COMMENTARY

Co-ops Fueling Green Revolution

Editor’s Note: This guest commentary is written by Glenn English,
CEO of the National Rural Electric Cooperative Association.



This summer, Sunflower Electric Power Corporation, a generation and transmission cooperative, embarked on a remarkable bio-energy project to create an energy production system that combines an array of subsystems, including an algae reactor, an anaerobic digester, a biodiesel plant, a coalfired power plant, a dairy farm and an ethanol plant. Located in Hays, Kan., this innovative center points to the central role our nation’s agricultural sector can — and should — play in researching, developing and deploying renewable energy.

Rural electric co-ops are uniquely positioned to help develop renewable resources. While states and cities have been passing renewable energy requirements, those requirements can only be met using energy produced in rural areas, such as wind, biomass, manure and large-scale solar power.

Recently, the National Rural Electric Cooperative Association (NRECA) committed to a roadmap for increasing the development of domestic renewable energy options: the 25x25 Action Plan. This plan charts a course to meet an ambitious goal: using renewable energy to meet 25 percent of the nation’s total energy needs by the year 2025.

Like Sunflower, cooperatives across the country are already pursuing a wide variety of renewable energy projects. Basin Electric Power Cooperative in Bismarck, N.D., has taken advantage of rich wind resources in that state, adding approximately 136 megawatts (MW) of wind energy to its portfolio over the past several years through joint projects and power purchase agreements. North Dakota is home to 96 MW of that wind power, with plans under development to construct a 100 MW wind farm. In Missouri, Associated Electric Cooperative developed the state’s first wind farm.

Clean Renewable Energy Bonds (CREBs), which allow cooperatives to finance renewable energy projects, have opened the floodgates for renewable energy development. Electric cooperatives submitted 85 applications to the Treasury Department for a total of $554 million in bond authority. According to the Internal Revenue Service, 78 cooperative projects in 22 states received bond allocations.

East Kentucky Power Cooperative was the state’s first power plant to bring landfill gas power online and is the only Kentucky utility generating renewable energy. The co-op owns and operates five landfill gas plants and received a $20 million CREB for landfill gas development.

The CREB program also opened the door for distribution cooperatives to participate in renewable energy development. Distribution co-ops in California, Minnesota, Illinois and Indiana are using CREBs to develop small-scale wind projects. Distribution co-ops in Arizona, New Mexico and Hawaii are developing solar projects using CREBs.

Exploiting the nation’s wealth of renewable resources requires more than money, however. Meeting the voluntary goals of the 25x25 Action Plan requires political will and public support. Increasingly, wind energy projects are being held back by strong local opposition, in addition to inadequate transmission capacity. Rural electric cooperatives, because they are closely tied to their communities, can play a key role in overcoming such obstacles through education and promotion of renewable energy. Delta-Montrose Electric Cooperative in Montrose, Colo., for example, webcasts renewable energy conferences and sponsors expos.

Cooperatives are actively partnering with schools. In Ohio, Logan County Electric Cooperative installed a residentialsized 10 kilowatt (kW) demonstration windmill on the grounds of Indian Lake Schools, and Butler Rural Electric Cooperative, in conjunction with Buckeye Power Inc. and Miami University, erected a 230-square-foot photo-voltaic panel that provides approximately 200 kW hours per month. Both projects are providing real-time information and data to members and the public at the Buckeye Power Web site. Sulphur Springs Valley Electric Co-op in Wilcox, Ariz., will use its CREB to build photo-voltaic shade structures at the 45 public schools and two colleges.

Today, 11 percent of the power distributed by America’s electric cooperatives is generated from renewable resources, more than 40 billion kilowatt hours. As co-ops look for more cost-effective renewable resources to provide Americans with reliable, affordable energy, that total will continue to grow.

Developing renewable energy will strengthen America and increase our economic security by reducing our dependence on foreign resources. As we build for the future we will continue to increase our investment in renewable technologies, bringing homegrown, regionally produced energy safely and reliably to co-op members at the lowest possible price.





November/December Table of Contents