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* One of the things that Gov. Pat Quinn gets right is his vocal support for alternative energy. And Illinois is at the center of wind power partly because of his work.
The Environmental Law and Policy Center has produced a new study identifying over 100 Illinois companies with 15,000 employees active in the “wind power supply chain.” The group also estimates that 17 manufacturing jobs are created for every megawatt of power developed. That means 2,500 jobs for a 150 megawatt utility-scaled wind farm.
* The state now has 25 wind farms. Chicago is home to 13 major wind power company corporate headquarters. Here are just a few…
Acciona, a $7 billion Spanish-based multinational corporation, develops and manages clean energy projects, operates a turbine assembly and has its North American headquarters in Chicago. Acciona has ownership interests in seven North American wind farms.
Invenergy has its global headquarters Chicago and it develops, owns and operates large scale renewable energy facilities in North America and Europe. The company has developed twenty U.S. wind farms, two of which are in Illinois, making it one of the nation’s largest independent wind energy producers.
Midwest Wind Energy, headquartered in Chicago, is a utility-scale wind farm developer, with a current project portfolio of over 5,000 megawatts of power in Illinois and the Midwest.
Naperville’s BroadWind Energy headquarters recently got a writeup in the local paper…
Naperville’s Broadwind Energy is a wind-industry holding company with four businesses: logistics, technical and engineering services, turbine tower construction and precision gearing systems manufacturing.
“We make the towers that the turbines go on and manufacture the gears that go in the gear boxes, and we also have a service business that maintains the turbines,” said Broadwind spokesman John Segvich on Tuesday.
According to Segvich, Broadwind began in 2006 in Manitowoc, Wis., and moved to Naperville in March 2008. The 800-person company serves wind farm developers and operators throughout the United States. While Naperville is its corporate headquarters, Broadwind operates a gear-manufacturing plant in Cicero and a turbine plant in Texas.
“The services business is pretty much where the customers need them,” Segvich said, adding that the company chose to move to Naperville to be near a major international business center.
“The wind players are here in Chicago,” he said.
Another business snagged from the cheeseheads.
All those headquarters need lawyers, CPAs, caterers, programmers, insurance, public relations specialists, and on and on and on.
* But there’s also a more direct benefit. A. Finkl & Sons is gearing up to supply the industry with high grade steel for turbines. Winergy Drive Systems, a division of Siemens, just opened its second turbine production facility in Elgin. The company employs 500 Illinoisans. There’s lots more. Read the report.
* This is clearly a growth industry for Illinois, and the state needs to do even more. A new state law that allows school districts to cut deals with wind farm companies is starting to pay dividends for districts like Warrensburg-Latham, which is near Decatur…
Emmett Aubry was tired of hearing complaints about the wind and decided to find a way to put it to good use.
Aubry, the Warrensburg-Latham schools superintendent, told those at the Greater Decatur Chamber of Commerce Ag Café luncheon Monday that what he found could help not only the school district but provide a boost to the area’s economy.
“When you come to Warrensburg for a football game at the high school, it will blow you off the hill top,” Aubry said. “We griped about it a lot.”
A nearly $400 million wind farm is planned for 10,000 acres of leased land outside Warrensburg, Aubry said. The school district sits on what would be the northeast corner of the farm, he said. […]
The project would create 300 construction jobs and 22 permanent jobs, Aubry said. Many of the workers would be trained in a newly-developed wind technician training program at Richland Community College in Decatur.
* What about price? There is an argument that the price differential between wind and what we have now is just too great. But Illinois Wind Daily (yes, there is such a publication) makes a good point…
An article in this weekend’s New York Times highlights an interesting hurdle facing the wind industry during the current economic crisis: state utility commissions are viewing renewable power supply contracts as too expensive in comparison to standard power supply contracts. This issue has been problematic for wind projects in Illinois and other states, but could be a short-sighted perspective because power prices are now at historic lows.
They’re low because of the recession. They’ll eventually go back up again, but this wind industry opportunity will be gone by then if we lay back now.
* And as long as the market is out there, we need to not only stay in the game, but lead it and help pave the way. For instance, people tend to believe they “own” the sightlines from their property. That’s pretty silly, but it seems to be a natural inclination. I know I can feel the same way. But too often, a tiny handful of rural neighbors are allowed to stop or greatly slow down wind farm projects…
The [Marshall County] board’s approval came over the objections of several residents who live in the area where the 16 turbines will be located. Rebecca Donna, an Illinois Valley Community College professor who also had objected at an earlier Zoning Board of Appeals hearing, said the turbines will reduce quality of life and property values for residents not involved in the project.
“There are 31 residents (in that category),” Donna said. “I know that’s not a lot of people, but I think the county should consider those people. It will very negatively impact our lives.”
* What we also don’t need is for ComEd to continue dragging its feet. The company has so far prevented a bill from passing that would extend a provision in state law that only allows the company to apply only renewable energy sources from Illinois to its minimum alternative energy mandate. ComEd wants to import wind-generated power from out of state instead. Legislators need to be for Illinois jobs, not utility games. If this bill isn’t properly drafted, then the players need to come up with a new one. But soon. As with everything else, we’re in competition with other states and other countries in this industry.
We have lots of coal here, and clean coal technology needs to be invested in as well. Environmental regulations are trending harshly against coal these days, so we can either do nothing and stick with the old technology and be left behind (once again), or kick it up ten notches and get out in front of the changes coming our way, whether we like it or not.
[Hat Tip: Progress Illinois and Illinois Wind Daily.]
posted by Rich Miller
Thursday, Nov 11, 10 @ 10:55 am
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Thought provoking Atlantic cover story by James Fallows on whether coal can be “green” or not — check it out. http://www.theatlantic.com/magazine/archive/2010/12/dirty-coal-clean-future/8307/
Comment by lake county democrat Thursday, Nov 11, 10 @ 11:02 am
“[Power prices are] low because of the recession. They’ll eventually go back up again, but this wind industry opportunity will be gone by then if we lay back now.”
And if this Tribune story on commodities is to be believed — http://bit.ly/TribCommodities — power prices will go up again sooner rather than later.
– MrJM
Comment by MrJM Thursday, Nov 11, 10 @ 11:05 am
There’s a blade factory near Fort Madison, IL in southeast Iowa (not far from Nauvoo, IL) also Siemens owned. In Iowa, it also causes rail transportation to be used (those blades are huge). All in all, those jobs and the follow ons have been excellent for the area. If IL doesn’t seize its day, other states will.
Comment by cermak_rd Thursday, Nov 11, 10 @ 11:07 am
It’s a growing business, drawing by my Midwestern drives. There’s a big farm going up south of Dekalb and a huge one going up between Purdue and Rensalleer, IN.
I got stuck in a truck convoy hauling components last summer. They really are something to see up close, absolutely gigantic.
Comment by wordslinger Thursday, Nov 11, 10 @ 11:08 am
” lawyers, CPAs, caterers, programmers, insurance, public relations specialists, and on and on and on.”
and government relations specialists who subscribe to capitolfax…
Comment by shore Thursday, Nov 11, 10 @ 11:10 am
cermak_rd, you bring up a good point. Illinois should seek the manufacturing jobs, which are more steady and long-term.
Whenever I drive past these wind farms on I-55, I don’t see ANYBODY working. True, a wind farm generates a few temporary construction/legal/accounting jobs, but we should seek the permanent manufacturing jobs - that is where our incentives should flow.
Comment by Gator Thursday, Nov 11, 10 @ 11:12 am
Without intending to get this post off-topic, this subject is precisely why a federal cap and trade system needs to happen. Exelon and other companies currently lack certainty and any incentive to invest more in alternative energy. By creating a market for trading carbon emissions, businesses will have economic certainty and incentives for long-term investments not only in wind, solar and geo-thermal, but also nuclear power, which Illinois is also a leader in.
The missing piece to this economic boom is smart federal policy that creates a market to trade carbon emissions. It’s been endorsed by the Economist and other pro-business advocates. Yes, our electric bills and other energy bills may go up, but we’ll finally capture the cost of pollution in these transactions. It’s very much a free market approach that will benefit our economy long-term.
Comment by 47th Ward Thursday, Nov 11, 10 @ 11:16 am
ComEd is dragging its feet? Sounds like the LEGISLATURE is the one dragging its feet. How about calling out the committee chairs, leaders, individual legislators in ComEd’s pocket who are standing in the way of Illinois jobs on behalf of their ComEd patrons.
Comment by hisgirlfriday Thursday, Nov 11, 10 @ 11:19 am
Gator, You are incorrect about SB 3686 passing in a slightly different form. SB 3686 specifically extended the “in-state” requirement for renewable energy from 2011 to 2015. The utilities killed that bill. The bill that you cited, HB6202, relates to solar energy between 2011 and 2015.
Comment by National League Thursday, Nov 11, 10 @ 12:07 pm
on my weekly shuffle up and down I-55. I’m hypnotized by the windmills, like Quixote. If I had one out my window, I’d be staring at it all day. Now the “green” parking garage out my Chi ofc window has a wind “spiral” that has only turned on the day of the Chi hurricane.
Comment by D.P. Gumby Thursday, Nov 11, 10 @ 12:23 pm
if you drive south in Indiana to Indianapolis, you go for miles through a huge wind farm. my thought in seeing it was “Indiana, really, what do they have that we don’t have?” it’s a striking image of a more modern approach to power. sure Indiana has the Mitch Daniels union problem, but if a mega wind farm is in Indiana, we can surely do it here. the South Side solar array is nice, but take advantage of wind too. we have more of that year round.
Comment by Amalia Thursday, Nov 11, 10 @ 12:25 pm
Clean coal = better cigarette filters. Better to quit smoking altogether.
I applaud more wind and solar and other renewables as part of the mix, but we need to get new nuclear plants constructed fort he base load. Otherwise, we’ll get more coal and natural gas-fired plants, and that will be a shame.
Comment by Gregor Thursday, Nov 11, 10 @ 12:28 pm
The list of 25 wind farms referenced in the report includes many one-turbine projects, which hardly qualify as a “farm.” Only about 13 projects using multiple utility-scale turbines are currently operating, but they account for the lion’s share of production. Actually, considering that the Big Sky project in Lee County is nearly finished, state production is set to exceed 2,000 MW. More are on the way, however. Depending on how you count them, we have a bit less than 1,400 turbines operating now. But if you look at the projects which already have permits and only need customers to go to production, then 1,500 or more are set to be built in 2011.
But the fate of many projects rests with County Boards and Village Trustees; there is no state regulation governing wind turbine siting–it is always a local decision. And, while many of the concerns expressed by opponents can be easily derided, and wind is clearly the least environmentally-costly form of energy generation, it may have some downsides we haven’t yet experienced. It will certainly transform the Illinois landscape. More needs to be done by neutral parties to research possible drawbacks, and this is where the state could help a lot. Studies by industry-supported groups which see no problems must be held suspect–after all, there were no problems with DDT or tobacco, were there?
Comment by Oberon Thursday, Nov 11, 10 @ 12:36 pm
Rich, thanks for the focus on wind energy and the jobs report. Good comments on this issue. In response to Gator, just a few corrections. While it is true wind was initially cheaper in Iowa, the costs for Illinois wind have dropped drammatically in the last two years. One principal reason is that Iowa got started on wind years before Illinois and had already paid down debt. The Iowa-Illinois comparison underscores why it is important for a state to get ahead of the curve and not be a Jonnie-come-lately.
We now have the same phenomenon starting with Solar Energy. Just as wind developed rapidly once costs became competitive, we are about to see an explosion of solar development across the Midwest. The state that gets out front first will benefit from the siting of manufacturing, distribution and servicing facilities with thousands of jobs.
Back to Gator, I believe you have made erroneous comments regarding wind-related jobs. First, you incorrectly assume only a “few temporary jobs” are associated with construction. A wind farm can employ 100-200 skilled, well-paid crafts people for a year. That is nothing scoff at.
Second, once wind farms are operational, there aren’t just lawyers and accountants being employed permanently; there are electricians, maintenance workers and other skilled staff keeping the facilities maintained and running.
Third, you need to read the ELPC report. It lists the wind-related businesses and jobs that are now in Illinois. You suggest Illinois needs to go after the manufacturing jobs and you are right, but don’t limit your observation to only manufacturing; it is also maintenance and repair jobs, distributors and parts facilities. That is the point of the ELPC report. As wind energy has come to Illinois, so have new companies and jobs. When you suggest Illinois needs to go after manufacturing jobs and not focus on wind farms, you ignores that manufacturing jobs are going to locate in areas where there is considerable wind farm construction. Repair facilities, parts manufacturers and maintenance jobs are going to track the location of wind farms.
Thousands of skilled crafts people have built the Illinois wind farms and now Illinois is attracting new businesses. Also, existing businesses are adapting to provide services to the wind industry.
The challenge now is to learn from this experience and move Illinois to the forefront on solar energy. Within this decade, thousands of solar panel will be installed in the Midwest. Illinois should be the leader in solar development and the center of the Midwest solar industry.
Comment by Al Grosboll Thursday, Nov 11, 10 @ 12:44 pm
Gator’s comment has been so thoroughly debunked and discredited that it is now deleted.
Comment by Rich Miller Thursday, Nov 11, 10 @ 12:48 pm
Speaking of alternative energy, what happened to all that money everyone was throwing at ethanol?
How much of a return on that investment did we get?
Comment by Leroy Thursday, Nov 11, 10 @ 12:48 pm
Leroy, you don’t know many farmers, do you?
Comment by Rich Miller Thursday, Nov 11, 10 @ 12:50 pm
Thanks for the plug, Rich.
Though I would like to point out that the Warrensburg district isn’t going to benefit from the school-owned wind bill passed last year (HB 6419), but from the increase in property tax revenue that will come from a commercially-owned wind farm planned for the area.
Wind farms in Illinois pay between $9000-$13,000 per megawatt in annual property taxes to local taxing bodies, with approximately 70% going to local schools. The Duke project near Warrensburg is projected to be several hundred megawatts, which represents a massive infusion of new revenue for the school district.
Definitely quite a benefit in these days of decreased local property tax revenue and delayed state payments for schools.
Comment by Kevin Borgia Thursday, Nov 11, 10 @ 1:30 pm
While manufacturing of windmill components would probably enjoy near universal support, it’s a different story for the wind farms themselves. Here in northern Illinois there are several anti-windmill groups who loudly and consistently voice strong opposition to construction of wind farms. They’ve fought for and won countywide moratoria on windmill construction. If similar actions continue, perhaps investment in the wind industry has limited potential.
Comment by TD Thursday, Nov 11, 10 @ 1:37 pm
===If similar actions continue, perhaps investment in the wind industry has limited potential. ===
One reason why we need a model state law. I’m gonna check with NSCL to see if they’ve done something about this.
Comment by Rich Miller Thursday, Nov 11, 10 @ 1:38 pm
Kudos for new jobs and investment into new technologies. We need all forms of energy for the forseeable future. Wind cannot replace baseload coal, natural gas, or nuclear until we can store the electrcity until it is needed. Baseload energy is there 24/7 except for maintenance. Presently, wind is only there when the wind blows. A baseload plant generally has a capacity factor of 80-98 % of MW. A wind turbine generally only has a capacity factor of 20 - 30% of MW meaning that a 100 MW windfarm may only generate 20 to 30 MW given the intermitancy of wind. Wind also has to backed up by baseload generation because it is not always available, which forces baseload units to run less efficiently which only increases the emissions from those units. We will eventually get to the point where we can store the wind energy and perhaps the new companies will help us get there.
Comment by EnRG Thursday, Nov 11, 10 @ 1:52 pm
If business people want to erect wind turbins on Navy Pier, Lake Shore Drive or the State Capitol then why don’t they? If business people see an upside to solar power why don’t they start erecting them? Fact is, “Green Energy” generally translates into “Give Us Gree Taxdollars.”
Talk about swindling taxpayers! These clown s make con-men look like ametures! Sheesh!
Comment by Whatwhat Thursday, Nov 11, 10 @ 2:26 pm
Whatwhat: lol. i always have to laugh at these kinds of comments. i heard them repeatedly in the 1980s when “fiscal conservatives” kept trying to defund the internet. connecting universities and research institutions together (especially outside the u.s.a), why should american taxpayers be taking the hit on this??
and, yet, here you are, taking advantage of a government-funded (and developed) resource — which you’ll never, ever pay the true cost of (except through your tax dollars). you’re smartest response, of course, would be to become a luddite. you surely can’t justify your traffic on the net.
i mean, it’s not like this country needs energy independence or anything. *shaking head*
Comment by bored now Thursday, Nov 11, 10 @ 3:02 pm
Down here in the central part of the state wind turbines are becoming as much a part of the scenery as corn and beans.
Plans are for another 2,000 turbines in the next five years.
http://www.pantagraph.com/news/local/article_12dba88e-d0fb-11df-9c3b-001cc4c002e0.html
One farm west and north of Bloomington-Normal is already putting up towers and another between Lexington and Chenoa could start this year. Looks like Com Ed could purchase power from those inside the state.
Comment by Nearly Normal Thursday, Nov 11, 10 @ 3:07 pm
People were getting power from the wind back when Moses wore short pants. It seems like a smart, green, conservative initiative to advance the proposition.
There’s nimby, or course, but those turbines are sprouting up everywhere. Let’s encourage free enterprise for those who are willing to take the risks.
It’s a rather conservative idea to harness the wind. The wond conservative is actually a proud word that has profound meaning in many contexts.
Comment by wordslinger Thursday, Nov 11, 10 @ 3:32 pm
Many of the NIMBY folks might actually by IMBY folks who are just disappointed their neighbor gets the lease payments and they don’t. In many cases, the non-resident or distant-resident landowner puts up a wind farm, get thousands of dollars per windmill per year while the homeowner located 1000 feet from the windmill gets nothing. It meets zoning and land use regulations, but you can see how some people would be upset.
Comment by TD Thursday, Nov 11, 10 @ 3:47 pm
Let me respond to “Whatwhat” with a why why. He suggests wind power supporters are just looking for taxpayer dollars. I know that is what some utility folks and conservative radio jocks are selling but that is not really the true story.
Although the federal government has a renewable energy tax credit, the reason is that the federal government - both GOP and Dem Administrations have wanted to encourage such development in this country. But even that is not a hand-out of federal money. The credits pale in comparison with the billions of dollars in hard cash this country has spent to encourage development of nuclear power, clean coal technology or even ethanol.
The principal way government has helped renewable energy is not with taxpayer money but rather by forcing the utlities to make renewable energy part of the energy mix in this country. All across the Nation, utilities that have only known coal or nuclear were simply not willing to give renewable energy a look. Wind is the fastest growing energy source in the world and the U.S. was lagging behind the rest of the world.
Developers could have put up wind turbines as whatwhat suggested, but it really wouldn’t have done much good if utilities refused to buy the power. Government action changed this and, in fairness to the utilities, it should be noted that many utilities have responded very well. Many have now wrapped their arms around renewable energy and are expanding beyond anyone’s expectations.
As a Republican officials recently said to me, “Sometimes we have to give business a nudge to do the right thing.”
As far as the comment about taxpayer revenues, lets get real. As another commenter noted, wind companies are paying millions of dollars in property taxes to support Illinois schools and local governments. Wind farms are also paying state and federal taxes.
So, the truth is that wind development is about expanding local and state new tax base and not about feeding the tax eaters.
Comment by Al Grosboll Thursday, Nov 11, 10 @ 5:10 pm
Clean coal and new energy technologies need to be explored but cannot be done so at ANY cost. Let’s look at the WHOLE picture of Tenaska for example.
Tenaska Myth: This will not put a large burden on electric customers. This will increase residential rates by 2 percent which equates to $142 million annually for 30 years (billions of dollars total). And a rate hike on electricity is regressive.
The rate increase on business customers is uncapped meaning they will pay the lion’s share and pass costs along to consumers. This will hit school districts, hospitals, retail stores, manufacturers, and others.
Also, someone please tell me why Illinois lawmakers would pass a bill providing an 11 percent rate of return for a private, out of state company that is taking no financial risk. The entire risk is on Illinois ratepayers and taxpayers. The law requires Illinois utilities to buy power from Tenaska for 30 years regardless of cost!!
This will likely be the MOST expensive power plant (cost per KwH) every built in the U.S. The Commerce Commission report said you can build a new nuclear plant with double the capacity at a lower cost!
Comment by 4 percent Thursday, Nov 11, 10 @ 5:27 pm
Energy independence is often put forward as a reason to support renewable energy, like wind, but wind doesn’t do much to wean us off of oil, because we don’t have that many electric vehicles yet. Plus, someone should take a look at who, exactly, are building wind farms; very few strictly American firms are involved. Most are foreiqn corporations: Spanish (Acciona, Gamesa, Iberdrola), Portugeuse (Horizon), German (E.ON, American Wind Mgt.), Indian (Suzlon), Irish (Mainstream), Australian (Infigen), British (BP, International Power), French (Akuo), Italian (Tradewind, Relight). So while I’m sure we welcome the investment of literally billions of dollars,and hundreds, even thousands, of jobs, significant amounts of dollars will eventually flow overseas to pay for electricity generated right here.
These wind farms are not regulated as utilities–the only thing causing them to generate is the honoring of contracts. Once these become a significant share of baseload generation, one can imagine their foreign owners having a good deal of political influence and leverage. For some reason, US utilities are lagging in this field. “Independence” is, after all, a relative term.
Comment by Oberon Thursday, Nov 11, 10 @ 6:16 pm
All forms of energy generation have an impact. The important thing is to choose the method (and impacts) wisely with the best possible understanding of the potential impacts.
The aesthetic concerns of the anti-windmill folks are based on the idea that they are choosing between windmills and nothing. Actually, they need to consider choosing between windmills and a coal plant or a nuke or some other type of generator. In that context, windmills might be more welcome.
With respect to “clean coal,” there is no such thing, nor is there likely to be. While coal is a great source of energy, coal mining is very destructive, coal burning produces CO2 and other emissions which will impact the environment in a negative no matter where they are placed, and the coal ash will also have a negative impact somewhere. While Illinois (and the US) has vast resources of coal, it is clear that there is no “clean” way to use it. The negative impacts, however, are not reflected in the price of use, and coal remains relatively inexpensive.
Comment by Pot calling kettle Thursday, Nov 11, 10 @ 6:25 pm
Re the Fallows article: Experience has taught us that there is no free lunch with respect to the environment. Injecting carbon into the ground is a temporary solution and we are just beginning to understand the impacts that CO2 is going to have on that environment.
Comment by Pot calling kettle Thursday, Nov 11, 10 @ 6:35 pm
Yes, Oberon, independent study is needed, and NOW. I live close enough to have heard the stories about the dead goats, and the flicker ramifications.
Comment by justsickofit Thursday, Nov 11, 10 @ 9:05 pm
The purpose of the energy companies is to produce energy at a profitable rate. That is what they do. When you have a government reprioritizing this, you will have problems that will eventually be solved by removing government and it’s demands.
When energy reaches a price high enough to make wind energy profitable, other sources of oil and gas come on line too. Since we already have an oil-based world in regards with energy, this means that these other oil sources will be preferred over wind, since the infastructure is already in place for the oil sourced energy.
If you take away the artificial benefits being paid out as tax money to these alternative energy ideas - they would go belly up because without market manipulation and waste, these energy ideas are not sustainable. Eventually, these artificial contraints and supports collapse.
We saw this happen before, and it will happen again.
Comment by VanillaMan Friday, Nov 12, 10 @ 12:05 am