Frequently Asked Questions About Community Wind in the Hilltowns rev. 6 12 08
This document will be updated periodically and posted on the website, www.helderbergwind.org
1. What do we mean by Òcommunity wind energy?Ó
Community wind refers to locallyÐowned utility-scale wind projects connected to the grid, selling electricity on the wholesale market.
2. How is community wind different from privately-developed wind energy?
A
community entity has control over the size, placement ,
development, and ownership of a wind project. If so desired, all of the revenue
from a community wind project can stay in the community. In a privately-developed project, a
portion of the revenue is paid to the community, in the form of landowner
leases and payments in lieu of taxes (PILOTS).
3. Who would own the proposed community wind energy project for Knox?
The options
for how locals can gain ownership in a project are only limited
to boundaries set forth by the human mind and some tax law. The ownership
structure could take one of several forms: a local government entity (the town
of Knox, Albany County) could own the project, or a group of citizens, or
perhaps a partnership between the municipality and a group of citizens. For a community to participate in a project
there must be a legal entity for project contracts and revenues payments to
flow through.
4. How would landowners be compensated?
Landowners are compensated via a lease for the use of the land for the turbines. The lease agreement often includes royalty payments based on how much electricity is produced by each turbine.
5. Is there enough wind in the Hilltowns?
There are several areas in the Hilltowns of Knox, Berne, Rensselaerville and Westerlo that have sufficient wind resource for a utility-scale project, based on modeling studies that have been done. A map of the wind resource of New York State, which is based on model studies, can be found at www.awstruewind.com.
An average annual wind speed close to or greater than 7 meters per second, or 15.65 miles per hour is needed to make a project economically viable.
The data that has been collected from the meteorological tower in Knox indicates that there is enough wind in the area to support a project in the near future.
6. Will my electric bill go down?
Most likely not, because the electricity from the project will be sold on the open market. This is the most cost-effective way for the community to reap the financial benefits of the wind farm. Revenues from the project can be used to offset property taxes.
On a regional scale, as wind energy becomes more common, it will help to stabilize the price of electricity because, unlike natural gas or oil, the price of the ÒfuelÓ does not go up.
7. How much money would the project make?
We can estimate the gross revenue from the project this way:
A wind farm with a 4.5 MW rated capacity (three 1.5 MW turbines) at a site with a 28% capacity factor would produce:
4.5 thousand kilowatts x 0.27 (capacity) x 8,760 hours per year = 10.643 million kilowatt-hours per year.
At a price of $0.068 per kilowatt-hour and with a green tag value (incentive payment for clean renewable energy) of $0.022 per kilowatt-hour, gross annual revenues would be around $957,906. From that the cost of operating and maintaining the wind farm, payments to landowners, and any interest on the loan or bonds used to pay for it would be taken. These costs, particularly the cost of money, are unknown at this time; but energy prices are predicted to continue to rise and interest rates are presently very low.
8. What are the goals of the NYSERDA-funded project?
NYSERDA has funded a project titled ÒPredevelopment Activities for Community-Owned Wind Energy in Rural Albany County.Ó
The ultimate goal of this project is to develop a business prospectus that can be used by a community group to seek financing for a utility-scale wind energy project.
9. How much will it cost to build the project?
The availability and cost of wind turbines in the next two years is a big unknown. However, the cost of developing the project will likely be in excess of $10 million.
10. What factors other than wind speed influence the feasibility of the project?
Distance to appropriate transmission lines, access by road to the site, value of power received for the project, and cost of money associated with project financing.
About Utility-Scale Wind Turbines in General:
These are topics which have come up at meetings. The answers below are not intended to be the last word on these issues. Each one will receive more attention in the future; some will even be subjects of Òwhite papersÓ that will be posted on the projectÕs web site, www.helderbergwind.org
11. Are wind turbines noisy?
Modern wind turbines are very quiet. In fact, the noise of the wind itself is usually greater than that produced by the turbinesÕ blades. Wind turbines are usually placed more than 1,000 feet from homes. A noise study is planned for the community wind project. The very best way to determine whether a turbine is ÔnoisyÕ is to visit one.
12. Do wind turbines kill birds and bats?
Studies have shown that, with a few exceptions, wind turbines do not kill large numbers of birds or bats. The exceptions for certain bird species are the early wind farms in Altamont Pass, California. Wind turbine interactions with bats are being studied in southern Pennsylvania and West Virginia. Far greater numbers of birds die in collisions with automobiles, and from predation by domestic cats. A bird and bat study is planned for rural Albany County as part of the NYSERDA project.
13. Will my TV reception be affected?
Wind turbines should be sited to avoid interference with television and radio transmission.
14. What risks are associated with shadow flicker near wind turbines?
Proper siting of wind turbines will eliminate concerns about shadow flicker on homes. Rates of shadow passage are very slow. There are no health effects from living near wind turbines.
15. How will property values be affected near a wind farm?
Studies have shown that property values are not adversely affected, and some even show increases within the area where a wind farm can be seen compared to similar properties where wind turbines cannot be seen. Many people find the appearance of wind turbines to be pleasing and want to support efforts to combat causes of global climate change.
Benefits of Community Wind Power:
FINANCIAL
a. Potential property tax relief; source of revenue for municipality.
b. Income ÒcropÓ for farmers.
c. Investment opportunity for local citizens.
d. Free Òfuel.Ó The price of wind never increases, unlike natural gas, oil, coal, etc.
e. No overhead costs for extracting and transporting fuel, such as those associated with nuclear, natural gas, oil, coal.
f. Wind turbines can be dismantled and removed for recycling in the future if/when new technologies make them obsolete.
g. No long term risks and costs such as those associated with nuclear power generation.
h. Energy diversity reduces the volatility of conventional fuel prices.
i. Creates a market and demand for manufacturing and other industry-related jobs for Americans.
j. Creates new local service and maintenance jobs.
NATIONAL SECURITY
k. Energy independence strengthens and advances homeland security; relieves political pressures associated with foreign oil.
l. Decentralized power sources are not attractive targets for terrorism.
HEALTH & ECOLOGICAL SAFETY
m. Zero emissions of carbon dioxide, oxides of nitrogen, sulfur dioxide, mercury, etc.
n. No devastation of mountain tops and surrounding terrain such as that associated with coal mining.
o. Open space conservation.
COMMUNITY PRIDE
p. Provides an opportunity to participate in solving global problems at the local level; provides an important and encouraging visual message to children and the general public.
q. Opportunity to attract local tourism and provide educational and recreational opportunities for people from outside the community.