Earth-Shaking Clean Energy Deal: Investor Bets $2 Billion on Wind

By: TheGreenMiles
Published On: 5/15/2008 11:16:26 PM

Huge news in the renewable energy sector today:
Oil investor T. Boone Pickens' Mesa Power LLP said on Thursday it ordered 667 wind turbines from General Electric Co as part of the $2 billion first phase of a planned Texas wind farm. It said the turbine order was the world's largest for a single-site wind power development.

The 667 turbines are capable of generating 1,000 megawatts of electricity, enough to power more than 300,000 average U.S. homes, Mesa said in a release. The four-phase Pampa Wind Project would be the world's largest wind energy generator, with more than 4,000 megawatts of electricity, enough for 1.3 million homes, when completed in 2014, Mesa said.

OK, so let's compare the planned energy investments for Virginia and Texas:

Virginia: $1.8 billion for a 585 megawatt coal-fired facility in Wise County. Short-term jobs during construction: 800. Long-term jobs during operation: 75. Estimated increase in operation costs if carbon capture and storage becomes viable: 30-60%. Without CCS, estimated annual cost of carbon permits in 2030 for 5.4 million tons of C02: $108 million.

Texas: $2 billion for a 1,000 megawatt wind power facility. For full 4,000 megawatt facility, short-term jobs during construction: 1,500 jobs. Long-term jobs during operation: 720. Added cost of operation under climate legislation limiting carbon emissions: $0.

It's not too late to make the smart investment. Tell Gov. Kaine to make thoughtful appointments to the Virginia State Air Pollution Control Board as it reviews permits for polluting facilities such as the proposed Wise County plant and the Mirant plant in Alexandria.


Comments



Awesome! (Eric - 5/16/2008 10:14:21 AM)
I'm very happy to see a big energy company putting real money and effort into this - unlike the green-washing lip service most do.  In a Metro ad, Dominion has a pretty picture of a wind turbine and talks about clean energy while they're really focusing on building a new dirty coal plant.  

There is hope, but I doubt it'll come from Kaine.  He's dug in with that pro-Dominion, pro-Coal position.



Texas is like a whole other country (tx2vadem - 5/16/2008 2:29:20 PM)
=)  You know the regulation of their electricity generation, transmission, and retail marketing is quite different than here in the state of VA.  Retail electric rates are higher in Texas too.  That probably has a lot to do with it.


So true. (Eric - 5/16/2008 2:52:23 PM)
Texas is very different ;-)

Ultimately every state faces different challenges, laws, and attitudes, but in the end there is no excuse for any state not to be vigorously pursuing renewable energy.  We might have to do it differently than in Texas, but to simply punt and take a coal solution is unacceptable.



One other big difference you didn't mention ... (TheGreenMiles - 5/16/2008 3:34:36 PM)
Texas has a mandatory renewable energy standard (signed into law by Dubya himself). Virginia doesn't.


To be fair... (ericy - 5/16/2008 1:20:05 PM)

Texas is a really good spot for wind.  The best wind in Virginia is really offshore, so I don't know if we will ever really see a large wind farm like this in VA.


Right, but Virginia has a lot of potential (Lowell - 5/16/2008 1:25:19 PM)
in tidal and wave (since we're located on the coast), as well as HUGE potential in energy efficiency (we're particularly bad when it comes to electricity consumption per capita).  Why aren't we doing something in those areas?


Priorities and Ignorance (tx2vadem - 5/16/2008 2:17:59 PM)
First on tidal, all I have read about is prototype generation facilities.  I haven't heard that this technology is in production, ready-for-mass-use mode.

On energy efficiency, that is part priorities and part ignorance.  The priority part is people have different spending priorities and energy efficiency does not top the list.  Even when consumers do choose to do home improvements, they opt for kitchen and bathroom remodeling.  It is not cheap to do energy efficiency improvements either.  It costs more than $200 to get an energy audit.  It costs a significant amount of money to replace major appliances.  Buying a new A/C condenser with a high SEER rating or a new furnace with 90-95 plus AFUE will set you back several thousand dollars (for both upwards of $8-9k).  I recently had the insulation upgraded in my house, which generally has the highest return in terms of efficiency improvements, and that set me back $2000.  Windows and doors are expensive too, even if you just want double pane, low-e film, inert gas fill windows.  The cheapest things are CFLs, programmable thermostats, and pulling the plug on appliances that use standby power (i.e. the computer, the TV, various other electronics).  But those aren't going do much if your house isn't properly sealed and you have poor insulation.  Because you spend the most money heating and cooling your home.

On ignorance, I think most people don't realize how wasteful they are being and some just have a general idea from their utility bills.  Energy Star has quick little tool for measuring at this site.  You need more education to remedy that.  Blocked utility rates that charged more for more usage rather than less might be helpful here too.  



Put a price on carbon (Lowell - 5/16/2008 2:56:49 PM)
and everything else will follow.  Right now, it's essentially free, so energy efficiency is not a top priority (although definitely increasing in salience).  To the extent that energy reflects its true cost -- externalities included -- people will rush to reduce their usage of it.  And the government can help by offering tax credits for purchases of energy efficient appliances, by mandating aggressive efficiency standards, by launching a major public awareness campaign, etc.  The point is, time's a'wasting, so let's stop talking about how hard everything is, roll up our sleeves and get going!


Hear this (TheGreenMiles - 5/16/2008 3:54:41 PM)
Tidal power isn't just in production. It's installed and operating. Just not in the United States. We make the turbines here, then ship them to Canada to produce clean power while we blow up our mountains to burn the coal and give our kids asthma. Great system, huh?


In Wales, too? (Teddy - 5/16/2008 7:30:10 PM)
Seems I just read somewhere that Wales is ordering or has ordered tide turbines. And isn't one of Canada's in the Bay of Fundy, which has a famous, enormous tidal bore.