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Community Wind Development Handbook

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Community Wind Development Handbook Community Wind Development Handbook Developed on behalf of by: 1 A Clean Energy Resource Team (CERT) Project with funding from the Environment and Natural Resources Trust Fund as recommended by the Minnesota Legislative Commission on Minnesota Resources. This handbook is intended as a guide and may not contain all the information needed to build a wind project. 2 Handbook Table of Contents Introduction to Community Wind Development .......................................................... 7 Community Wind Handbook ............................................................................................ 7 Why Community Wind Energy? ...................................................................................... 8 Economic Benefits of Community Wind................................................................................ 8 Social Benefits of Community Wind...................................................................................... 9 Environmental Benefits of Community Wind ........................................................................ 9 Organization of the Handbook ........................................................................................ 9 Conclusion............................................................................................................................. 10 Additional Resources on Community Wind Energy Basics ................................. 10 Community Wind Development Overview and Checklist ...................................... 11 Key Players in the Wind Industry ................................................................................ 11 Wind Turbine Manufacturers................................................................................................ 11 Wind Developers .................................................................................................................. 11 Private Consultants and Contractors..................................................................................... 11 Electric Utilities .................................................................................................................... 12 Advocacy Groups.................................................................................................................. 12 Government........................................................................................................................... 12 Rural Residents and Landowners.......................................................................................... 12 Community Wind Project Development Steps........................................................ 12 Project Goals – Decisions to be Made Up Front................................................................... 13 Characteristics of a Good Community Wind Site................................................................. 13 Wind Resource Assessment.................................................................................................. 14 Financing Your Project......................................................................................................... 14 Choosing a Business Structure ............................................................................................. 14 Power Purchase Agreements................................................................................................. 15 Interconnection ..................................................................................................................... 15 Turbine Selection and Purchase............................................................................................ 15 Legal Issues........................................................................................................................... 15 Next Steps: Building and Operating a Community Wind Project.................... 15 Construction.......................................................................................................................... 16 Operations and Maintenance................................................................................................. 16 Wind Project Development Checklist.......................................................................... 16 Development Phase............................................................................................................... 16 Next Steps ............................................................................................................................. 18 Construction Phase................................................................................................................ 18 Operations and Maintenance Phase ...................................................................................... 18 Additional Resources for Developing Community Wind Energy....................... 18 Community Wind Project Planning & Management .................................................. 19 Putting Together the Project Team ............................................................................. 19 Project Governance............................................................................................................... 19 Key Consultants.................................................................................................................... 20 Risk Management............................................................................................................... 22 RISK FACTOR TABLE....................................................................................................... 23 Feasibility Study ................................................................................................................... 26 Tips for Managing Community Wind Development............................................... 26 3 Project Plan and Timeline..................................................................................................... 26 Conducting a successful equity drive ................................................................................... 27 Conclusion............................................................................................................................. 28 Additional Resources for Project Planning and Management............................ 28 Wind Resource Assessment ............................................................................................... 29 Wind Resource Assessment – The Basics................................................................. 29 The Initial Assessment.......................................................................................................... 29 Detailed Site Characterization .............................................................................................. 30 Long-Term Validation of Data ............................................................................................. 32 Detailed Production Estimates and Cash-flow Projections .................................................. 32 A Bankable Wind Resource............................................................................................. 32 Monthly averages of wind speed .......................................................................................... 33 Projected monthly production............................................................................................... 34 Wind shear and the optimal height for your turbine............................................................. 34 Wind rose of your site........................................................................................................... 35 Site documentation................................................................................................................ 35 Annual energy production for good years and bad years ..................................................... 36 Projected cash-flow model.................................................................................................... 37 Wind Resource Assessment Companies.................................................................... 38 Wind Resource Assessment Providers & Equipment Suppliers........................................... 38 Computer Modeling Specialists............................................................................................ 39 Anemometer Loan Programs ......................................................................................... 40 Additional Resources on Wind Resource Assessment.......................................... 40 Siting Guidelines..................................................................................................................... 41 Siting Issues......................................................................................................................... 41 Aesthetics.............................................................................................................................. 42 Property Values..................................................................................................................... 43 Sound .................................................................................................................................... 43 Public Safety ......................................................................................................................... 45 Liability Prevention .............................................................................................................. 45 Environmental Impacts ........................................................................................................
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