End of Big Stone II could be trouble for South Dakota wind
South Dakota's wind industry may be "sidetracked" by the recent termination of plans to build a coal-fired power plant in the northeastern part of the state, according to a spokesman for the governor.
Big Stone II's fate was sealed recently when Otter Tail Power, of Fergus Falls, Minn., pulled out of the $1.6 billion project partnership. Otter Tail cited concerns about pending "cap and trade" legislation, which would require air polluters such as power plants to obtain permits and buy pollution allowances. The rest of the project partners pulled out when no replacement for Otter Tail could be recruited to invest.
"In the short term, because of cap and trade, and because it's relatively easy to get them built, I think that natural gas power plants will pick up nearly all of the slack from Big Stone II."
It's a natural progression, however, that as the demand for natural gas rises and supplies remain the same, electricity costs will also increase.
South Dakota's wind industry may be "sidetracked" by the recent termination of plans to build a coal-fired power plant in the northeastern part of the state, according to a spokesman for the governor.
Big Stone II's fate was sealed recently when Otter Tail Power, of Fergus Falls, Minn., pulled out of the $1.6 billion project partnership. Otter Tail cited concerns about pending "cap and trade" legislation, which would require air polluters such as power plants to obtain permits and buy pollution allowances. The rest of the project partners pulled out when no replacement for Otter Tail could be recruited to invest.
"In the short term, because of cap and trade, and because it's relatively easy to get them built, I think that natural gas power plants will pick up nearly all of the slack from Big Stone II."
It's a natural progression, however, that as the demand for natural gas rises and supplies remain the same, electricity costs will also increase.