Interview by Rikki Stancich

Located in the heart of North America’s wind corridor, Oklahoma has about 2.3 times more wind energy potential per square mile than Texas. According to NREL, between now and 2030, Oklahoma has the potential to scale up from its current number 9 ranking for wind capacity, to number 2 in the US.

Wind Energy Update speaks to Oklahoma Department of Commerce Deputy Director, Sandy Pratt, to find out more about policies and incentives that are making Oklahoma one of the most attractive places for the wind energy sector to do business in the US.

Wind Energy Update:  What key policies and incentives have been put in place Oklahoma to support wind energy, to date?

Sandy Pratt: Last year we passed in the Energy Security Act. The bill stipulates that by 2015, 15% of energy generated in Oklahoma must be from renewable energy sources, whether it is from solar, wind, biomass, or geothermal. This is a very aggressive target for Oklahoma, given that currently we source roughly 5% of energy from renewable energy sources.

Another is the state production tax credit that is available for wind projects –that credit is transferable.

We have a net metering incentive in place for homeowners who install wind or solar and can sell any excess from what they generate back to the grid.

We are building out a supply chain for manufacturers to locate jobs and invest in Oklahoma through the Quality Jobs programme, which provides a 5% cash back of payroll in quarterly cash payments. Companies love that.

Another way in which we are assisting existing Oklahoma companies that wish to enter the wind sector (from aerospace or oil and gas – companies that have experience, equipment and skills sets that are transferable to the wind energy sector) is by providing a comprehensive database through which we link these companies with existing companies in the wind sector. This has helped many Oklaoma companies to enter the market.

A few years ago a skills gap was identified in the wind sector, so we quickly ramped up our education programmes. We have five training and education programmes in wind and in solar, in safety training, maintenance & repair and operations. These are available at technology centres in central and western parts of the state where the wind resource levels are highest. So far 250 citizens have taken part in and completed wind programs through Oklahoma education facilities over the past two years.

Wind Energy Update:  What specific measures is Oklahoma putting in place to position itself as a wind energy manufacturing hub, going forward?

Sandy Pratt: Oklahoma is an attractive location. We are one of the easiest states for wind farm development; we have a long history of it here given the abundance of land very good wind resource. There is a lot of education and awareness among the general population when it comes to wind. There are groups that educate landowners on leases and contracts.

We have a couple of significant initiatives underway here, including Weather Sphere, a national weather data centre that has a lot of ties to the wind industry. Work carried out by meteorologists at Weather Sphere has important implications for wind energy developers, on both the siting and production predictability of wind farms. A couple of wind companies love that connection.

There is also the Oklahoma Wind Power Initiative (OWPI), a long-standing research project between the University of Oklahoma and Oklahoma State University, which investigates and promotes state wind resources, assists landowners and developers in determining capacity and advocating strongly for wind energy development.  OWPI also offers economic analysis and information to potential wind energy investors and promotes networking among Oklahoma's wind power stakeholders.

We are rolling out a massive, aggressive marketing campaign, globally. We want to be the location for OEMs and we have been successful in attracting manufacturers, but we are also targeting O&M providers. Many turbines in the US are going out of warranty now and Oklahoma has a long history of O&M as well as transferable skills and knowledge for the oil and gas sector.We will be at the forthcoming AWEA and EWEA.

As far as our pipeline of projects looking to locate or expand in Oklahoma, of the 50 projects we are currently working, approximately 25 are renewable energy projects, and the majority of those are wind-related.

Despite the economic downturn, the pipeline of wind projects has continued to be strong, even though financial markets are soft and companies are slower to take decisions.

Two noteworthy projects that we have attracted include the tower manufacturer DMI Industries, and solar panel manufacture Umicore.

Wind Energy Update: Is Oklahoma aiming to build out any specific aspect of the wind energy supply chain?

Sandy Pratt: We work all aspects of the supply chain – we have even worked a few foundry projects. But we cover the whole gambit – OEM, tower, small parts components, R&D and even a few corporate headquarter projects.

Wind Energy Update: What potential bottlenecks / challenges does Oklahoma face in achieving its ambition of becoming the US wind energy hub?

Sandy Pratt: Transmission lines. We are continuing to address this issue and nationally it is a high priority. Oklahoma gas and electric has been a leader in building transmission lines and in linking up key wind resource areas. It has undertaken several key investments.

Also, Clean Line Energy Partners are planning several projects, including a proposed 800-mile transmission line across Oklahoma and Arkansas to the Memphis area. This will provide a huge boost for developers. 

Wind Energy Update: When it comes to building out the US wind energy sector, how could federal support policies be improved?

Sandy Pratt: Making sure the Production Tax Credit continues. If it could be extended for more than on a session-to-session basis, it would make it easier for businesses to make forecasts and make capital investments. The uncertainty that currently surrounds the PTC puts a burden on businesses and investors.

Another point would be creating more equity for the build-out of transmission infrastructure.

To respond to this article, please write to the editor: Rikki Stancich