Is an energy solution blowing in the Nebraska wind?

LINCOLN — Making Nebraska a major player in wind energy is going to take some major bucks, a state power study indicates.

The report, by an association of state utilities, estimates that it would cost $20 billion in today's money to build enough wind turbines and new transmission lines to generate 20 percent of Nebraska's total energy from wind by 2030. That target has been suggested by a federal wind study.

The price tag will require a much bigger investment on the federal level — similar to how the Interstate highway system was funded — to build high-voltage transmission lines that would allow Nebraska to export power to more populated states, one wind expert said.

Without transmission lines to export power, there isn't enough need to generate more electric power in Nebraska to justify building the 2,600 wind turbines required to meet the suggested 20 percent goal.

“The real key to all of this is what kind of transmission is going to be built outside of Nebraska,” said Dave Rich, renewable energy development manager for the Nebraska Public Power District. “We can spend $4 (billion) to $5 billion on transmission here, but that's just going to take it to the border. We really need to move it to Florida, Alabama and Georgia, where they have no wind.”

Transmission, export markets and financing are among the matters to be addressed by a state legislative committee study that begins today.

State Sen. Chris Langemeier of Schuyler, chairman of the Legislature's Natural Resources Committee, said the wind study committee's first meeting will focus on gathering technical information and the conclusions of Nebraska Power Association studies, including cost estimates.

More formal meetings will begin in July, Langemeier said.

He said that the $20 billion estimate was not a surprise and that the study will help determine whether the 7,800-megawatt goal suggested by the National Renewable Energy Laboratory is realistic. That amount would about double the state's current total power generation.

Overall, the interim study will focus on how to help Nebraska tap its vast wind-energy potential to foster economic development and to create a new source of tax revenue.

Currently, Nebraska has the sixth-highest potential for wind energy in the nation but ranks 22nd in production, according to the American Wind Energy Association.

Nebraska currently generates 153 megawatts of wind power, contrasting with the 2,883 megawatts generated by the vast wind farms dotting Iowa. The Hawkeye State ranks second nationally in wind-energy production.

The stark contrast prompted the Nebraska Legislature this spring to authorize the study and pass a handful of measures to remove barriers to wind development posed by Nebraska's unique status as the nation's only public power state.

Publicly owned utilities, including NPPD and the Omaha Public Power District, aren't eligible for the major federal tax incentives offered to private utilities to build wind farms.

One question the wind study is to address is whether Nebraska needs to sweeten its tax incentives to spur wind development. Iowa offers a handful of incentives that Nebraska doesn't, including property tax exemptions and production tax credits.

Nebraska's strong wind resources ought to be enough, Langemeier said. “I'm looking at ways to tax it, not ‘incentivize' it.”

Shelley Sahling-Zart, a vice president of the Lincoln Electric System, said the studies done by the Nebraska Power Association indicate that transmitting the power to export markets will be the biggest problem facing wind development in the state.

Building transmission lines is expensive, takes time and typically meets some landowner resistance, Sahling-Zart said.

“The wind is the easy part, much easier than the transmission,” she said.

Building high-voltage transmission “superhighways” is subject to hot debate on the federal level right now. Sen. Ben Nelson, D-Neb., is among those pushing for federal coordination of such a system.

The Southwest Power Pool, which includes Nebraska and four other states to its south, is also looking at a comprehensive upgrade of transmission lines.

“There's an awful lot of activity going on in the transmission area,” said Rich Lombardi, a Lincoln lobbyist who represents the American Wind Energy Association in Nebraska.

He said the legislative study is well-timed and will help position Nebraska to capitalize on its potential while protecting public power.

“This is a pretty massive undertaking,” Lombardi said. “I really believe that the (wind) industry will be a major economic driver in Nebraska, and this study will help pave the way.”

Contact the writer:

402-473-9584, paul.hammel@owh.com

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