Xcel Energy just lately obtained approval to repower a pair of wind farms initially in-built 2015 to make the most of improved know-how and expiring tax credit.
Utilities and builders are repowering wind generators with larger, higher blades years forward of the top of their authentic life expectations as they appear to make the most of know-how enhancements and expiring federal tax credit.
Xcel Energy just lately received approval for a $750 million plan to retrofit 4 wind farms in Minnesota and North Dakota, two of which have been in-built 2015. The oldest of the batch initially began producing energy in 2008.
Wind farm contracts and decommissioning plans usually set life expectations round 25 to 35 years. By repowering the initiatives lengthy earlier than that, utilities are in a position to increase output round 10% or extra, including energy to the grid with out going through contemporary allowing or interconnection hurdles.
“It’s a wise factor to do,” mentioned Beth Soholt, director of the Clean Grid Alliance, a renewable power advocacy nonprofit. Soholt famous that the added technology means further federal tax credit, which helps decrease the price of energy. “It’s additionally a superb profit for ratepayers.”
A Lawrence Berkeley National Laboratory examine on the wind business reported a imply age of 11 years for generators reengineered in 2019. Wind farm homeowners repowered 1,828 generators producing 2,864 megawatts, with the most typical change being a rise within the measurement of the rotor diameter. Tower top not often modified, the report mentioned. The information coated “partially repowered” initiatives that changed tools fairly than your complete turbine, an strategy Xcel will use.
Repowering represents a considerable chunk of the wind business’s progress. In 2019, about 2 gigawatts — or one-fifth of all wind initiatives constructed within the United States — have been repowering initiatives, in line with the American Clean Power Association. A latest report from Wood Mackenzie urged at the very least three gigawatts of repowering initiatives can be accomplished this 12 months.
NextEra Energy Energy Resources, one of many nation’s largest wind builders and a presence in Minnesota’s wind business, reported final 12 months that it had repowered 60% of its fleet over the previous 5 years. Another 2 gigawatts of repowered NextEra Energy initiatives will come on-line by 2022, together with an Iowa wind farm that sells energy to Minnesota-based Great River Energy.
“We know that builders are consistently attempting to juggle and hedge the dangers related to transmission infrastructure prices and upgrades,” mentioned Jessi Wyatt, an affiliate power planner and analyst with the Great Plains Institute. “We additionally know that the know-how is advancing in leaps and bounds, and really properly might be making the financial case to the developer to repower [retrofit or partial] earlier within the lifetime of the system for that marginal enhance in megawatt nameplate capability between improve and easy finish of life.”
Turbine homeowners can make the most of the federal wind manufacturing tax credit score so long as they spend sufficient on new tools to qualify it as a brand new challenge within the eyes of the Internal Revenue Service, mentioned John Hensley, vp of analysis analytics on the American Clean Power Association (previously the American Wind Energy Association).
The tax credit score was set to run out on the finish of 2020. In December, Congress voted to increase it one 12 months as a part of the COVID-19 stimulus invoice. The lack of certainty has inspired builders to repower ahead of they could have in any other case to say the profit.
The 2012 closure of Clipper, as soon as a significant wind producer, additionally fueled at the very least just a few of the repowering initiatives, Hensley mentioned, as homeowners regarded to switch Clipper tools and rotors with newer fashions from present producers, Hensley mentioned.
NextEra changed 60 Clipper generators with new GE know-how and rotors at Endeavor Wind Energy Center I & II initiatives in Iowa. Great River Energy buys energy from the wind farm, which began manufacturing in 2008 and repowered in 2019.