Wind Energy Update Timothy Anderson, AICP Principal Planner January 12, 2012

Benefits of Wind Energy Produces no poisonous chemicals Produces no poisonous chemicals Requires no water Requires no water Requires little fuel Requires little fuel No hazardous waste No hazardous waste Economic development Economic development

The Negative Side Noise Noise Visual clutter Visual clutter Shadow flicker Shadow flicker Wildlife Wildlife EM signal interference EM signal interference Property values Property values

Renewable Energy Sources Do not rely on fossil fuels and cannot be depleted. Do not rely on fossil fuels and cannot be depleted. Most rely on the sun as the ultimate source. Most rely on the sun as the ultimate source. Examples: Solar, geothermal, hydroelectric, biomass, hydropower, ocean energy, and wind. Examples: Solar, geothermal, hydroelectric, biomass, hydropower, ocean energy, and wind.

Global Wind Energy Capacity Source: US Energy Information Administration

Total Installed Wind Capacity, 2011 Source: Global Wind Energy Council

UNITED STATES ELECTRICITY GENERATION BY SOURCE Source: US Energy Information Administration

US Energy Production by Source, 2000 Source: US Energy Information Administration

US Energy Production by Source, 2010 Source: US Energy Information Administration

Federal Incentive Programs/ Policy for Wind Several incentives for small wind energy. Several incentives for small wind energy. Production Tax Credit (PTC) – Current $.022 per KWh, 10 years. Production Tax Credit (PTC) – Current $.022 per KWh, 10 years. Modified Accelerated Cost Reduction System (MACRS) Modified Accelerated Cost Reduction System (MACRS) In 2006, President Bush said that the US could produce 20% of its power from wind energy by In 2006, President Bush said that the US could produce 20% of its power from wind energy by 2030.

Michigan Incentive Programs/Policy Several loan programs available to manufacturers of renewable energy. Several loan programs available to manufacturers of renewable energy. Clean, Renewable and Efficient Energy Act (PA 295 of 2008). Clean, Renewable and Efficient Energy Act (PA 295 of 2008). 10% from renewables by Consumers and DTE have specific requirements. 10% from renewables by Consumers and DTE have specific requirements.

Summary National Wind energy currently represents only 2% of the nation’s electricity stream. Wind energy currently represents only 2% of the nation’s electricity stream. Wind is the fastest growing source of renewable energy. Wind is the fastest growing source of renewable energy. The production tax credit is an important factor. The production tax credit is an important factor.

Summary (cont.) State of Michigan The Renewable Energy Standard requires Michigan electric providers to achieve a retail supply portfolio that includes at least 10% renewable energy by The Renewable Energy Standard requires Michigan electric providers to achieve a retail supply portfolio that includes at least 10% renewable energy by Provides an incentive for Michigan utilities to team up with wind developers to meet the RES goal. Provides an incentive for Michigan utilities to team up with wind developers to meet the RES goal.

Summary (cont.) Region Two wind energy development proposals to date. Two wind energy development proposals to date. 14 communities have adopted wind regulations. Several more in the works. 14 communities have adopted wind regulations. Several more in the works. Local and county planning commissions are playing a large role and will continue to do so. Local and county planning commissions are playing a large role and will continue to do so.

Wind Regulations in Place Hillsdale County Pittsford Township Pittsford Township Reading Township Reading Township Somerset Township Somerset Township Wheatland Twp. Wheatland Twp. Jackson County Henrietta Township Henrietta Township Leoni Township Leoni Township Napoleon Township Napoleon Township Spring Arbor Twp. Spring Arbor Twp. Waterloo Township Waterloo Township Lenawee County Cambridge Twp. Cambridge Twp. Clinton Township Clinton Township Palmyra Township Palmyra Township Riga Township Riga Township Rome Township Rome Township

Web Sites 1. Energy InformationAdministration: Global Wind Energy Council: 3.State Incentives for Renewables: 4.Michigan Public Service Commission: