Community Wind

1. Community Wind Lisa Daniels, Windustry Executive Director IPED Wind Energy Finance Scottsdale, Arizona May 9, 2008

2. Outline • About Windustry • Community wind: What is it? • Benefits • Moving Community Wind out of the Midwest • A few success stories

3. Who is Windustry? • “Windustry promotes progressive renewable energy solutions and empowers communities to develop wind energy as an environmentally sustainable, community-owned asset. Through member supported outreach, education and advocacy we work to remove the barriers to broad community ownership of wind energy.

4. Windustry • Creating an understanding of wind energy opportunities for rural economic benefit. • Non-profit organization based in Minneapolis, MN - work locally, regionally and nationally • www.Windustry.org • Focus on landowner/community options • Wind Farmers Network • National Community Wind Energy Conference

5. Landowner Options • Lease your land to a wind project • Local project • External developer • Be a partner in a community wind project • Put up a residential or farm size wind turbine for your own power

6. Windustry Resources:Community Wind Toolbox

7. Working Definition: Locally owned, commercial-scale wind projects that optimize local benefits. • Locally owned means that members of the local community have a significant direct financial stake in the project other than through land lease payments, tax revenue, or other payments in lieu of taxes. What is Community Wind?

8. Who qualifies as local? • We have seen several definitions • Some states define • local owners must pay income taxes in the state or • Federal side - often uses geography - • i.e. local owners must live within 200 miles of project

9. What is not in the Community Wind Definition? Size of project

10. Benefits of Community Wind All the benefits of large wind development, plus: • Greater stimulation of local economies • Increased local energy independence • Increased competition in energy markets • Greater acceptance of wind power

12. Minnesota Supports Community Wind Through Public Policy • Utility resource acquisition requirements • Renewable Energy Objective • Renewable Development Fund • Production Incentives • Small Wind Energy Tariff • Department of Commerce and USDA Grants • Community-Based Energy Development Tariff

13. Moving Community Wind outside the Midwest • NGO’s, Farm Org.s, Legal counsel, financiers, elected officials • Mass. • Oregon • Colorado • NY, NC, PA, NJ, RI, ME, and more in the works

14. Moving Community Wind Out of the Midwest: Community Wind Energy 2008 in Albany, NY

15. Community Wind Market Brings • Diversity of • Policy Incentives • Technology • Business Models • Finance • Benefits

16. More Diverse Policy • Currently • USDA Farm Bill • CREBS • New Markets Tax Credits • New Policy Coming up • “Renewable Energy Payments” - styled after European Feed-In Tariffs • Federal and several states (2008 Bills introduced CA, MN, VT, RI, MI, and others in the works)

17. Renewable Energy Payments • Renewable Energy technologies are guaranteed interconnection to elec. grid • Premium rate paid for power sold is designed to provide a reasonable profit for investors over a 20 year term • Rates are different for each technology (wind, solar, biomass, geothermal etc) • Keep watch on our website for more info and links, www.windustry.org

18. Midsize and Large Commercial Scale Wind Turbines • Midsize turbines 100kW - 1000kW • As well as Large Turbines • Local people have access to training for operation and maintenance • O & M can be aggregated regionally • Lighter weight machines and hub height to suit crane availability

19. New Transmission and Wind Resource Maps = New Planning Approach Find maps and study report at: www.windustry.org/dg Study performed by CapX 2020 Utilities

20. Community Wind Energy Success Stories • Farmer/Local Investors • Local Utilities: Municipal Utilities and Rural Electric Cooperatives • Schools • Tribal Communities • Community Institutions • New Models for Wind Industry and Community Partnerships

21. Kas Brothers Plant 25-Year Cash Crop • First farmer-owned, commercial-scale projectin U.S. • Two 750 kW NEG Micon turbines installed in 2001. • Financed with local banks • Dozens of farmers in MN now following this model. • Some with an equity partner, some without. Richard and Roger Kas– Woodstock, MN

22. Minwind Energy, Luverne, Minnesota Farmer Ownership: • Nine LLCs, 11 wind turbines owned by 200+ local investors. • Installed in 2002 and 2004. • Goals: local economic dev., maximize return on investment, diversify local economy.

23. USDA State EnergyOffice Lawyers Elected Officials Accountants Contractors Bankers Developer Equipment Suppliers Minwind Board Minwind CEO Accountants Investors

24. Moorhead Public ServiceMoorhead, Minnesota • Two 750 kW turbines, installed in 1999 and 2001. • Public utility- used their own funds to purchase the machine. • Among the highest subscription rates in the nation and one of the early successful municipal projects. • Several good Iowa examples as well, including Waverly, IA.

25. Illinois Rural Electric CooperativePike County, Illinois • Planning a spring 2005 ribbon cutting for a 1.65 MW turbine. • Inspired by new IL wind maps that show some of the best wind in the state to be in IREC territory. • Turbine will generate about 4% of IREC’s power needs, close to the 5% limit in wholesale power contract. • Project supported by 3 grants (USDA, IL state grant, and IL Clean Energy Foundation) IREC Engineering Manager and project leader Sean Middleton.

26. School Wind Projects: K-12 Wind turbines can supply schools with clean energy, new revenue, and learning opportunities. • 8 school districts in Iowa have wind turbine from 50 to 750 kW • Spirit Lake Schools pioneered the idea in 1993 with a 250 kW turbine, followed by a 750 kW turbine in 2003. • Other school projects in MN, IL, CO, PA, VT, MA, MI, tribal communities Spirit Lake, Iowa

27. Carleton College Northfield, Minnesota • Dedicated a 1,650 kW wind turbine in September 2004 • First college to have a large scale turbine. • Supported by MN Dept. of Commerce Community Wind Rebate, MN REPI, and Xcel standard tariff for small wind projects. • First of many planned college and university projects Carleton Turbine in November 2004

28. SMI & Hydraulics, Inc.Porter, Minnesota Photos courtesy www.smihyd.com

29. “Wind energy is where we need to go—it’s good for the environment and builds American energy independence and American industry. Our family owned business can work profitably in wind power.” Gary Stoks CEO, SMI Hydraulics Porter, Minnesota

30. Lamar, Colorado • Local project piggybacked on large wind project. • Four 1.5 MW GE turbines less than 25 miles from CO Green, a 162 MW project in Lamar • Municipal Utilities (Lamar Light & Power and Arkansas River Power Authority) timed their project to coincide with Colorado Green. • Coordinated with CO Green to lower development, construction and maintenance costs.

31. In Closing - Outcomes of Community Wind Conference 2008 • Closing comments of Jim Walker, ‘07-’08 President-elect AWEA • Vision: • Wind Energy 20% of US electricity; and • Community Wind 20% of wind projects • Roadmap • Help deal with transmission, access to the market and financing • New and innovative business models • “There is a huge future for Community wind.”

32. “Community wind helps get people connected to their energy use. Local energy production helps to build a better society, a better culture, and a better planet.” David Benson Windustry, Board of Directors, Chair Farmer and Nobles County Commissioner Bigelow, Minnesota

33. Contact Info: e-maillisadaniels@windustry.org www.Windustry.org