A wind-solar hybrid project in western Minnesota could be a preview of what's to come as renewable developers look for new ways to bolster projects. The project, developed and owned by Juhl Energy, is among the first of its kind in the country to pair wind and solar on the same site. A 2-MW turbine and 500-kW solar installation share an inverter and grid connection, reducing equipment costs compared to two separate projects. The pairing is expected to start producing power this month. Lake Region Electric Cooperative in Pelican Rapids will buy the power for its 27,000 members.
Juhl managing director Clay D. Norrbom said the plug-and-play nature of the system has attracted at least five other customers, including an industrial company in Iowa. Other customer prospects include cooperatives and municipally owned power providers in Minnesota, Wisconsin and Iowa. He predicts Juhl will build at least three this year.
Electricity generated by wind-solar hybrids gets transmitted directly to distribution grids of utilities or companies. As the cost of solar dropped, the attraction of adding it to wind installations grew.
Global Market Insights predicts hybrid solar wind storage projects will increase 4% in the United States by 2024, becoming a $1.5 billion market internationally. A recent report said renewable integration targets adopted in a 2015 United Nations Climate Change Conference is driving part of the growth, along with renewable energy goals and dropping prices for the technology.
Benefits of Hybrid
The hybrid offers an opportunity to increase capacity. Wind turbines operate at a 50 to 55% capacity, Norrbom said, while solar in the Midwest sits at 15%. By combining power from both sources, the hybrid reaches a capacity factor of 65 to 70%, Norrbom said, at a cost substantially less than what Lake Region pays for electricity from its transmission and generation provider Great River Energy. Juhl decided against adding storage due to cost and regulatory issues, both challenges he predicts will dissipate in the future.
Other cost savings came through technology and financing. Solar and wind farms need inverters to convert direct current to alternate current used by businesses and residences. Using an inverter built into the turbine and not needing a separate solar inverter saved at least 10% off the cost of the nearly $5 million project, he said. Secondly, renewable energy credits created by the project have been sold to Bank of America, giving a financial cushion large enough to contribute to a better price for Lake Region, Norrbom said.
