Energy Services Bulletin, December 2005

Native American tribes see opportunity in renewable energy

 

Renewable energy harnesses and directs nature's power instead of extracting or removing it, making renewable development a common-sense decision to many Native American tribes. "Utility-scale renewable energy generation is a 'no-regrets' sustainable homeland economic development strategy, with a positive impact on CO 2 emissions reduction," said Pat Spears, president of the Intertribal Council on Utility Policy.

COUP has a vision of Native-owned wind farms providing clean energy, creating jobs on reservations and generating revenues for its eight member tribes. Toward that goal, the council recently purchased majority interest in NativeEnergy, a national green tag marketer that has helped tribal and rural communities develop renewable energy projects. COUP Secretary Robert Gough described the acquisition as the ''historic effort to power America with Native wind and fight global warming.''

Spears put it simply, noting, ''Living in harmony with our Mother Earth is not only good for the environment, it is also good business."

Rosebud Sioux pioneer Native-owned development

One of the founding COUP members, the Rosebud Sioux Tribe, put that philosophy into action, launching the first Native-owned and –operated wind turbine in 2003. NativeEnergy purchased renewable energy certificates from the 750-kW NEG Micon unit to provide the upfront funding needed for its construction.

The successful installation turned the tribe into a cutting-edge green power developer. The Tribal Utility Commission is currently putting together a financing package to build a 30-MW wind farm near St. Francis , S.D. Like the tribe's first wind turbine, "The facility will be the first Native-owned, utility-scale wind farm in the country," said Tribal Utility Commissioner Tony Rogers.

Building a wind farm presents more challenges than putting up a single turbine, the commission has found. Getting a purchase agreement for the large amount of power has been difficult, according to Tribal Energy Planner Ken Haukaas. Also, as a non-profit entity, the tribe cannot take advantage of the production tax credit that would help fund the project. "We're looking at forming a limited liability corporation with an investor," he said.

Haukaas strongly recommends that tribes considering renewable energy projects work with a management firm who can protect the interests of the individual tribes.

Interconnection so far is proving less complex than financing. The initial local system impact study, funded by a DOE grant and conducted by Nebraska Public Power District, indicated some constraints, but can be overcome with the proper upgrades to the system locally. "We'll have to do another one when we know who the purchaser is and where the power will eventually move to," said Haukaas.

The construction phase of the project should employ 45 to 60 workers. Plant operation will create four to six full-time jobs that the Rosebud Sioux Tribe would like to staff with tribal members. "The single turbine has been too reliable to need a full-time employee," he added.

A training clause is likely to be included in the vendor contract for the wind farm. Three tribe members recently received turbine maintenance training from Vestas, which acquired NEG Micon in 2004. Rogers hopes to eventually have enough trained individuals to establish a reservation energy office.

Tribal projects get support from DOE grant

Several of Western's Native American customers will join the Rosebud Sioux in developing their renewable resources with help from the U.S. Department of Energy. In June, DOE made more than $2.5 million available to assist 18 Native American tribes with renewable energy and energy efficiency initiatives.

The Jicarilla Apache Utility Authority will invest almost $200,000 in renewable energy and energy efficiency strategic planning. The Hopi tribe and the Navajo Tribal Utility Authority are both receiving funding to study the feasibility of large-scale wind projects.

A DOE grant, along with a Bureau of Indian Affairs mineral assessment, will move the Hualapai Tribe closer to establishing a utility-scale wind farm. The proposed facility would provide power to the tribe's Grand Canyon West tourism center. Tribal Planning Director Jack Ehrhardt observed that the center is, "$8 million and no easements away from the grid. Renewables are the only practical answer," he said.

The northern Arizona tribe has been collecting wind data with anemometers from Western's Equipment Loan Program and the BIA for the last two years. "We've measured a steady 14-mph wind that would work well with the new slow-speed turbines," said Tribal Chairman Charles Vaughn.

The wind farm would interconnect with an Arizona Public Service Company line. The Hualapai currently receive their Western allotment through a partnership with NTUA. A portion of the tribe's DOE funding will be used to investigate forming a tribal utility and training a workforce to staff it. "The community needs power and jobs," said Vaughn. "The renewable energy industry has the potential to provide both."