Wind Development 101

Brian AntonichWindustry Program Analyst

Northeast Minnesota Clean Energy Resource Team Meeting

October 27th, 2006Proctor, MN

Outline

About WindustryWind Energy Development: Types of Projects and Types of OwnershipWind TechnologySteps to Developing a Large ProjectSmall Wind Turbine Project PlanningFinal remarks

Windustry

Increasing wind energy opportunities for rural landowners and communities.Non-profit organization based in Minneapolis, MNwww.windustry.orgThe Windustry NewsletterWind Easement AgreementsNational Community Wind ConferenceWind Farmers Network

Why Wind Energy

Benefits of Wind ProjectsRevitalizes Rural EconomiesCreates JobsPromotes Cost-Effective Energy ProductionSupports Agriculture Reduces Air Pollution and Global WarmingClean, Domestic EnergyEnsures a Sustainable Energy Future

Types of Wind Projects

Wind is a modular technology:Large Wind Farms-large number of large-scale turbines.Dispersed Wind Projects-one or a few large-scale turbines.Small wind turbines-residential or farm use.

Large Wind Farm, Southwest Minnesota

Woodstock, Minnesota

Adair, Iowa

Dispersed Wind Development

and Distributed Generation

Small Wind Turbines

The Scale of Wind Power

Wind Project OwnershipLevels of Local Involvement

Local Involvement• Public Projects

• Local Investor or Farmer Owned Projects

• Examples: Minwind Energy, Spirit Lake Schools, Algona, IA

External Involvement• Conventional Developer

Owned Wind Projects

• Local involvement limited to taxes, land leases, and indirect economic benefits

• Examples: Top of Iowa, Lake Benton I and II

Varying Degrees of local Involvement/Value-added

• Some local organizing, equity and investment.

• Example: Trimont

What is Community Wind?Working Definition:Locally owned, commercial-scale wind projects that optimize local benefits. - Locally owned means that one or more members

of the local community has a significant direct financial stake in the project other than through land lease payments, tax revenue, or other payments in lieu of taxes.

- Commercial-scale, for this purpose, means all projects that are too large to qualify for net metering in Minnesota.

Community Wind in the United States

Local/Community Ownership Options

Farmer/Local InvestorsLLCs, Investors Pools, CooperativesExamples: Kas Brothers • Minwind Energy

Municipal Utilities Example: Moorhead, MN

Rural Electric CooperativesSchools Examples: Lac Qui Parle School, Madison, MN • Carleton College, Northfield, MN

Tribal Communities Example: Rosebud, SD

Spirit Lake, Iowa

Keys to a Successful Community Project

Adequate Wind ResourceMarket for EnergyAccess to MarketLow Cost FinancingQualified Project ManagerDiverse Project Team

Steps to Community Project Development (just some of the steps)

A community wind project is a multi-million dollar business requiring several years worth of planning, qualified project team, much due diligence and perseverancePhase 1

Establish Desired Project Outcomes and GoalsPreliminary Economic ProjectionsRecruit Project TeamEstablish Control of LandBegin Wind Resource Assessment Enter Interconnection QueueDevelop Relations with Community and Appropriate Permitting AgenciesApproach Potential Purchasers of Energy

Phase 2 Begin Acquiring Appropriate PermitsRaise Further Development CapitolInterconnection and Feasibility StudiesEstablish Relationship with Potential Equity InvestorsFacilities StudyNegotiate Power Purchase, Interconnection, and Turbine Purchase Agreements

Phase 3 Acquire Construction CapitolExecute AgreementsConstruction and CommissioningOperations and Maintenance

Note: This description of the development

process is not exhaustive but rather meant to

illustrate some of the major tasks and general

order in which they might be performed.

Steps to Planning a Small Wind Turbine Project

Preliminary Wind Resource AssessmentInvestigate Potential InstallersPreliminary Conversations With Your Utility and Local Permitting AgenciesAcquire PermitsMicro SitingFinancingFinal System DesignConstruction, Inspections and Interconnection

Preliminary Wind Resource Assessment

Minnesota Department of Commerce resourceUse 30 meter mapWind speed should reflect actual tower height

Preliminary Economic Analysis

Manufacture energy chartEstimate

Low end productionHigh end production

Determine payback:Estimated energy productionCost of energyEstimated installed system costInterest on loansAnnual escalation of energy rates

Estimated System Cost

Annual insurance premiumsOn-grid

TurbineTowerElectrical workInstallation feesMaintenance contract and extended warrantyPermit feesElectrical inspection

Off-gridDifferent insurance requirementsBatteries

Investigate Potential InstallersQualifications

# of projects installedReferences from past customersNumber of years in the businessUnderstanding of incentives availableInsurance documentation

CertificationsLicensed and bonded electricianFamiliarity and compliance with appropriate building codes

Services the installer offersSite surveySystem designConstruction supportWarranty and potential for extended warranty purchaseMaintenance contracts? What maintenance is required?Types of equipment offeredAssistance in applying for grants or other financingAssistance in obtaining permitsWorking with utility to interconnect

Seek multiple quotes

and compare!

Investigate Potential Installers

Site assessment should include:Optimal placement for turbine(s) at siteEstimated annual energy productionItemized cost of proposed work

Turbine, tower, foundation, electrical, labor, etc.

PermitsContact local zoning/permitting agency for applicable permitsEducate the agency BEFORE the hearing

Things to bring:• Make and model of machine (with pictures)• Electrical capacity• Tower height• Electrical wiring schematics (complies with international electrical codes)• Tower rating for Wind speed and ice loading (TIA/EIA-222-G compliant)• Foundation design (complies with international building codes)• Distance to dwellings and property lines (including detailed site map)• FAA Ruling stating project is not a hazard (form 7460-1)• No lighting is required (in most cases)• Information about sound (less than 40db at tower height distance away)

Talk to your neighbors before they receive notice of the hearing!

Acquire FinancingState or utility run grant programs

Minnesota PowerUSDA Farm Bill (Section 9006 – Renewable Energy and Energy Efficiency)

25% grant for capitol costsFor rural aig. producers and small businessesRules favor small RE projects that offset consumption from grid

• Simplified application• Score extra points

Center For Energy and the Environment low interest loanswww.mnmncee.orgFix-up Fund (for income < $90,000/year)Home Energy Loan (home must be constructed before 1989)

Refinance mortgageOther home improvement loans

Machine Siting basics

Turbulent winds do not produce energy well • Get the machine AT LEAST 30 ft above

objects within 500 feet of machine.

Basics on Siting

• Trees grow over time

Elm tree 5-6 years old will reach

40-50 feet in 10-15 years

• Direction of prevailing wind

• New construction in the future

• Setback requirements

•Topography of site and proximity to point of interconnect

• Generally need ½ acre or more

Final System Design

Tower optionsWind turbine optionsOn-grid vs. off grid

Tower Options

Tilt-up

Guyed lattice

Free standing lattice

Tilt-up (Monopole)

Least expensive optionNo need for craneTilt down machine to do maintenance which can be dangerousHeight limitations

Guyed Lattice Tower

More expensiveCan be tilt-up or crane installedClimb tower to do maintenance Stronger tower to reach higher into better winds

Free Standing Lattice

Most expensive due to requirement of craneMost stableClimb tower to do maintenance Stronger tower to reach higher into better winds

Off Grid System

Typical On Grid System

Used EquipmentUsed equipment can be cheep but not necessarily inexpensive in the long run

Remanufactured equipment• What does remanufactured mean?• History of the machine• Warranty• O&M contract

Availability of spare parts?Solid references

Before Buying (Triple Check)

5-year warranty support from manufacturer, minimum, for ALL hardwareCertified turbines

• NYSERDA - www.powernaturally.org• California Energy Commission –

www.consumerenergycenter.org• Small Wind Turbine Certification Corporation (coming soon)

Commercially available equipmentSolid references from prior customers

Additional ResourcesWindustry – Small Wind How Too

www.windustry.org/smallwind/default.htmRenew Wisconsin – Mick Sagrillo’s Small Wind Tool Box

www.renewwisconsin.org/wind/windtoolbox.htmDatabase of State Incentives for Renewable Energy (DSIRE)

www.dsireusa.orgAmerican Wind Energy Association (AWEA)

www.awea.org/smallwind/

Thanks and Questions?

Brian Antonich, M.S.E.E.Antonich Wind Energy Consulting

Brian’s email: brian@immerenergy.comPhone: 763-226-9835

www.windustry.org