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This presentation provides an overview of the steps associated with developing a wind power project and identifies aspects of development that can affect overall construction costs.
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Environmental, Engineering and Pre-Construction Cost Considerations for Wind Power Development Anntonette Alberti, JD Tetra Tech IPED Financing Wind Power July 25, 2007
Introduction to Tetra Tech • 7500 employees and 250 offices nationwide • Full service wind energy contractor • Environmental • Engineering • Construction • O&M • Over 70 wind projects for about 30 clients across the US • Our current projects range from: • Drafting the American Wind Energy Association (AWEA) Environmental Siting Guide with Nixon Peabody • Turnkey meteorology, engineering design and environmental permitting of a 300 to 500 MW facility on Lanai with AWS • Civil construction of several New York State wind farms • Offshore wind
Presentation Goals • Provide an overview of the steps associated with developing a wind power project • Identify aspects of development that can affect overall costs of construction
Components of a Wind Project • It is not just turbines. . . • Temporary met towers • Construction trailers and lay-down areas • Concrete batch plant • Construction spoil disposal sites • Construction work areas around turbine foundations • Access roads • Public road improvements • Electrical collection lines • Transmission lines • Switchyards, substations, point of interconnection stations • Permanent met towers • Restoration and mitigation projects • Operations and maintenance building • Visitor kiosk
Wind • Meteorology costs: • Wind Measurement Equipment and Installation • Data Collection and Interpretation • Meteorological Consultation and Advice
Transmission • Transmission Costs: • Development Electrical Engineering (What you need to get the right permits/land rights and get interconnection, not develop final construction drawings) • Feasibility Study • Conceptual collection system and high voltage interconnection design • System Reliability Interconnection Study • Feasibility Study • Utility Interconnection • Fees and filings associated with interconnection • Cost allocation for system upgrades • Transmission legal • Outside counsel for interconnection agreements, filings, FERC
Land • Land costs: • Costs of hired land men • Hours and expenses • Landowner payments • Signing payments • Met tower payments • Option payments • Lease conversion payments • Neighbor agreement payments • Land legal and title • Outside counsel • Title company • ALTA • Recording fees
Public and Governmental Relations • Public and Governmental Relations Costs • Local Office • Staff • Equipment • Landowners and neighbors • Newsletters • Dinners • Community Public Relations • Mailings • Ads • Open houses • Fairs and community events • Charitable sponsorships • Governmental Relations • Lobbyists • Public meeting support
Development Civil Engineering • Costs for Development Civil Engineering (What you need to get the right permits/land rights, not develop final construction drawings): • Conceptual Layout • Constraint mapping • Initial geotech (desktop?) • Transportation study (identify routes, need for improvements to bridges, culverts, intersections, etc) • Initial siting turbines, roads, collection, transmission, substation, construction work areas, etc • Walk-overs
Development Civil Engineering Cont. • Permitting Layout development (need coordination with electrical on collection system/high voltage portions of design) • 2’ contours • Initital horizontal alignment • Geotechnical study • Survey and Staking • Engineering/environmental walk • Landowner walk • Agency walk as needed • Finalize horizontal layout for permitting
Development Civil Engineering Cont. • Engineering-heavy permits • DOT permits for road improvements and cutting access into state roads • Local permits for road improvements and cutting access into local roads • NPDES (or state equivalent) NOI for construction with SWPPP and SPCCP • NPDES (or equivalent) NOI for operation with SWPPP and SPCCP (this is important to consider during design because of potential need for secondary containment around transformers)
Environmental Studies and Permitting • Environmental Studies and Permitting Costs: • Consultants • Permit applications and regulatory representation • Avian and bat studies, reports, consultations • Wetland studies, reports, permits, mitigation • Wildlife and vegetation studies, reports, consultations, mitigation • Agricultural protection consultation, mitigation • Cultural and historical resource studies and consultations, mitigation • Communications interference studies (including homeland security) • Aviation interference studies • Visual impact analysis • Groundwater studies • Socioeconomic studies as required • Other studies as required • EAs, DEISs. FEISs and/or equivalent reports and processes
Environmental Studies and Permitting Cont. • Permitting fees • Actual permit fees • Agency collection agreements • Permitting Legal • Outside counsel
Preconstruction • Preconstruction Costs: • Negotiations with turbine and other equipment/service providers • Finalize Turbine and Long-Lead-Time Item Procurement • Final Construction Plans and Drawings • Develop Environmental Construction Compliance Plan • Secure Construction Owner-Representative Team • Secure Construction Contractors • Develop Mobilization Plan
Take Away Points • Wind project development is highly iterative • Change management in scope, schedule and budget is key • Early engineering and constructability review can save tens of millions during construction • Appropriate planning can vastly improve long term economics
Environmental and Engineering Anntonette Alberti, JD anntonette.alberti@tteci.com 518-488-8588 Charlie Karustis charlie.karustis@tteci.com 503-222-4536 Construction and Operations & Maintenance John Hueston john.hueston@tteci.com 678-983-0863 Contacts