Change is blowing for wind power industry

Bird brawl
Ironically, opposition to wind power –- currently the most economical form of clean,  renewable energy -- generally centers on environmental issues. Developers of wind farms typically face local concerns about noise and the esthetics of huge wind towers, which now approach the height of a 40-story building. Opponents also claim offshore wind farms will interfere with fishing, aviation, marine transportation and recreation.

Wind energy opponents also cite the high risk of birds being killed by the massive, swiftly turning turbine blades. Last month, officials in Alameda County tentatively approved restrictions designed to reduce bird kills from wind turbines in Altamont Pass about 50 miles east of San Francisco. Companies operating those turbines would be required to replace some turbines with more efficient units, and close down others for two months in winter during periods of heavy bird migration, among other measures.

Proponents of wind power say the risk of bird strikes has been overstated. The American Wind Energy Association cites a study showing that the leading cause of bird fatalities -– more than half -- is birds flying into buildings. Other major causes are cats, high tension lines, vehicles, pesticides and communication towers. Wind turbines cause less than one bird death in 10,000, according to the study.

Opponents of wind power have also found support in Congress, where Sen. Lamar Alexander (R, Tenn.) has made several attempts to limit the expansion of windmills. The Senate recently voted down his latest effort: an amendment to the energy bill that would have cut tax credits for wind projects and required six-months notice to local communities before a project could receive a permit.

Local officials are also setting up restrictions as wind installations spread. Some are designed to protect the value of neighboring property for generating wind power. One county in North Dakota, one of the windiest states, recently required that turbines be set far enough from property lines so that they won’t interfere with a neighbor’s ability to set up his own wind farm.

While the local groups debate the pro and cons, wind power is picking up speed worldwide -– especially in Europe. Today, Germany, Spain and Denmark have the largest installed base of wind generators –- with nearly 60 percent of the total worldwide wind power capacity of 47 gigawatts, according to Wind Power Monthly magazine.

Though Europeans are far ahead of U.S. in developing wind power, North America is beginning to get serious about large-scale installations. In addition to offshore projects, a group called Linekin Bay Energy has proposed building a 500-megawatt project in northern Maine – the equivalent of two or three good-sized natural gas power plants. Last year, GE Energy filled an order for 660 wind turbines for eight projects in Quebec with a combined capacity of 990-megawatts, which are expected to come online between 2006 and 2012. In May, GE said it expects to generate more than $2 billion in revenues from its wind energy operations this year.

The big driver behind the growth in investment is the falling cost of making electricity from wind. Over the last 20 years, the cost of generating electricity from utility-scale wind systems has dropped by more than 80 percent, according to the American Wind Energy Association. When large-scale wind farms were first set up in the early 1980s, wind power cost as much as 30 cents per kilowatt-hour. Now, new installations in the most favorable locations can produce electricity for less than 5 cents per kilowatt-hour.  

There’s little doubt that higher coal and natural gas prices are helping to make wind power more competitive. Even where wind power is still not able to compete head-to-head with cheaper power sources in some locations, it’s getting close.

“We’ve had some large wind customers tell us that at a natural gas price of $5 per (million Btus), that wind is competitive without the production tax credit,” said John Rice, CEO of GE Energy. “That’s always a function of the actual project. But at $5, you’re in the hunt, no question.”

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