THE GALLON ENVIRONMENT LETTER
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                               Vol. 6, No. 21, September 28, 2002
 
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WIND ENERGY WILL PRODUCE 60,000 MW OF ELECTRICITY WORLDWIDE BY 2008
 
According to Rakesh Bakshi, Chairman of the International Wind Energy Conference held in Berlin, Germany, "Wind energy today is a global phenomenon. It's the fastest-growing power technology. The world has taken about 25 years to reach 25,000 MW, but over the next five years, we expect to reach 60,000 MW. Wind energy today is a global phenomenon. It's the fastest-growing power technology." The conference was hosted by the European Wind Energy Association (EWEA), the American Wind Energy Association (AWEA), and the Indian Wind Turbine Manufacturers' Association (IWTMA). . Christian Pierret, French Minister of Industry and Finance, said that 10,000 MW of new wind energy capacity would be needed in France by 2010 to meet European clean energy commitments. India's Minister for Non-Conventional Energy Sources, M. Kannappan, said that his government has plans for an additional 6,000 MW wind power by 2012. He said that wind would also help bring power to some of the 76 million households that currently have no access to electricity. Brian Wilson, U.K. Minister for Energy, said that Britain had yesterday taken its "biggest step ever toward the creation of a significant renewables sector the setting into effect of the Renewables Obligation." This aims for 10 percent of electricity from renewable sources by 2010. "This is going to mean a major expansion in the contribution of wind power," he said. A part of that goal will be met by the 1,500 MW offshore capacity already approved.
 
South Australian Member of Parliament Bob Such said his country is about to see a large number of projects start generating because of the national mandate for 2 percent of electricity to come from renewables. He expected a 1,100 MW target for wind energy to be easily exceeded. Celebrating his county's leading position in the world wind energy market, German M.P. Hermann Scheer projected 25,000 MW to be installed in Germany alone by 2010, not including a long list of proposed offshore projects. "The German success is based on a mixture of political support and a guaranteed price," he said. EWEA President Arthouros Zervos said that a projection by the association and Greenpeace showed that 10 percent of world's electricity could come from the wind by 2020. This would ramp up to a world investment of US$78 billion in that year. The U.S. Congress is set to soon debate a national goal of 10 percent renewables in the energy mix by 2020." See the full story at SolarAccess.com website http://www.solaraccess.com/news/story?storyid=1797 . Also visit the American Wind Energy Association website at http://www.awea.org/ .
 
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AT LEAST 2,000 MW OF WIND ENERGY WILL BE INSTALLED IN U.S. BY 2003
 
The American Wind Energy Association (AWEA) reaffirmed its assessment that 2003 will be a record year for the wind market in the U.S.  Following an all-time high of 1,696 megawatts (MW) of new installations in 2001, the current year was expected to be a "breather" year, especially when the extension of the wind Production Tax Credit was delayed until March 2002.  AWEA is projecting 400 to 450 MW of new wind capacity will be installed in the U.S. in 2002. They project that well over 2,000 MW of new wind capacity will be installed in the U.S. in 2003," said Randall Swisher, AWEA's Executive Director." The wind in the United States could produce more than 4.4 trillion kWh of electricity each year--more than one and one-half times the 2.7 trillion kWh of electricity consumed in the United States in 1990. The wind industry worldwide is a multi-billion dollar industry and is growing by 30% to 35% per year. Wind provides more than 17% of Denmark's electricity, and is forecast to provide 50% of its electricity by 2030. For more information contact Randall Swisher ph. (202) 383-2510 or Kathy Belyeu ph. (202) 383-2520, American Wind Energy Association (AWEA), 122 C Street, NW, Suite 380, Washington, DC  20001, ph. (202) 383-2500, fax (202) 383-2505, email [EMAIL PROTECTED] . Visit their website at http://www.awea.org/ .
 
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WIND ENERGY IN CALIFORNIA A US $3.2 BILLION INVESTMENT
 
To date, US $3.2 billion has been invested in the development of wind energy in California. Wind mills now provide about 0.5 percent of the state's total dependable installed electrical capacity. Wind energy now provides 1.27 percent of the state's production of electricity in 2000, including imports from Southwest United States and the Pacific Northwest. California produced nearly 30 percent of the world's wind-generated electricity (2.9 billion kilowatt hours).  According to the Electric Power Research Institute, the cost of producing wind energy has decreased nearly four-fold since 1980. The levelized cost of wind turbines in 1993 was about 7.5 cents per kilowatt/hour Kwh). Electricity produced by unsubsidized nuclear power cost the utilities between 8.0 and 14.0 cents per Kwh (that includes the exorbitant costs of decommissioning the very toxic plants and the long-term disposal of the high-toxic radioactive wastes). It was the high cost of nuclear power that got the industry out of the business, not environmentalists.  The cost of coal-fired electricity ranges between 3.5 cents and 4.5 cents per Kwh. With current research and development efforts, the Energy Commission estimates that newer technologies can reduce the cost of wind energy to 3.5 cents per kWh. Some current wind projects in other states have been bid at this lower cost. Total private investment in wind energy in California amounted to $3.2 billion through 1991. For more information contact Dora Yen, California Energy Commission, 1516 Ninth Street, Sacramento, California 95814, Email [EMAIL PROTECTED] . Visit the California Energy Commission's website at http://www.energy.ca.gov/ . See a map of where California has high wind energy potential at the website  http://www.energy.ca.gov/wind/wind_map.html .
 
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VESTAS WIND SYSTEMS INC., ONE OF THE LARGEST IN THE WORLD
 
While the United States, Canada and Australia sit on their hands, blocked by their oil and coals industries, other countries are taking an economic competitive advantage in the world market to innovate and sell new energy technologies that will reduce greenhouse gas emissions and global warming. One of the advanced companies is Vestas Wind Systems AS, based in Denmark. It is the world leader in wind technology and a driving force in the development of the wind power industry. Vestas' core business comprises the development, manufacture, sale, marketing and maintenance of installations that use wind energy to generate electricity. In recent months, around 40 Vestas fitters have been erecting wind turbines under somewhat unconventional conditions. Instead of working on turbines on mainland sites throughout the world, they have been kept busy with the establishment of the largest offshore wind farm in the world to date, which is located at Horns Rev in the North Sea off the west coast of Jutland, Denmark. Vesta employs 5,785 people in Denmark, Germany, India, Italy, and Scotland.
 
The latest addition to Vestas' international network of production facilities was officially opened on 6 May 2002. The new plant is located close to Campbeltown on the Kintyre peninsula on the west coast of Scotland. The 10,000 m2 factory will comprise the assembly of nacelles and the manufacture of wind turbine towers. Scotland is committed to developing its vast sustainable energy resources and to making Scotland a "Centre of Excellence" in the field of sustainable energy. The new Vestas operation there already employs around 100 people. Later this year, the next extension to the Vestas production network will be opened when a new blade factory in Lauchhammer, Germany, starts production of the 39-metre blades for Vestas' V80-2.0 MW wind turbines. In addition, it has been decided to establish local production facilities in Oregon, USA. Construction of this plant is expected to be completed towards the middle of 2003. For more information contact Vestas Wind Systems A/S, Smed S�rensens Vej 5, DK-6950 Ringk�bing, Denmark, Tel. +45 96 75 25 75, Fax +45 96 75 24 36, email [EMAIL PROTECTED] . Visit their website at http://www.vestas.com/ .
 
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C$4.5 BILLION WIND ENERGY DEVELOPMENT POTENTIAL IN ONTARIO ALONE, SAYS CANWEA  
 
The Canadian Wind Energy Association (CanWEA) estimates that there are well over 3,000 Megawatts (MW) of commercially viable wind energy in the province of Ontario, which, if developed, would result in thousands of jobs in construction, manufacturing, wind resource assessment and maintenance. The development would occur primarily in rural areas, providing much needed income to land owners in some less developed areas of the province. The development of 3,000 MW of wind energy would result in $4.5 billion in investment for the province, and would supply 5% of the province's power. Ontario currently has only 3 MW of wind capacity installed, 40% less than PEI, and 3% of Quebec's capacity. Planned construction this year will expand Ontario's capacity by more than 400% to 14.5 MW. For more information contact the Canadian Wind Energy Association (CANwea), 3553 - 31 Street NW Suite 100, Calgary, Alberta T2L 2K7, ph. 1-800-922-6932, fax 403-282-1238, email [EMAIL PROTECTED] . Visit their website at  http://www.canwea.ca/ .
 
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CANADA GOVERNMENT OFFERS NEW WIND ENERGY TAX CREDITS
 
The Government of Canada has made a $260-million commitment in Federal Budget 2001 to harnessing wind energy. It is called the Wind Power Production Incentive (WPPI)and will support wind power production and the deployment of wind energy across Canada. While the total cost to the government is very small compared to the subsidies provided to the oil and coal industries, it is a step in the right direction. "This is a major kick start for the industry, and shows the Federal Government is committed to solving emissions and climate change issues in Canada," says Guy Painchaud, president of the Canadian Wind Energy Association (CanWEA). "The Federal Government has now provided their half of what the industry believes is needed to build substantial volumes of wind energy, comments Fred Gallagher, CanWEA's past president. We now challenge provincial governments to do their part, as well."
 
"Canada has taken a strong step towards improving the security of its electricity supply," says Painchaud. "Wind-generated energy is more secure than other sources of supply, such as nuclear or fossil plants, because it is indigenous and distributed widely, providing regional economic benefits while being less vulnerable to disruption. Wind energy also has stable cost, and is not subject to unexpected price changes resulting from changes in fuel cost." The Canadian Wind Energy Association has been promoting the implementation of wind friendly policies at both levels of government. Provinces can encourage wind energy development by introducing Renewable Portfolio Standards (RPS), green procurement, as well as reviewing taxation and land use policies. RPSs requires electricity retailers to obtain a percentage of their power from renewable sources. To date, only British Columbia has introduced an RPS. CanWEA believes that wind energy can contribute 5% of Canada's supply by 2010, if the right government policies are implemented. For more information contact the Canadian Wind Energy Association (CANwea), 3553 - 31 Street NW Suite 100, Calgary, Alberta T2L 2K7, ph. 1-800-922-6932, fax 403-282-1238, email [EMAIL PROTECTED] . Visit their website at  http://www.canwea.ca/ .  See the Government of Canada website on wind energy at   http://www.nrcan.gc.ca/css/imb/hqlib/200276e.htm .
 
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VISION QUEST WIND ELECTRIC INC., ALBERTA, ONE OF THE LARGEST WIND ENERGY PRODUCERS IN CANADA
 
Vision Quest Wind Electric Inc. is in the business of selling energy from the wind, and products related to that wind generated electricity. They own and operate sixty-seven wind turbine power plants in Alberta. Four of the plants have a peak output of 600 kilowatts, and an annual energy production of approximately 1.75 million kilowatt-hours, the balance have a peak output of 660 kilowatts, with annual production of about 2 million kilowatt-hours. The first turbine at this growing site, Castle River East (#1), was commissioned in November 1997. Tower is 40 m high. Turbine is V44-600. Subsequent units are 660 kW unit, the first of which was installed in June 2000. Fourteen more turbines were installed in autumn 2000, seven more installed in winter 2001, eighteen more installed in July 2001, fifteen more installed by early October, and four more were installed in November 2001, for a total of 60 wind turbines at this windfarm. For more information contact Vision Quest Windelectric Inc., Suite 100, 3553 - 31 Street NW, Calgary, Alberta T2L 2K7, ph. 403-289-4553, fax 403-282-1238. Visit the website at http://www.greenenergy.com/facilities.html .
 
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LETTERS TO THE EDITOR
 
YOU GUYS ARE DUPED ABOUT WIND ENERGY'S BENEFITS
 
Dear Editor, Gallon Report:
 
Those first two articles in your last newsletter on the conflicts of opposing wind energy in Cape Cod are pretty naive.  You must have someone working for you who could analyze the claims coming out of the U.S. Department of Energy (DOE) and the wind industry and keep you from buying the false and misleading claims about the benefits of wind energy. Sincerely,
 
Glenn R. Schleede
Reston, Virginia, email  [EMAIL PROTECTED]
 
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LOCALS FIGHT PROPOSED NEW WINDMILL IN PICTON, ONTARIO
 
Here we go again. Yet another "Not in my Backyard" (NIMBY) group is opposed to the construction of one windmill outside their town. Wind farm developer Vision Quest Windelectric Inc., of Calgary,  proposes to build a wind farm in Prince Edward County, near Picton, Ontario, Canada, on the shores of Lake Ontario. The Ontario windfarm would have either 32 small wind turbines or 12 large turbines on 280 hectares of land in a project estimated to cost $35-million. Following public concern over aesthetics and bird deaths. The Ontario project would be Canada's fifth wind farm. There are two in Alberta and two on Prince Edward Island.. Vision Quest received approval in August for one test windmill on the Ontario site. Local environmentalists, Barbara Moon, of Soup Harbour, Ontario, opposes the southern Ontario wind energy project. She says the turbines would have deadly effects on the area's hawks, eagles, long-tail ducks, herons and the  endangered Henslow's sparrow. "I'm really, really angry that this tourist area will be ruined by industrial development," she recently told reporters.
 
Jason Edworthy, executive director of Vision Quest Windelectric, said that,  "I respect the public's right to be concerned and everybody should be. It is a problem, though, when you run into people who will not accept facts." Vision Quest has a wind farm near Pincher Creek, Alta., producing enough electricity for 20,000 homes. "There seems to be an incredible amount of pride in them. The Chamber of Economic Development in Pincher Creek has on its letterhead, 'Wind energy Capital of Canada.' The mill [municipal tax] rate went down slightly because of the wind energy industry, a lot of people have jobs and it's environmentally benign," Mr. Edworthy said.  Source, "Wind power generates controversy: Picton, Ontario," by Robert Remington, The National Post newspaper, September 27, 2002.
 
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DENMARK ARTICLE ON WIND ENERGY SITING CONFLICTS IN THE U.S.
 
The following is an article by Lyn Harrison, Editor of the Denmark Windpower Monthly Newsletter, entitled, "Elitist NIMBYism."
 
"The United States is not a country to be left out of trail-blazing technology advances. While Europe this month celebrates the completed installation of the most ambitious offshore wind power station yet built, America has far grander plans for the ultimate in environmentally-friendly power production. Astonishingly, however, proposals for a series of offshore wind stations off the crowded coast of the United States Northeast are being torpedoed in a dirty-tricks campaign captained by some of the nation's most influential political heavyweights: Senator Ted Kennedy, Representative William Delahunt, and, to a lesser degree, presidential hopeful Senator John Kerry. All are Massachusetts Democrats and all, ironically enough, call themselves environmentalists. More to the point, what all three also have in common is a vested interest in protecting the scenic vistas of multi-million dollar seaside homes in the region."
 
"All this at a time when the American people crave change. A year ago they watched terrorists destroy downtown New York City, a disaster wrought upon America partly because of its addiction to oil. Then they watched as much of the continent was parched by drought, while news flooded in of an awaiting ecological disaster from melting glaciers. A year after the Twin Towers disaster, a genuine nationwide grassroots effort has materialised out of the misery. Fuelled by both the left and the right, the desire for both carbon free energy and energy security has legitimised the search for clean, renewable energy in the United States. But when the search for fossil-free energy meets up with the fossils running the US Congress, we meet with the ultimate NIMBYism: "If I can't keep it out of my own backyard, then I'll keep it out of all the national backyards." Most ironic of all, perhaps, is that the very American politicians who are opposing offshore wind farms are also opposed to drilling for oil in the Arctic National Wildlife Refuge. This begs the question: where do they expect our energy to come from?" Source, Windpower Monthly, PO Box 100, DK-8420 Knebel, Denmark, email [EMAIL PROTECTED] .  See the full article at the website http://www.wpm.co.nz/WPM:CURRENTLEADER:109706 .
 
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NEW BOOK ON THE ENVIRONMENTAL IMPACTS OF WIND MILLS
 
Sometimes windmills can be ugly and change the natural horizon with hundreds of very tall and obtrusive power structures. This causes aesthetics problem and can ruin the view for many people. A new book entitled, "Wind Power in View: Energy Landscapes in a Crowded World," has been published by Academic Press, an American imprint of Dutch publisher Elsevier. It reports that, "wind energy is one of the world's fastest growing sources of energy. The manufacture, installation, and operation of wind turbines has become a multi-billion-dollar industry. With thousands of new wind turbines sprouting from fields and backyards across Europe and North America, questions naturally arise about what they should look like and where they should and should not be installed." Few books have attempted to tackle the thorny land-use questions raised by wind energy's hard-won respectability. As the world increasingly turns toward renewable sources of energy to avert global warming, what will wind's role become? Will it be welcomed as the "green saviour" that some see, or will it be fought as vigorously as nuclear power? The outcome could well hinge on how the public views wind energy on the landscape. The book, Wind Power in View, is a collaboration by four American and five European writers. Wind Power in View: Energy Landscapes in a Crowded World; Academic Press, San Diego, California, February, 2002, ISBN 0125463340; US$59.95. Go to the website http://www.apcatalog.com/ , and type in the words "wind power" and hit "Search" and it will bring up the book for you.
 
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AUSTRALIA INVESTS IN WIND POWER WITH VESTAS IN TASMANIA: 128 MW
 
In February 2002, the Hydro Tasmania utility in Australia committed to a major partnership agreement with Vestas. The partnership was formalised with Hydro Tasmania giving a Notice to Proceed to the Danish manufacturer for construction of the plant for Hydro Tasmania's wind farm developments. "The Notice to Proceed that we have signed today in essence places an unconditional order for 128 megawatts of wind turbines which we can call upon over the next few years as our specific development plans move into construction," Hydro Tasmania Chairman Peter Rae said in Burnie, Australia. In order to meet the growth expected in the Australian market, Vestas has now committed to the assembly of the turbine nacelles and the manufacture of fibreglass components for the turbines in northern Tasmania. Hydro Tasmania indicated that the project value, including operations and maintenance support and civil works, was likely to amount to some $200 million over the life of the agreement. Hydro Tasmania will develop Bluff Point wind farm. The Bluff Point development is 54 megawatts involving 31 turbines, each of 1.75 MW. They expect to have the Bluff Point stage, together with the new transmission line, in service by mid 2003. For more information contact Gill McCabe, Australian Wind Energy Association, GPO Box 1004, Canberra, ACT, 2601, Australia, ph. (+61 3) 9249 9636, fax (+61 3) 9249 9646, Email  [EMAIL PROTECTED] . Visit their website at  http://www.auswea.com.au/ .
 
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AUSTRALIA'S WIND MONITORING TOWERS ARE UP
 
Australia's Wind Energy Research Unit (WERU) now has 23 out of 25 monitoring towers up and running for SEDA (Sustainable Energy Development Authority) as part of a wind monitoring campaign for New South Wales. The sites cover a diverse range of locations including Lord Howe Island, Broken Hill, Yass, Orange and Armidale. Each site consists of a 40 metre tower and the wind will be monitored for a period of two years. A regional wind resource assessment tool called WindScape is under continuing development at the Wind Energy Research Unit (WERU) of CSIRO Land and Water. The system makes use of data and model predictions from global/continental-scale analysis down through to very fine scale calculations on the scale of individual topographic features with length scales from tens to hundreds of metres. Visit their website at http://www.clw.csiro.au/products/windenergy/ . Also see New Zealand's "Windpower Monthly" newsletter at http://www.wpm.co.nz/WPM:CURRENT:109706 .
 
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ATTEND THE WORLD CONFERENCE ON WIND ENERGY IN SOUTH AFRICA IN 2003
 
The Minister of Minerals and Energy of South Africa, Ms Phumzile Mlambo-Ngcuka  announced during the World Summit on Sustainable Development in Johannesburg, that South Africa will host the World Wind Energy Conference and Exhibition 2003, in Cape Town, 23-26 November 2003. For more information contact the World Wind Energy Association (WWEA), Avenue de la Fauconnerie 73, 1170 Brussels, Belgium, email [EMAIL PROTECTED] .  Visit the website http://www.wwindea.org/default.htm
 
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U.S. NREL VALIDATES WIND ENERGY MAPS FOR U.S. NORTHWEST
 
You must place windmills where the wind is. A wind company must be assured of good strong winds in an area before investing in the equipment to turn wind into electricity. The National Renewable Energy Laboratory (NREL), in Golden, Colorado, with the U.S. Department of Energy recently led a project to validate updated state wind resource maps for the northwestern United States. It was produced by a private U.S. company, TrueWind Solutions (TWS). The independent validation project was a cooperative activity among NREL, TWS, and meteorological consultants. It became clear that using a numerical modelling approach for wind resource mapping was rapidly gaining ground as a preferred technique and if the trend continues, it will soon become the most widely used technique around the world. The numerical modelling approach is a relatively fast application compared to older mapping methods and, in theory, should be quite accurate because it directly estimates the magnitude of boundary-layer processes that affect the wind resource of a particular location. Numerical modelling output combined with high-resolution terrain data can produce useful wind resource information at a resolution of 1 km or lower.
 
The wind resource is expressed in terms of wind power classes, ranging from class 1 (the lowest) to class 7 (the highest). Each class represents a range of mean wind power density or approximate mean wind speed at specified heights above the ground (see power class legend). Areas designated class 3 or greater are suitable for most wind energy applications, whereas class 2 areas are marginal and class 1 areas are generally not suitable. Local terrain features may interact with the windfield to cause the wind power to vary as much as ~ 50% to 100% from the assessment value. Thus, there may be local areas of high wind power in regions estimated to have low wind power; conversely, some local areas may have lower wind power than that shown by this assessment. Maps depicting the degree of certainty of these assessment values should be used in combination with this wind resource map.  See the U.S. Wind resources map at the website http://rredc.nrel.gov/wind/pubs/atlas/maps/chap2/2-01m.html .  Also see the website http://www.nrel.gov/wind/usmaps.html .
 
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SWEDEN'S ENVIRONMENT MINISTER CALLS FOR END OF SUBSIDIES TO COAL MINING AND LARGE SCALE FARMING
 
"State support to coal mining and large-scale farming poses a major threat to the environment and should be cut, both in Europe and worldwide," Sweden's environment minister said. Sweden, often in the lead on environmental and development issues, wanted the Johannesburg summit on sustainable development to tackle subsidies and set clear targets on issues such as clean water, bio-diversity, and poverty reduction. "If you focussed on one single issue that would be important for the future, it would of course be to get away from the environmentally unsound subsidies and to replace them with environmentally sound incentives," minister Kjell Larsson said. "As long as we subsidize, for example, the mining of coal, it will be extremely difficult for green energy to break through in the marketplace," he said. Reducing subsidies in industry and agriculture would lead to job losses, but it would also create new jobs in the renewable energy field, said Larsson, a Social Democrat facing elections on Sept. 15, 2002. The European Union, though divided on issues such as farming subsidies and fishing, has been a leader in promoting the Kyoto Protocol on greenhouse gases, and all E.U. states plan to ratify the treaty on climate change by the end of May. Washington's rejection of Kyoto last year has removed European companies' incentive to develop new technologies, whereas the treaty should be seen as creating new business opportunities, Larsson said. Demand for new technology to help reduce carbon dioxide emissions will grow, he predicted. "The response of the industry has been a bit too weak.... I would have liked to see more effort coming from companies," he said. Source, Anna Peltola, Reuters News Service, Stockholm, Sweden, May 24, 2002. See the full story at http://www.enn.com/news/wire-stories/2002/05/05242002/reu_47335.asp
 
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PRO-FORM IS A NEW SOFTWARE FOR EVALUATING RENEWABLE ENERGY AND EFFICIENCY PROJECTS
 
Lawrence Berkeley National Laboratory has introduced ProForm, free software that assesses the environmental and financial impacts of renewable energy and energy efficiency projects such as wind turbine installations, residential lighting efficiency programs, and energy efficiency improvements in commercial buildings. This can be used to calculate the reduction of global warming greenhouse gas (GHG) emissions. The spreadsheet-based software calculates a project's expected financial indicators and avoided emissions of carbon dioxide and air pollutants. Proform allows users to investigate how changes in basic assumptions affect a project's key parameters. Proform can be used to help developers prepare proposals to submit to potential investors, financiers or regulators. Source, The Green Business Letter, September 2002. See the software at the website  http://eetd.lbl.gov/proform   .  
 
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                                                    Canadian Institute for Business and the
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