Renewable electricity development in Nebraska is a complex issue. It is supported by a majority of Nebraskan's but is also subject to emotional arguments and a lack of a fundamental understanding of the costs, risks, and benefits of these resources. While the members of the Nebraska Rural Electric Association (NREA) believe wind energy and other sources of renewable electricity will play an important role in our future electric supply, consumers and our elected officials need to take the time to learn more about the issue.
A statewide survey conducted for NREA in the Fall of 2008 revealed 71 percent of Nebraskan's believe wind energy is the cheapest form of energy available.1 Although it is true that wind energy does not involve an expense for a fuel source, the purchase and construction of large wind turbines and development of new transmission infrastructure to deliver power from the wind farms to consumers has the potential to cost billions of dollars. These are additional costs that would be paid by consumers and, depending on the extent of renewable energy development, could significantly raise the cost of electricity for Nebraska's consumers.
The use of renewable sources of electricity to supply our increasing power needs presents reliability issues that are inherent with generation resources such as wind and solar. After all, we do not simply require electricity during the time of the day when the wind is blowing or the sun is shining. A wind farm can be counted on to supply electricity only about one-third of the time due to the variable nature of the wind. It also tends to blow more during the night and during the Winter and Spring when electricity demand is lower. Conventional solar generation facilities are even less reliable. Without a continuous supply of electric generation, Nebraska's electric grid would become unreliable and susceptible to blackouts.
Nebraska currently has approximately 4200 megawatts of installed coal-fired generation capacity, which provides in the neighborhood of 65% of our electricity in any given year. While not a realistic possibility, to replace all of our coal-based generation with wind energy at a capacity factor approaching that of coal-fired power plants (remember-the wind can be counted on only about one-third of the time) would require the installation of approximately 12,000 megawatts of wind. At a conservative figure of $2 million per megawatt for wind turbine installations, this would cost approximately $24 billion, not including additional transmission line construction.
When we say it is not a "realistic possibility" to replace all of our coal-fired generation with wind power, we mean that even if the state's public power utilities built an amount of wind generation capacity that was numerically equivalent to our existing coal-fired capacity, you still would have the inherent problems with the wind's intermittent or variable nature. You still could not count on the wind generation to be there when consumers need it to supply electricity to their homes, businesses, factories, and irrigation pumps.
Currently, Nebraskan's enjoy the 5th lowest electric rates in the nation thanks in large part to its unique public power model. NREA and its 35 member rural public power districts and electric cooperatives are looking out for you and working to find a balance between environmental stewardship and low-cost electricity. This is an achievable goal; however, a balanced approach, incorporating renewables, energy efficiency, and the development of new generation technologies will all be required to reach it.
Right now a great "energy debate" is taking place among our elected officials. Congress and the Nebraska Legislature are both considering measures relating to the development of our future electricity supply. The U.S. Congress is also debating other measures like climate change "cap and trade" legislation that could cause your electricity rates to increase dramatically. We need your help in contacting your elected representatives through the Our Energy, Our Future Campaign, asking them to work with Nebraska's electric utility providers as they develop legislation. Without fully understanding the economic realities and realistic limitations of renewable energy, inadequate policy and poor future planning will result. If we all work together we can ensure a common-sense approach is adopted; one which is fair, affordable for consumers, and achievable.
Interested in learning more about this issue? Check out these helpful resources.
Nebraska Power Association- The financial benefits and risks which will affect Nebraskans due to the expansion of wind energy..."
Nebraska Power Association- "The process for planning, operating constructing, and financing generation and transmission facilities..."
Nebraska Power Association-The roles the State's public power utilities and private developers play in the generation of wind energy..."
Nebraska Public Power District- It's Your Power.org
National Rural Electric Cooperative Association - Our energy, Our future Campaign
Nebraska Legislature
NREA Grassroots Initiative
*NREA survey prepared by RBI Strategies and Research/Severson & Associates, November 11-15 2008.
These links are offered as avenues for gathering additional information. Twin Valleys PPD does not verify the accuracy of the information that appears on other sites nor is liable for these linked web sites.
