NPPD's new process for the addition of wind-powered generation

Sometimes it is referred to as Prairie Power. The harnessing of the natural resources of the wind and turning it into electricity to heat, cool, and light Nebraskan homes, operate pivot irrigation, or provide the power to manufacture goods. Nebraska Public Power District is working to harness the power of wind and make it an integral part of its portfolio mix.

A planned process is now in place that will add more ”Prairie Power” by beginning to add wind-powered generation on a regular basis at a rate of 80 megawatts every two years through 2020 and utilizing private developers and NPPD-constructed sites as part of that mix. The end result will be additional renewable energy for Nebraska through “Prairie Power”.

Reaching the 10 percent goal

Early in 2008, the Nebraska Public Power District’s Board of Directors unanimously revised its strategic plan on renewable energy, and because of the cost of wind-powered generation compared with other renewable generation, there will likely continue to be an emphasis on wind-powered generation.

The Board’s Strategic Plan now states: “NPPD will evaluate all forms of renewable resources feasible in Nebraska and incorporate them in the total mix of NPPD-owned generation and contract purchases with a goal of achieving 10 percent of our energy supply for NPPD’s native load from renewable resources by 2020”.

A key component is the addition of wind-powered generation in NPPD’s diverse energy portfolio. To meet that goal established by the Board of Directors, NPPD will need to be at 533 megawatts of total wind generation by 2020. This figure falls in line with the moderate regulatory scenario presented in NPPD’s Integrated Resource Plan accepted earlier this year by the Board. Moving to that level as part of the plan will see the potential for change over time based on load growth, fuel costs, and climate change legislation and environmental regulations.

At the beginning of 2008, NPPD’s share of the 59 megawatts generated from the Ainsworth Wind Energy Facility was 32, with remainder going to Omaha Public Power District, Municipal Energy Agency of Nebraska, the City of Grand Island, and the Jacksonville (Fla.) Electric Authority. With the addition of added wind-powered generation from the privately-owned Elkhorn Ridge Wind Farm (80 megawatts) and the Crofton Hills Wind Farm (42 megawatts), an additional 61 megawatts will be added to NPPD’s energy portfolio mix by the end of 2009. The remaining 61 megawatts from those two facilities is being negotiated for purchase with other public power utilities in the state of Nebraska.

The plan projects adding a minimum of 80 megawatts of wind-generated power in even years starting in 2010 and reaching that 10% goal by 2020. The first step will be potential adding two 80 megawatt wind-powered generating facilities.

The process for adding wind-powered generation

NPPD has developed a process that will start the effort towards reaching that 10 percent goal beginning in 2010, with 160 megawatts of wind-powered generation (80 megawatts will be taken by NPPD and the remainder by Nebraska utilities that have expressed interest) being added to the fuel portfolio.

• Communication with NPPD’s wholesale customers has already taken place and additional transmission studies will be conducted later this year on areas identified as having the potential for development either by NPPD or private developers.
  
  
• In the fall of 2008, NPPD issued a request for proposals for up to 80 megawatts of wind-powered generation with a deadline for submittal of proposals being April 15, 2009.
  
  
• Once the deadline proposal has been reached, it is anticipated that the submitted projects will be analyzed with project(s) selected and negotiation of a Power Purchase Agreement and Generation Interconnection Agreement reached by the end of 2009.
  
  
• A transmission interconnect facility would be designed, built, and available for use in 2010.

Benefits of this process

There are several significant benefits to this process such as:

• Clearly defining NPPD’s plans for adding wind powered generation through 2020.
  • Bringing more certainty to our plans and processes to the benefit of all stakeholders including private developers, customers and other Nebraska utilities.
    
    
• Takes advantage of sites that have the best wind and available transmission to the benefit of NPPD and developers.