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HomeMy WebLinkAbout10E - Report Regarding Alternate Energy Sources ~p~~ tO~ 4646 Dakota Street S.E. U ~ Prior Lake, MN 55372-1714 \ ~ .. / COUNCIL AGENDA REPORT ~E~ M~i: liNG DATE: JANUARY 5,2009 AGENDA #: 10E PREPARED BY: DANETTE PARR, COMMUNITY DEVELOPMENT AND NATURAL RESOURCES DIRECTOR AGENDA ITEM: CONSIDER APPROVAL OF A REPORT REGARDING ALTERNATIVE RENEWABLE ENERGY SOURCES DISCUSSION: Introduction The purpose of this report is to provide the Council with information related to renewable energy sources and ways the City could consider implementing these technologies. H istorv In acknowledgement of rising fuel costs and the need to address growing concerns related to the environment, the City Council directed staff to research alternative renewable energy sources and report back to the City Council. Current Circumstances Technology related to renewable energy sources changes on a daily basis. For that reason, staff evaluated renewable technologies that have moved beyond the phase of research and development, and instead considered those that are more commonly being utilized by the public and/or private sector. The scientific community and energy industry cite the following six renewable energy sources as the most viable to date: 1) Ocean Energy 2) Biomass 3) Solar 4) Geothermal 5) Wind Since Prior Lake does not have an ocean to benefit from sustained wave action (Ocean Energy), this is not an option. However, the remaining four renewable energy sources were considered to understand how they are currently being utilized: Biomass Biomass is not a new technology. However, it has resurged as utility companies are reestablishing it as a viable way to generate energy through discarded products. The biomass process is when energy is created through the burning of waste wood, plant materials, and landfill products. When these items are burned, heat is generated by boiling R:\Council\2009 Agenda Reports\01 05 09\Renewable Energy SO~~Pforlake.com Phone 952.447.9800 / Fax 952.447.4245 water and the energy in the steam is used to turn turbines and generators, thus creating usable energy. While biomass is being used in various parts of the United States, including Minnesota, it continues to be very controversial due to the large burners and airborne byproducts associated with this technology. Solar (Photovoltaic and Thermal Electric) Virtually every region in the United States has sufficient solar energy to produce electricity from the sun, and Minnesota is no exception. There are currently over 107,124 kilowatt hours of solar energy being captured in Minnesota (an average residential home utilizes 10-20 kilowatts/day). Numerous applications exist for utilizing solar power to create energy. Most commonly, solar energy is captured and utilized from rooftop and ground standing panels. Increasingly, "solar fields" are allowing for the capturing of solar energy in remote places and the excess energy is fed to the electrical grid and sold to utility companies. In the case of commercial, governmental, and educational institutions, solar panels are most commonly used to defray the cost of electricity for institutional buildings at peak load times. In some cases, when municipalities or institutional uses have large open land they utilize land leases to a third party user for locating solar panels and benefit from lease revenues or a portion of the power generated on the site. Geothermal Geothermal energy is generated when heat/steam is captured from deep below the earth's surface. When geothermal energy is being used to create electricity on a large scale, it's typically being harvested by a utility company in conjunction with a power plant. These power plants are often controversial and not widely accepted by adjacent residential areas. Geothermal energy can also be used on a smaller scale to heat or cool individual buildings. In this case, pipes are buried in the ground near the building. In winter, heat from the warmer ground goes through the heat exchanger of a heat pump, which sends warm air into the home or business. During hot weather, the process is reversed. Hot air from inside the building goes through the heat exchanger and the heat is passed into the relatively cooler ground. Heat removed during the summer can also be used to heat water. This technology is being considered as part of the future Pike Lake Park facility. Wind According to the Minnesota Department of Commerce, more than 800,000 megawatts-hours (MWh) of wind power is generated annually in Minnesota and is transmitted to consumers through the electric grid. This accounts for roughly 1.5 percent of Minnesota's total electric use R:ICouncil12009 Agenda Reportsl01 05 091Renewable Energy Sources CC Report,doc and is enough to power more than 101,000 average residential households for a year. More than 90 percent of the power is produced on utility-scale wind farms typically equipped with large turbines (over 400 feet in height) and located in prime wind areas of Minnesota (Buffalo Ridge-southern MN). The remainder comes from smaller turbines (most commonly 80-300 feet in height). In order to fully evaluate the City of Prior Lake as a possible future win'd turbine location, a study would need to be undertaken to establish wind capacity in the City at specific sites (can take up to a year to fully monitor), proximity to transmission lines, etc. An initial study can range in cost from $5,000-$20,000. According to a Minnesota Department of Commerce and Wind Logics Wind Resources Study, Scott County is within a portion of Minnesota that records moderate wind loads. In the case of moderate to low wind capacity, typically a larger turbine (350- 400 feet in height) is necessary to adequately harvest wind loads. ISSUES: While wind mill/turbine technology is not new, the organizations getting involved with this technology are new to the scene (municipalities, tribal communities, school districts, etc). For that reason, many of these organizations are watching others and waiting to see if the return is worth the financial investment. In talking to other municipalities, tribal governments, private renewable energy investors, representatives from energy companies, and educational institutions, who are actively pursuing wind technology, the following points were reiterated from their experiences: 1) Before you look at proceeding with wind technology, know what you are looking to achieve (energy independence, offsetting costs, branding of the community, revenue building, etc). Your goals and what you are able to achieve in your topographic location may not be in alignment. 2) Proper site evaluation is vital. 3) Initial capital is necessary on the part of the organization/municipality . 4) Starting smaller is not necessarily cost effective. 5) Learn from others as they proceed and their turbines establish a track record. 6) Understand the risks involved. The Council has three fundamental options with respect to each of these alternative renewable energy sources: 1. Watch and learn from what others are doing, but take no actions ourselves. 2. Provide information to the public about alternative energy sources to educate. 3. Actually test or implement one or more of the alternative energy sources ourselves or in conjunction with others. R:ICouncil\2009 Agenda Reportsl01 05 091Renewable Energy Sources CC Report,doc Alternative Renewable Energy Source Options SOURCE Geothermal Solar Wind MONITOR * Learn from other communities experimenting with geothermal energy in new environmental learning centers. * Learn from the SMSC and others in their solar panel experiences * Learn from the SMSC experiences with their wind turbine scheduled for operation in August, 2009. EDUCATE * Place kiosks in City buildings (City Hall, Club Prior) regarding geothermal energy. * Place kiosks in City buildings regarding solar energy. * Place kiosks in City buildings regarding wind turbine technology. IMPLEMENT Pursue geothermal technology to heat future Pike Lake Park facility * Install solar panels at park facilities either for light and/or energy purposes. Invest in wind power by purchasing wind energy or pursue future partnerships with the SMSC, County, and others to be an operator or shareholder. * The staff's recommendations are noted with an asterisk in the above matrix. There are funding sources available to assist in alternative energy demonstration projects. Most of the sources involve a cost share so the City will need to identify funding sources if it wishes to do more than monitor or educate. If the City were to participate in a solar, geothermal, or wind demonstration project, the City cost could be as low as $3,500 (solar) to as high as $2.8 million (wind turbine). Ongoing maintenance, monitoring, and administration costs can vary considerably as well. FINANCIAL IMPACTS: The alternatives are as follows: 1. Accept the report, including staff recommendations for implementing this program 2. Deny this item for a specific reason and provide Staff with direction. 3. Table this item until some date in the future. ALTERNATIVES: RECOMMENDED/J Alternative 1. MOTION: 1/ R~wed by: I ~ R:\Council\2009 Agenda Reports\01 05 09\Renewable Energy Sources CC Report,doc