Wednesday, July 18, 2012
 
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Grid access and electrical infrastructure agreements increase Logan County's potential as major wind energy producer

Sugar Creek One update

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[July 18, 2012]  All year, county officials have been wondering when a wind farm planned for southwestern Logan County might get started. It has been a year since Sugar Creek One received the board's approval.

The project has several dimensions that hold significant impact for the county, including revenues from building permits and annual property taxes. Once the wind farm is built, local schools would benefit appreciably also.

County budgeters are now determining how to pay for $1.1 million to $1.5 million in court costs expected next year in connection with the Gee family murders. The wind farm project also affects road planning. So the timing is of great interest.

The wind farm that would be located west of Lincoln plans for 110 wind generators that would produce 2 megawatts each in the first phase.

A second farm is planned farther south in Logan County, west of Elkhart, and a third farm is planned south of that in Sangamon County. Those projects have not reached the zoning approval process yet, but are in land agreement and planning processes.

This week, Sugar Creek One project manager Stan Komperda had some big news to announce: "We just signed our generator connection agreement." The agreement signed with Ameren is a huge step that will bring infrastructure that connects the substations to the main grid.

One factor in how soon the project might move forward has to do with a federal assistance program. The developers have had their eye on the renewal of a production tax credit that is due to expire. That program's renewal is essential to renewable energy sources. Other utility energy producers are significantly underwritten by the government as well.

During this presidential election year the focus has been on cutting spending, but the tax credit is expected to pass. Federal and state governments are committed to the future of renewable energy.

Komperda pointed out strength in wind production's favor. Currently, wind energy is one of the few industries that can directly create jobs and bring money locally into rural areas.

Some of the delay in the development process could be attributed to the economy. Piggybacked on the poor economy that began back in 2008, there has been a decreased power demand and the market went down.

However, Komperda is confident about the near future. "These things can change pretty quick," he said.

Plus, any sign of inflation puts wind energy to the forefront, as it is the only energy that contracts a fixed price for 10 or 20 years. "Other energy sources have inflation built into their contracts," Komperda said.

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Additionally, wind offers to fill the gap created by the loss of coal energy production. Illinois has plans to begin shutting down coal plants that are heavy polluters. Already targeted are two near Chicago, Meredosia and near Danville. Most of the states to the east have similar plans, including neighboring Ohio and Indiana. The eastern states have already announced that they will use natural gas and wind to make up for the energy production losses.

While western Logan County is ripe with wind energy potential, the electrical grid and transmission infrastructure were near capacity after the completion of the Rail Splitter Wind Farm. These issues needed to be addressed for further electrical production.

Komperda said there are now agreements with Ameren for grid upgrades to our area. And, a private developer would install a transmission line running between Bloomington and Lincoln. The line is coming out of Indiana.

Everything considered, Komperda said, "I really think that central Illinois is going to be the hot spot for wind."

While waiting on a new production tax credit to pass Congress, there is still plenty to do to be ready to go. Komperda said they are working with landowners on rights of way for the new electrical infrastructure, continuing to gather met tower information and working on some of the remaining permits. And, a bird study was just recently completed.

Now with a 2014 time frame for construction, Komperda said: "Our project is progressing really well."

[By JAN YOUNGQUIST]

Company website for Sugar Creek One project:
http://www.awem.org/awemprojects_sugarcreek.htm

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