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Safety and Health Outlook:Wind Energy

June 7, 2010

Michele MyersManager, Labor, Health and Safety Policy

American Wind Energy Association

American Wind Energy Association (AWEA)

• Founded in 1974

More than 2,500 business members• Wind project developers

• Transportation and construction companies

• Manufacturers from bolts to turbines• More than 8,000 parts in a turbine

• www.AWEA.org provides extensive info on wind

American Wind Energy Association

Trade association for the wind energy industryOver 2,500 business members

www.awea.org

• Develops policies and conducts analysis to support wind industry growthwind industry growth

• Executes wind industry’s legislative agenda

• Promotes wind energy through advocacy, advertising and media relations

• Convenes conferences and workshops to educate the public and bring industry members together

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History of Wind EnergyHistory of Wind Energyy gyy gy

An Age-Old Energy Source

Early Days

• Cretan windmill (1464 AD – mechanical water pumping)

• Dutch windmill (1500 –mechanical watermechanical water pumping, grain milling)

• U.S. farm windmill (1854 – present – mechanical water pumping)

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Early Days

• Brush Turbine (1888)

• First large-scale unit (17-m rotor diameter)

• Small wind electric turbines (1890s –Denmark, U.S., elsewhere)

• Sporadic experiments with turbines of ~100 kW in U.K., Italy, Germany (1920s and 1930s)

Early Days

• Smith-Putnam Turbine• Grandpa Knob,

Castleton, VT

• 175-foot rotor, 1.25-MW capacity

• Operated from late 1941 to spring of 1945

• Economic failure –technological triumph

• Foundation footings still in place

Post-1973 Oil Shock

• Federal Wind R&D Program

• Outgrowth of Eisenhower-era NSF program

• Sponsored procurements in range of sizesrange of sizes

• Boeing MOD-2 is icon (300-foot rotor, 3-MW capacity)

• Helped build technology and engineering base

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Post-1973 Oil Shock

1978 – Second oil shock leads to:• Public Utility Regulatory Policies Act of 1978

(PURPA)

• Requires utilities to buy electricity from renewable and cogeneration facilities

• Energy Tax Act of 1978

• Creates 15% Energy Investment Tax Credit (EITC)

• Added to existing 10% ITC

• Limited Partnership Structure -> Wind Farms

Early Wind Farm Era

• First Wind Farm – Crotched Mountain, NH, December 1980 (equipment failures, wind speed overestimated)

• California Wind Farms – Altamont, Tehachapi, San Gorgonio passes, December 1981

• Wind begins explosive growth, ended abruptly with sunset of EITC in December 1985

Wind Turbines:Power for a House or City

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Basic Supply Chain

Raw Materials

Component Suppliers

Major Component

Turbine Manufacturers

Suppliers Suppliers

Turbine Manufacturers create a ripple effect down the supply chain, creating even more jobs indirectly than at their facilities.

Fundamentals of Wind Power

Rotor

Turbine subsystems include:

• A rotor, or blades, which convert the wind's energy into rotational shaft energy

•A nacelle (enclosure) containing a drive train, usually including a

b d tNacelle

Tower

gearbox and a generator

•A tower, to support the rotor and drive train; and electronic equipment such as controls, electrical cables, ground support equipment, and interconnection equipment.

Inside a Nacelle

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59.6

80

This picture shows a Vestas 80-meter diameter, 2-MW wind t bi i d

80 m.

59.6 m.

How Big is a 2-MW Wind Turbine?

turbine superimposed on a Boeing 747 jumbo jet

Towers:TowersLaddersLifts

Rotor:HubNose Cone

Nacelle:Nacelle CoverNacelle BaseHeat exchangerControllersGeneratorPower ElectronicsLubricantsFiltration

Foundation:RebarConcreteCasings

Other:TransformersBolts/Fasteners

There are over 8,000 components in a turbine, including:Turbine Components

Blades• Composites• Blade Core

Pitch MechanismsDrivesBrakesRotary Union

FiltrationInsulationGearboxPumpDrivetrainCeramicsShaft

WirePaints and CoatingsLightingLighting ProtectionSteel Working/MachiningCommunication DevicesControl and Condition Monitoring EquipmentElectrical Interface and Electrical ConnectionBatteriesBearingsBrakes

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• Hub Height: 60-100 meters (197-328 feet)

• Rotor Diameter: 70-100 meters (230-328

Wind Power Technology

100 meters (230 328 feet)

• Total Weight of Turbine: 230 - 340 tons

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Small Wind Systems

• Range from 0.3 to 100 kW

• Installed in on-and off-grid applications

• Require 4 m/s (9 mph) average wind sites

Large Wind Systems

• Range in size from 660 kW to 3.6 MW

• Provide wholesale bulk power

• Require average wind speeds of 6wind speeds of 6 m/s (13 mph)

• One megawatt of wind generates about as much electricity as 225 to 300 households use

U.S. Wind Resource Map

Copyright © 2008 3TIER, Inc. All Rights Reserved. For permission to reproduce or distribute: info@3tiergroup.com

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Jobs Jobs -- Wind Energy Wind Energy

20% Wind Energy by 2030

• U.S. Department of Energy:

“The U.S. possesses sufficient and affordable wind resources to obtain at least 20% of itsat least 20% of its electricity from wind by the year 2030.”

Job Projections Under 20% Report

• Over 500,000 total jobs would be supported by the wind industryindustry

• In 2008, wind industry added 35,000 new jobs

Source: U.S. DOE, 20% Wind Energy by 2030

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Wind Project Development

46 states would have wind development by 2030

d thunder the 20% Vision

Source: U.S. DOE, 20% Wind Energy by 2030

Domestically Manufactured Components

2005

2008There has been a dramatic shift towards domestic

manufacturing for wind turbine components

2008

Domestically Mfg Components

Inported Components

~25% domestic components~2,500 MW installed~1,500 turbines installed

~50% domestic components~8,500 MW installed~5,300 turbines installed

Domestically Mfg Components

Inported Components

Current Manufacturing Capacity

• There are well over 120 manufacturing facilities for turbines and large components currently online in the U.S.

• U.S. manufacturers are producing all the turbine’s componentsturbine s components.

• In 2005, about 30% of turbine & major components were made in the U.S., but in 2008 domestically manufactured components in turbines accounted for about 50% by value.

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Turbine Manufacturers with a U.S. Presence

• Acciona • Clipper • DeWind • Gamesa • GE Energy • Siemens • Suzlon • Vestas• Fuhrlander (Announced)• Global Wind Systems (Announced)• Nordex (Announced)• Nordic (Announced)

U.S. Manufacturing Locations

• Over 40 U.S. states host more than 160 wind-related manufacturing facilities

• Wind manufacturing is spread across the U.S. with major turbine manufacturers operating in varied regionsoperating in varied regions

• With the growth in the industry, many states have recently entered into the supply chain.

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Primary States for Manufacturing

States with five or more major facilities (online or announced):

•California•Colorado •Iowa •Illinois o s•Michigan•Minnesota•Ohio•Pennsylvania•South Carolina•Texas

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Turbine Manufacturer LocationsNordic Fuhrlander

(announced) SuzlonBlades only

Acciona, Clipper

Gamesa

Global Wind Systems

(announced)

Siemens(announced)

GE Energy

GE Energy, Continental (announced)

Vestas

DeWind Nordex, EWT, Mitsubishi

(all announced)

New U.S. Manufacturing Capacity

Between 1Q 2007 and 4Q 2008 (24 months), there was significant growth in the industry’s manufacturing capacity.

• 19 new facilities online

• 31 announced facilities31 announced facilities

• 21 announced facility expansions

A total of 71 facilities have come on-line, been announced, or have expanded.

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Market Market

U d tU d tUpdateUpdate

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2009 Highlights

• Nearly 10,000 MW installed in 2009

• 39% annual growth

• Total installations now above 35 GW

• Shattered all installation records thanks to the Recovery ActRecovery Act

• Turbine manufacturing is down compared to last year’s levels

• Need long-term policy certainty and market pull in order to grow manufacturing sector

U.S. is World Leader in Wind Power

U.S. Wind Industry: 2009Second year in a row adding over 40% of US capacity

MW

Inst

alle

d

Total Installation in 4Q 2009:4,041 MW

Total Installation in 2009:9,922 MW

Total U.S. Installation through 4Q 2009:35,159 MW

Win

d M

Source: American Wind Energy Association

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Wind Power Installations by State

Top Ten States in 2009

Source: American Wind Energy Association

Top 10 Largest Wind Farms

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State by State Installations (MW)

Source: American Wind Energy Association

Market Players

• Turbines Installed in 2009: Acciona WP, Clipper, DeWind, Fuhrlander, Gamesa, GE Energy, Mitsubishi, Nordex, REpower, Siemens, Suzlon & Vestas

• The project developer list continues to diversify and change with new developers increasing their activity in 2009 and other developers decreasing market activity.

• Utility ownership of wind projects trending at similar rates of 2008, more community-owned projects

Other Half of the Market: Manufacturing

• The U.S. continues to add new manufacturing facilities, but growth is down by a third:• 38 online, announced or expanded manufacturing

facilities in 2009, compared to 58 facilities in 2009.

• As new turbine orders continue to come in slowly, some manufacturing production is running at significantly decreased levels compared to 2008 duesignificantly decreased levels compared to 2008 due to decreased demand and some excess supply.

• Establishment of a long-term, stable market is still the key to unleashing investment in manufacturing capabilities in the U.S.• Countries are competing through policy for the wind

industry, wind manufacturing and jobs!

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U.S. Wind Manufacturing

Major facilities online prior to 2008All new online in 2008 - 2009Announced facilities

Source: American Wind Energy Association; Updated Through 4Q2009

2008 Turbine Statistics

Turbine installed the most in the U.S. in 2008 was the 1.5-MW turbine. Average turbine capacity is 1.67 MW

Turbine ComponentsTurbine Ranges

Occupational Safety and Health = Core Value

● Improve Worker Safety and Health

● Support of Continuous Education and Training of Employers and Employees in the Wind Industry

● Work Cooperatively with Regulating Agencies to Ensure the Safety and Health for All Workers

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AWEA Safety and Health Committee

● AWEA Safety and Health Committee• Created 3 years ago

• Over 450 members participating

9 b itt d t k f• 9 subcommittees and task forces• 20-50 participants on each subcommittee

• Monthly conference calls

• Address the most pressing issues within the industry

AWEA Safety and Health Committee

● Steering Committee

● Construction Safety Subcommittee

● Manufacturing Safety Subcommittee

● O&M Safety Subcommittee

● Training and Education Subcommittee

● Offshore Safety Subcommittee

● Safety Survey Subcommittee

● Confined Space Task Force

● LOTO Task Force

Safety and Health Initiatives

● Education and Understanding the Intricacies of Development and the Sustainability of Wind Generation Plants

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Safety and Health Initiatives

● Empowering Workers to be Engaged and Take Ownership in Worker Safety and Health Programs

Safety and Health Initiatives

● Collect and Monitor Injury, Illness, and Fatality Data

• Leading Indicators

• Injuries, Illness, and Fatalities

Wh t th C• What are the Causes

• Where are the Accidents

● Identify the High Hazard Areas

● Develop Solutions to Eliminate or Significantly Reduce Hazards

Identify High Risk Hazards

•Falls•Emergency Rescue•Confined Space•Environmental Conditions

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Training Initiatives

Create and Develop Appropriate Safety and Health Training Programs and Educational Materials for All Sectors of the Wind Industry

•OSHA 10 Hour

•OSHA 30 Hour

•Supervisor

•Emergency Rescue

•Confined Space

Thank you!

More information :

Michele MyersManager, Labor, Health and Safety Policywww.awea.org | 202-383-2500 | mmyers@awea.org

www.awea.org/events