1. Wind Energy: What Lies Ahead for Illinois? David G. Loomis, Ph.D. Associate Professor of Economics Illinois State University Advancing Wind Power in Illinois 2008 June 25-26, 2008

2. Outline About Illinois State University and Wind Energy Wind Energy Development in Illinois WWG Activities Where is the State of Illinois Headed with Wind Energy?

3. ILLINOIS STATE UNIVERSITY ACTIVITIES

4. Illinois State University Activities Bachelor’s Degree in Renewable Energy State Wind Working Group Center for Renewable Energy

5. ISU “Wind Team” David Kennell, Department of Technology David Loomis, Department of Economics Randy Winter, Department of Agriculture

6. Renewable Energy Major First interdisciplinary Bachelor of Science in Renewable Energy in the nation Approved by IBHE in October, 2007 Thirty students enrolled for Fall, 2008; long-term capacity of sixty

7. Il Wind Working Group The IL WWG is an organization whose purposes are to communicate wind opportunities honestly and objectively, to interact with various stakeholders at the local, state, regional and national levels, and to promote economic development of wind energy in the state of Illinois.

8. Illinois Wind Working Group Website: www.wind.ilstu.edu Events: Siting Conference, Peoria, December 13 Second Annual Conference, Bloomington, June 25-26, 2008

9. Center for Renewable Energy …works to meet the growing need for education, outreach and research in the area of renewable energy. Three major functional areas:  to enhance of the renewable energy major at Illinois State University;  to serve the Illinois renewable energy community by providing information to the public;  to encourage applied research concerning renewable energy at Illinois State University and through collaborations with other universities.

10. Memberships Corporate Memberships available Horizon Wind Energy is the first Founding Member of the Center

11. WIND ENERGY DEVELOPMENT IN ILLINOIS

12. Illinois Wind Farm Database Special thanks to Bill Haas, IL DCEO for the initial database and Bill Poole and Chris Pikar, NRC for mapping assistance

13. Current Generating Capacity 10 projects with 734.4 MW of generating capacity in 9 counties Mendota Hills, Manlius (Bureau Valley School Dist), Illinois Rural Electric Coop, Crescent Ridge, Twin Groves I, Twin Groves II, Rock Island, Camp Grove Wind Farm, GSG Wind Farm, "Adam" = GSG 3 LLC

14. Under Construction 13 projects with 2,464.5 MW of generating capacity in 14 counties GSG Wind, GSG3 Wind, White Oak Wind Project, Grand Ridge Wind Project, Bishop Hill Wind Project, Pilot Knob Wind Projec,t Pleasant Ridge Wind Project, EcoGrove Windfarm Phase II, EcoGrove Windfarm Phase III, EcoBryn Windfarm, EcoLark Wind, EcoChelle Windfarm, Providence Heights

15. Planning/Permitting 20 projects with 2,906 MW of generating capacity in 11 counties Baileyville Wind Farm, Eurus Crescent Ridge II, Lancaster Farm, Oak Prairie Wind Farm, Big Sky Wind Farm, EcoGrove Wind LLC, Genesco, Illinois, Mendota Township, Sherrard School District, Big Sky Wind Farm, Macoupin County Wind, Blackstone Wind Farm, Top Crop Wind Farm, EcoGrove Wind Farm Phase I,Agriwind LLC, Agriwind II, Crescent Ridge II, Cayuga Ridge, Iberdrola – Unnamed, GSG 6, LLC

16. Permitting Process Database Zoning Approval Process Wind FarmDeveloperCountyBoardMeeting Date AgriWind Bureau County Board Tuesday, June 10, 2008 Rail Splitter Wind FarmHorizon Wind EnergyTazewell County Board Tazewell County Zoning Board of Appeals Wednesday, June 04, 2008 El Paso wind farmNavitas Energy Inc.Woodford County BoardThursday, May 29, 2008 Rail Splitter Wind FarmHorizon Wind EnergyTazewell County Board Tazewell County Zoning Board of AppealsTuesday, May 27, 2008 Rail Splitter Wind FarmHorizon Wind EnergyTazewell County Board Tazewell County Zoning Board of AppealsTuesday, May 20, 2008 Cayuga Ridge South Wind Farm PPM Energy(Iberdrola Renewables) Livingston County Board Livingston County Zoning Board of AppTuesday, May 20, 2008 Rail Splitter Wind Farm Houston-based Horizon Wind Energy LLCTazewell County Board Tazewell County Zoning Board of AppealsTuesday, May 20, 2008 Cayuga Ridge South Wind Farm PPM Energy(Iberdrola Renewables) Livingston County Board Livingston County Zoning Board of AppealsTuesday, May 20, 2008 El Paso wind farmNavitas Energy Inc.Woodford County BoardTuesday, May 20, 2008

17. In the Queue 29 projects with 4,011 MW of generating capacity announced 103 projects with 15,561 MW of generating capacity in the transmission queue

22. WIND WORKING GROUP ACTIVITIES

23. Events Annual Conference Topical Conferences Landowner Forums

24. Data Wind Farm Database Permitting Database Wind Maps (IIRA) Special Studies

25. Services Help Desk Speakers Bureau Small Wind Guide

26. WHAT LIES AHEAD?

27. Renewable Portfolio Standard Goals at least 2% by June 1, 2008; at least 4% by June 1, 2009; at least 5% by June 1, 2010; at least 6% by June 1, 2011; at least 7% by June 1, 2012; at least 8% by June 1, 2013; at least 9% by June 1, 2014; at least 10% by June 1, 2015; and increasing by at least 1.5% each year thereafter to at least 25% by June 1, 2025”

28. Wind Component A minimum of 75% of the above percentages is required from wind power.

29. Wind Energy Demand (Allen 2007) YearDemand RPS Percentage Wind Percentage RPS Demand Wind Demand 20081082480.020.7521651623 20091055840.040.7542233168 20101170400.050.7558524389 20111097480.060.7565854939 20121102560.070.7577185788 20131115120.080.7589216691 20141126550.090.75101397604 20151137990.10.75113808535

30. Existing/Planned Supply Existing and proposed supply may not be sufficient to meet RPS goals Delays in zoning and permitting will only heighten the problem

31. Note on Pricing If required RPS demand for Illinois Wind is near capacity, the price for wind energy could be relatively high in the short run. Consumer protections are in place to prevent the price of electricity from getting too high.

32. For More Information, Contact David G. Loomis Illinois State University Campus Box 4200 Normal, IL 61790 309-438-7979 dloomis@ilstu.edu