MORROW COUNTY — Shiny new wind turbines rise over the sagebrush and farmland in rural Morrow County, part of the expansive Wheatridge Renewable Energy Facility that has crystallized in the shadow of the recently shuttered Boardman Coal Plant. 

The scene is a microcosm of how Oregon plans to address climate change by de-carbonizing its energy sector. Large utilities such as Portland General Electric and Pacific Power are gradually phasing out fossil fuels to achieve 100% clean power by 2040, as mandated by the state.

Wheatridge is a partnership between PGE and NextEra Energy Resources, combining wind, solar and battery storage to generate 350 megawatts of renewable electricity. The wind portion of the project came online in December 2020, and the solar and battery portions are expected to come online later this spring. 

David Lawlor, the Pacific Northwest regional development director for NextEra, said the company sees a bright future for wind and other renewables in Oregon.

“We feel there is a need and market for it,” Lawlor said. “We’ve definitely seen an increase in load, and a desire to de-carbonize as much as possible their electricity system. Those two factors have led to an increase in desire for renewable energy products.” 

According to the state Department of Energy, wind is the second-largest source of zero-carbon electricity in Oregon next to hydropower. Wind power makes up 11.6% of Oregon’s electricity generation, and 4.69% of total energy consumption.

Oregon ranks ninth nationally in overall wind capacity, and third out of 14 states under the Western Electricity Coordinating Council behind California and Colorado.

With the addition of Wheatridge, Oregon now has 46 operational wind farms and another 19 in development. Seventy-six percent of projects are located in Wasco, Sherman, Gilliam, Morrow and Umatilla counties. 

Clean energy advocates also pushed for the passage of House Bill 2021, which Gov. Kate Brown signed into law last year. It requires retail electricity providers — namely PGE and Pacific Power — to reduce greenhouse gas emissions from electricity sold to Oregon consumers to 80% by 2030, 90% by 2035 and 100% by 2040.

Nicole Hughes, executive director of Renewable Northwest, a Portland-based advocacy group, said the legislation is likely to spur more development of wind and other renewables.

“The law does not mandate that resources used to meet the standards are built in Oregon, so resources outside the state will be included as well,” Hughes said. 

Community challenges, benefits

A 2012 study by the National Renewable Energy Laboratory indicates there is still plenty of untapped potential for wind power statewide.

The report indicates that Oregon has technical capacity for 27 gigawatts of onshore wind power. However, areas in the Cascade Range and southeast Oregon remain undeveloped partially due to challenges finding sites and transmission corridors without disturbing the local environment.

Wheatridge was successful, Lawlor said, thanks to a 23-mile transmission line built and owned by the Umatilla Electric Cooperative, which connects the wind farm to the Bonneville Power Administration’s Morrow Flat Substation near Boardman. 

From there, the energy is fed into high-voltage transmission lines and delivered to PGE’s service territory in Portland and Salem.

While the energy is actually being consumed elsewhere, Hughes said wind farms do benefit the rural communities where they are built by creating jobs and raising property tax revenue. In 2020 alone, Hughes said wind projects generated $12.8 million in property tax revenue for Sherman County, $11.9 million for Gilliam County and $2.7 million for Umatilla County.

Matt Eissey, a spokesperson for NextEra, said Wheatridge created 300 construction jobs and will have 10 full-time operations jobs once all the facilities are fully commissioned.

Don Russell, a Morrow County commissioner, said revenue from wind projects has primarily been earmarked for road maintenance. 

“It’s really made a difference,” Russell said. “We’re probably putting an extra $2.5 million into our road program every year.”

Wind projects in Morrow County are partially exempt from property taxes under a business incentive known as the Strategic Investment Program, or SIP. 

SIP agreements typically last 15 years, allowing certain “traded sector” businesses to negotiate alternative property tax agreements with local governments. In rural areas, the first $25 million of project value goes onto the tax rolls, which increases by 3% each year over the life of the agreement.

Companies also pay an annual community service fee, capped at $2.5 million.

“From a purely economic standpoint, the county turns out to be a big winner on this,” Russell said. 

But nothing is without controversy, he added.

The most common complaint he hears from residents about wind development is turbines tarnishing once-pristine views. Building transmission lines also raises hackles from people worried the towers will criss-cross their property, potentially taking high-value agricultural land permanently out of production. 

Russell said developers must iron out these issues during the permitting process, including lease contracts for farmers that can provide them a reliable source of income. 

“If you’re getting a lease that in some cases is pretty lucrative for the farmer, that part of it they like,” he said. 

Re-powering wind turbines

Jimmy Lindsay, senior manager of renewable initiatives for PGE, said the passage of HB 2021 “reinforces (our) plans to be procuring additional resources to meet the compliance requirements by 2030, 2035 and 2040.”

Wind energy is an attractive option, Lindsay said, because advancements in technology have made it low-cost and low-risk.

“It’s a very mature renewable technology,” Lindsay said. “Here in the Northwest, it’s a rather energetic resource. There are several areas that have a pretty strong wind regime.” 

In addition to Wheatridge, PGE owns two other wind farms in the Columbia Gorge and southeast Washington, including the 450-megawatt Biglow Canyon Wind Farm near Wasco, Ore., and the 267-megawatt Tucannon River Wind Farm near Dayton, Wash.

A specific assessment of future electricity needs will be announced in the PGE’s upcoming 2023 Integrated Resource Plan. Lindsay said he believes wind will play a prominent role.

The fate of the federal Production Tax Credit for wind energy is another component for determining project timing and feasibility, he said. The PTC has provided a credit up to 2.5 cents per kilowatt-hour of electricity generated from wind, though it expired at the end of 2021. Whether it gets renewed will be up to Congress.

As wind farms age, developers face another decision — what to do with turbines at the end of their lifespan. 

Hughes said power purchase agreements between wind developers and utilities typically last between 20 and 25 years. The warranty for turbines can be anywhere from 20 to 30 years, depending on the equipment.

Oregon’s first wind farm, the Stateline Wind Project, was built in 2001, making it 22 years old today.

To date, the state has approved “re-powering” four projects — Stateline, located in northern Umatilla County near the Washington border, and three areas of the massive Shepherds Flat Wind Farm straddling Gilliam and Morrow counties. Re-powering involves upgrading turbines with newer and more efficient blades and equipment. 

“Projects were realizing they could save a lot more on maintenance, and just have a lot less downtime if they powered with the new equipment,” Hughes said. 

Old equipment is then recycled, reused or sent to the landfill. Used turbine blades can be repurposed for pedestrian bridges, playground equipment, public benches and highway sound barriers, according to the American Wind Energy Association.

Eissey, the NextEra spokesperson, said Oregon provides “fantastic opportunities” for future wind development. 

“Wherever the (wind) resources may be, we’re looking to go,” he said. 

George Plaven is a reporter for Capital Press.