Wind energy vs. wind energy - Solar, Wind and Land: Conflicts in Renewable Energy Development - page 57

U, Upwind Developer's application would have violated the wind access
buffer and been denied on that ground. In contrast, if Upwind Developer
had been the first to install a turbine, Downwind Developer would have
been prohibited under the rule from installing a turbine at Site D because
of its close proximity to the existing turbine at Site U.
Regrettably, one disadvantage of using a first-in-time rule for wind
turbine wake interference is its potential to promote inefficient “strategic
behavior” problems among developers. For example, suppose that a
first-in-time rule applied in Downwind Developer's jurisdiction but that
the developer was not prepared to construct a significant wind farm on
Parcel D anytime soon. In such a situation, Downwind Developer might
elect to install multiple small , inexpensive wind turbines along its common
boundary line with Parcel U as a way of securing wind rights in the area
for future development. Once those small turbines were installed, Upwind
Developer would be unable to site any turbines—large or small—within five
rotor diameters of them. For obvious reasons, such opportunistic behavior
could create inefficiencies and perverse incentives in the context of wind
energy development.
The uniqueness of wind
In summary, laws governing oil, water or wild animals are not well-suited
for allocating rights in wind because they do not account for wind's distinct
characteristics. To continue quoting from the article referenced above:
Wind is truly unlike any other natural resource. It is ephemeral and
invisible. Unlike oil, minerals, animals or water, wind is not easily
transported or diverted for use elsewhere.
Wind also differs from other natural resources in that its productive
value is often location-specific. If one million barrels of oil reside in a
large subsurface pool, then ultimately about one million barrels will
be extracted and added to the world's oil supply regardless of whether
the extraction occurs on a particular parcel or on neighboring parcels.
Similarly, the total volume of usable water in a river is roughly constant
regardless of whether water is diverted and used by an upstream
landowner or by someone located miles downstream. But such is
not the case for wind. Higher average wind speeds generate far more
electric power, and average wind speeds are influenced by topography
and can vary significantly by location. Thus, the amount of wind energy
generated from a given set of properties is often based on where upon
those properties wind turbines are installed. Maximizing wind energy
production from a fixed set of properties and turbines requires installing
the turbines in those locations that collectively exhibit the greatest wind
energy potential. The impact of where wind is captured on how much
wind power is generated makes wind unique among natural resources.