Wind Energy in Kentucky

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Written By Sofia
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Renewable energy is only 8% of all electricity generation in Kentucky, and 7% comes from hydropower. Most of the state’s renewable energy sources remain in potential future use.

Although there is already little investment or incentive to invest in a commercial-scale wind farm, the natural conditions in Kentucky also make it difficult to establish a thriving wind industry.

The wind patterns are not strong enough to make a case for wind farms of the same size as those in Texas or California with current technologies.

Nonetheless, there are opportunities to build smaller turbines with the introduction of better technologies in the future. In the years to come, taller turbines with longer rotor diameters can harness more wind with fewer turbine installations.

Below is more information on the status quo of the wind energy initiatives in Kentucky and how that ties in with its wind industry in the future.

How many wind farms are there in Kentucky?

in 2022, Kentucky has zero wind farms. The state had not actively pursued large energy companies to lure them into long-term contracts through subsidies or partnerships.

In 2011, NextEra Energy Resources (NEER) studied a potential commercial wind farm in Kentucky. However, the plan didn’t push through or materialize into any investment by the company.

Likewise, another large company, Duke Energy, followed the same path and did not pursue investments in any wind farm in the state. Duke Energy submitted no proposed solutions or competitive interest proposals.

Duke Energy and NEER are large companies invested in wind energy in Texas and other states.

Does Kentucky have a renewable energy policy?

Tax incentives for renewable energy investments are qualified for review under the Incentives for Energy Independence Act, legislated by the state of Kentucky in 2007.

These include tax incentives for smaller investors to build turbines–even for as low as 1 megawatt. However, there are no incentives to build commercial-scale wind farms as in New Jersey, New York, or Maryland. These states offer subsidies to lower the cost of energy bills for consumers.

The incentives do not focus on wind or solar per se, but a lump tax incentive program for alternative electricity generation and alternative fuels facilities that can run for 25 years. There are no state clean energy policies that bring the different counties together toward renewables.

There is also no state legislation for any renewable portfolio standard for the state to achieve or comply with. As of 2017, Kentucky is one of twenty states in the United States without a renewable portfolio standard.

What is the primary source of renewable energy in Kentucky?

Hydropower is the most significant contributor to the renewable energy sources of Kentucky.

How many wind turbines are in Kentucky?

There are no commercial wind turbines installed in the state so far.

However, the state also invests in the national supply chain that produces wind turbines. Manufacturing companies operating in the state produce parts that eventually go into the turbines, which developers would install in different states throughout the US.

Two notable companies based in Kentucky related to the wind industry are Rotek and Muehlhan Wind, both specialized companies that work with global engineering teams in the wind industry.

Where does Kentucky get its power?

Kentucky’s electricity generation mostly generates power from coal production and natural gas. Unsurprisingly, this is because Kentucky is also America’s fifth largest coal producer among the US states. Natural gas or coal power large-scale power plants. 

Without a robust and reliable alternative, fossil fuels dominate the energy mix, powering 91% of all electricity generation in Kentucky. Other auxiliary sources are oil, biomass, and solar.

In 2022, Kentucky's electricity came from 71% coal, 21% natural gas, 7% hydro power, and 1% other sources

The renewable sources of the state, aside from hydro, are virtually nonexistent.

Is Kentucky suitable for wind turbines?

The amount of electricity from wind that Kentucky can harness is limited. Compared to Texas, Kentucky is not part of the prized natural wind belt of the country. The region of the state, the southeast, is more inclined to have offshore wind energy to harness the wind.

Unlike New Jersey and New York, which can build offshore wind farms in the Atlantic Ocean, offshore wind is not an option for landlocked Kentucky.

For wind turbines to work, every site needs more specific studies. Without the help of a natural wind belt, each potential site has to have the proper research to see the appropriate size and specifications of turbines to develop in the area.

NREL Wind Speed USA

In the map from NREL, significant wind speeds between 4 to 5 meters per second are measured at 30 meters.

NREL Wind speed map in Kentucky

Suppose there were state energy policies that encouraged more investment. In that case, the investments should take advantage of these wind speeds. More specifically, developers should prioritize community based projects.

The growth of new technologies may allow for the construction of taller, more energy-efficient turbines. Kentucky can look into new technologies appropriate at the community or residential level.

How much can residential-scale wind energy be harnessed in Kentucky?

Harnessing winds for electricity at 30 meters high is productive with 4 meters per second wind speeds. Compared to the average wind turbine height for commercial wind farms, which is 80 meters, residential-scale wind turbines are usually between 15 and 40 meters high.

The development of wind turbines in the past two decades now introduces the possibility of harnessing winds at lower speeds, so below 4 meters can be assessed further.

According to future scenarios predicted by Southeastern Wind Coalition–made in 2014–in 2024, installing turbines with a 140-meter hub height should be possible.

Wind progression in Kentucky

The tallest turbine in 2022 is GE’s Haliade-X which can stand as high as 260 meters tall. Although the applications for the advanced turbine are mainly offshore, these developments might soon be applied onshore, too–for as long as the economics are feasible.

What is the best renewable energy source for Kentucky?

Currently, hydropwoer is the largest source of renewable energy in Kentucky’s. 7% of the total electricity generated by the state is from hydropower.

Is Louisville committed to clean energy?

Louisville will work with NREL to reach 100% renewable energy use for its municipal operations by 2030.

In 2021, Louisville municipal government passed an ordinance that plans to achieve 100% renewable electricity source for the municipal government by 2030.

By 2035, the plan is to move to transportation and building heating and, finally, in 2040, to achieve net zero for the entire municipality.

The effort is citizen-driven and initially received guidance from NREL on achieving energy efficiency. The next stage is developing a voluntary tariff program for businesses and other stakeholders.

Louisville buys its electricity from Louisville Gas and Electric (LG&E), 80 to 90% powered by coal production, and 9 to 19% from natural gas.

What are potential areas of expansion for renewables in Kentucky?

Algonquin Power and Utilities Corp. (AQN) purchased Kentucky Power Co. and AEP Kentucky Transmission Co. Inc. (Kentucky TransCo)–two subsidiaries of American Electric Power (AEP), via Liberty Utilities Co.

The purchase price is $2.846 billion, which AWN announced in October 2021. Both companies AQN bought are state-regulated companies regulated by US Federal Energy Regulatory Commission (FERC).

Kentucky Power Co. serves 225,000 customers in Kentucky. At the same time, AEP Kentucky Transmission Co. Inc. operates the transmission of Pennsylvania-New Jersey-Maryland infrastructure on the Kentucky side.

According to AQN President Arun Banskota, “Kentucky Power offers an opportunity for AQN to utilize its ‘greening the fleet’ capabilities in a complementary and constructive jurisdiction.”

AQN has significant experience in ‘greening the fleet’ programs in a regulated industry, as it did with its companies at Empire District Electric Company and Calpeco. 

Tennessee Valley Authority, meanwhile, is also under FERC, which operates in Kentucky, Alabama, Mississippi, and Tennessee. TVA had agreed with various green electricity producers in Illinois and Kansas to deliver clean electricity to its customers.