To: The Washington State House, The Washington State Senate, and Governor Jay Inslee
Strengthen Wind Incentives in Washington's Cost Recovery Program
I urge you to support language in HB 2045 and SB 5892 that will strengthen and extend the incentives for on-site and community wind in the Washington Renewable Energy Cost Recovery Program (CRP), following recommendations developed by the Washington Distributed and Community Wind Stakeholder Group convened by the Northwest Wind Resource and Action Center and endorsed by the Local Energy Alliance of Washington and the Distributed Wind Energy Association.
Several factors have served to limit the deployment of distributed wind in Washington State. The existing incentive rate for wind has not been sufficient to motivate consumers to act. Even though the capital costs are higher for distributed wind, the incentive rates for solar have been much higher, particularly for numerous adders not available for wind. Specifically, the CRP incentive rate provides only a 20% capital cost recovery over a 10-year incentive period, and a $5,000 limit on the total annual payments per participant limits the size of wind turbine that can be cost-effectively installed.
1) Payment levels need to increase to allow the policy to succeed for wind: More effective incentives for various market sectors and system sizes should be offered based on kWh production: a starting rate of 30 cents/kWh for residential scale wind (owned by the customer-generator), 20 cents/kWh for commercial distributed wind (owned by the customer-generator or a third party), and 10 cents/kWh for community wind (developed by utility, non-profit, business, or local government with local benefits and local control). The current $5,000 cap per participant should be replaced with a project cap of 10 MW to allow greater commercial ownership.
2) In-state installation and manufacturing jobs can be encouraged with additional business models: Wind energy towers, which comprise approximately 30% of wind system costs, have previously been and could easily again be manufactured in Washington. Wind towers should be added as a component which allows projects to qualify for a 20% "Made in Washington" (MIW) adder. In addition, payments made to third parties can open participation by commercial entities other than the customer-generator.
3) Wind is currently included and should remain in the incentive: A technology neutral program with consumer protection measures enables appropriate technologies to be cost-effectively developed for a wider range of locations. Expanding community solar incentives to include community wind options can allow Washingtonians to participate based on what best suits their local resources.
Community wind projects should be allowed to be owned by utilities based on customer participation requirements; by government or tribal entities; and by non-profits or businesses for projects with 51% local ownership and/or control plus documented support from the local jurisdiction, articulated defined community benefit, and approved by the program administrator.
The CRP was enacted by the legislature not only to encourage renewable energy, but also to give all Washingtonians the opportunity to participate in our energy future. I urge you not to exclude wind from playing a valuable role in diversifying Washington's energy infrastructure. Thank you for your consideration.
Several factors have served to limit the deployment of distributed wind in Washington State. The existing incentive rate for wind has not been sufficient to motivate consumers to act. Even though the capital costs are higher for distributed wind, the incentive rates for solar have been much higher, particularly for numerous adders not available for wind. Specifically, the CRP incentive rate provides only a 20% capital cost recovery over a 10-year incentive period, and a $5,000 limit on the total annual payments per participant limits the size of wind turbine that can be cost-effectively installed.
1) Payment levels need to increase to allow the policy to succeed for wind: More effective incentives for various market sectors and system sizes should be offered based on kWh production: a starting rate of 30 cents/kWh for residential scale wind (owned by the customer-generator), 20 cents/kWh for commercial distributed wind (owned by the customer-generator or a third party), and 10 cents/kWh for community wind (developed by utility, non-profit, business, or local government with local benefits and local control). The current $5,000 cap per participant should be replaced with a project cap of 10 MW to allow greater commercial ownership.
2) In-state installation and manufacturing jobs can be encouraged with additional business models: Wind energy towers, which comprise approximately 30% of wind system costs, have previously been and could easily again be manufactured in Washington. Wind towers should be added as a component which allows projects to qualify for a 20% "Made in Washington" (MIW) adder. In addition, payments made to third parties can open participation by commercial entities other than the customer-generator.
3) Wind is currently included and should remain in the incentive: A technology neutral program with consumer protection measures enables appropriate technologies to be cost-effectively developed for a wider range of locations. Expanding community solar incentives to include community wind options can allow Washingtonians to participate based on what best suits their local resources.
Community wind projects should be allowed to be owned by utilities based on customer participation requirements; by government or tribal entities; and by non-profits or businesses for projects with 51% local ownership and/or control plus documented support from the local jurisdiction, articulated defined community benefit, and approved by the program administrator.
The CRP was enacted by the legislature not only to encourage renewable energy, but also to give all Washingtonians the opportunity to participate in our energy future. I urge you not to exclude wind from playing a valuable role in diversifying Washington's energy infrastructure. Thank you for your consideration.
Why is this important?
Established in 2005, the Washington Renewable Energy Cost Recovery Program (CRP) provides an annual payment of 12 cents per kilowatt-hour (kWh) for electricity from qualifying wind electric systems – as currently enacted – until June 2020. Several factors have limited distributed wind in Washington State, and the incentive is now being revamped primarily to benefit solar electric systems.
The existing incentive rate for wind has not been sufficient to motivate consumers to act. Even though the capital costs are higher for distributed wind, the incentive rates for solar have been much higher, particularly for numerous adders not available for wind. In addition, the $5,000 annual cap on payments per participant limits the size of wind turbines that can be cost-effectively installed.
Current proposed legislation, including HB 2045 and SB 5892, will either treat wind and solar technologies the same despite wind's higher capital costs, or eliminate the wind incentive entirely in 2016.
Alongside efforts to revamp and extend Washington's Renewable Energy Cost Recovery Program for solar, we're urging legislators to consider wind as an important emerging source of distributed generation, jobs, and wealth for Washingtonians. Please contact your legislators and ask them to strengthen and extend the state incentive for distributed wind!
The existing incentive rate for wind has not been sufficient to motivate consumers to act. Even though the capital costs are higher for distributed wind, the incentive rates for solar have been much higher, particularly for numerous adders not available for wind. In addition, the $5,000 annual cap on payments per participant limits the size of wind turbines that can be cost-effectively installed.
Current proposed legislation, including HB 2045 and SB 5892, will either treat wind and solar technologies the same despite wind's higher capital costs, or eliminate the wind incentive entirely in 2016.
Alongside efforts to revamp and extend Washington's Renewable Energy Cost Recovery Program for solar, we're urging legislators to consider wind as an important emerging source of distributed generation, jobs, and wealth for Washingtonians. Please contact your legislators and ask them to strengthen and extend the state incentive for distributed wind!