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Wind power project development can be risky for owners

Speaker from Basin Electric offers tips to assist landowners.

Basin Electric Power Cooperative - February 9, 2010

Originally published in The Williston Herald
Reported by Alan Reed

There are six key questions that should be asked of any wind project developer before any documents are signed by a landowner in the state.

Basin Electric Cooperative alternative technologies coordinator Jeremy Woeste gave a review of wind power project development during the recent Williston Hard Spring Wheat Show.

He said the first question to ask any wind project developer is have you ever completed a project.

"Many developers have the dreams of doing it, but have never done it," Woeste said.

Who is being asked to fund the project is the second key question. "Are you being asked to put money into the project?" he asked.

As important is the question of having the transmission connection secured for the power that is to be produced, Woeste said.

Also important is whether or not a customer is in place to buy the power that is to be produced.

"Generally when a developer doesn't have a customer for the power they don't have a project," Woeste said.

Another factor is whether the project can actually obtain the necessary permitting.

"Are there risks? Is it in an endangered species area?" he asked.

Lastly, are the cost estimates for the overall project realistic.

"What is the projected costs per kilowatt hour going to be?" he said. "If they can have it somewhere between 4-8 cents, that is probably a project that has a shot of going forward."

From start to finish, a wind project takes about 30 months, he said. In generating electricity, wind displaces the highest cost fuel, which is gas, Woeste said.

Wind and gas are a viable combination option to generate electricity with one concern, he said.

"The gas price is a huge risk. We don't now what the future of gas is going to be," Woeste said. "Gas is also not carbon free. There is still a carbon footprint associated with the burning of gas as well."

In states like North Dakota, there also are issues like cold weather, when most wind turbines shut down around 22 below.

Lightning strikes also are common but are not an issue, he said.

"At the same time, generally there is not much wind when it is hot outside either," Woeste said.

Overall, the wind resources are in the middle of the United States, while the solar resources are in the southwestern part of the country.

"But all of the consumption is on the coasts," he added.

Which brings electrical power generation options back to the basic question of how it is finally distributed to the population centers. There more recently is talk of creating a transmission system that is similar to the interstate highway system, he said.

"The question is who is going to pay for that," he said of the approximate 19,000 miles of power line that carries an estimated cost of $60 billion.

He said solar power is not likely to be much of a player in states like North Dakota or much of the Upper Midwest because solar power costs anywhere from 20-38 cents per kilowatt hour.

A developer needs about $250 million for a single large wind project.

"Harvesting the wind is feasible. It is no different from anything else you harvest," Woeste told area growers. "But economic decisions drive all wind projects."

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