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Released May 03, 2016 | SUGAR LAND
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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Mae West once said, "Too much of a good thing can be wonderful!" Some in Huron County, Michigan, don't share the legendary entertainer's perspective when it comes to windfarms.
Huron County abuts Lake Huron, on Michigan's so-called "thumb" region. Its lakeside location provides the county with a high-quality wind resource. And developers have taken note: In recent years, nine onshore windfarms totaling 626 megawatts (MW) have been built in the county. Two other projects began construction this year, and another two are on the drawing board. These four projects are expected to add about 322 MW of new wind generation capacity, bringing the county's wind power generating capacity to nearly 950 MW.
The county is now home to an estimated 325 wind turbines, and the four projects under development would add another 150 turbines, some of them reaching a height of nearly 500 feet. Most of the nine operating windfarms came online between 2012 and 2014.
Despite the local economic value these operating and proposed projects represent, including royalties to property owners, some Huron County residents have said, "enough is enough." Huron County commissioners agree, which has stymied a fifth, as yet unnamed, windfarm being developed by DTE Energy Company (NYSE:DTE) (Detroit, Michigan). That project reportedly would use 50-70 turbines and have generating capacity of 100-150 MW.
"Maybe it's time to say 'No more,' "Huron County Commissioner John Nugent said at a hearing in March. "I think we're saturated." Last year another commissioner, Clark Elftman, said 500 turbines is "enough," according to The Huron Daily Tribune. "We've done our part for the state of Michigan," Elftman later told the Tribune. "I'm not anti-wind, I'm not pro-wind. But 500's enough. I've always felt that way."
Last month, in a public hearing that drew about 200 people, county commissioners unanimously decided to hold off considering the proposed but unnamed DTE windfarm. The Huron Daily Tribune reported those addressing the commissioners were split equally between proponents and opponents to the DTE project.
A letter read at that hearing, signed by Lincoln Township board members, was brief. "We feel that Huron County has done our part as far as Green Energy. We feel that no additional turbines should be allowed in Huron County," according to the Tribune.
Developers are eager to move forward with their projects because the federal production tax credit (PTC) extended last December provides prorated tax credits depending on when a project begins construction. Projects that begin construction in 2016 are eligible for the full 100% of the tax credit, estimated at 2.3 cents per kilowatt-hour (kWh) of electricity produced. But projects that begin construction next year only get 80% of that credit, and projects that begin turning dirt in 2018 will be eligible for only 60% of the 2.3 cents per kWh credit. For more on the extension of the PTC, see the December 21, 2015, article--Renewable, Alternative Energy Industries Cheer Extensions of Tax Credits.
One project, the 150-MW Deerfield Wind Energy Project, began construction earlier this year. The developer, Renewable Energy Systems Americas Incorporated (Broomfield, Colorado), expects the 75-turbine project will be operating by yearend 2016.
A second project, the Big Turtle Windfarm, is a 20-MW unit addition with a total investment value (TIV) of about $38 million. The developer, Heritage Sustainable Energy LLC (Traverse City, Michigan), began site preparation work last month and expects a yearend 2016 online date. This unit addition will consist of 15 turbines.
Projects that have been permitted include:
Huron County abuts Lake Huron, on Michigan's so-called "thumb" region. Its lakeside location provides the county with a high-quality wind resource. And developers have taken note: In recent years, nine onshore windfarms totaling 626 megawatts (MW) have been built in the county. Two other projects began construction this year, and another two are on the drawing board. These four projects are expected to add about 322 MW of new wind generation capacity, bringing the county's wind power generating capacity to nearly 950 MW.
The county is now home to an estimated 325 wind turbines, and the four projects under development would add another 150 turbines, some of them reaching a height of nearly 500 feet. Most of the nine operating windfarms came online between 2012 and 2014.
Despite the local economic value these operating and proposed projects represent, including royalties to property owners, some Huron County residents have said, "enough is enough." Huron County commissioners agree, which has stymied a fifth, as yet unnamed, windfarm being developed by DTE Energy Company (NYSE:DTE) (Detroit, Michigan). That project reportedly would use 50-70 turbines and have generating capacity of 100-150 MW.
"Maybe it's time to say 'No more,' "Huron County Commissioner John Nugent said at a hearing in March. "I think we're saturated." Last year another commissioner, Clark Elftman, said 500 turbines is "enough," according to The Huron Daily Tribune. "We've done our part for the state of Michigan," Elftman later told the Tribune. "I'm not anti-wind, I'm not pro-wind. But 500's enough. I've always felt that way."
Last month, in a public hearing that drew about 200 people, county commissioners unanimously decided to hold off considering the proposed but unnamed DTE windfarm. The Huron Daily Tribune reported those addressing the commissioners were split equally between proponents and opponents to the DTE project.
A letter read at that hearing, signed by Lincoln Township board members, was brief. "We feel that Huron County has done our part as far as Green Energy. We feel that no additional turbines should be allowed in Huron County," according to the Tribune.
Developers are eager to move forward with their projects because the federal production tax credit (PTC) extended last December provides prorated tax credits depending on when a project begins construction. Projects that begin construction in 2016 are eligible for the full 100% of the tax credit, estimated at 2.3 cents per kilowatt-hour (kWh) of electricity produced. But projects that begin construction next year only get 80% of that credit, and projects that begin turning dirt in 2018 will be eligible for only 60% of the 2.3 cents per kWh credit. For more on the extension of the PTC, see the December 21, 2015, article--Renewable, Alternative Energy Industries Cheer Extensions of Tax Credits.
One project, the 150-MW Deerfield Wind Energy Project, began construction earlier this year. The developer, Renewable Energy Systems Americas Incorporated (Broomfield, Colorado), expects the 75-turbine project will be operating by yearend 2016.
A second project, the Big Turtle Windfarm, is a 20-MW unit addition with a total investment value (TIV) of about $38 million. The developer, Heritage Sustainable Energy LLC (Traverse City, Michigan), began site preparation work last month and expects a yearend 2016 online date. This unit addition will consist of 15 turbines.
Projects that have been permitted include:
- Apple Blossom Windfarm, a 100-MW grassroot project that expects to begin construction in 2018. Geronimo Energy LLC (Edina, Minnesota) is developing this project, which has a TIV of about $170 million. The developer plans to install 30 three-MW turbines.
- Pinnebog Wind Project, a 51-MW grassroot project being developed by DTE Energy. This project, with TIV of about $64 million, plans to begin turning dirt in mid-2016. It is expected to consist of 30 turbines. The developer plans a yearend 2016 start date.
