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Author: tim443 Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 18427  
Subject: Wind power to market Date: 5/20/2010 8:55 AM
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I don't know a whole lot about the "Zephyr Power Transmission (Zephyr) project" but I happen to own shares in TRP and thought some of you might find this interesting. TRP has a long history of "not" screwing up so perhaps wind is ready to go large scale commercial? I didn't see any mention of subsidies in the article but they may be there.


Tim

http://ca.us.biz.yahoo.com/iw/100520/0623074.html?.v=1

Press Release Source: TRANSCANADA


TransCanada Secures Customers for Zephyr Power Transmission Project
Thursday May 20, 8:33 am ET


CALGARY, ALBERTA--(Marketwire - 05/20/10) - TransCanada Corporation (TSX:TRP - News) (NYSE:TRP - News) (TransCanada) today announced that it has concluded a successful open season for the Zephyr Power Transmission (Zephyr) project and has signed precedent agreements for the full 3,000 megawatts (MW) of capacity with renewable energy developers in Wyoming. The three creditworthy wind developers are Pathfinder Renewable Wind Energy LLC, Horizon Wind Energy LLC, and BP Wind Energy NA Inc.

"These precedent agreements are a clear indication of wind developer support for significant export transmission capacity for renewable energy out of Wyoming into the southwest markets," said Hal Kvisle, TransCanada's president and chief executive officer. "However, support from key markets and a positive regulatory environment are necessary before we start the significant siting and permitting activities required to construct the project."

The proposed Zephyr project is a 1,000 mile (1,600 kilometre), 500 kilovolt, high voltage direct current line designed to move 3,000 MW of wind-generated electricity from Wyoming to power markets in the southwest U.S. at a cost of approximately US$3 billion. The target commercial operation date is 2015
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Author: MFOutlier Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17531 of 18427
Subject: Re: Wind power to market Date: 5/20/2010 1:59 PM
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tim443: "These precedent agreements are a clear indication of wind developer support for significant export transmission capacity for renewable energy out of Wyoming into the southwest markets," said Hal Kvisle, TransCanada's president and chief executive officer. "However, support from key markets and a positive regulatory environment are necessary before we start the significant siting and permitting activities required to construct the project."

As I read the excerpts, supply side project promoters have lined up the supply side ducks but nothing is going to happen on the announced project until the wind developers sign some 'bankable' commercial contracts, so TRP likely has little risk exposure at this point.

If memory serves, the 2009 stimulus package included funds that could be used to subsidize US power grid expansion/improvement to transport renewable generated power. The package definitely included subsidies for wind power generation. 'Bankable' sales contracts may (likely?) depend on State regulatory commission rulings mandating ??% renewable energy deliveries or carbon tax assessments (or containment costs) to make wind power price competitive.


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Author: DDHv Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17532 of 18427
Subject: Re: Wind power to market Date: 5/21/2010 10:08 AM
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supply side project promoters have lined up the supply side ducks but nothing is going to happen on the announced project until the wind developers sign some 'bankable' commercial contracts,

I worked part time for a wind project in NDak a few years back. The general pattern was to get the permissions, farmer options, put up wind measurement towers, etc. but not actually build major items until a contract is signed for the transmission and output. It still cost a chunk, and the price difference between our bid and the one that won was u$.001/KWH. Close, but no prize. The organizers were able to sell the farmer option contracts to another company, so it wasn't a complete loss. The wind measurement towers are still up and still measuring the wind. Which ND has plenty of, especially in the hills there.

A thought, given that transmission is a problem, maybe one eye should be kept out for good ways to use the electricity near the production point?

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