0.013 - $0.020 per kilowatt-hour.29 varieties of biogas, the fuel-handling process will also
include various steps to clean the gas of impurities
that would otherwise poison the stack. At the other
■ Fuel Cells “end” of the fuel cell, the power conditioner converts
the electricity produced to alternating current of the
1) Fuel Cell Technology correct frequency or regulated direct current.

Fuel cells generate power through chemical means, 2) The Fuel Cell Industry
without combustion, by converting hydrogen and
oxygen to electricity, heat and water. The system may Fuel cells have enjoyed—or been cursed with—even
employ pure hydrogen, or derive it from a hydrogen- greater positive publicity than microturbines, in spite
bearing fuel such as natural gas, gasoline, methanol, of their modest business success so far. Many sober
landfill gas, digester gas, and the like. The oxygen is market analysts continue to predict very large markets
typically derived from the atmosphere. Fuel cells for fuel cells in providing stationary, portable and
typically have very low (although not zero) gaseous mobile power. Nevertheless, only a very few firms
emissions. However, the process of removing have fuel cell products on the market that can fairly
hydrogen from a hydrocarbon may result in significant be characterized as commercial. So far, fuel cells have
emissions of carbon dioxide, the principal man-made met marginally more success for portable than for
greenhouse gas. And, although fuel cells’ chemical stationary or mobile applications, but no fuel cell
processes are silent, their compressors and fans are product has yet reached mass markets.
not.
Stationary fuel cells, the topic of this analysis, remain
There are several varieties of fuel cell, primarily very expensive compared to alternative sources of
characterized by the different electrolytes they employ. distributed energy (generally over $3,000 per
They feature different operating temperatures and kilowatt), and even more so compared to conventional
efficiencies as well. For example, most fuel cells central-station power. Only one fuel cell product, UTC
envisioned for residential or portable use are low- Fuel Cells’ 200-kW phosphoric acid model, has
temperature polymer-electrolyte membrane (PEM) appreciable operating history, with about 250 units sold
cells, while the higher-temperature phosphoric acid, since 1992.
molten carbonate and solid oxide varieties are
generally envisioned for automotive or industrial uses. As a result, the last few years have seen considerable
Generally speaking, though, fuel cells contain consolidation in the fuel cell industry, as large
subsystems analogous to the three that constitute corporations with an apparent long-term commitment

29
Fuel costs are not included here since non-fuel O&M is a standard industry metric.

June, 2004 37
7 Non-Wind Assessment: Microturbines, Fuel Cells
and Photovoltaic Systems

to the technology buy out smaller innovators. Even into direct current. Most PV modules (i.e., “solar
so, most firms have cut the number of employees and panels”) contain crystalline cells, which, compared to
level of expenditures in an attempt to conserve capital. other cell types, enjoy more mature manufacturing
Even the industry leader, UTC Fuel Cells, laid off process (and therefore lower manufacturing costs) and
employees in mid 2002 and again in early 2003. higher efficiency. However, crystalline manufacturing
remains slow and wasteful of materials, and it has
3) Selected Fuel Cell Models proven difficult to automate. Several firms have
therefore turned to thin-film processes, which deposit
The Specification Spreadsheet (see attachment) a shallow layer of photovoltaic material on a low-cost
contains data on the following models: substrate. In the future, thin film may come to play a
greater role in the market, as will more exotic
• Ballard Power Systems’ AirGen materials.
• Plug Power’s GenSys
• Plug Power’s GenCore Apart from the electricity-generating module, a
• Avista Labs’ Independence 1000 customer installing a grid-connected PV system
• Fuel Cell Energy’s DCA 300A requires the “balance of system,” which includes an
• UTC Fuel Cells’ PC25 inverter to convert DC to AC power, wiring, mounting
hardware and monitoring devices—not to mention
4) Fuel cell costs customized installation.

None of the publicly available specification sheets list 2) The Photovoltaic Industry, Markets
prices. The recent volume of technology and Products
characterizations referenced above lists the following
cost ranges for a set of gas-fueled fuel cells for Around the year 2000, markets for grid-connected,
cogeneration applications (2003 dollars).30 Note that building-located PV systems, driven largely by
this dataset assumes natural gas as a fuel, and excludes subsidies and other policy support, began to outpace
renewable fuels and the direct-hydrogen powered markets for grid-independent commercial applications
Ballard, Avista and Plug Power units described in the (e.g., telecommunications repeaters, highway call
Specification Spreadsheet. boxes and other remote uses). Most growth is expected
from smaller systems in distributed, grid-connected
• Package cost: $2,830 - $4,700 per installed markets, but the U.S. has seen small but increasing
kilowatt numbers of megawatt-scale PV installations.
• Installed cost: $3,250 - $5,500 per installed
kilowatt Although there remains significant room for
• Operation and maintenance costs (excluding innovation and cost cutting in solar cell materials and
fuel): $0.023 - $0.043 per manufacturing, the nearest-term opportunities concern
kilowatt-hour the balance-of-system components, especially
inverters, as manufacturers rush to market grid-ready,
pre-engineered packages. This has led to a trend
■ Photovoltaic Systems toward vertical integration, as module manufacturers
try to extend their reach down the value chain.
1) Photovoltaic Technology Inverters continue to represent the Achilles heel of the
PV industry, with mean time between failure
Photovoltaic technology is capable of producing reportedly close to five years, in contrast to the 25-
distributed power with no on-site pollution. PV cells year projected lifetime of the modules themselves.
are solid-state semiconductor devices that convert light

30
Ibid., p. 5-15.

38 Assessment of Distributed Generation Technology


7 Non-Wind Assessment: Microturbines, Fuel Cells
and Photovoltaic Systems

The growth of markets for photovoltaic systems has • Evergreen Solar’s EC-115 module
on occasion been hindered by local ordinances that • RWE Schott Solar’s heavy-duty ASE-300-
prohibit visible modifications to homes and other DFG/50 module
buildings. In some sub-developments, covenants limit • BP Solar’s BP-4160S
residents’ ability to alter the appearance of their homes, • Sharp’s triangular ND-070ERU module
and may specifically prohibit roof-mounted solar • Sharp’s rectangular ND-NOECU module
power (and solar water heating) systems. Traditional • PowerLight’s PowerGuard solar roofing tiles
PV systems can be perceived as particularly • Kyocera’s MyGen 24 prepackaged residential
undesirable, partly due to the geometric pattern of five- solar system
or six-inch cells on a typical crystalline PV module. • Astropower’ Sunline-36 prepackaged residential
solar system
Thin-film PV products, should they gain appreciable • United Solar Ovonics’ building-integrated
market share, might ameliorate this problem, as their solar roofing shingle
sunlight-collecting surface usually features a single
uniform color. An even better solution, and a Note that this is a very small cross section of the
particularly intriguing market development, is the photovoltaic products available for residential,
recent emergence of building-integrated PV (BIPV). commercial and municipal use.31 Moreover, in many
These products function as shingles, cladding or other cases, larger solar installations are better characterized
integral building elements, and can be incorporated as projects rather than products. Each installation,
directly into the built structure. They not only offer whether it is a photovoltaic shade over a parking area,
potential aesthetic advantages over their predecessors, a building fa ade, a flat-roof installation on a
but also potential economic ones, as they may allow warehouse or government building, or other
for cost offsets through making the building materials application, results in a unique design. Nevertheless,
they replace unnecessary. However, BIPV has made the Specification Spreadsheet contains typical solar
fewer inroads in the U.S. than it has in Europe and technology offered by the most active manufacturers.
Japan, partly due to lack of awareness among
architects. 4) Photovoltaic Costs

With a few exceptions such as Evergreen Solar, For systems under 10 kWp (kW peak capacity) in
UniSolar and First Solar, most North American module capacity, photovoltaic modules typically cost $4,000
manufacturing is dominated by subsidiaries of large - $5,000/kWp. The balance-of-system components
multinational corporations, including BP, Sharp, and installation may add $3,000 - $6,000/ kWp for
Sanyo, Shell Kyocera and RWE. GE is apparently even the simplest system. Larger systems will be
seeking to purchase the assets of Astropower, a well- somewhat less expensive on a per-kilowatt basis.
known small firm that has encountered serious
financial difficulties. Based on indices of current retail prices, one reputable
source calculates the following electricity prices for
3) Selected Photovoltaic Products PV systems. Note that these prices assume 5% interest
rates and do not include applicable subsidies. They
The attached Specification Spreadsheet includes a do include all installation and integration costs
variety of types of photovoltaic products, including (seeTable 6). About 80% of the firms included in these
modules, pre-packaged systems, and building- indices are located in the U.S. Note that given typical
integrated products: Cape Cod conditions, actual costs are likely to

31
For instance, Photon International’s annual solar module market survey lists roughly 340 models, counting only those crystalline
silicon module models over 80 Watts and thin-film units over 50 Watts in capacity (February 2004).

June, 2004 39
7 Non-Wind Assessment: Microturbines, Fuel Cells
and Photovoltaic Systems

Table 6
Typical Prices for Photovoltaic Systems32

2-kW roof-mounted Installed system price $18,923


residential, grid-connected Sunny climate energy cost 39.55 cents/kWh
with battery back-up Cloudy climate energy cost 87.01 cents/kWh
Installed system price $361,932
50-kW ground-mounted,
Sunny climate energy cost 29.18 cents/kWh
grid-connected
Cloudy climate energy cost 64.91 cents/kWh
Installed system price $2,450,711
500-kW flat roof-mounted,
Sunny climate energy cost 21.15 cents/kWh
grid connected
Cloudy climate energy cost 46.54 cents/kWh

resemble the data given below for cloudy climates, 10-kW commercial system financed through a
although the actual price of PV power will be a result commercial loan is reckoned to cost the owner $1,282
of weather conditions, equipment costs, applicable per installed kilowatt after applicable subsidies -
subsidies and type of finance. which, in the case of the utility in this example, are
quite appreciable. The system achieves payback after
The calculation of such costs for Cape Cod and 5 years. Of course, these cases may or may not
Martha’s Vineyard is beyond the scope of the present resemble the circumstances of any individual
exercise. For the sake of illustration, however, we purchaser, and they are highly dependent on the
note that a recent proprietary analysis describes two subsidies available at the time the case studies were
hypothetical cases in the service territory of a developed.
Northeastern utility. In one case, a $16,000, 2-kW
residential system enjoying net metering and financed A typical 2-kW residential PV array using crystalline
through a home equity loan is calculated to cost the silicon modules requires about 160 square feet of
homeowner $2,456/kW after application of relevant installation space. Thin-film modules may require
subsidies and tax credits. The system achieves double that area, due to their lower efficiency.
payback after 11 years. In the second case, a $65,000,

32
Source: Solarbuzz.com, viewed 16 Jan. 2004 at http://www.solarbuzz.com/SolarIndices.htm.

40 Assessment of Distributed Generation Technology


Section 8
Recommendations for a Wind
Power Related Model Bylaw
In this section recommendations are offered for • FAA obstruction review and lighting
consideration as a model bylaw is developed and for requirements will likely require lights on all
additional study that would assist Municipalities in but the shortest towers. Revised regulations
understanding the technology and its applications. are currently under development. The impact
of these lights should be considered as part of
• A height restriction of 200 feet would be a de any visual assessment.
facto denial of economically feasible siting of • Avian studies are unlikely to be needed for
wind turbines in all but the most unusual cases. every project, unless other state or federal
We recommend either 400 foot or no a priori permits are required. However, consultation
height restriction on turbines in appropriate with groups/agencies with information about
districts (e.g., commercial and industrial avian use of areas would be advisable and
parks). A restriction of 200 feet height is most performed on a site-specific basis to identify
likely appropriate for residential zones. any possible risk to native or migratory
• The minimum set back of a turbine system species. One “programmatic” evaluation for
should be associated with its fall zone and the region may be appropriate, rather than
noise impacts, not an arbitrary minimum requiring each wind-power proposal to
acreage. perform a separate study, although no such
• The designation of sensitive and or scenic study is currently under development.
resource overlay districts (such as National • Placement of wind turbines in wetland
Monuments and Recreation areas, State parks, resources, buffer areas and coastal zones,
wildlife refuges, historic, archeological sites) should be pursued only after other upland and
should be considered on zoning maps. . developable resources have been explored.
• Visual impact studies are recommended, but However, there may be highly desirable
the level of detail could vary depending on locations in coastal zones that would be
the scale and potential visual impact on economic and minimize adverse impacts, such
sensitive resources of a given project. The as on developed breakwaters etc.
potential for mitigation of visual impact • An important issue identified by completion
through conservation or scenic area land of this assessment is the need for an overview
banking may be a possibility. The higher a of how to develop DG wind facilities. Such
wind turbine, the more economically efficient, an effort would involve issues related to
the greater the ability for financial set-aside ownership and financing options of the
for mitigation. facilities, sizing and economics, and would be
• Analysis for shadowing and flicker caused by a valuable tool for Municipalities especially
turbine blades should be performed. as they explore options for DG wind. This
• Each project should mandate that manufacturer effort could be integrated or coordinated with
noise information be supplied (including tonal efforts by the MTC’s Community Wind
noise) to determine compliance with Initiative.
Massachusetts state noise policy. Qualified
engineers should be involved on a site-specific
basis in confirming aspects of the noise
environment and predicted impacts.

June, 2004 41
42 Assessment of Distributed Generation Technology
Appendices

Appendix A: Review of Wind Energy and Turbine Design

Appendix B: FAA Supplemental Obstruction Analysis


Information

Appendix C: Survey of Wind Turbine Manufacturers

Appendix D: Tables Used for Survey Analysis in Section 6

Appendix E: Zoning Analysis

Appendix F: References/Bibliography

Assessment of Distributed Generation


June, 2004Technology • June, 2004 43
Appendix A
Review of Wind Energy
and Turbine Design

44 Assessment
Assessment
of Distributed
of Distributed
GenerationGeneration
Technology
Technology
• June, 2004
Appendix A – Review of Wind Energy and Turbine Design

A. Available Energy

For a flow of air with velocity v and density ρ through a unit area A perpendicular to the
wind, the kinetic energy per unit time is given by P1:

P = 1 mv 2 = 1 ( Avρ )v 2 = 1 ( Aρ )v 3
2 2 2

where P = kinetic energy per unit of time


A = area (m2)
ρ = density (kg / m3) (Note: ρ is the Greek letter “rho”)
v = velocity (m/s, meters per second)

Air density (ρ) is also a function of a number of factors

Pr − VP 273 kg
ρ = 1.2929
760 T m 3

where Pr = atmospheric pressure, mm of Hg (mercury)


VP = vapor pressure, mm of Hg
T = temperature, degrees Kelvin.

The vapor pressure term is a small correction term, around 1%, and can usually be
neglected. High temperatures and low pressures reduce the density of air, which will
reduce the power per area. A major factor for change in density is the change in
pressure with elevation. A 1000 m (3,280 ft) increase in elevation will reduce the
pressure by 10% and thus reduce the potential energy by 10%. If only elevation is
known, air density can be estimated by2

ρ = 1.226 − (1.194 * 10 −4 ) z

where z= elevation above sea level (meters)

The industry standard density for comparing output of wind turbines is 1.226 kg/m3,
which corresponds to a temperature of 15 degrees C (59 deg F) and an air pressure of
sea level.
A. Theoretical Limits and Practical Limits

1
www.windworkers.com JP Sayler and Associates Wind Resources and System Performance
2
http://rredc.nrel.gov/wind/pubs/atlas/appendix_A.html#vertical. See also
http://www.seic.okstate.edu/owpi/about/Library/Lesson3_WPD_windclass.pdf
A wind turbine does not extract all the kinetic energy from the wind, but has practical
limits.

The actual power will depend on several factors, such as the type of
machine and rotor used, the sophistication of blade design, friction
losses, and the losses in the pump or other equipment connected to the
wind machine. There are also physical limits to the amount of power that
can be extracted realistically from the wind. It can be shown theoretically
that any windmill can only possibly extract a maximum of 59.3% of the
power from the wind (this is known as the Betz limit). In reality, this
figure is usually around 45% (maximum) for a large electricity producing
turbine and around 30% to 40% for a windpump3.

The practical limit of wind turbine efficiency is given by the following found at the
American Wind Energy Association (AWEA) website:

P = 1 ( Aρ )v 3 Cp Ng Nb
2

Where Cp = Coefficient of performance (.59 is Betz


limit) is the maximum theoretically possible,
.35 for a good design)
Ng = generator efficiency (50% for car
alternator, 80% or possibly more for a
permanent magnet generator or grid-
connected induction generator)
Nb = gearbox/bearings efficiency (depends,
could be as high as 95% if good)
v = velocity (m/s, meters per second)

If there is any single equation that the beginning wind enthusiast should
memorize, this is it.4

C. Basic Wind Turbine Systems – Rotor Design

There are two primary physical principles by which energy can be extracted from the
wind; these are through the creation of either lift or drag force (or through a combination
of the two). The difference between drag and lift is illustrated by the difference between
using a spinnaker sail, which fills like a parachute and pulls a sailing boat with the wind,
and a Bermuda rig, the familiar triangular sail which deflects with wind and allows a
sailing boat to travel across the wind or slightly into the wind.

Drag forces provide the most obvious means of propulsion, these being the forces felt by
a person (or object) exposed to the wind. Lift forces are the most efficient means of
propulsion but being more subtle than drag forces are not so well understood.

The basic features that characterize lift and drag are:


• drag is in the direction of air flow.

3
http://www.itdg.org/html/technical_enquiries/docs/wind_electricity_generation.pdf
4
http://www.awea.org/faq/windpower.html)
• lift is perpendicular to the direction of air flow
• generation of lift always causes a certain amount of drag to be developed
• with a good aerofoil, the lift produced can be more than thirty times greater
than the drag
• lift devices are generally more efficient than drag devices

Types and characteristics of rotors

There are two main families of wind machines: vertical axis machines and horizontal axis
machines. These can in turn use either lift or drag forces to harness the wind. The
horizontal axis lift device is the type most commonly used. In fact other than a few
experimental machines virtually all windmills come under this category.

There are several technical parameters that are used to characterize windmill rotors.
The tip speed ratio is defined as the ratio of the speed of the extremities of a windmill
rotor to the speed of the free wind. Drag devices always have tip-speed ratios less than
one and hence turn slowly, whereas lift devices can have high tip-speed ratios (up to
13:1) and hence turn quickly relative to the wind5.

The proportion of the power in the wind that the rotor can extract is termed the
coefficient of performance (or power coefficient or efficiency; symbol Cp) and its
variation as a function of tip speed ratio is commonly used to characterize different types
of rotor. As mentioned earlier there is an upper limit of Cp = 59.3%, although in practice
real wind rotors have maximum Cp values in the range of 25%-45%.

Solidity is usually defined as the percentage of the area of the rotor, which contains
material rather than air. Low-solidity machines run at higher speed and tend to be used
for electricity generation. High-solidity machines carry a lot of material and have coarse
blade angles. They generate much higher starting torque (torque is the twisting or rotary
force produced by the rotor) than low-solidity machines but are inherently less efficient
than low-solidity machines. The windpump is generally of this type. High solidity
machines will have a low tip-speed ratio and vice versa.

There are various important wind speeds to consider:


• Start-up wind speed - the wind speed that will turn an unloaded rotor.
• Cut-in wind speed – the wind speed at which the rotor can be loaded.
• Rated wind speed – the windspeed at which the machine is designed to run
(this is at optimum tip-speed ratio).
• Furling wind speed – the windspeed at which the machine will be turned out
of the wind to prevent damage.
• Maximum design wind speed – the windspeed above which damage could
occur to the machine.
• The choice of rotor is dictated largely by the characteristic of the load and
hence of the end use.

5
Note most large modern systems rotate at a constant on near constant rate (revolutions per minute)
Some rotor types and their characteristics are shown in Table A1, but it should be noted
that only three-bladed rotors are currently used for modern turbines6.

Table A1
Comparison of Rotor Types

Type Speed Torque Cp Solidity(%) Use


Horizontal
Axis
Multi blade Low High 0.25 - 0.40 50 - 80 Mechanical
Power
Three- High Low up to 0.45 <5 Electricity
bladed Production
aerofoil
Vertical Axis
Panemone Low Medium < 0.1 50 Mechanical
Power
Darrieus Moderate Very Low 0.25 - 0.35 10 - 20 Electricity
Production

D. Wind Shear: Wind Speed and Height

Below is a brief discussion of the modeling of wind shear7.

The windspeed at some other height can be approximated by a power


law.

3.6

where vo = measured windspeed


Ho = height of known windspeed vo
H = height

The exponent α is around 1/7 for a stable atmosphere (decrease in


temperature with height), however it will vary, depending on terrain and
atmospheric conditions From Eq. 3.6 the wind shear, change in
windspeed with height, can be estimated (Figure A2).

Calculations for Figure A2 are for known windspeed of 10 m/s at 10 m, α


= 1/7. Other formulas for estimating windspeed with height are

6
This section is taken verbatim from
http://www.itdg.org/html/technical_enquiries/docs/energy_from_wind.pdf
7
The following discussion of wind shear is based closely on Dr. Vaughn Nelson’s class notes - Chapter
3 of PHYS302: Wind Energy and Wind Turbines, Fall semester 2003, West Texas University.
3.7

3.8

where zo is the roughness parameter. Equation 3.8 allows a zero


windspeed at the surface. The roughness parameter ranges from 0.02
m for flat open terrain with short grass to larger than 1 m for rough
terrain.

E. Wind Shear: Wind Speed and Height

The energy that can be derived from wind is a cubic function of the windspeed and
therefore any factors that affect wind speed, even to a small degree, has large impacts
on the energy that can be derived from a wind turbine system. Windspeed generally
decreases with decreases in elevation from above ground level because the friction
caused by the earth’s surface slows the speed of the wind at lower elevations. Wind
shear is defined as the change in windspeed with height (see Figure A2). Thus
understanding the level of and effects of wind shear is important to understanding how
height limitations will affect the energy output of turbines, and ultimately the economic
viability of wind turbine systems.

Figure A2
Change in Windspeed with Height, Wind shear.

Distribution of Wind Resources and Power Curves

Factors discussed above that affect wind power include: the altitude of the site, the
height of the turbine above surface, the area swept by the rotors of the turbine, the
average temperature, the efficiency of the system converting kinetic energy to electric
energy, and most importantly the average wind speed. This still is still not sufficient,
however, to make a “good” estimate of the energy output from a wind turbine. One still
needs to have estimates of two more factors to predict the energy output of a turbine,
and they are:

The probability density distribution (PDD8, i.e., distribution) of the wind speed over time.
The most common industry assumption is that wind follows a Weibull distribution9.

k v
k −1
  v k 
F (v) = ∆v   exp −   
c c   c  

where F(v) = frequency of occurrence associated with each incremental windspeed of


∆v centered at v
∆v = width of class or bin (e.g., 1 m/s)
v = mean windspeed
k = is a shape parameter
c = Gamma (1/K) and approximated by the constant of 0.89 for most values of k

The Weibull distribution is characterized by two parameters, the shape parameter, k


(dimensionless) and the scale parameter, c (m/s). The Rayleigh distribution is a special
case of the Weibull distribution where k = 2. For regions of the trade winds where the
winds are fairly steady, the shape factor may be as high as 4 to 5. For most sites in
Europe and the United States, k varies between 1.8 to 2.4.10

Examples of Weibull density function for an average windspeed of 6.0 m/s are shown in
Figure A4. Figure A4shows the Weibull distribution with varying values of the “k”
parameter which as noted above controls the shape of the curve. Note when k=2, the
distribution is the same as the Rayleigh distribution, which is commonly used as the
default distribution of windspeed.

The important point to understand is that for a given wind speed (e.g., 6.0 mps) the more
peaked the distribution (i.e., the higher the value of the “k” parameter), the less potential
energy for that wind resource. This result occurs because the kinetic energy of wind is a
cubic function of the wind speed.

A simple example may suffice to explain this phenomenon. Assume two simple
distributions, a more peaked distribution with a mean of 6 meters/second would have the
wind blowing at 5 m/s ¼ of the time, 6 m/s ½ of the time and 7 m/s ¼ of the time, while a
flatter distribution would have the wind blowing at 4 m/s 10% of the time, 5 m/s 20% of
the time, 6 m/s 40% of the time, 7 m/s 20% of the time and 8 m/s 10% of the time.

8
The PDDin this case defines the probability that the wind will blow at various speeds over a given a
period of time (e.g., one year). For example the PDD might show that the wind will blow at 0 m/s 3% of
the time during a year, at 1 m/s 5% of the time during a year, at 2 m/s 10% of the time during a year, etc.
9
For more on the Weibull distribution see http://www.windpower.org/en/tour/wres/weibull.htm.
10
Vaughn Nelson, Wind Energy and Wind Turbines, Alternative Energy Institute, West Texas A&M
University, January 2004.
The estimated average energy produced by a wind turbine can be computed from the
sum of the products of the PDD and power curve (e.g., the probability that the wind is
blowing at 1 mps * kW produced at 1 mps, + the probability that the wind is blowing at 2
mps * kW produced at 2 mps, + the probability that the wind is blowing at 3 mps * kW
produced at 3 mps, etc.). Estimating the energy produced over time (kWh) is computed
by multiplying this result by the number of hours in the time period (e.g., one year = 8760
hours).
Table A3 shows the computation of average energy produced for a FL-250 (at sea level,
with moderate roughness and temperature of 15 degrees Celsius) for the flat and
peaked wind distributions with mean of 6.0 m/s described above.

Table A3
Comparison Average kW Output of a FL-250 System for a Simple Peaked and. Simple Flat Wind
Distribution

Wind Power Fraction of Peaked Flat Flat


Speed Curve kW Occurrence Distribution: Distribution: Distribution:
(m/s) Production Avg kW Fraction of Avg kW
Output Occurrence Output
1 0 0% 0.0 0% 0.0
2 0 0% 0.0 0% 0.0
3 1 0% 0.0 0% 0.0
4 7 0% 0.0 10% 0.7
5 25 25% 6.3 20% 5.0
6 35 50% 17.5 40% 14.0
7 59 25% 14.8 20% 11.8
8 91 0% 0.0 10% 9.1
9 127 0% 0.0 0% 0.0
10 160 0% 0.0 0% 0.0
Total 100% 38.5 100% 40.6
Figure A4
Modeled Probability Density Function of Wind Speed Using Weibull Distribution @ 6.0 MPS

20.0%
Probability Wind is Blowing - Avg Wind Speed 6.0 mps .

18.0%

16.0%
k= 1.50
14.0% k= 1.75
k= 2.00
12.0% k= 2.25
k= 2.50
10.0% k= 2.75
k= 3.00
8.0%

6.0%

4.0%

2.0%

0.0%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Wind Speed in Meters/Second

The various components of the analysis are combined, which results in estimates of the
annual average energy production for a single turbine model, the FL-250 (nominal peak
kW of 250 kW). Figure A6 graphically represents for this production turbine – the FL-250
- the concepts presented above; that is the relationship of average wind speed and the
PDD of wind speed on annual energy production.

As can be seen, an increase in average wind speed from 5.0 mps to 7.0 mps m/s
approximately doubles the modeled energy the FL-250 produces. Assumptions of the
Weibull k (which controls the shape of the wind speed distribution – PDD as seen in
Figure A4) also affect modeled energy production, but to a lesser degree. For example
at an average wind speed of 6.0 mps a change in the Weibull k from 2.0 to 3.0
decreases the modeled annual energy output from 455 GWh to 401 GWh, a decrease of
12%.

Given the sensitivity of energy production to wind speed and the sensitivity of wind
speed to height, all things being equal, it is much more efficient to put a turbine on a
higher tower. The effect of tower height is described in more detail in Section 6.
Figure A5
Power Curves of Fuhrlander Family of Turbines @ Sea Level

1100

1000

900 FL-30
FL-100
800
FL-250
700 FL-800
FL-1000
600 FL-1000+
kW

500

400

300

200

100

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Meters per Second
Figure A6
Estimated Annual Energy Production of Fuhrlander FL-250 (250 kW) for Sample Scenarios for Various
Weibull Shape Factors.

700

600
Modeled Annual GWh Production .

500

400

k= 1.50
300
k= 1.75
k= 2.00
200 k= 2.25
k= 2.50
k= 2.75
100 k= 3.00

-
5.0 5.5 6.0 6.5 7.0
Average Wind Speed - Meters per Second

F. Certification
In addition to the information provided in Section 3E, certification is being addressed
through the American Wind Energy Association (AWEA). AWEA is the American
industry organization liaison between Department of Energy (DOE) National Renewable
Energy Laboratory (NREL) and the International Electro-technical Commission (IEC).
AWEA lists the relevant standards on the following web page
(http://www.awea.org/standards/iec_stds.html#WG%201,%202,%203 )

One example of a certification requirement is to characterize the dynamic behavior of the


wind turbine's operation. An important objective of the dynamic characterization test is
to provide a Certification Agent with test data to show that the wind turbine's mechanical
equipment is operating within design vibration limits. For NREL's industry participant,
the test results are an indication of the wind system's overall quality of mechanical
operation that can be used to compare with established industry standards for a wind
system's response under typical and extreme operating conditions.

www.osti.gov/dublincore/gpo/servlets/purl/783417-kWkYfm/native/

The following link describes results of a quarterly newsletter the Field Verification
Program for Small Wind Turbines:

www.osti.gov/dublincore/gpo/servlets/purl/789467-zI5BjN/native/
According to Herbert Sunderland of DOE’s Sandia Laboratory, Underwriters Laboratory
will be an independent certifying body of wind turbines and expects to issue a
certification design by April 2004, which would state that a wind turbine is in
conformance with IEC standards. U.L. offers this certification service as a business
opportunity.

http://www.ul.com/dge/windturbines/certification.html

Certifications of wind turbine technology in Europe are performed in an analogous


manner through the insurance industry. Coverage is being provided for example by the
Germanischer Lloyd WindEnergie GmbH company.

http://www.gl-group.com/cgi-bin/w/w3red?SET=CERT&SUB=3
Appendix B
FAA Supplemental Obstruction
Analysis Information

June, 2004 45
Appendix B: FAA Supplemental Obstruction Analysis Information

The provisions in 14 CFR Part 77 include permanent (e.g., wind turbine) or temporary
construction (e.g., crane for installation) or alterations that will penetrate imaginary
surfaces near airport runways. The FAA defined imaginary surfaces apply to different
geometric surfaces emanating from airport runways known as primary, approach,
transitional, horizontal and conical surfaces (Figures below). These surfaces are shaped
by different geometric descriptions as follows:

Primary:
Centered around runway
Extends 200 ft beyond the runway end
Width varies from 250ft to 1000 ft

Approach:
Begins at end of primary surface
Inner edge: same width as primary surface
Outer edge varies :1,250 ft to 16,000 ft
Length varies: 5,000ft or 10,000ft
Slope varies: 20:1 34:1 50:1

Transitional (Figure 4-2):


Extends outward and upward at right angles to runway centerline
Starts at outside edge of primary surface
Slope is 7:1

Horizontal:
Extends 150ft horizontally off of the top of the transitional surface
Figure B1
FAA Imaginary Surfaces

Figure B2
FAA Transitional Surfaces
Appendix C
Survey of Wind Turbine
Manufacturers

46 Assessment of Distributed Generation Technology


Appendix C: Survey of Wind Turbine Manufacturers

Table C1
th
Wind Turbine Manufacturer Survey Response Status February 6 , 2004

Manufacturer HQ U.S. Product Survey Status Comments


Country Availability?
Atlantic Orient Canada Yes Fully Participated
Bergey USA Yes Fully Participated
Windpower
Bonus Energy Denmark Yes Agreed to Is not currently able to
A/S Participate – service individual
declined to provide turbines outside of
data their current service
installations in U.S.
(wind farms)
Ecotecnia Spain No No Reply
Enercon Germany No Declined to Currently banned from
Participate selling in U.S. market
until 2010
Fuhrlander Germany Yes Fully Participated
Gamesa Eolia Spain Yes Fully Participated* * Only provided cost
data associated with
wind farm size
installations.
GE Wind USA Yes Fully Participated Some data claimed as
Energy confidential and will
not be included in
study
MADE Spain Yes No Reply
(Endesa
Group)
Mass USA No No Reply Prototype in testing,
Megawatts not commercially
Wind Power, available
Inc.
Mitsubishi Japan Yes Agreed to
Power Participate – but
Systems data is yet to be
delivered
NEG Micon Denmark Yes Agreed to Recently announced
USA Participate – but merger with Vestas
data is yet to be
delivered
Nordex A/S Germany No Declined to
Participate
Northern USA Yes Fully Participated
Power
Manufacturer HQ U.S. Product Survey Status Comments
Country Availability?
Systems
Southwest USA Yes Partially Participated
Windpower - Additional
information gathered
from distributor
Specialized USA Yes Partially Participated Will manufacture
Power Norwin (a Norwegian
Systems company) turbines in
USA. Has indicated
will forward tower
information when
available.
Suzlon India Yes Agreed to
Energy Ltd Participate – but
data is yet to be
delivered
Vestas Denmark Yes Declined to
American Participate
Wind
Technology
Inc.
Wind Turbine USA Yes Fully Participated
Industries
Corp.
Appendix D
Tables Used for Survey Analysis
in Section 6

June, 2004 47
Appendix D – Tables used for survey analysis in Section 6

Figure D1
Comparison of Nominal kW to Rotor Diameter, Hub Height, and Top of Blade Height

180
Rotor Diameter
160 HubHeight
Top of Blade Height
140

120

100

80

60

40

20

0
0 500 1000 1500 2000 2500 3000
Turbine kW

Figure D2
Comparison of Rotor Diameter to Hub Height and Top of Blade Height

180

160

140 HubHeight
Top of Blade Height
120

100

80

60

40

20

0
0 10 20 30 40 50 60 70 80 90 100
Rotor Diameter - Meters
Figure D3
Nominal Turbine kW Compared to Purchase Price / kW and Rotor Size

3500 120

3000
100

Meters (Rotor Diameter)


2500
80

2000
$ Purchase Price / kW
60
Rotor Diameter (meters)
1500

40
1000

20
500

0 0
0 1000 2000 3000 4000 5000
Nominal kW

Figure D4
Nominal Turbine kW for Turbines Less than 500 kW Compared to Purchase Price / kW and Rotor Size

3500 120

$ Purchase Price / kW
3000
Rotor Diameter (meters) 100
Meters (Rotor Diameter)

2500
80

2000
60
1500

40
1000

20
500

0 0
0 100 200 300 400 500
Nominal kW
Figure D5
Nominal Turbine kW Compared to $/kW Installed Cost (Not Including Tower)

$4,500

$4,000

$3,500

$3,000
$ Installed /kW
$2,500

$2,000

$1,500

$1,000

$500

$-
0 250 500 750 1000 1250 1500 1750 2000
Nominal kW

Figure D6
Installed Capacity Compared to O&M and Retrofit Costs / kW

$350

$300

$250

$200 $ Annual / kW

$150

$100

$50

$-
0 250 500 750 1000 1250 1500 1750 2000
Nominal kW
Appendix E
Zoning Analysis

48 Assessment of Distributed Generation Technology


Appendix E: Zoning Analysis

Table E1
Base Case Site Attributes11

Site Attribute Base Case Value


Avg. Anemometer Wind (m/s) 7.0
Anemometer. Height (m) 50
Turbulence Factor 0.1
Site Altitude (m) 50
Weibull K 2.5
Federal Production Tax Credit Not Available
Months to Install from Project Start 12
Year of Project Start 2004
Dollars Per Euro 1.25
REC Price 0.0200 $/kWh
Average Wholesale Price of Electricity 0.0400 $/kWh
Consumer Inflation 2%
Energy Inflation 2%
O&M Inflation 2%
Down Payment Percent 100%
Depreciation Method MACRS
Project Development Fee 10%
MTC Buydown $0
Assumed sheer factor 1/7

There are five major rate classes under this system, listed below. Load profiles for
average consumption over 8760 hours were taken from the NSTAR web-site for each of
the five major rate classes. Attributes of the prototypical customers used in the balance
of this analysis are shown in Table 8.

Table E2
Prototypical Customer Attributes

Description Rate Class / Annual Federal Tax State Tax Rate


Load Profile Consumption Rate
Class kWh (Rounded)
Residential R1 6,000 28% 5%
Residential R3 11,000 28% 5%

11
Given comments on the draft report and public presentation a clarification is called for. There was no
specific assumption on the percentage of energy sold back into the grid and not consumed on-site due to
temporal mis-match between generation and load. For a given wind regime, the model randomly
assigns wind speeds on a probabilistic basis to each of the 8760 hours of the year. The model then
matches the energy production for each hour with the NSTAR load profiles. All things being equal the
larger the turbine the larger fraction of energy non consumed on-site.
Electric Heating
Small G1 26,000 28% 5%
Commercial
Medium G2 1,200,000 35% 6%
Commercial
Large G3 6,000,000 35% 6%
Commercial &
Industrial

The actual number of customers and annual sales for these different rate classes are
shown in Table 9. The largest rate class by number of customers is the basic residential
class (R1), but this class also has the lowest average usage and annual sales by
customer. As will be seen below, the economic case for installing a DG turbine at the
site of R1, R3, or G1 customer is not compelling. While small in number of customers,
the G2 and G3 classes have the best economic potential for DG wind installations
because of their large consumption of energy on a per customer basis. Following is an
analysis of the relative economic payback for each of these classes.

Table E3
Customers and Annual Consumption by Rate Class for Cape Cod & Martha’s Vineyard

Rate Class # Customers Sales (kWh) Pct of kWh Avg. kWh /


Year per
Customer
R1 138,676 840,785,225 41% 6,063
R3 18,189 209,054,605 10% 11,493
G1 19,764 541,690,586 27% 27,408
G2 157 227,077,364 11% 1,446,353
G3 7 68,705,722 3% 9,815,103
Other 18,595 151,393,700 7% 8,142
Total 195,388 2,038,707,202 100% 10,434

G3 Customers

Table E4 displays the height combinations for the five largest turbines (that provided
sufficient information) and the payback for the prototypical G3 customer. Each of the
turbines (which range from 800 kW to 1800 kW (1.8MW)), is matched to its compatible
towers. Table 10 clearly shows that the top of blade height for all of these commercially
available turbine/tower combinations exceeds 230 feet and in the majority of
combinations, exceeds 300 feet. This has obvious implications for development of a
model bylaw for these facilities on the Cape. A review of Table E4 also shows that for
each turbine, the choice of different tower height does not make a dramatic difference on
internal rate of return (IRR) for this base case scenario, and at least for
Gamesa_G52_800kW, higher towers sometimes provide worse financial results. Note
that Gamesa only provided installed costs for the large wind farm applications; costs are
not directly applicable to a single turbine installation, and certainly would be higher than
the wind farm application.
Table E4
Payback for Turbine-Tower Combinations Applicable for Typical G3 Customers: 800-1800 kW

Turbine Tower / IRR Over Years to Ann. kWh $/


Top 20 Years Positive Installed
Blade Cash Flow kW
Height
(feet)
Gamesa_G52_800kW* 144 / 230 33% 2.7 1,867,217 $778*
Gamesa_G52_800kW* 180 / 266 35% 2.6 2,009,695 $779*
Gamesa_G52_800kW* 213 / 298 33% 2.7 2,118,637 $875*
Gamesa_G52_800kW* 243 / 328 31% 2.8 2,204,696 $970*
Gamesa_G80_1800kW* 197 / 328 28% 3.2 4,836,406 $938*
Gamesa_G80_1800kW* 220 / 351 29% 3.1 4,999,793 $938*
Gamesa_G80_1800kW* 256 / 387 29% 3.1 5,231,279 $994*
Gamesa_G80_1800kW* 328 / 459 29% 3.1 5,607,397 $1,052
FL-800_800kW 164 / 253 16% 5.1 1,709,921 $1,339
FL-800_800kW 197 / 285 18% 4.8 1,816,712 $1,328
FL-800_800kW 230 / 318 18% 4.7 1,908,156 $1,370
FL-1000_1000kW 197 / 295 22% 4.0 2,307,813 $1,101
FL-1000_1000kW 230 / 328 22% 3.9 2,417,141 $1,135
FL-1000_1000kW 269 / 367 23% 3.8 2,534,386 $1,151
FL-1000_1000kW 328 / 426 24% 3.7 2,684,277 $1,178
FL-1000+_1000kW 197 / 302 22% 4.0 2,686,734 $1,261
FL-1000+_1000kW 230 / 335 23% 3.9 2,810,184 $1,295
FL-1000+_1000kW 269 / 374 23% 3.8 2,940,777 $1,311
FL-1000+_1000kW 328 / 433 24% 3.6 3,106,384 $1,338
*Note that Gamesa only provided installed costs for the large wind farm applications; costs are not directly
applicable to a single turbine installation, and certainly would be higher than the wind farm application.

BRED also conducted a similar analysis for smaller turbines, with correspondingly
smaller overall turbine/tower heights. As can be seen in Table E5 the IRR decreases as
turbine height decreases, and the years to positive cash flow increases dramatically
when the system size (and height) is reduced. This analysis illustrated that none of the
turbine-tower combinations for sub-800 kW systems will likely have an acceptable
payback period for private companies (likely 3 years or less) for any but the most
extraordinary customer. Municipally owned DG systems may have different economic
hurdle requirements.

Table E5
Payback for Turbine-Tower Combinations Applicable for Typical G3 Customers: 100-1000 kW

Turbine Tower / IRR Years to Ann. kWh $/


Top Over 20 Positive Produced Installed
Blade Years Cash kW
Height Flow
(Feet)
Turbine Tower / IRR Years to Ann. kWh $/
Top Over 20 Positive Produced Installed
Blade Years Cash kW
Height Flow
(Feet)
FL-100_100kW 108 / 151 3% 14.6 262,620 $2,893
Northern 82 / 117 1% 17.0 159,517 $3,020
Power_NW100/19_100kW
Northern 98 / 133 2% 15.8 170,434 $3,050
Power_NW100/19_100kW
Northern 115 / 149 3% 14.8 180,210 $3,070
Power_NW100/19_100kW
FL-250_250kW 131 / 187 11% 6.8 571,368 $1,642
FL-250_250kW 164 / 220 13% 6.3 610,894 $1,670
FL-800_800kW 197 / 285 18% 4.8 1,816,712 $1,328
Gamesa_G52_800kW* 144 / 230 33% 2.7 1,867,217 $778
FL-1000_1000kW 197 / 295 22% 4.0 2,307,813 $1,101
FL-1000+_1000kW 197 / 302 22% 4.0 2,686,734 $1,261
* Note that Gamesa only provided installed costs for the large wind farm applications; costs are not directly
applicable to a single turbine installation, and certainly would be higher than the wind farm application.

G2 Customers

There are 157 G2 customers on Cape Cod and Martha’s Vineyard that consume eleven
percent of the total energy. Customers in the G2 rate class have the second best
economic payback opportunity of any rate class for DG wind given their large electricity
consumption and rate structure.

Table E6 displays the height and payback for the prototypical G2 customer for turbines
in 100 kW to 1000 kW range. As with G3 customers, the payback period for sub 800 kW
systems is likely to be unacceptable to most investors/customers.

Upon closer inspection of Table E5 and Table E6, it is interesting to note that the IRR
decreases dramatically and the years to positive cash flow increase dramatically for
larger turbines for the typical G2 customer compared to the typical G3 customer (this is
illustrated in Figure E7). This happens even though the G2 customer avoided utility
costs excluding generation (estimated to be 3.9 ¢/kWh in 2006) are higher than avoided
utility costs for G3 customers (estimated to be 3.0 ¢/kWh in 2006, see Table 3). This
decrease in financial returns for the larger turbines results from the turbine being over-
sized for the on-site consumption. This means a much higher portion of energy is being
sold back into the wholesale market rather than being consumed on-site to avoid utility
generation charges. This is shown more clearly in Figure E8, where changes in annual
customer electricity consumption were varied for an assumed installation of a FL-250
system with 131 foot tower (187 foot top of blade height). Figure E8 shows that for larger
kWh consumers, a larger percent of turbine output will be consumed on site, resulting in
a higher IRR and a shorter time period to positive cash flow.
Table E6
Payback for Turbine-Tower Combinations Applicable for a Typical G2 Customer: 100-1000 kW

Turbine Tower / IRR Years to Ann. kWh $/


Top Over 20 Positive Installed
Blade Years Cash kW
Height Flow
(Feet)
FL-100_100kW 108 / 151 4% 12.6 262,620 $2,893
Northern 82 / 117 2% 15.7 159,517 $3,020
Power_NW100/19_100kW
Northern 98 / 133 3% 14.5 170,434 $3,050
Power_NW100/19_100kW
Northern 115 / 149 3% 13.5 180,210 $3,070
Power_NW100/19_100kW
FL-250_250kW 131 / 187 12% 6.5 571,368 $1,642
FL-250_250kW 164 / 220 13% 6.1 610,894 $1,670
FL-800_800kW 197 / 285 13% 6.1 1,816,712 $1,328
Gamesa_G52_800kW 144 / 230 26% 3.5 1,867,217 $778
FL-1000_1000kW 197 / 295 16% 5.2 2,307,813 $1,101
FL-1000+_1000kW 197 / 302 16% 5.2 2,686,734 $1,261

Figure E7
Comparison of IRR over 20 Years for Typical G2 and G3 Customers

35% 33%

30%
26%
G3 IRR-20
Internal Rate of Return .

25%
G2 IRR-20 22% 22%

20% 18%
16% 16%
15% 13%
13% 13%
12%
11%
10%

5% 4%
3% 3% 3%3%
2% 2%
1%
0%
)

)
)

)
)

95

02
51

87

20

85

30
17

33

49

(2

(2

(3
(1

(1

(2

(2
(1

(1

(1

0+
00

50

50

00

0
0

00
80
10

10

10
-1

-2

-2

-8

00
-1
a-
P-

P-

P-
FL

FL

FL

FL

-1
FL
es
N

FL
am
G

Tubine Model (Top of Blade Height ft.)


Figure E8
Comparison of Financial Return for Typical G2 Customer when Varying Annual Consumption

120.0% 8

7
100.0%
Percent Consumed On-Site / IRR

Years to Cash Flow Positive


6
80.0%
5
IRR-20
60.0% 4
% Production Consumed on
Site
Year Cash Flow Positive 3
40.0%
2
20.0%
1

0.0% 0
80 0

90 0

00 0

10 0

20 0

30 0

40 0

50 0

60 0
1, 000

0
00

00

00

00

00

00

00
00

00

00
0,

0,

0,

0,

0,

0,

0,

0,

0,

0,

0,
70
70

1,

1,

1,

1,

1,

1,

1,

Annual On-Site Consumption kWh (Utility + DG)

Small Commercial (G1) / Residential (R1) and Electric Heating (R3) Customers

The vast majority of the customers on Cape Cod and Martha’s Vineyard are associated
with a relatively small amount of annual consumption of the R1, R3, and G1 customer
classes. As they consume fewer kWh annually, there is less utility electricity
consumption to avoid, and generally should be matched up with smaller turbines.

As related above, the smaller turbines have a much higher cost per installed kW. From a
purely economic standpoint, DG wind becomes untenable for these smallest customers
and systems (when grid connected). In fact, for grid connected applications, the net
present value (NPV) becomes negative and IRR and years to positive cash flow
becomes undefined. However, from an environmental standpoint, smaller turbines may
be utilized by users looking to reduce consumption from fossil fuels and could be
subsidized by grants and other philanthropic sources.

Economic information is presented for G1, R3 and R1 rate classes below. For G1
customers using turbines in the 10 to 100 kW range (shown in Table E9, the top of blade
height is between 50 and 200 feet in height. Tables E10 and E11 show similar results
for residential rate classes (R3 and R1), though some of the tower heights are below the
50 feet. The Net Present Value (NPV) decreases for the residential customers as
compared to the G1 customer because the capital cost outlay becomes smaller with the
smaller systems (i.e., less ventured, less lost).

Table E9

Payback for Turbine-Tower Combinations Applicable for a Typical G1 Customer: 10-100 kW

Turbine Top Blade Net Present Ann. kWh $ / Installed


Height Value 20 kW
(Feet) Years
AOC_15/50_50kW 107 $(33,484) 124,018 $2,640
AOC_15/50_50kW 126 $(31,470) 133,877 $2,760
Northern 133 $(163,607) 170,434 $3,050
Power_NW100/19_100kW
Northern 149 $(158,524) 180,210 $3,070
Power_NW100/19_100kW
FL-30_30kW 128 $(125,051) 88,501 $4,233
FL-30_30kW 118 $(118,654) 86,074 $3,900
FL-30_30kW 128 $(129,104) 88,501 $4,400
FL-100_100kW 151 $(184,272) 262,620 $2,893
WTI_23-10_10kW 116 $(60,868) 20,838 $4,759
WTI_23-10_10kW 136 $(61,623) 22,155 $4,993
WTI_23-10_10kW 96 $(60,645) 19,307 $4,566
WTI_23-12.5_12.5kW 116 $(59,096) 26,047 $4,047
WTI_23-12.5_12.5kW 136 $(59,648) 27,694 $4,234
WTI_23-12.5_12.5kW 96 $(59,125) 24,134 $3,893

Table E10
Payback for Turbine-Tower Combinations Applicable for a Typical R3 Customer: 0.9-10 kW

Turbine Top Blade Net Present Ann. kWh $ / Installed


Height Value 20 kW
(Feet) Years
Bergey_Excel-S_10kW 71 $(26,136) 13,837 $4,287
Bergey_Excel-S_10kW 90 $(25,824) 15,307 $4,387
Bergey_Excel-S_10kW 110 $(25,976) 16,502 $4,517
Bergey_Excel-S_10kW 133 $(26,589) 17,650 $4,699
Bergey_XL.1_1kW 47 $(2,634) 2,166 $4,726
Bergey_XL.1_1kW 66 $(2,372) 2,470 $4,831
Bergey_XL.1_1kW 86 $(2,265) 2,703 $5,051
Bergey_XL.1_1kW 109 $(2,248) 2,921 $5,381
Bergey_XL.1_1kW 34 $(2,732) 1,897 $4,431
SouthWest_WhisperH40_0.9kW 27 $(2,167) 1,045 $2,362
SouthWest_WhisperH40_0.9kW 33 $(2,169) 1,142 $2,543
SouthWest_WhisperH40_0.9kW 53 $(1,961) 1,386 $2,649
Turbine Top Blade Net Present Ann. kWh $ / Installed
Height Value 20 kW
(Feet) Years
SouthWest_WhisperH40_0.9kW 68 $(2,035) 1,525 $3,028
SouthWest_WhisperH40_0.9kW 83 $(1,987) 1,641 $3,161
SouthWest_WhisperH80_1kW 27 $(1,558) 1,942 $2,702
SouthWest_WhisperH80_1kW 33 $(1,492) 2,101 $2,865
SouthWest_WhisperH80_1kW 53 $(1,133) 2,483 $2,960
SouthWest_WhisperH80_1kW 68 $(1,134) 2,690 $3,301
SouthWest_WhisperH80_1kW 83 $(1,033) 2,855 $3,421

Table E11
Payback for Turbine-Tower Combinations Applicable for a Typical R1 Customer: 0.9-10 kW

Turbine Top Blade Net Present Ann. kWh $ / Installed


Height Value 20 kW
(Feet) Years
Bergey_Excel-S_10kW 71 $(26,967) 13,837 $4,287
Bergey_Excel-S_10kW 90 $(26,719) 15,307 $4,387
Bergey_Excel-S_10kW 110 $(26,919) 16,502 $4,517
Bergey_Excel-S_10kW 133 $(27,576) 17,650 $4,699
Bergey_XL.1_1kW 47 $(2,591) 2,166 $4,726
Bergey_XL.1_1kW 66 $(2,341) 2,470 $4,831
Bergey_XL.1_1kW 86 $(2,244) 2,703 $5,051
Bergey_XL.1_1kW 109 $(2,239) 2,921 $5,381
Bergey_XL.1_1kW 34 $(2,683) 1,897 $4,431
SouthWest_WhisperH40_0.9kW 27 $(2,117) 1,045 $2,362
SouthWest_WhisperH40_0.9kW 33 $(2,117) 1,142 $2,543
SouthWest_WhisperH40_0.9kW 53 $(1,961) 1,386 $2,649
SouthWest_WhisperH40_0.9kW 68 $(2,035) 1,525 $3,028
SouthWest_WhisperH40_0.9kW 83 $(1,987) 1,641 $3,161
SouthWest_WhisperH80_1kW 27 $(1,558) 1,942 $2,702
SouthWest_WhisperH80_1kW 33 $(1,492) 2,101 $2,865
SouthWest_WhisperH80_1kW 53 $(1,133) 2,483 $2,960
SouthWest_WhisperH80_1kW 68 $(1,134) 2,690 $3,301
SouthWest_WhisperH80_1kW 83 $(1,033) 2,855 $3,421
Appendix F
References/Bibliography

June, 2004 49
Appendix F: References / Bibliography
For More Information:

The National Renewable Energy Laboratory operates the National Wind Technology
Center and other wind-related programs for the U.S. Department of Energy.
Tel: 303-275-3000
Website: http://www.nrel.gov/wind/

Sandia National Laboratories, located in Albuquerque, New Mexico, has been involved
in renewable energy technologies, including wind, for more than 20 years.
Tel: 925-294-3000 and 505-844-3441
Website: http://www.sandia.gov/Renewable_Energy/wind_energy/homepage.html

DOE’s Energy Efficiency and Renewable Energy Network provides information on wind
energy.
Website: http://www.eren.doe.gov/RE/wind.html

The National Wind Coordinating Committee provides a forum for identifying issues that
affect the use of wind power.
Tel: 888-764-WIND or 202-965-6398
Website: http://www.nationalwind.org

The American Wind Energy Association is a national trade association that represents
hundreds of wind energy member companies and advocates from the United States and
around the world.
Tel: 202-383-2500
Website: http://www.awea.org

The U.S. Fuel Cell Council is a national industry association that supports the
commercialization of fuel cell technology.
Tel. 202-293-5500
Website: http://www.usfcc.com/

The Solar Electric Power Association is a collaboration of utilities, the solar industry and
energy service providers.
Tel. 202-857-0898
Website: http://solarelectricpower.org/

For More Information on Avian/Wind Publications:

The Proper Use of Studying Wind Energy / Bird Interactions: A Guidance Document
August 2003 - PDF 45KB

Avian Collisions with Wind Turbines: A Summary of Existing Studies and Comparisons
to Other Sources of Avian Collision Mortality in the United States
August 2001 - 283KB PDF
Proceedings of National Avian-Wind Power Planning Meeting IV
May 2000

Studying Wind Energy/Bird Interactions: A Guidance Document


December 1999 - 624KB PDF

Proceedings of National Avian-Wind Power Planning Meeting III


May 1998

Proceedings of National Avian-Wind Power Planning Meeting II


September 1995
Proceedings of National Avian-Wind Power Planning Meeting I
July 1994

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