Return to article

Industry pioneer urges local development of Nebraska wind farms

Nebraska farmers are sitting on a resource that could turn into a valuable cash crop with the potential to revive the state's rural communities—if they plant locally, a wind development pioneer told the Nebraska Farmers Union at its state convention in Grand Island, Neb., last December.

NEFU invited Dan Juhl, owner of the wind energy development company DanMar & Associates, Inc, to present "Farming the Wind: The Minnesota Wind Power Experience" at its 90th annual meeting. "The union's position is that as a nation, we need to develop more secure, environmentally friendly energy sources that use agricultural commodities," said President John Hansen. "We've focused heavily on ethanol production, biomass and soy diesel, but it's time to turn more attention to the state's wind resources. Nebraska could be producing a lot more wind power."

Small wind projects strengthen local economies, power supplies
According to the American Wind Energy Association, Nebraska's wind resources rank sixth in the United States, with the potential to generate an average of 99,100 MW annually. So far, the state has tapped only 14 MW of that power, although Nebraska Public Power District recently announced plans to build a 30-MW wind farm near Ainsworth, Neb.

Large wind farms are only one option for harnessing the state's vast wind resources, said Hansen. "By spreading individually owned wind energy throughout the region, we can develop wind power in a way that helps the family farm."

Juhl shares Hansen's conviction that local development maximizes the benefits to rural communities. "When locally-based landowners build small wind projects using local contractors, and either use the power themselves or sell it to their utility, it strengthens the local economy," he said.

What is good for a utility's customers is good for the utility. Such distributed generation projects make the power supply more secure and rarely require complicated interconnection arrangements. "Small units produce power close to the load that can be consumed by a community before it even enters the transmission system," explained Juhl. "That makes dispersed generators easier for small utilities to manage and it makes renewable energy more affordable."

Tax incentives make wind power more cost effective, too, but as Juhl pointed out, those programs are not open to public power providers. "Community-based development groups can take advantage of the credits, though," he observed.

Minnesota policy offers model for supporting local wind development
To create a favorable environment for local wind development, Hansen believes that groups like NEFU must educate their legislators, their utilities and their own members about renewable energy issues and benefits. "Everyone needs to know what the options are so we can recognize the opportunities," he said.

NEFU energy policy supports the development of wind energy for rural economic development, and the organization is actively involved in discussions at the state and national level. Hansen said that his organization is also encouraging the state to adopt the Minnesota model for financial incentives for renewable energy development.

Key provisions in the Minnesota policy include a 10-year small producer (2 MW or less) production incentive of 1.5 cents/kWh for nontaxable entities or a 1.8-cent tax credit for businesses. Wind energy systems receive a break on property taxes, too. "The law recognizes that the system has a greater value to the community than a little more property tax," said Juhl.

State legislators and public utilities worked together to develop a standardized power contract for small projects. Measures like simplifying the negotiation process provided a huge boost to local development, Juhl noted.

Local providers can play role in small wind development
Municipal utilities and rural electric cooperatives can support local renewable energy, too, by making contracts available to their members. "A lot of small utilities have economic development funds to help establish small businesses in their territories. Why not consider a wind turbine the same as any other small business producing a saleable commodity?" Juhl suggested.

Under Minnesota's renewable energy policy, the state currently produces 425 MW of wind energy that pours nearly $500 million annually into local economies. The Nebraska Farmers Union would like to see the same thing happen in its state. "Advances in wind technology have made small projects increasingly viable and it keeps getting more competitive all the time," Hansen stated. "It's not just good energy policy now; it's good domestic economic policy."

"Wind is a mature, efficient and reliable, but nondispatchable source of clean energy," Juhl added. "Small wind generators can and should play a big role in powering our rural communities."