last modified: Thursday,
December 15, 2005 0:41 AM
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Something Old, Something New:
Wind Power and Economic Development
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Dale Winling
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lwinling@umich.edu
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Attempts to harness the power of the wind date back for centuries.
Though the exploitation of wind
for energy purposes declined through the 1960s, in latter decades the shift to
developing alternative energy sources has produced a revitalization of wind
energy production. Particularly since the energy crisis of the 1970s,
energy production from wind has seen a great deal of investment, though its
profile has only recently reached any mainstream currency. Despite this
modest renaissance following long-term decline of wind resources, the potential
of wind to provide energy to the electricity grid cleanly and competitively is
becoming known through serious economic, engineering, and environmental
research.
The
While the
What economic benefit does wind
energy hold for communities, consumers, and production companies? In
addition to the simple market value of the electricity produced, one must
consider monetarizing the intangible benefits of wind
energy. These include the avoided costs of environmental pollution from
fossil fuel energy sources and the avoided costs of developing new fossil fuel
plants to meet increasing energy demand.[ii]
Thus, there are significant additional economic
benefits realized through savings – not having to clean up or treat the harmful pollutants produced by fossil fuel
plants. Illustrating this, a recent study by the Izaak
Walton League of America and corroborated by the Minnesota Department of Public
Service, found that wind energy was actually a cheaper fuel source than natural
gas-fueled power plants, the standard source for power generation today.[iii]
This means that companies can produce electricity more cheaply through wind,
without the external costs of damage to the environment and health problems for
nearby residents and communities. In addition, the federal government has
shown a commitment to developing and researching alternative energy
sources. Since 1992, the federal government has offered a Production Tax
Credit to encourage the development and operation of alternative energy
sources. The PTC currently stands at 1.9 cents per kWh and applies to
production within the first 10 years of a turbine or wind farm’s operation,
increasing the cost competitiveness for wind energy.
How can
Another promising opportunity
for the creation of wind energy is in coordination with farmers at the fringe
of urban areas. Transfer of Development Rights (TDR) programs have proved
successful in helping preserve active agricultural land by separating
development rights from ownership rights and compensating farmers for those
development rights. The additional revenue, which may be significant for
a plot of land that could be subdivided for residential development, often
enables farmers to keep farming and may help maintain ecological diversity in
an area. In a similar fashion, agricultural land is often a good match
for potential wind sources for a number of reasons. Farmers may lease
small plots of agricultural land for the development of turbines, creating a
revenue source while providing a site for turbines that minimizes environmental
impact upon wildlife or humans.[vi]
There are, however, obstacles
to the creation and implementation of wind energy resources, frequently related
to the siting of turbines. A recent study by
the Government Accountability Office (GAO) concludes that bird deaths because
of wind turbines is lower than had been popularly believed, while bat deaths
are a more serious environmental concern. Perhaps most importantly, the
study emphasized differing regional concerns in siting
and environmental impact.[vii] Turbine blades may reflect sunlight
throughout the surrounding area, disorienting wildlife and humans alike. In
response to such concerns, turbine producers have developed less reflective
coatings for turbine blades.
[i][i]
Matthias Heymann. “Signs of Hubris: The Shaping of Wind Technology Styles
in
[ii]
Robert Y. Redlinger, et al. Wind Energy in
the 21st Century: Economics, Policy, Technology and the Changing
Electricity Industry. (
[iii] Ibid, 90. The large-scale production can yield
production costs as low as $.05/kWh.
[iv] http://www.windshare.ca/ (Accessed December
4, 2005)
[v]
George Sterzinger and “Wind Turbine Development: Location of Manufacturing
Activity.” Technical Report. http://www.crest.org/articles/static/1/binaries/WindLocator.pdf.
(Accessed December 4, 2005)
[vi]
Christine Stebbins. “Wind Turbines Pop Up On
[vii] “Wind Power: Impacts on
Wildlife and Government Responsibilities for Regulating Development and
Protecting Wildlife.” http://www.gao.gov/new.items/d05906.pdf
(Accessed December 4, 2005)
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