1. Wind Energy and Missouri
Steve Gaw

2. Missouri Wind Projects in Missouri
Installed Wind Capacity: 459 megawatts (MW). State Rank: Missouri ranks 24th for total MW installed
Number of Wind Turbines: 252 turbines
Wind Projects Online: 6 wind projects

3. Missouri Current Wind Generation
Percentage of Missouri's electricity provided by wind in 2013: 1.3 percent
Equivalent number of homes- Missouri wind farms now power: over 100,000 average American homes

4. Missouri Wind Generation Potential
According to data from the National Renewable Energy Laboratory, Missouri's onshore wind potential at 80 meters hub height is 810,619 GWh and 1,267,920 GWh at 100 meters. State Rank: Missouri has the 14th best wind resource in the U.S with greater potential than Illinois.
This means that wind power is capable of meeting more than 9 times the state's current electricity needs.

5. Missouri Jobs & Economic Benefits
An investment in wind power is an investment in jobs, including jobs in operations and maintenance, construction, manufacturing, and many support sectors. In addition, wind power projects produce lease payments for landowners and increase the tax base of communities.
Total direct and indirect jobs supported in 2013:  State Rank: Missouri ranks 20th for number of wind-related jobs
Capital investment: over $960 million dollars  
Annual land lease payments: over $1,200,000

6. Manufacturing Wind-Related Manufacturing
The wind industry has over 550 manufacturing facilities producing products for the wind industry that range from blade, tower and turbine nacelle assembly facilities to raw component suppliers including fiberglass and steel.
Number of manufacturing facilities in Missouri: 12 facilities

7. Wind-Related Manufacturing
Number of manufacturing facilities in Missouri: 12 facilities

8. AECI: Currently 600 MWs with 150 MWs under development
Bluegrass Wind Farm Gentry County, Missouri

10. U.S. Annual and Cumulative Wind Power Capacity Growth (Utility-Scale Wind)
61,110 MW, with 1,087 MW installed during 2013
19.5% Annual Growth Rate
Nearly 20% of all global wind capacity
Source: AWEA U.S. Wind Industry Annual Market Report 2013
For more information on state level installations, see pp

11. Rebound in Wind Installations in 2014 and 2015: Uncertainty Returns in 2016
expected to be strong as developers commission projects that began construction in 2013 to receive PTC
AWEA: 12 GW of wind under construction
BNEF expects 15 GW in
EIA expects 16.7 GW in
Navigant expects 12.3 GW in
2016 and beyond are uncertain: aggressive wind pricing may support higher growth, but multiple headwinds
Lack of clarity about federal tax incentives
Low natural gas & wholesale electric prices
Modest electricity demand growth
Limited near-term demand from RPS policies 11 11

12. Wind Capacity Installations, by State
The 61,110 MW installed in the U.S. is spread across 39 states and Puerto Rico.
16 states now have more than 1,000 MW installed.
TX #1 with 12,354 MW
CA #2 with 5,829 MW
IA #3 with 5,177 MW
IL #4 with 3,568 MW
OR #5 with 3,153 MW
OK #6 with 3,134 MW
Source: AWEA U.S. Wind Industry Annual Market Report 2013
For more information on state level installations, see pp

13. Wind Energy Share of Electricity Generation, by State
A record-breaking 4.1% of U.S. electricity came from wind power during 2013.
Wind energy generated more than 25% of the electricity in IA and SD.
In total, the generation in nine states was more than 10%
ERCOT: 9.9%
Source: AWEA U.S. Wind Industry Annual Market Report 2013, Energy Information Administration
For more information on wind energy generation, see pp and 26-28

14. Wind as Leading New Energy Source
Wind energy was the primary choice for new power in wind-rich regions between and 2013, delivering approx. 60% or more of all new electric generating capacity in the Pacific Northwest, Plains states and the Midwest.
In the upper Midwest, wind delivered over 80% of all new capacity.
In regions where wind or renewable energy were not the primary new source of generating capacity, natural gas combined cycle units were the main alternative choice. In the regions of Mid-Atlantic, New York, and Southeast, natural gas was the
largest source of new electric generating capacity, delivering 67% of all new capacity between 2011 and 2013, with natural gas combined cycle units serving as the primary technology.
Source: AWEA U.S. Wind Industry Annual Market Report 2013
For more information on generating capacity additions, see pp

15. Electric Utilities Pursue Wind Energy
A record number of PPAs were signed during 2013.
Utilities from Maine to California signed over 60 PPAs for more than 8,000 MW of new wind capacity.
Much of the wind PPA activity centered around the upper Midwest down through the Plains states and Texas.
Utilities signed PPAs in excess of their RFPs, citing historically low contract prices and a strong hedge value.
Source: AWEA U.S. Wind Industry Annual Market Report 2013
For more information on utilities and PPAs, see pp ,

16. Investment into the U.S. Economy
Source: AWEA U.S. Wind Industry Annual Market Report 2013
For more information on wind investments, see pp and 70-71

17. Estimated Land Lease Payments
Source: AWEA U.S. Wind Industry Annual Market Report 2013
For more information, see pp. 46 and 67-73

18. U.S. Manufacturing Sector Growth
560 wind-related manufacturing facilities - spread across 43 states.
Annual U.S. production capacity of wind turbine nacelles stands at more than 12 GW.
The domestic content of wind turbines has grown from less than 25% prior to 2005 to approximately 72% at the end of 2012.
Source: AWEA U.S. Wind Industry Annual Market Report 2013
For more information on wind-related manufacturing, see pp and

19. Why Wind?
Public Policy
Hedge: Wind energy contracts can be used as a long-term hedge against volatility in fossil fuel prices and environmental regulations.
Environment: Wind is a zero polluting and non-carbon emitting energy resource that uses no water to produce power.
Diversity-Security: Enhancing energy security and diversifying the electric generation portfolio.
Price: Wind energy is providing prices that are competitive with other new generation options, and has been shown to reduce prices to consumers.
Economic Development: Billions have been invested as a result of wind development producing jobs, increased tax base for schools and local communities.

20. Missouri
State Policy 
A 2008 ballot initiative replaced the existing state targets with a mandatory renewable electricity standard (RES) requiring 15 percent of 2021 generation of the state’s investor-owned utilities to come from renewable resources.

21. Insuring the Risk
“There are known knowns. These are things we know that we know. There are known unknowns. That is to say, there are things that we know we don't know. But there are also unknown unknowns. There are things we don't know we don't know.” Donald Rumsfeld

22. Wind Energy and Diversification: Insuring against the known unknowns
Fuel Price Volatility
Fuel Transportation Risk
Water Shortages
Environmental Policies

23. Wind Power Price Trends
Lost Creek Wind Farm

24. Historical Cost of Wind Energy
Wind cost per kwhr has declined 90% since the early 1980’s
With or without PTC?
Source: NREL Cost Curve, in Black & Veatch Report, October 2007

25. Why have costs decreased?
Capital Costs
Improved energy production
Technological advancements
Better understanding of siting
Transmission access

26. Advances in Turbine Technology
Industry continues to advance technology in several areas, from improved siting techniques to larger rotor diameters and taller towers that are increasing energy production across the country.
Taller wind turbine towers and hub heights as well as larger rotor diameters capture more energy, allowing better wind energy resources to be tapped.
With new technology, new regions for development have rapidly emerged in recent years, with states including Indiana, Ohio, Michigan, and New England states such as Maine seeing wind project installations as a result of both new state policies that foster such development as well as improved industry technology.
Source: AWEA U.S. Wind Industry Annual Market Report 2013
For more information on turbine trends, see pp

27. Lower Costs and Better Capacity Factors Enable Aggressive Recent PPA Pricing
Lowest prices we have ever seen in the U.S. market, despite the trend towards lower-quality wind resource sites in general 27

28. Wind Prices: Below the Current & Expected Future Cost of Burning Fuel in Natural Gas Plants28

29. Consumers Price Benefits
Flat Ridge 2 wind power could lower SWEPCO customer bills in 2013 by roughly $.05 per monthly bill for customers using 1,000 kilowatt hours and $.11 per monthly bill in 2014.” – SWEPCO
Alabama Power, a subsidiary of Southern Company, is “absolutely looking for more wind power” to import from Midwestern states. Noting that Alabama does not have good wind resource. “Wind energy is cost-effective for the utility’s customers and helps diversify its fuel mix.” - Michael Sznajderman of Alabama Power.
Don Ford, director of renewable business solutions for Westar, said the utility has an agreement to own 200 megawatts of the farm’s generation for 20 years. Westar’s share of the farm won’t produce 200 megawatt hours of power every day because of wind conditions, he said, and the utility will pay by the kilowatt hour at a set rate.
The cost per kilowatt hour from the new wind farm will be lower than the cost from previous wind projects, Ford said, though he declined to specify the cost. It is higher than the cost from Westar’s coal-fired plants, but less expensive than its natural gas plants, he said.
“That dollar amount is lower than any of the wind power we’ve purchased before,” he said.
Westar already has a transmission line in the area of the planned wind farm, according to the news release. Construction is scheduled to start in 2015, with electricity coming online in 2016.

30. Utilities on Wind Midwest
“We’ve found a way to meet the state of Minnesota’s renewable energy standard early and reduce costs at the same time ... Expanding Bison will add to our renewable energy supply, resulting in the lowest cost resource over time by capturing the benefits of the extended production tax credit and a competitive turbine market”
Al Hodnik, chairman and CEO of ALLETE after announcing the expansion of their Bison Wind Energy Center
Interior West
"It works out to a very good levelized cost for our customers,…These prices are so compelling, the energy [cost] associated with it is less than you can do locking in a 20-year gas strip.“
- Xcel Energy, Ben Fowke, Xcel President and CEO. The Colorado and Minnesota public utility commissions approved wind PPAs totaling 850 MW. Xcel Energy expects to pay about $25/MWh to $35/MWh over 20 years for the recently approved wind power purchase agreements
Source: AWEA U.S. Wind Industry Third Quarter 2013 Market Report

31. Water Consumption Savings from Wind Energy
Water is used for cooling at thermal (i.e., natural gas, coal, and nuclear) power plants.
By directly reducing the use of fossil-fuel generation, wind energy can dramatically reduce electric-industry water consumption.
In 2013, wind energy generation led to water consumption savings of 36.5 billion gallons - equivalent of roughly 116 gallons per person in the U.S. or conserving the equivalent of 276 billion bottles of water.
Source: Forthcoming AWEA U.S. Wind Industry Annual Market Report Year Ending 2013

32. Avoided CO2 Emissions from Wind Energy
In 2013, wind generation avoided an estimated 95.6 million metric tons of carbon dioxide (CO2)— the equivalent of reducing power-sector CO2 emissions by 4.4%, or taking over 16.9 million cars off the road.
The 12,000 MW of wind power capacity under construction at the end of 2013 would reduce another 20 million metric tons of carbon dioxide (CO2) when it is operational — the equivalent of reducing power sector CO2 emissions by another 1%.
Source: Forthcoming AWEA U.S. Wind Industry Annual Market Report Year Ending 2013

33. Thank You!
Steve Gaw
Lost Creek Wind Farm