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Wind Energy
Development
In Illinois
William S. Haas
Energy Division Representative
Overview
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Illinois Energy Context
Illinois Wind Resource
Renewable Portfolio Standard
Financial Incentives
Conclusion
City of Chicago Global Warming Task Force:
Increasing Number of Days with Tmax > 90oF
100
Number of Days > 90oF
Higher Emissions
80
Lower Emissions
60
+50 days
40
+20 days
20
0
-20
1960
1980
2000
2020
2040
2060
2080
2100
Hayhoe, K., D. Wuebbles et al. 2008. Climate Change
and Chicago: Projections and Potential Impacts. A
report for the City of Chicago, 151 pp.
City of Chicago Global Warming Task Force:
Increasing Number of Days with Tmax > 100oF
Number of Days > 100oF
80
70
60
Higher Emissions
Lower Emissions
50
40
+30 days
30
20
+10 days
10
0
-10
1960
1980
2000
2020
2040
2060
2080
2100
Hayhoe, K., D. Wuebbles et al. 2008. Climate Change
and Chicago: Projections and Potential Impacts. A
report for the City of Chicago, 151 pp.
Illinois Energy Context
Electric Profile
Energy Source
Coal
Petroleum
Natural Gas
Nuclear
Hydroelectric
Other Renewables
Percent Total
49.44%
0.05%
1.63%
47.98%
0.08%
0.83%
2006 Data from the Energy Information Administration
Illinois Energy Context
Looking Back
• Illinois lacked a well-established renewable energy and
energy efficiency infrastructure
– 0.5% of energy generated by renewables
– Annual state energy efficiency funding was only $3 million
– Utilities with energy surplus lacked impetus for energy efficiency
• Until 2007, the Illinois Commerce Commission and policy
makers focused on rates, deregulation and restructuring,
and not on reducing costs by utilizing renewables and
incorporating efficiency
Illinois Energy Context
Looking Forward
• Increasing energy demand with continued
dependence on imported energy sources
• Rising fossil fuel prices that will significantly impact
electricity rates in Illinois
• Transmission constraints, increasing cost of new
transmission and aging distribution systems
• A deregulated and restructured electric market
Where is Illinois Heading?
• Diversify Illinois generation to reduce
dependence on fossil fuels
• Hedge a portion of energy consumption
against likely future fossil fuel price volatility
• Provide Illinois consumers with tools to use
energy smarter and more efficiently
• View renewables and efficiency as valuable
resources to mitigate higher energy costs and
deliver both economic and environmental
benefits
Mendota Hills Wind Farm (50.4 MW)
Photo Credit: Jennifer Zimmerman
Wind Energy Benefits
• Diversify the predominantly coal and nuclear energy
profile in Illinois and provide a hedge against rising
energy costs
• Every megawatt of installed wind capacity generates
$1.7 million of investment
• Renewable energy projects such as wind
development contribute significantly to the local tax
base
• Each wind turbine can provide $2,000-$4,000 per
year in lease payments thereby diversifying the
income of farmers, ranchers and other landowners
Illinois Wind Resource
Renewable Portfolio Standard
• An escalating percentage of supplied electricity
be derived from a renewable source
• Tracks Governor Blagojevich’s Energy
Independence Plan
• At least 2 percent by 2008 rising to 10 percent by
2015 and increasing by at least 1.5 percent each
year thereafter to at least 25 percent by 2025
• At least 75 percent from wind generation
• Penalties for non-compliance
Renewable Portfolio Standard
• The RPS will bring over $17 billion in new
investment by 2025. Every megawatt of
installed wind capacity generates
approximately $1.7 million of investment
• Renewable energy projects such as wind
development contribute significantly to the
local tax base
2006 Wind Capacity
2007 Wind Capacity
Renewable Energy Resources Program
(RERP)
• Renewable Energy, Energy Efficiency, and Coal
Resources Development Law of 1997 (20 ILCS
687)
– Provides funding mechanism for the Renewable
Energy Resources Program
– Directs DCEO to administer grants, loans, and
other incentives to foster investment in and the
development and use of renewable energy
resources
Renewable Energy Programs
Wind Energy Development Program
• Provides a grant for eligible project costs related to a
utility scale wind installation
• Projects involve providing assistance for the
development of new wind production projects that will
increase domestic renewable energy production and
improve the economy of the State through new
business development
• Examples include the development of business plans,
engineering designs and drawings, advanced market
studies and financial analyses, technical assistance, and
other business development activities
Illinois Enterprise Zone Program
• Designed to stimulate economic growth and
neighborhood revitalization in economically
depressed areas of the state
• Accomplished through state and local tax
incentives, regulatory relief, and improved
governmental services
Conclusion
• Increasing energy costs are a driver of public
policy and programs that promote the
development and expansion of alternative energy
• Illinois has a significant available wind resource,
over 9000 MW of developable capacity
• With over 3400 MW of new projects under
development in Illinois, new investments would
total $5.7 billion
• Alternative energy tipping point – where the rate
of development and utilization will increase
dramatically
Contact
William S. Haas
Energy Division Representative
Department of Commerce and Economic Opportunity
James R. Thompson Center
100 W. Randolph, Suite 3-400
Chicago, Illinois 60601
[email protected]
312-814-4763 (voice)
312-814-1800 (fax)