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Wednesday, June 9, 2010
Wind Energy
With the Gulf oil well disaster on everyone’s mind, renewable energy has received something of a boost in our collective consciences. With that background, I recently attended the American Wind Energy Association conference in Dallas to learn about this green power source and its implications on the construction industry.
Former President George W. Bush, delivered a keynote address that called for a redoubling of efforts to incorporate wind into the nation’s power mix. He said more use of wind power not only would benefit the environment, but also make the nation safer by removing reliance on foreign sources of oil and making it tougher for domestic or foreign enemies to disrupt the flow of power. Bush, while governor of Texas, instituted one of the most ambitious wind-power initiatives in the country. He urged America to encourage technological advances and investment by removing barriers to green power entrepreneurs.
Non-residential construction continues to suffer as a whole in this economic recovery, while green construction and sustainability gain traction. These issues have converged to place greater urgency on renewable energy, and Congress has responded. Senators from the East and Midwest, have expressed to the chamber’s leaders the need to create jobs and maintain the country’s competitive advantage in manufacturing sectors.
Diversifying America’s energy supply also bodes well for contractors. With private-sector jobs very slowing coming back, public infrastructure projects will be the industry’s lifeblood for some time to come. Industry associations have been quick to endorse the senators’ position that American jobs depend on diverse and comprehensive measures to spur investment, limit costs and encourage efficient use of limited resources.
For green energy policies to work, however, tax incentives that allow companies to retrofit and expand plants and equipment, financial incentives to drive investments and loan programs, reasonable regulatory policies to grease the transitional rails, and strong but attainable federal renewable electricity standards will make this energy sector a more inviting target for builders and manufacturers. Time is not on America’s side and we risk losing American jobs if we fail to pass legislation that provides the hard targets needed to strengthen our industries.
he Dallas conference offered some terrific insights into the power, possibilities, and challenges of harnessing wind power. Wind turbines can be an effective way to use “free” energy. Vast expanses of prairie, desert, and offshore locations not suitable for other agricultural or commercial uses, can be prime locations for wind turbines. Texas has proven wind’s efficacy. The state generates nearly 10 gigawatts of electricity from wind. The state made a commitment to this resource, and today is home 30 percent of the country’s wind turbines. As a Texas resident I see evidence of this wind industries growing success on my home town of Amarillo.
Klickitat County, Washington is another success story. Like many areas hit by the decline of manufacturing, the area lost some 700 jobs when an aluminum smelter closed. But a dozen wind farms have recouped those job losses and created a new revenue stream in the form of land leases for farmers also hit by shrinking profit margins. The power projects themselves and the infrastructure, retail, and residential construction needs of a rebounding population also have been a boon to the local construction industry while directly paying $3.5 million into the county’s tax coffers, according to Mike Canon, Klickitat County's economic-development director, in a story from the Seattle Times.
There are more than a few challenges to overcome. Utilities must commit to wind, according to a seminar at the Dallas conference. Wind must also make not only economic sense, but also present manageable start-up costs and fit into their power portfolio. Even then, they must address issues such as owning wind generation vs. purchasing wind-generated electricity and the logistics of transmitting and delivering the power generated.
Another session dealt with the efficiency of wind turbines and the unpredictability of the wind to propel them.
Governments can help ease these and other obstacles to greener building by adopting strong public policy, such as those outlined in the Associated General Contractors’ Building a Green Future plan, which urges that:
• “Pragmatic investments” in research and technology.
• Faster approval for new sustainable forms of power generation, including nuclear, wind and geothermal power facilities be forthcoming.
Former President George W. Bush, delivered a keynote address that called for a redoubling of efforts to incorporate wind into the nation’s power mix. He said more use of wind power not only would benefit the environment, but also make the nation safer by removing reliance on foreign sources of oil and making it tougher for domestic or foreign enemies to disrupt the flow of power. Bush, while governor of Texas, instituted one of the most ambitious wind-power initiatives in the country. He urged America to encourage technological advances and investment by removing barriers to green power entrepreneurs.
Non-residential construction continues to suffer as a whole in this economic recovery, while green construction and sustainability gain traction. These issues have converged to place greater urgency on renewable energy, and Congress has responded. Senators from the East and Midwest, have expressed to the chamber’s leaders the need to create jobs and maintain the country’s competitive advantage in manufacturing sectors.
Diversifying America’s energy supply also bodes well for contractors. With private-sector jobs very slowing coming back, public infrastructure projects will be the industry’s lifeblood for some time to come. Industry associations have been quick to endorse the senators’ position that American jobs depend on diverse and comprehensive measures to spur investment, limit costs and encourage efficient use of limited resources.
For green energy policies to work, however, tax incentives that allow companies to retrofit and expand plants and equipment, financial incentives to drive investments and loan programs, reasonable regulatory policies to grease the transitional rails, and strong but attainable federal renewable electricity standards will make this energy sector a more inviting target for builders and manufacturers. Time is not on America’s side and we risk losing American jobs if we fail to pass legislation that provides the hard targets needed to strengthen our industries.
he Dallas conference offered some terrific insights into the power, possibilities, and challenges of harnessing wind power. Wind turbines can be an effective way to use “free” energy. Vast expanses of prairie, desert, and offshore locations not suitable for other agricultural or commercial uses, can be prime locations for wind turbines. Texas has proven wind’s efficacy. The state generates nearly 10 gigawatts of electricity from wind. The state made a commitment to this resource, and today is home 30 percent of the country’s wind turbines. As a Texas resident I see evidence of this wind industries growing success on my home town of Amarillo.
Klickitat County, Washington is another success story. Like many areas hit by the decline of manufacturing, the area lost some 700 jobs when an aluminum smelter closed. But a dozen wind farms have recouped those job losses and created a new revenue stream in the form of land leases for farmers also hit by shrinking profit margins. The power projects themselves and the infrastructure, retail, and residential construction needs of a rebounding population also have been a boon to the local construction industry while directly paying $3.5 million into the county’s tax coffers, according to Mike Canon, Klickitat County's economic-development director, in a story from the Seattle Times.
There are more than a few challenges to overcome. Utilities must commit to wind, according to a seminar at the Dallas conference. Wind must also make not only economic sense, but also present manageable start-up costs and fit into their power portfolio. Even then, they must address issues such as owning wind generation vs. purchasing wind-generated electricity and the logistics of transmitting and delivering the power generated.
Another session dealt with the efficiency of wind turbines and the unpredictability of the wind to propel them.
Governments can help ease these and other obstacles to greener building by adopting strong public policy, such as those outlined in the Associated General Contractors’ Building a Green Future plan, which urges that:
• “Pragmatic investments” in research and technology.
• Faster approval for new sustainable forms of power generation, including nuclear, wind and geothermal power facilities be forthcoming.
Labels: Commercial, Construction Industry, Industrial, Wind Energy
Comments:
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Great article, I must make one point though. With an emerging field growing as rapidly as the green industry is, I can't help but to consider a green bubble in the future. With federal stimulus funds and private investors pouring money into the industry, it would be wise to proceed with caution when looking to capitalize on this market. For comparison, think back to the early 90's when tech companies and the internet promised to change the world. Well, it did but not without a hiccup, hence the dot.com bubble. Tech companies grew faster than nature thought they should and the bubble reset the industry. Green tech has a bright future, but when planning for the future as an investor or business, plan carefully.
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