Midwest Alerts

Following last month's approval by the Advisory Board of an energy summit to build a consortium around all organizations interested in new energy policy, Tim Bannister reports that the task forces responsible for collecting key data are well underway with their respective assignments.

"As part of formalizing the mission, we established three task forces responsible for identifying renewable energy initiatives; developing appropriate language for incorporating local, or Michigan Content in new energy policies; and determining how best to advocate for new policy among the various stakeholders," he explained.

"Dwight Smith's task force identifying renewable energy initiatives has been able to build off a paper developed for the Ontario energy commission," he said, "and can now move on to scoring the initiatives in terms of various criteria related to policy change. 

"Frank Zaski's group responsible for exploring how to implement the approved policy recommendations has issued a draft position paper in advance of reviewing the ranked initiatives.  And Douglas Jester's task force addressing appropriate language incorporating local content in any new policies has recently begun collecting examples from other locales," he added.

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Feedback from prospective members has indicated that "limited resources" is holding them
back from joining the alliance.  In the interests of building the membership base, the board decided
to offer an introductory rate of $95.00 for the first six months.  Invoices will follow.

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The task force summaries will serve as the basis for the day-long, hands-on summit to be held at a central location in February.  As Bannister pointed out to the board at the Aug. 17 meeting, Midwest Integrated Suppliers is made up of manufacturers and service providers—large and small—that have diversified into the alternative energy industry to generate new business and, indirectly, jobs and capital investment.

As the organization best positioned to drive new energy policy, he explained, "it makes sense to take responsibility for holding a statewide ‘energy summit' to come together on supporting policy changes and speak with one voice in pressing for their implementation."

Additionally, the energy summit will serve as an anchor for an alliance start-up package that will be offered to "founding sponsors," or companies interested in building relationships with the membership, as well as supporting energy policy change.  Advisory Board Member Bill Gagliardi and Elizabeth Longley, a strategist and grantwriter under contract with Midwest are working with Bannister to develop a protocol for use in calling on selected major companies and firms beginning next month.  ###

Great Lakes Wind Energy Summit highlights opportunity for area business growth

At the Great Lakes Bay Region Wind Energy Summit held in August at Saginaw Valley State University, representatives from manufacturing, government and education spoke on new business opportunities in wind.  Among them was Jim Rose, Vice President, Windemuller Electric Inc., a service provider responsible for the engineering and installation of the 60 MW Stoney Corners Wind Farm near McBain and the initial installation of 29 MW for Heritage Sustainable Energy's wind farm in the upper peninsula.

Charles Vaughan Jr., Vice President for Northern Power Systems, updated attendees on the company's plans to manufacture the first mid-sized wind turbine in Michigan at its Saginaw plant.  The new turbine's generator turns at only 15 r.p.m., as opposed to the traditional 1,000-1,500 r.p.m.'s and is more efficient with the transformer set up under the nacelle.  Of particular news was his comment that Northern Power is now working with 35 Michigan companies as supply chain partners.

Scott Viciana, Vice President of Sales for Ventower Industries, noted that his Monroe-based company is one of the suppliers to Northern Power.  Ventower's new purpose-built facility makes for more efficiencies, with the nearby Port of Monroe and direct rail access contributing to the mix. 

A primer on wind turbine improvement: Wind power gains as gear improves

The electric wind turbines built 30 years ago, after the 1970s oil-price shocks increased interest in the industry, often experienced serous problems.  Some came apart in bad storms; some did not work well, even in good weather; and still others found insects piling up on the blades, slowing power production.  Bird deaths at some early wind farms were alarmingly high.

Challenges remain, but the technology has come a long way in recent years, and wind farm operators have learned plenty of tricks, too, like the importance of shutting down the machines in high winds and the best places to put them to begin with.

The turbines have grown larger, and more effective.  One model made today by Vestas, the Danish turbine manufacturer, can produce 300 times as much power as a turbine sold 15 years ago, according to Finn Strom Madsen, the president of technology research and development for Vestas.  But experts say that vast improvements in wind technology still lie ahead—which makes sense for an industry that is about 100 years behind, say that of the automobile.

To date, many manufacturers have focused on making the machines bigger, so the towers can reach faster and steadier winds and the blades can cover a larger area.  The biggest onshore turbine in Europe, according to Peter Sennekamp, a media officer with the European Wind Energy Association, is a 7.5 MW machine made by the German company Enercon. 

It is 135 meters, or 440 ft., tall—one-third the height of the Empire State Building—and its three blades sweep an area 127 meters in diameter.  The Enercon machine's power potential dwarfs that of most turbines in the U.S., where the average capacity is 1.77 MW, according to the American Wind Energy Association.(AWEA).

For wind companies, buying larger turbines (as opposed to putting up more of them) makes sense because it reduces overall transportation, logistical and operational costs, said Dan Radomski, co-founder of Kinetik Partners, a Michigan-based company that advises companies in the clean-energy sector.

But turbines destined for onshore wind farms may not keep getting bigger as quickly as they have in the past, experts say, because of logistical hurdles.  As towers get to be 100 meters high and more, and blade length increases, shipping them gets challenging.  Trucks carrying big towers and blades must sometimes move with police escorts and avoid certain overpasses or small roads.  (One potential solution is for blades to arrive in segments and be assembled on site; the tubular towers are already shipped in several sections, but even they face limits because taller towers generally need very thick foundations.)

Vestas' Madsen said that offshore turbines—less encumbered by roads and bridges—will keep growing more rapidly than their onshore counterparts.  But sheer size is not the only way that turbines will improve.  Research and development work has proliferated around matters like how to pitch, or angle, the blades and how to monitor wind speed and direction at a turbine more accurately, using lasers. 

Development is also being spurred by the increasing number of manufacturers which are looking for ways to differentiate themselves, according to Radomski.  Also, many of the best wind sites have already been claimed, and that has forced developers to build in places that are not quite so windy—making innovation all the more crucial for cost-effectiveness.

Wind turbines are complex machines.  Each contains about 7,000 or more components (including fasteners), according to Tom Maves, deputy director for manufacturing and supply chain at AWEA 

In places like Texas, the U.S. wind-power leader, turbines must withstand all kinds of weather extremes, from heat of 100 degrees Fahrenheit or more in the summer to frigid temperatures in the winter.  The weather is even a little different at various parts of the turbine:  The wind speed at the tip of one blade may be considerably greater than the wind speed at the tip of another.  Suzlon, an Indian manufacturer, had trouble with blades' cracking several years ago.

One turbine part that has remained especially problematic over the years has been the gearbox, which speeds up the wind-powered rotations in preparation for the electrical generator.  "Gearboxes are really the Achilles' heel of the system," said Jose Zayas, senior manager of renewable energy technologies with Sandia National Laboratories in New Mexico.

Some manufacturers, like Siemens and General Electric, have begun using a technology called direct drive that eliminates the gearbox and uses a lower-speed generator.  (Editor's note:  Saginaw-based Northern Power is building the first U.S.-based utility scale wind turbine incorporating a direct drive generator to be produced by Ann Arbor- based Danotek Motion & Technologies.)  However, that technology uses rare earths, among other drawbacks, according to Vestas' Madsen, who said that Vestas' gearboxes were reliable and the company was not using the direct drive technology.

For now, recent innovations are focusing on reliability and "serviceability."  For example, several manufacturers including Clipper Windpower, a U.S. company, have devised a way to work on turbines without needing a huge crane.  That is useful because of the high cost of bringing cranes on site for repairs.  Down the road, notes Dan Radomski, manufacturing process for turbines also could become much more efficient.  Far too many tasks are still manual, he said, like making molds for the blades or sanding and polishing them.  "There is no fully automated blade plant today," he said.  (Source:  Kate Galbraith, New York Times, 7aug11)

…News in brief… News in brief… News in brief… News in brief...News in

Four Michigan-based organizations have been awarded more than $16.5 million for solar energy projects that accelerate research and development to increase efficiency, lower costs and advance technologies.  The organizations to receive awards are:  Cascade Engineering, Grand Rapids, for racking system for commercial rooftops using polymers; Raymond Tinnerman Manufacturing, Rochester Hills, for bracket system for commercial rooftop installations; Dow Chemical Company, Midland, for building-integrated PV application with high efficiencies; and University of Michigan, Ann Arbor, for next generation of organic PV technology…

These grants from the U.S. Dept. of Energy Office of Energy Efficiency and Renewable Energy SunShot Initiative, and the fact that Michigan came in third of all states based on the amount awarded, are further proof that Michigan is a leader in advanced energy technology.  ###

Goldwind USA, a Chinese-owned wind developer, expects to build its first-ever, large-scale wind project in the U.S., installing 75 Goldwind 1.5 MW turbines at a wind farm in Shady Oaks Illinois in December.  If Goldwind, along with partner Mainstream Renewables, completes the project by the end of the year, it will meet the target set out when it acquired Shady Oaks in December 2010.  Last year, Goldwind and Mainstream won a competitive bid to provide power from the project from 2012 to 2032 to the utility Commonwealth Edison.  And in January 2010, Goldwind completed a 4.5 MW pilot project in Pipestone, MN, its first U.S. project 

Responding to the news, Midwest Advisory Board Member Frank Zaski called the news "disturbing."  "Chinese turbines are now being both installed and built in the Midwest, while Michigan is dragging our fee with creating a major wind industry and jobs here.  Small suppliers tell me they need a big OEM to set up in Michigan for them to expand.  The big OEMs want the certainty of a long-term state renewable portfolio standard (RPS) to commit…something like 20 percent by 2020," he continued.  "We have to find a way to encourage the major utilities to support a higher RPS and allow the OEMs to make a reasonable return." ###

The bankruptcies of three American solar power companies in the last month, including Solyndra of California, have left China's industry with a dominant sales position—almost three-fifths of the world's production capacity—and rapidly declining costs.  The U.S. bankruptcies and closing represent almost one-fifth of the solar panel manufacturing capacity in the U.S.

Some solar companies still have a technological edge over Chinese rivals, but seldom a cost advantage, since state-owned banks in Beijing provide loans at very low rates, cheap or free land from local and provincial governments across China, huge economies of scale and other cost advantages.  (See related column below).

…All is not so positive at ground-level in China, however.  Rioters in the southern Chinese province of Guangdong have besieged government buildings, attacked police officers and overturned SWAT team vehicles during protests late this month against the seizure of farmland.  The violence was the latest outbreak of civil unrest in China fueled by popular discontent over industrial pollution, police misconduct or illegal land grabs that leave peasants with little or no compensation.  Such "mass incidents," as the government calls them, have been steadily increasing in recent years, providing party leaders with worrisome proof that official malfeasance combined with a dysfunctional judiciary often has combustible results.  Last week, hundreds of residents protesting environmental contamination by a solar panel factory in Zhejiang Province stormed the factory and destroyed office equipment an vehicles… ###

Renewable energy is projected to be the fastest growing source of energy worldwide over the next quarter-century, according to the U.S. Dept. of Energy's annual international outlook report released earlier this month.  Global renewable energy consumption is expected to increase by 2.8 percent per year and the renewable share of total energy use to increase from 10 percent in 2008 to 15 percent in 2035, according to the DOE.  Fossil fuels would continue to supply much of the energy used worldwide throughout the period projected, and still account for 78 percent of world energy use in 2035, the report said. 

The DOE study is based on current laws and regulations, and assumes no action by governments to require the reduction of green house gas emissions.  The projections could change significantly if laws and policies aimed at reducing greenhouse gas emission are changed or new ones introduced, the report noted. ###

Consumers Energy has filed an updated renewable energy plan, which the utility says (it) will save its electric customers almost 70 percent on their renewable energy charges this month.  The revised plan reflects changing economic conditions, improvements in wind turbine technology, acceleration of renewable energy projects, and the extension of the federal production tax credit.  The updated plan also includes renewable energy purchase agreements with independent developers, including several wind projects. ###

As Ontario voters head to the polls on Oct. 6, there has been much public attention paid to the politicization of Ontario's electricity system due to public concerns about rising electricity costs, notes Justin Rangooni, Ontario Policy Manager at the Canadian Wind Energy Association.  However, all of the rhetoric can't hide the fact that Ontario needs new transmission capability and new, clean and affordable generation capacity.  All new forms of generation are more expensive than the energy produced by infrastructure that was built 45 years ago—a reality not fully acknowledged by all political parties. 

Wind energy has now proven to be a cost-competitive and reliable source of new generation for the province's changing energy needs.  And Ontario is quickly becoming a global leader in renewable energy development.  To continue on that path, Ontario must have a stable policy framework, permitting the province to truly capitalize on the development of a new green economy that creates jobs for Ontario's manufacturing sector, while bringing significant benefits to its communities.  To do otherwise will only lead to uncertainty and stall any progress enjoyed to date. ###

U.S. Dept. of Energy Secretary Steven Chu announced in September that the DOE is awarding $43 million over the next five years to speed technical innovations, lower costs and shorten the timeline for deploying offshore wind energy systems.

The funding, which will go to 41 projects across 20 states, will advance wind turbine design tools and hardware, improve information about U.S. offshore wind resources and accelerate the deployment of offshore wind by reducing market barriers such as supply-chain development, transmission and infrastructure.  Among the approaches to be addressed is a project to assess the current domestic supply-chain infrastructure and recommend strategies for national manufacturing infrastructure development to support offshore wind deployment. ###

The Michigan Public Service Commission has approved DTE Energy's $485 million contract with Tuscola Bay Wind LLC, a subsidiary of NextEra Energy Resources, for a 120 MW wind project in the Thumb.  The project is in the engineering phase, with construction expected to start next year.  DTE Energy will purchase all of the energy produced at the project, which is expected to be operational late in 2012.

NextEra Energy Resources anticipates a construction workforce of 250-275 people and 10-12 permanent employees.  The wind farm also represents a $250 million investment in the community that is expected to generate over a 30-year period $50 million in lease payments to landowners, $19 million in property taxes, and $21 million in wages and benefits. ###

Ohio State Sen. Kris Jordan (R-Powell) introduced a bill in September which would repeal Ohio's Alternative Energy Portfolio Standard (AEPS).  Jordan claims the AEPS, which requires Ohio to procure 12.5 percent of its energy from renewable sources by 2025, drives up the cost of energy for Ohio families and businesses.  He also denied that the state's renewable energy industry will have a positive impact on jobs in the state.

When it was introduced, the AEPS bill passed with nearly unanimous bipartisan support, notes environmental group Environment Ohio.  "Ohio's clean energy law is already working to repower the state with pollution-free energy, creating green jobs along the way," advocate Julian Boggs said, "and the last thing we need is to be looking backward." ###

And in more Ohio-related news, Michigan-based Ventower Industries, a manufacturer and supplier of utility-scale wind turbine towers, has contracted to manufacture 65-meter towers for Aeronautica Windpower.  The completed wind turbine towers will be supplied to separate schools in Ohio and will be delivered in March 2012.  Immediate commencement of production is expected. ###

Danotek Motion Technologies, a Michigan-based developer and manufacturer of permanent magnet generators and related converter systems that deliver wind energy to the power grid, has secured $15 in funding.  Led by four renewable energy venture capital firms—Khosla Ventures, CMEA Capital, GE Energy Financial Services, and Statoil Technology Invest—along with independent contributors, the financing round will help bring to market new technology that will make wind turbines more efficient, reliable and affordable.  The funds will be used to expand research and development, as well as to launch initial production. ###

Hope Lutheran Church in Warren is looking to the heavens for a new source of power.  Pastor Duerr worked with Allen Brothers Roofing and LUMA Resources in Rochester Hills to install a 20-kw PV solar system.  The church is participating in DTE Energy's Solar Currents program.  The solar panels double as roofing material, so the project also saved 10 percent of the total cost of the roof replacement. ###

(Sources for all:  north American WINDPOWER; New York Times; thewmeachblog.org; EERE News; michiganradio.org; MichiganAdvantage.org; GLREA Lakes Energy News, John Sarver, Editor)

Guest Editorial
The Phony Solyndra Scandal
(Condensed from a column written by Joe Nocera, 24sep11, New York Times)

Solyndra's recent bankruptcy, which the Republicans are now investigating following a $535 million federally guaranteed loan from the Obama administration, was largely brought on by a stunning collapse in the price of solar panels over the past year or so.  The company's innovative solar panels, high-priced to begin with, became increasingly uncompetitive in the marketplace, and Solyndra didn't have enough big commercial customers to create the necessary economies of scale, nor the necessary additional capital that would have allowed them to stay in business…

Undoubtedly, the "scandal" will draw a little blood:  there are some embarrassing e-mails showing the White House pushing to get the deal done quickly so it could tout Solyndra's green jobs as part of the stimulus package.  But we should realize that federal loan programs—especially loans for innovative energy technologies—virtually require the government to take risks the private sector won't take.  Sometimes, the risks pay off.  Other times, they don't.  The real question the case poses is:  Are the potential successes significant enough to negate the inevitable failures?  I say, "yes."

Most electricity today is generated by coal-fired power plants, operated by monopoly, state-regulated utilities.  Because they've been around so long, and because coal is cheap, these plants have built-in cost advantage that no new technology can overcome without help.  The federal guarantees help lower the cost of capital for technologies like solar; they help spur innovation; and they help encourage private investment.  These are all worthy goals.  To say "no" is also to cede the solar panel industry to China, which last year alone provided some $30 billion in subsidies for its solar industry…

Over all, the American solar industry is a big success story; it now employs more people than either steel or coal, and it's a net exporter.  But solar panel manufacturing is another story.  Not so long ago, China made 6 percent of the world's solar panels.  Now it makes 54 percent, and leads the world in their manufacture.  Needless to say, the U.S. share of the market has shrunk.  The only way America can manufacture competitive solar panels is to come up with innovative technologies that the Chinese can't replicate.  Like, for instance, Solyndra's. ###

Guest Commentary
National energy policy envisioned by Gerald Ford still unrealized
(Condensed from a column by Bruce Goodman, mlive.com)

More than three decades have passed since President Gerald R. Ford and his energy czar, Frank Zarb, worked to develop the nation's first comprehensive energy policy and put the U.S. on the road to rethinking energy technology.

At the time the first energy policy was developed, Ford's administration was responding primarily to the oil embargo crisis of the early 1970s.  A major goal was to drive down the amount of imported oil used for transportation from the then-current 35 percent of national consumption at that time.  Despite the president's warning, and the recognized negative influence that oil dependency has on foreign policy options, current statistics show that 49 percent of our oil consumption is from sources.

So where is President Ford's vision 34 years later?  Electric utility companies are not going to voluntarily adopt renewable energy technologies merely because they will improve air quality or because they will utilize abundant, locally available, and free resources (such as the energy of the wind and the sun) or because they will improve national security (through distributed generation and providing transportation alternatives to imported oil).

No, a national energy policy is needed to further encourage and drive renewable energy technologies.  Just as seat belts, air bags, and gas mileage improvements were not on the horizon until governmental standards were devised to drive innovation, a national energy policy is needed to finally realize the goals of unconventional energy technology implementation envisioned by President Ford. ###

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Midwest Alert, Vol. 2, Issue 12, Sept. 27, 2011, is published by Midwest Integrated Suppliers for Renewable Energy LLC, Tim Bannister, Editor, 1000 S. Old Woodward Ave., Suite 201, Birmingham, MI 48009.  Toll-free:  888.244.0047; Email:  tbannister2@integrated-suppliers.com.  Our mission:  To spearhead implementation of initiatives that support new business opportunity in the clean energy sector for Michigan's manufacturers and service providers.