Assessment of Small Wind Generation Technologies in Australia - Dissertation Example

?Assessment of Small Wind Generation Technologies in Australia Alternative energy has been generating a lot of interest these days, especially since the price of oil is prone to fluctuation, causing instability in many economies. In addition, many governments are now pressured to reduce green house gas emissions both from international conventions (particularly those on climate change) as well as from the general public, who are growing concerned with the effects of fossil fuel on the environment. In recent years, green energy became imperative in sustainable strategies being adopted by many countries. One of the most viable and certainly most popular among the alternative energy sources is wind power. It comes from wind energy, generated by wind turbines and offer an excellent alternative to traditional sources of electricity and fuel such as oil and coal. When harnessed through technology, wind energy provides cheap, clean, plenty and renewable energy source. Presently, this type of energy source has become a major electricity generator in some countries, contributing up to 20 percent stationary electricity. Some of these countries include Denmark. Portugal, Spain, Ireland and Germany. In addition, more than 80 countries have exploited and harnessed wind energy commercially. (REN21 2011, p11) Background Wind energy has been used to power machines in earlier history. For instance, windmills helped people some 4000 years ago in grinding grain and pumping water. Around 1800s, Europe and China reportedly had a combined number of 500,000 windmills for their energy requirements. (Colorado State University) If one examines the various periods in the past, on will find that inventors have developed different versions of wind-powered energy generators across countries. Such history underscores how the potential of wind energy has been recognized early on. The fact is that the heat produced by the sun creates wind movements through differential heating, driving continuous wind speed. At a certain altitude, the wind can have as much as160 km/h speed continuously. This speed can generate considerable amount energy once the wind is converted into diffused heat through friction. Recently, a study found that the earth’s potential wind energy could reach up to 72 TW annually. (Archer and Jacobson 2005) This figure is roughly the same as 54,000 million tons of oil, making wind power five times as much as the current world energy consumption from all energy sources combined. In Australia, the air movement and speed is depicted in Fig. 1. Fig. 1: Wind Speed in Australia (Outhred 2006) How it Works The wind’s kinetic energy is converted into usable mechanical or electrical power through a wind turbine. The wind energy fact sheet released by the New South Wales government explained the composition of a wind turbine and how it works (see Figure 2). Here, a rotating generator is required in order to convert wind energy into electricity. This generator is enclosed in a nacelle and powers the rotor, the propeller-like part found on top of the wind turbine tower. Once the wind moves the rotor, the generator converts the rotational energy into electrical energy. The power generated is further increased by an installed transformer, then, a substation, which finally allows the energy to be flow to the energy grid. Fig. 2: Wind Turbine and the Wind Energy Transfer (NSW…) Currently, there are at least sixteen countries that are capable of generating 1000 megawatts of wind energy and the combined capacity represents almost 2 percent of the world’s electricity generation. (NSW…) The significance of wind energy is especially highlighted in the cases of Denmark, Spain and Portugal – countries that boast of significant wind energy contribution to their energy generation mix. Wind Energy in Australia Recognizing the threat of unstable oil prices and environmental concerns and commitments, Australia has begun to establish a policy for renewable energy. The main objective of the government is to generate at least 20 percent or 60,000 GWh of electricity from renewable energy sources, 45,000 GWh more to be added to the existing 15,000 GWh renewable energy capacity of the country. (Gerardi and Nidras 2010, p5) This target is expected to be achieved with the legislation of several statutes that provide the necessary legal framework. Policymakers maintained that “the target will remain constant from 2020 to 2030 as emission trading matures and prices become sufficient to ensure a [Renewable Energy Certificates] RET.” (Gerardi and Nidras, p5) The landscape, hence, provides certain and sizable market for renewable energy investors. Big Australian commercial firms are mandated to purchase a huge share of their energy requirements from renewable energy producers. This is monitored, evaluated and measured through a system wherein organizations – big firms, retailers, among other specified energy consumers - are obligated to acquire an identified number of REC and surrender them for compliance evaluation. The penalty for non-compliance is up to $65/MWh – a figure that is not indexed to CPI; and, is not tax deductible. (Girardi and Nidras, p15) Renewable energy producers are licensed to issue Renewable Energy Certificates (REC) as long as they satisfy a specific set of requirements. Investors on this field are guaranteed to profit from such legislative obligation. There will always be a sustained market, at least, until 2030, when the policy expires. After 2030, policymakers foresee that the renewable energy will become competitive and profitable even without the RET scheme. There are other existing measures that provide a favorable business landscape for renewable energy development. Cases in point are the so-called GreenPower schemes, which provide the electric consumers the option of buying renewable energy from their electric utility provider; and, the state-based, feed-in tariff/buyback schemes “for domestic scale wind technology that provide some level of payment or credit towards electricity bills”. (GWEC) Wind energy is one of the most promising renewable energy sources in Australia. The country, particularly on the southern coast, has one of the world’s best wind energy sources. Australians call it the “roaring forties” and the southern region where it is found accounts for half of Australia’s national wind resource capacity. Table 1 is a breakdown of wind capacity in Australia by state. Figure 3 illustrates the existing wind farm installations and those under construction or planned to be completed by 2010. Installations of wind farms have started for years already, but the sector only gained momentum recently due to the changes in governmental policy. The old Mandatory Renewable Energy Target was expanded with the legislation of RET, which became pivotal in encouraging investment in wind energy. An amendment to the Renewable Energy Target law, finally enforced in January this year, classified renewable energy providers into large-scale renewable energy projects and small-scale systems to achieve efficiency and success in the implementation of the law. Today, wind power contributes 2 percent to the country’s electricity generation, supplying 5,100 GWh per year. However, this is expected to grow with the previously cited legal framework, finally, in place. The current energy capacity, according to the Global Wind Energy Council, is generated by 52 wind farms, which operate 1,052 wind turbines and is expected to grow with the installations of new wind farm projects. (GWEC 2011) The organization also noted that because of the sheer amount of onshore energy resource in Australia, there is no need, presently, to build offshore wind energy installations. Table 1: Installed Wind Capacity by state (GWEC 2011) State Installed Capacity (MW) South Australia 740 Western Australia 201.5 Victoria 428 Tasmania 143 New South Wales 187 Queensland 12.5 Australian Antarctic Territory 1 Total 1,880 Fig. 3: Existing and Planned Wind Farms in Australia (AEMO 2010) Besides the guaranteed market, governmental incentives, and favorable policy landscape, the wind generation industry is an excellent investment opportunity because of several benefits. An outline of this has been compiled and the most important follows: Efficiency: While the capacity of existing wind farms are significantly lower than other energy sectors such as coal and gas power stations, wind farms can use wind energy more efficiently. The report by NSW, stated, “NSW coal-fired power stations convert 29% to 37 percent of the coal into electricity, and NSW gas plants convert 32% to 50% of gas processed into electricity. Wind turbines convert around 45% of the wind passing through the blades into electricity (and almost 50% at peak efficiency).” (p. 3) The current technology today also ensures such efficiency in wind turbines. For instance, Windtronics, a manufacturer of wind turbines has developed the Gearless Blade Tip Power System, which features high-efficiency turbine through a system of magnets and stators that eliminates mechanical resistance and drag. The company explained that this new advanced system “addresses past constraints such as size, noise, vibration and output.” (Windtronics 2011) Greenhouse Gas Reduction: A study found that “every additional unit of wind power injected into the NSW grid replaces a unit of power from another generator – almost exclusively a gas or coal-fired power station.” (NSW…) The NSW experience, with an average production of 150 megawatt per wind farm can power 60,000-65,000 homes, which could replace as much as 360,000 tonnes of greenhouse gas emissions per year. (NSW…) Both the national and state governments are Safe Energy Source: The amount of technology involved in wind turbine manufacture has made wind farms safe. For example, they could be struck by lightning, but the lightning protection systems can handle such high voltage contact and transfer energy to the ground. (NSW…) Criticisms Unfortunately there are still some drawbacks in using wind turbine systems. For instance, people complain that wind generators make annoying noise day and night. The following list shows the noise profiles of typical 3-bladed dynamic generator systems: 5 metres behind blades gusting to 5m/s / 12 miles per hour, LAeq 33.0 dB (decibels) 5 metres behind blades gusting to 7m/s / 16 miles per hour, LAeq 52.0 dB (decibels) 3 metres behind blades, height 1.5m 'background noise' LAeq 36.0 dB (decibels) (Source: __________) Wind turbines can also inconvenience people because it can interfere with television reception. Finally, the preferred locations for the wind system are near the coast, areas, which, some may find discouraging because they have high land values. Wind Farming in Victoria The Sustainable Energy Victoria provides comprehensive resource on matters of policy regarding wind energy in Victoria. For instance, there is the discourse on the importance of the state’s location, making it one of Australia main wind energy sources. It was predicted that “the windiest locations would be found on the west and central coast of Victoria,” and that, “inland highly localized topographic effects may provide some additional opportunities for wind energy development.” (p. 9) Certainly, the resource is abundant and is waiting to be tapped. In addition, the Victorian market is typified by positive developments. Last year, the economy expanded and because of this the state’s electricity consumption increased by 15 percent. (SEAV, p. 11) The trend is expected to continue and the government is looking at the renewable energy sector to supply its energy requirements today and in the future. This is one of the market entry points in the state. According to SEAV, “while fossil fuels are likely to remain a cornerstone of Victoria’s energy production for many decades, increasing the proportion of energy from renewable sources is part of a balanced strategy.” (p11) The prevailing policy attitude is that renewable energy sources can contribute significantly in addressing the growth in electricity consumption in the next ten years at the least. This is in addition to the existing national RET policy wherein companies are legislatively obligated to allot a certain amount of renewable energy to their energy consumption. Specific initiatives, as cited by SEAV, undertaken by the Victorian government to encourage and promote renewable energy like wind power include: the purchase of a minimum of 5% of the Government’s electricity from Green Power; and the support provided for the development the development of other renewable energy sources through the Renewable Energy Support Fund. (p7) A summary of the policies and initiatives by the government concerning the subject identified the fundamental attitude of the policymakers. These characterize the Renewal Energy Strategy for Victoria, a long-term energy policy that was developed since 2006 in order to encourage and support the sector and eliminate barriers to its growth. Policies that are part of this comprehensive strategy are: Support for the national renewable energy strategy; Consistent and streamlined Assessment Process, wherein the Minister for Planning was tasked to oversee all wind energy proposals that are 30 MW or greater; The establishment of the State Planning Policy for Renewable Energy; The development and implementation of guidelines for wind energy facilities; The creation of Sustainable Energy Authority, which provides a central point of contact within the government for wind energy developers; The improvement of data on Victoria’s renewable resources; and, The identification of wind energy facilities. (SEAV, p4-5) An application for wind farming in Victoria is depicted by the flow chart below. Fig. 4: Assessment Process for Wind Energy Facility In applying for a wind farm, an applicant is required to submit: 1) a site analysis; 2) location plan that show the site area, local electricity grid and access road to the site and its contours; 3) development plan; 4) a written report that contain the proposal, design; 5) area landscape description. In addition to this, the applicant must past a series of assessment such as those concerning visual and noise impact, among others. (SEAV, p. 21) An application to build and operate a wind farm can be approved on any land in the state with the exception of those reserved under the National Parks Act. (SEAV, p. 20) The construction of the wind turbine would also require a building permit, which means it must satisfy the nationally set requirements for building the structure. Also, there are local laws and councils that require different criteria in order for an application to be approved. Most of these, however, involve building permits because often councils have existing restrictions on building structures. For example, Melbourne prohibits the installation of towers near the vicinity of its airport. Finally, applicants have to remember that in the evaluation of their applications, the state has specific assessment criteria. For example, the state prefers wind energy facilities to be located on locations that have superior wind conditions. Elsewhere in this paper, it has been cited that these conditions are present in the western and central coasts of the state. Evaluators also focus on the plans for development. Of particular significance is how a wind farm proposal plans to balance environmental, social and economic impacts in addition to how the plan provides information in regard to the information and explanation concerning decision-making. (SEAV, p. 22) Evaluators will also look at how the proposed wind farm could contribute and help achieve governmental policy on wind energy generation, among other renewable energy development. Small Wind Turbine Market What have been discussed so far was applicable to large-scale wind farms. Smaller scale ones can also be purchased for home use. The following figure illustrates how this works and how it is different from its larger wind turbine sibling: Fig. 5: Small Wind Turbine (Enhar 2010) The advantage of these smaller wind turbines – those that have 10kW or less capacities – is that consumers can generate their own electricity (a 3kW turbine might generate 9,000 kWh per year, three times the average power consumption of a domestic residence); attract rebates and government incentives (owners are reportedly earning up to 25 percent of the initial cost of small wind system from RECs alone, in addition to being depreciated against tax); provide power 24 hours a day, and is quite cost effective especially for those owners living in high wind areas. (NSW Office of Environment and Heritage 2010) The scale of this wind turbine system makes it popular for individuals and small businesses. A larger scale wind generating system, but smaller than high-output wind farms, is communal installations. Here, communities could set up their own wind systems. This is another market entry point for wind turbine dealers, developers and installers, because they can partner with these communities and build their wind turbine requirements. Currently, Australia and the state of Victoria do not have any set standard for small wind turbine products. This is particularly significant in terms of rebate eligibility. This means that regardless of the standards of the wind turbine, an owner can still be eligible for rebate. There is, however, an interim Australian standard that somehow covers small and large wind turbines - the AS 614000-2(Int) Wind turbines – Design requirements for small wind turbines. (Enhar, p. 27) Unfortunately, this is not considered a formal standard in the country. This circumstance highlights one important dimension to the wind turbine market in Australia: that the wind turbine industry mostly caters to a smaller market in comparison to the photovoltaic industry, which are cater to large organizations. (Enhar, p. 27) Conclusion As pointed out by this paper through the arguments raised by numerous sources, wind energy is an important part of the Australian initiative to encourage and promote the use of renewable energy. It figures prominently in the long-term renewable energy policy of the country for several reasons. First, there are lots of benefits, particularly when compared to other energy sources such as coal and fossil fuel. Wind turbines are cheap, renewable, environmentally friendly and efficient. It can significantly impact Australia’s greenhouse gas emissions. In addition to this, the current policy framework is very favorable to the wind energy development sector. There are numerous benefits and incentives offered by the government and it will go on until 2030 when such policy will expire. The state of Victoria is also very supportive to the wind energy sector. Its adoption of a long-term policy that is separate and complementary to the existing national initiatives underscores the commitment of the state to renewable energy and wind energy development. These are opportunities that investors must not overlook. On the other hand, there are several weaknesses and criticisms hurled against wind turbine systems. Some of them are legitimate and may, in reality, affect the way wind turbines are accepted in the Australian national electricity market. For example, people complain about the noise of a wind turbine or that it may be expensive requiring installation in prime-value locations. There are also times when it cannot be relied on due to inconsistencies in wind speed and movements. In examining the positive and negative aspects of wind energy in Australia, consumers would eventually conclude that the strengths outweigh the weaknesses and that the weaknesses can actually be resolved. For instance, developers argue that sophisticated engineering design can address the swooshing sound of the moving rotor. In additions, many Australians have displayed a willingness to walk the extra mile or pay an extra penny to support renewable energy. References Archer, C and Jacobson, M 2005, "Evaluation of global Wind Power," Stanford University. Available from: [3 September 2011]. Australian Energy Market Operator (AEMO) 2010, "Australian Wind Energy Forecasting System (AWEFS) Overview." AEMO. Colorado State University. "Wind Energy in Colorado: A Practical Guide for Farmers and Ranchers About Producing Energy from Wind. Colorado State University Cooperative Extension. Enhar 2010, "Victorian Consumer Guide to Small Wind Turbine Generation." Enhar/Sustainability Victoria. Gerardi, Walter and Nidras, Paul. (July 2010). "Estimating Greenhouse Gas Emissions Abatement from Wind Farms in NSW." NSW Department of Environment, Climate Change and Water. Global Wind Energy Council (GWEC) 2011. "Australia," GWEC. Available from: [3 Sept 2011]. New South Wales Department of Environment, Climate Change and Water (n.d.) "The Wind Energy Fact Sheet,"New South Wales Department of Environment, climate Change and Water. New South Wales Office of Environment and Heritage 2010, NSW Small Wind Turbine Consumer Guide." NSW Office of Environment and Heritage. Outhred, H 2006, "Integrating Wind Energy into the Australian National Electricity Market." Sydney: Centre for Energy and Environmental Markets, The university of New South Wales. Renewable Energy Policy Network for the 21st Century (REN21) 2011, "Renewables 2011: Global Status Report," REN21 Available from: [5 September 2011]. Sustainability Victoria 2011, Operating Wind Generators in Victoria. Sustainability Victoria. Available from: [3 September 2011]. Sustainable Energy Authority Victoria (SEAV) 2003, "Policy and planning guidelines for development of wind energy facilities in Victoria." Melbourne: SEAV. Windtronics 2011, "Products: Gearless Blade Tip Power System: The Future of Wind Power." Windtronics. Available from: [6 September 2011]. Read More