Wednesday, November 27, 2013

New Construction Commences on Enel Green Power's 150-MW Wind Farm in Oklahoma

Enel Green Power S.p.A. (Enel Green Power) announced last week that it, through its subsidiary Enel Green Power North America, Inc., has begun construction work on the 150-MW Origin Wind Power Project located in Murray and Carter Counties, Oklahoma. The electricity generated from the project is under contract with Arkansas Electric Cooperative Corp. through a 20-year power purchase agreement (PPA).
The Origin Wind Power Project, owned by Origin Wind Energy LLC, a subsidiary of Enel Green Power North America, Inc., is expected to be completed and commence operations by the end of 2014.
The total project investment is estimated to be approximately $250 million and is financed through the Enel Green Power Group?s own sources.
The announcement states that the project holds the necessary requisites to qualify for production tax credits (PTC).
LCG Consulting’s Market and Grid Assessment Services for Wind Power
Wind power has been expanding rapidly, averaging about 15% annual growth over the last decade, but nearly 30% over the last 5 years. Announced plans as well as market drivers and trends suggest that this will continue. In part this reflects “supply-side” advances in wind turbine costs and performance, as well as in the understanding and use of wind resources. However, there has also been increased market demand for wind power, especially to mitigate the price volatility, supply security and environmental liabilities of the fossil fuels that dominate our energy system. There are various federal, state and local incentives for renewable generation, for which wind is the most promising near-term option. Of the 6,374 MW of U.S. wind generation capacity in place by the end of 2003, 52% was located in California and Texas, with an additional 16% in Minnesota and Iowa. These states all have Renewable Portfolio Standards (RPS) or renewable energy targets, as well as various financial incentives for renewable energy. Another 20 states each had at least 1 MW of installed wind power capacity at the end of 2003, mostly in western and plains states.
Wind developers, wind power purchasers, and society as a whole face important challenges in expanding and integrating wind power.
Realistic market valuation of wind generation investments at different locations under evolving market designs and across a range of future contingencies, considering not only market energy prices, but also what fuel use, emissions and even capacity investments may be avoided by wind power additions.
Gaining adequate transmission access to load centers, by optimal use of existing transmission and transmission rights, as well as by identifying and promoting appropriate new transmission investments.
Understanding and mitigating the physical and financial disadvantages arising from the intermittency of wind generation on several time scales.
Predictable temporal patterns of wind speed and wind generation often do not coincide with times of greatest need for power.
Daily, hourly and intra-hourly uncertainties in wind farm output may create added costs for scheduling and for procurement and deployment of balancing energy and operating reserves.
Brief output fluctuations can create grid power quality problems, especially at high levels of penetration on relatively weak grids.