In a statement made last Friday by EDF Energies Nouvelles (French Green Power Company), a power purchase agreement was terminated without explanation by Indianapolis Power and Light Company regarding the supply of wind energy by enXco, a local EDF company. The contract was unilaterally terminated by IPL, and more than 10 days later, EDF has acknowledged it to the market.
The IPL wind power project web page is here
From the press release see here
======================
PRESS RELEASE
March 12th, 2010
Termination of the Lakefield PPA by IPL
On March 1, enXco, the US subsidiary of EDF Energies Nouvelles, received notification that the US utility Indianapolis Power and Light Company (IPL) would terminate the power purchase agreement related to the 201 MW Lakefield wind project currently under development (southwestern Minnesota).
The project received the approval of the Indiana Utility Regulatory Commission (IURC) on January 27, 2010. The IURC’s order was consistent with similar past orders. IPL has purported to unilaterally terminate the power purchase agreement on the basis of this order without providing further specific reasons.
enXco is considering its rights and remedies within the framework of the PPA. In addition, the Company is currently analyzing several options, including re-marketing the project to one or several other utilities.
Consistent with EDF Energies Nouvelles policy, construction has not yet started.
The 2012 operational objective of 4,200 MW net and 2010 objective of EBITDA will not be impacted by the Lakefield project evolution.
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big h/t to Ecotretas
Page 1
PRESS RELEASE PRESS RELEASE
Paris, March 12, 2010 Paris, March 12, 2010
Termination of the PPA by Lakefield IPL Termination of the Lakefield PPA by IPL
On March 1, enXco, the U.S. subsidiary of EDF Energies Nouvelles, received On March 1, enXco, the US subsidiary of EDF Energies Nouvelles, received
notification that the U.S. utility Indianapolis Power and Light Company (IPL) notification that the US utility Indianapolis Power and Light Company (IPL)
would terminate the power purchase agreement related to the 201 MW would terminate the power purchase agreement related to the 201 MW
Lakefield wind project currently under development (southwestern Lakefield wind project currently under development (southwestern
Minnesota). Minnesota).
The project received the approval of the Indiana Utility Regulatory The project received the approval of the Indiana Utility Regulatory
Commission (iurc) on January 27, 2010. Commission (IURC) on January 27, 2010. The iurc’s order was consistent The IURC’s order was consistent
with similar past orders. with similar past orders. IPL has purported to unilaterally terminate the IPL has purported to unilaterally terminate the
power purchase agreement on the basis of this order without providing power purchase agreement on the basis of this order without providing
further specific reasons. further specific reasons.
enXco is considering its rights and remedies within the framework of the enXco is considering its rights and remedies within the framework of the
PPA. PPA. In addition, the Company is currently analyzing several options, In addition, the Company is currently analyzing several options,
including re-marketing the project to one or several other utilities. including re-marketing the project to one or several other utilities.
Consistent with EDF Energies Nouvelles policy, construction has not yet Consistent with EDF Energies Nouvelles policy, construction has not yet
started. started.
The 2012 operational objective of 4.200 MW and 2010 net objective of The 2012 operational objective of 4,200 MW net and 2010 objective of
EBITDA will not be impacted by the project Lakefield evolution. EBITDA will not be impacted by the Lakefield project evolution.
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Michael J. Trebilcock, professor of economics at Toronto University, says Denmark’s wind power is a con:
There is no evidence that industrial wind power is likely to have a significant impact on carbon emissions… Denmark, the world’s most wind-intensive nation, with more than 6,000 turbines generating 19% of its electricity, has yet to close a single fossil-fuel plant. It requires 50% more coal-generated electricity to cover wind power’s unpredictability, and pollution and carbon dioxide emissions have risen (by 36% in 2006 alone).
Flemming Nissen, the head of development at West Danish generating company ELSAM (one of Denmark’s largest energy utilities) tells us that “wind turbines do not reduce carbon dioxide emissions.” The German experience is no different. Der Spiegel reports that “Germany’s CO2 emissions haven’t been reduced by even a single gram,” and additional coal- and gas-fired plants have been constructed to ensure reliable delivery…
Industrial wind power is not a viable economic alternative to other energy conservation options. Again, the Danish experience is instructive. Its electricity generation costs are the highest in Europe (15¢/kwh compared to Ontario’s current rate of about 6¢). Niels Gram of the Danish Federation of Industries says, “windmills are a mistake and economically make no sense.” Aase Madsen , the Chair of Energy Policy in the Danish Parliament, calls it “a terribly expensive disaster.”
IPL figured out they’d have to have conventional back-up of 80% of the windmills capacity. Why not just build the conventional and not drive their load managers nuts?
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Maybe this is part of the reason why?…
Wind farms could raise temperatures
http://www.tgdaily.com/sustainability-features/48842-wind-farms-could-raise-temperatures
With the number unemployed and the economic production leaving for China, I’d expect this to be one of many projects cancelled for lack of buyers of the power. Economic production and prosperity come from production that uses power. We are becoming poor and producing vastly less. So we need no new power. China can’t keep up, is growing about 9% / year in bad years, and is signing contracts to build any and all power plant types it can get. Pretty simple, really. Follow the coal as it leaves the mines in Wyoming, takes the Burlington Northern Santa Fe railroad to the port over near Seattle, and hops a ship to China. Where it meets the money leaving the USA for China (in exchange for all sorts of products) is where wealth is being created. At the places where the coal USED TO meet money in the American Mid-West (but does so no more…) we are creating poverty.
Not really all that complicated a concept. You can “follow the money” in one direction, or in the other direction you can “follow the coal”.
It really is Old King Coal…
Perhaps with the collapsing carbon market, wind power isn’t looking like an important part of a power portfolio any more.
Good decision. In free markets, no reason needs to be given. I doubt EDF will give the real scoop.
I had looked this up earlier and found the French utility relies on a lot of subsidies and peddles wind turbine energy with some very bold promises. I will look up their performance.
http://www.emii.com/Article.aspx?ArticleID=2403170
Notice of borrowing 450 million to over leverage the deal.
Good riddance! We have a major wind turbine farm just west of where I live in Illinois, and a group of residents are suing over health effects.
I viewed an online movie of the “turbine flicker” effect (strobe-light effect) that is generated, and realized that this might trigger seizures. BTW, I have epilepsy and am sensitive to flashing light triggers.
Pleas see this if you are interested: http://www.magasbakony.hu/szeleromu/Harding_et_al_Wind_turbines_flicker_epilepsy.pdf
He who sows the wind, reaps the brownouts that begat the Darkness.
Forgive them for they meant well…..
E.M.Smith (18:13:40) :
Not taking an issue with your point, but I wonder if we really lose in that trade with China. A given set of Uber name brand tools costing $1000 (made in America) might be $100 in a comparable set made in china. If we receive a useful good, the money isn’t wasted. Mfg industry is diminished, but inflation is mitigated. Don’t have any wisdom to share on it, but I really wonder if we’re losing.
There is another idea as to why they cancelled, however: Someone ran out of Koolaid, and they actually did the math. 🙂
In other Indiana news… For the first time in ever, private sector employment has fallen lower than the government sector…
http://www.indystar.com/apps/pbcs.dll/article?AID=20103110387
Big Government, Inc has everything in common with wind turbines. Big Government work doesn’t produce anything. Wind generators can’t support any meaningful level of industry. Big Government costs a lot. Wind generators cost a lot. And, finally, neither work very much, nor very well when they actually do. Oh, and… they’re both friggin’ dumb ideas.
They’re practically twins!
Now, that’s not to say wind can’t be used anywhere. There’s always going to be niche markets for the ideas that can’t work on a large scale. I’m just sick and tired of bad ideas getting the pat on the back while goods ones are not only ignored, but _slammed_ out of the fear of global warming and peak-everything.
If these fools think that the same number of people would have survived this year’s NH winter had we gone solar and wind then they are not being genuine. Maybe this is how they plan to reduce the world’s population.
We should all thank Anthony Watts, Steve McIntyre and others that these scammers are being finally bought to book. They want to make billions from lies and they now realise the jig is up.
We’re almost there. Just 90 years to go. :o(
Windfarm problems:
http://www.globalsubsidies.org/en/subsidy-watch/studies/wind-farms-criticized-costly-inefficient-report-renewable-energy-group
http://www.guardian.co.uk/world/2005/feb/26/sciencenews.renewableenergy
http://www.wind-watch.org/news/2009/05/23/wind-turbines-inefficient/
http://www.telegraph.co.uk/comment/personal-view/3608480/Wind-farm-claims-are-so-much-hot-air.html
I think Don Quixote could have told them that wind power was a mistake.
What did they expect? The economics of wind power were available to everyone before this contract was let out.
IPL made their decision on the basis of “looking” green. They didn’t care what it would cost. They’d just pass the cost on to the users.
Even more bizarre was WA state’s decision to mandate that all power was to be 20% renewable when over 90% already is hydro power.
Oh, yeah, and they didn’t count hydro as being renewable.
If only this would happen in NE Oregon before the Blue Mts. are covered in this
post industrial refuse.
“Split Atoms, not birds..”
E.M.Smith (18:13:40) :
Being that I am an investor, I have to put up with sinophiles quite often. And, oh, how they’re so quick to put out the propaganda that China is “light years ahead of us” because of all the wind, solar, and hydro dams they’re supposedly buidling. I’m aware of the one dam they built in the big river, but beyond that… I think all the talk of solar and wind is hype. Everyone and their grandmother knows by now that India and China sunk Coppenhagen even before the feel-good spend-fest began. They just want us to burn our bridges.
And for all that coal we’re sending them, there’s recall after recall after recall. Such a waste. But that’s the point. Just keep pumping up the debt level, whilst repossessing as much of the producution as possible.
http://www.puc.state.mn.us/puc/calendar/week/20100225_AGN
we may be dealing with a dishonest wind farm operator. On Feb 25, they pulled their application for a hearing to get a permit to run the farm. I noticed they announced financing March 2. How did they break the news to the bank that they had ended their application for a permit 7 days before the loan approval?
These smooth operators operate under bribes and kickbacks. Then they whine and get tax abatements.
The frozen wind farm in Minnisota was a “symbolic” gesture. They want these turbines to be seen from the highways and leave a “green” pious feeling in the simple folks.
Do you have a link to Michael J. Trebilcock’s paper?
It’s good to see that some economic sense is creeping into the debate. Why would anyone want to depend on anything so unreliable as the wind for something so vital as energy?
For those who would like some wind performance data to crunch, visit this site:
http://reisi.iset.uni-kassel.de/pls/w3reisiwebdad/www_reisi_page_new.show_page?page_nr=353&lang=en&owa=&owa_own_header=0
It points to wind infeed data in continuous 15-minute raster for the Big 4 German Grid operators (e.on, 50 Herz [formerly Vattenfall], enbw, and RWE.
The sites are in German and the data formats vary somewhat, but all can be imported to excel for analysis. Some have occasional missing data, but in the recent years there is a pretty complete record for all the grids. Data in “.csv” files are actually separated by semicolons and dates are in year-month-day format.
Doug,
Used to live around Puget Sound, lotsa water, dams (Grand Coolee is awesome) and trees everywhere. But the eco nuts want to knock down the dams to let the rivers run free. Don’t need the water behind them for irrigation in eastern Wash, cut down all them hopps and grape vines in the Yakima valley…
Besides, the models say that the water will go away, it’s worse than we thought…look at Vancouver BC…
OK sarc off
I do miss the good people there and fresh salmon but Colorado is nice…
Mike
My reading suggests that investment in wind power has a business plan which ends when the government subsidies have been paid.
There is no expectation beyond this.
p.s. Wind power was brilliant and cost effective before engines were invented. How else would our forebears have powered the their war, trade, and explorative vessels other than by sail? But come the engine…
I wonder what the carbon footprint of a wind turbine is?
Lots of concrete, the generator and blades, power lines and pylons, the backup power plants. All created using fossil fuel. And a fair proportion of the wages and dividends will be spent on items created using fossil fuel.
How long will it take a well sited turbine to produce more energy than it took to create?
I am happy to be corrected, but my opinion is that if a ‘green’ technology needs a subsidy it is NOT green, as most of the costs are due to the amount of fossil fuel used.
I agree with with Professor Trebilcock assessment of Danish Wind Power Assessment. Wind generated electricity is a “BIG SCAM”. The main reason for Denmark’s pushing of Wind Power is because of Vestas(a Danish Company –good paying jobs), which has been, and maybe today is the world’s leader in wind turbine design and production. I wonder what the Danish Policy will be when China takes over the global wind turbine business, and drives Vestas out of the wind turbine business.
For the interested, a couple of good references are the series of analysis by Glenn Schleede (He is retired and out of the financial analysis), and the 2005 Wind Energy Report by Eon(German Utility), which can be downloaded from the web eon-netz(english)
So when do we sell Boxer to the Knackers?