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REC sale gets Wray school wind project off the ground
A truly great idea will stand the test of time and adversity to become reality, as the Wray School District wind project demonstrates. In spite of setbacks and obstacles, the small northeastern Colorado town cut the ribbon on a 335-ft. wind turbine in February at a ceremony attended by Gov. Bill Ritter. The 900-kW unit would have been Colorado's first school wind project had it been completed in 2005, on the original schedule. Superintendent Ron Howard will settle for having the largest single turbine owned by a school district in the United States—and the revenue stream for the K-12 school that serves 670 students. Community embraces renewable energy projectRecords come and go, after all, but the reason for building the turbine has plagued Wray for years. Like countless small, rural communities across the country, the school district has grappled with severe state budget cuts and declining attendance. When district staff was challenged to find new sources of income, high school teacher Jay Clapper proposed building a wind turbine in 2002. The renewable energy generator would also double as an educational tool for the entire school district. The city rallied around the project with great enthusiasm, donations and in-kind support, said City Manager Stan Holmes. "There's the feeling that what's good for the school is good for Wray," he said. "It's a small community and we are used to working together to get things done." Highline Utility, Y-W Electric and Yuma County Economic Development Corporation worked with the school district. Colorado politicians on both sides of the aisle voiced their support for the project. Fundraising went well too, starting with a contribution of $3,000 seed money from the Rocky Mountain Farmers Union. A $10,000 Carl Perkins Grant was used to complete a feasibility study and purchase two weather stations and technical support for collecting wind data. The school district received a $350,000 Energy Impact Grant, large pledges from the Kitzmiller-Bales Trust, significant individual donations and an interest-free loan from the city. Scale, funding create snagsIn late 2004, the district upgraded the project to a 1.5-MW turbine and looked forward to completing construction by spring 2005. Then things started to get complicated. The school district needed a big turbine to make the project economically worthwhile, but buying a single, utility-scale unit with a suitable service contract proved to be difficult. After what Howard described as "a lot of phone calls," he connected with the Canadian company Americas Wind Energy. Relatively new to the U.S. wind market, the Toronto-based manufacturer specializes in community wind projects. "Our turbines are utility-scale, like Vestas or GE, but we service the town or the farm that wants to install only a few units," said Frank Pickersgill of AWE. Smaller projects lack the economy of scale that appeals to large-turbine manufacturers, he explained, so AWE is focusing on that marketing opportunity. Even going through a specialized vendor, however, the 900-kW turbine the district settled on cost more than planned. "We were a little short on money, and then a large individual donor withdrew his pledge," Howard recalled. Green tag sale saves the dayFaced with a choice of looking for more funding or dropping the project, Howard persevered. In doing so, Wray School District ran up against a number of issues. "As a non-taxed entity, we don't qualify for the production tax credit that might have made up the shortfall," he said. An attempt to form a separate corporation would have jeopardized the district's tax status, and there was even a question about whether a school district had the rights to green tag proceeds. Renewable energy credits turned out to be the key to reviving the project. Through many more phone calls, Howard learned of NativeEnergy, a green tag and carbon offset marketer. The company helps to build new renewable energy projects by buying a share of a project's long-term REC output. That support has been instrumental to the success of several tribal projects. NativeEnergy's purchase, combined with money from a successful bond project the city implemented in 2005, put the Wray School wind turbine back on track. "Once I had NativeEnergy's contract in hand, I called AWE and placed the order," said Howard. "It was a great day, seeing that tower going up finally after we thought the project was dead." Coordination also an issueThe long wait was not without some fringe benefits, Howard noted. "We renegotiated our power purchase agreement with Y-W Electric and it was a better deal," he said. "Also, the city bought the ground for the site and gave us the land lease." The site was different from the one the district originally chose, said Holmes. "The city's main distribution line was close to the land we donated, so it was a less expensive option than the site serviced by Y-W's line." Transmission continues to be an issue in developing northeastern Colorado's wind resources, he added. "People think that it's as simple as putting up a turbine and hooking it up to the grid," Holmes said. "But the school had to figure out how much turbine it could afford versus how the power would get used. Whenever the size of the turbine changed, the whole equation changed." In the end, all the calculating, fundraising, research and negotiating are worth the educational opportunities and financial rewards the project will provide for Wray students. And because renewable energy is a good investment for communities, the school district's experience can serve as a model for other community wind projects. In fact, Howard's advice to schools and towns interested in developing local wind resources is, "Call me. I'll be happy to answer your questions." |
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