A Message from the Renewable Energy Policy Project

Policymakers and landowners in the Great Plains are growing increasingly enthusiastic about a European idea: distributed clusters of one to five large (100 to 500 kW), locally-owned, electricity-generating turbines. In the following REPP Issue Brief, consultant John Dunlop suggests that wind clusters should complement the large, multi-unit, professionally developed windfarms that today produce most American windpower. Mr. Dunlop asserts that in coming years, wind clusters will allow American communities, cooperatives and families to harness indigenous wind resources and thereby generate electricity, protect the environment and stimulate the local economy.

REPP welcomes this paper for the encouraging tidings it brings to the wind industry, currently bedeviled by bad news. While windpower has surged around the globe, net installed capacity in the United States has merely held steady since the early 1990s, even though the wind industry has progressively lowered costs and improved machines. One of the few recent wind stories carried by the general news media concerned the bankruptcy of Kenetech Windpower, formerly the nation's largest wind firm. We find Mr. Dunlop's report of wind cluster development in the Great Plains heartening, and are encouraged by news of a recent Department of Energy distributed wind initiative.

Mr. Dunlop's paper should interest electric utilities pondering an uncertain future. As the American electric system introduces greater retail competition, all types of electricity suppliers, including municipal utilities and consumer-owned cooperatives, will struggle to retain customers. Because most Americans do not think of electricity as a consumer product, many firms will find it difficult to establish customer loyalty to their brand of power. Some companies will compete on price alone. Others, however, will find a powerful marketing strategy in linking energy services in customers' minds with local economic development and a clean environment. We expect that these energy pioneers will search for ways to facilitate wind cluster development.

Wind clusters constitute not only a clean energy technology but an apt rural development tool. Because they can be integrated into existing land use, wind clusters provide agricultural cooperatives or farming and ranching families with an extra source of income. Wind clusters also represent a business opportunity for impoverished areas that want to grow economically without damaging the environment. By casting clean energy as a farm product, the environmental community can fashion valuable political alliances with groups endeavoring to preserve family farming and ranching.

We thank John Dunlop and REPP's Managing Editor, Susan Conbere, for their efforts in producing this paper.

Adam Serchuk and Alan Miller November 15, 1996

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