The three most important considerations for

1
The three most important considerations for
development of wind farms are LAND with good
to excellent wind resource CONTRACT to sell
electricity produced ACCESS to transmission
lines (proximity and carrying capacity)
2
Site selection Evidence of significant wind
resource Preferably privately owned remote
land Proximity to transmission lines gt 69 kV
(up to 25 miles for good site and gt 135 kV).
Note possibility of future transmission
lines. Reasonable road access Few environmental
concerns Receptive community
3
Land Term expected life of the turbine (early
20 to 30 yr, 10 yr option later 30 to 50 yr,
multiple 10 yr options) Rights wind rights,
ingress/egress rights, transmission right of way
for wind farm Owner compensation percentage of
revenue, per turbine, or combination Assignable
financing requirement Indemnification Reclamation
provision Bond to remove wind turbines at end of
project Wind energy easements, legal issues
4
Wind resource assessment Lease, /acre, 1 to 5
years, or flat fee. Corollary data wind maps
(national, state, other), NWS data,
Other Install meteorological tower(s), hub
height or at least 50 m Collect 10 min or hour
wind speed and direction data, 1-2 yr, minimum
one year Quality report on meteorology Output
projections for several turbine types Landowner
receives data, meteorology report, and output
projections if developer does not exercise
option for installation of project.
5
Environmental Cursory review for endangered
species Biological resources Wildlife
habitat Loss of vegetation Avian
studies Raptors Migratory birds Review with
interested parties Audubon, federal, state,
local Required studies and reports Bats Archaeolo
gical sites Noise Visual Soil erosion and water
quality Solid and hazardous wastes Active
compliance monitoring
6
Economic modeling Output projections Turbine
costs Turbine installation Roads, substations,
transmission Communication and control Taxes
sales, income, property (depreciation schedule),
tax abatement OM estimates Finance
assumptions production tax credit, accelerated
depreciation, equity rate of return, incentives
(local, state), debt rate and term (coverage
ratios), dept/equity ratio Other insurance, legal
7
Interconnection studies Interconnection request,
electric reliability council Capacity
limitation Load flow analysis Voltage
controls System protection
8
Permits Local, state, federal Public involvement
at early stage Public land, private land Land
use permit Building permit
9
Sale of energy/power Energy/power purchase
agreement Long term contract with utility Green
power market Market, avoided cost Renewable
energy credits Future income, emission
trading Kilowatt hour real or nominal
levelized Capacity kilowatts Term Credit worthy
buyer Facility sales agreement Turn key price,
complete project
10
Financing Source of equity rate of return
15-18 Source of debt Market rates Term of
debt Assignable documents Third party due
diligence
11
Turbine purchase Power curve (output
projection) Turbine cost Turn-key construction
cost Warranties equipment and maintenance Constru
ction financing Past history of
manufacturer Availability of turbines, date
12
Construction (turn-key) Roads Water and
gravel Turbine foundations (excavation,
concrete) Interconnection to utility
(substations, transformers, wire) Turbine
assembly and erection (cranes) Commissioning Envir
onmental restoration Reduce road
width? Grass Control of noxious weeds Assembly
area
13
Maintenance Fixed cost per turbine per
year Availability warranties Penalties for
non-performance Types of costs Labor Management In
surance, taxes Maintenance equipment cranes,
vehicles, other Parts on hand Non-recurring
costs major repairs Roads, maintenance and
access for landowner