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County commissioners voted unanimously in favor of a recommendation by the Economic Development Authority to apply for one of two grants announced last week by the Minnesota Department of Commerce for large, community-owned wind power projects that are connected to the electric grid. The EDA estimated the application process, which includes studies of winds and of the feasibility of hooking up to the grid, will cost a little more than $47,000.
EDA members said that a successful public wind turbine would serve as a model for privately funded wind ventures.
County Finance Director Blake Pickart recommended the project and predicted it would generate $400,000 to $500,000 in net revenue, which commissioners agreed should be reinvested in other alternative energy projects.
"I spent quite a bit of time with the model trying to make it fail and wasn't able to," Pickart said of the project. "Whether or not we get the grant, I think this project is good."
The $2.1 million turbine could generate up to 1.65 megawatts — enough electricity to power 500 homes. The EDA estimated it would also generate a 10 percent return on investment over 20 years and would take about 11 years to pay for itself. The turbine would be similar to one at Carleton College, in Northfield, Minn., where 130-foot rotors turn on a 230-foot-high tower.
State Sen. Steve Murphy, DFL-Red Wing, spoke on behalf of the project. Murphy, who is also a fuels technician with Xcel Energy, said turbine operators on Buffalo Ridge paid off their investments in less than 12 years and predicted Winona County's would pay for itself in seven to eight.
"This is not fringe technology," said consultant Jeff Cook-Coyle. "This is not just a nice thing to do. (Wind energy) is a mainstream, Wall Street investment."
Commissioner Duane Bell expressed concerns about the project and an interest in pursuing other alternatives such as manure digesters, but ultimately made the motion to approve the development spending with the understanding that it would not commit the county to building the turbine.
"I'm not against wind," Bell said. "I just don't think the cost, for what we're getting, is worth it."
EDA members who met with wind energy consultants said several sites in the county have the right wind conditions but they cannot disclose the locations because of confidentiality agreements signed with the consultants.
Cook-Coyle said if the county receives the grant and proceeds with the project, the turbine could be running by June 2007.
The county's action comes on the heals of the Minnesota Department of Commerce recommendation for significant new investment in wind power by the state's largest electric utility, Xcel.
In comments filed with the Public Utilities Commission last week, the department called on Xcel to add at least 2,800 megawatts of wind power by 2020 and to limit its investments in natural gas and coal plants. Mike Bull, assistant commissioner for renewable energy, said analysis showed wind energy to be cost-effective.
A statement released by Xcel said the company would study the department's recommendation. The PUC will rule on Xcel's resource plan later this year.
Up to 2,500 megawatts of new wind power is scheduled to come online this year, an investment of more than $3 billion, according to the American Wind Energy Association.
The energy bill signed into law by President Bush Monday extends through 2007 on wind energy tax credits that could help sustain the expansion.
Cook-Coyle said the 1.9-cent per kilowatt-hour tax credit could benefit a Winona County wind project if it is financed through private investment.
Minnesota is the nation's third-largest wind power producing state, behind California and Texas, according to AWEA.
Reporter Chris Hubbuch can be reached at (507) 453-3511 or chubbuch@winonadailynews.com.
