Future large wind projects in doubt with incentives set to end

August 26, 2010

The Golden Valley wind farm one of 11 now being built across 10,000 acres of active and inactive farmland in southern Idaho’s Magic Valley

Wind power investor and manufacturer GE has warned that the days of building major new wind projects are numbered, unless Congress can pass new clean energy legislation.

The warning came from the company’s investment division, GE Energy Financial Services, as it celebrated the construction of its $500 million wind project in Idaho on Tuesday.

The largest wind power project ever launched in the state, the Idaho Wind Project is set to include 11 wind farms, 122 wind turbines and 183 megawatts of new generating capacity.

But while the company is expecting federal incentives to support the development, the incentive program runs out at the end of this year.

Alex Urquhart, President and CEO of GE Energy Financial Services, said: “We are concerned that such projects will become increasingly difficult without imminent passage of federal clean energy legislation.

“A federal incentive backing this project, the Treasury Grant, is expiring at year’s end. Extending that program and other federal incentives would provide the long-term certainty that investors and manufacturers such as GE need to ensure continued expansion of renewable energy throughout the country.”

Idaho Wind

Creating 175 construction jobs along the way, installation is already well underway at the Idaho Wind Project, which is set to spread across 10,000 acres of southern Idaho’s Magic Valley.

Deliveries of wind turbine blades, towers and other components are already taking place, along with the installation of foundations and footings for wind turbine towers.

The turbines are slated for completion by the end of the year, providing enough generating capacity to supply around 39,700 local homes with clean electricity.

Environmental benefits from the project will be akin to taking 57,000 cars off the road.

Idaho Governor CL “Butch” Otter, who attended Tuesday’s celebration, said renewable energy projects like the 11 wind farms now being built were “breathing new life into the Idaho frontier”.

Gov Otter said: “We’re aggressively harnessing our abundant natural resources for growth because that helps our economy, generating not only electricity but career opportunities right here at home.”

Partners

Officials from GE and partners celebrating the construction of the Idaho Wind Project in Bliss, Idaho on Tuesday

GE, which is also supplying its 1.5MW wind turbines for the project, was joined at the celebration by its partners on the project, including developers Exergy Development, project manager Reunion Power and investor Atlantic Power Corp.

James Carkulis, president and CEO of Exergy said his company had worked “long and hard” with local landowners, contractors and suppliers to create the “historic” project.

Mr Carkulis said: “We wanted from the outset to make the right kind of difference in the lives of the people who live here, and we take great pride in our corporate responsibility, sensitivity to the local environment, and promotion of traditional Idaho and community values.”

Once complete, energy from the wind farms will be sold to state utility Idaho Power Company under 20-year power purchase agreements.

Lisa Grow, Idaho Power’s senior vice president of Power Supply, said the project was part of its overall strategy to expand its portfolio of clean energy beyond merely hydropower projects.

Ms Grow said: “Our balanced generation portfolio is not only the environmentally responsible way of doing business but ensures we can offer our customers some of the lowest rates in the nation while providing reliable energy services.”