Economics - Wind Energy: Renewable Energy and the Environment - page 250

per year. The present value for CO 2 trading in Europe is $30/metric ton, which is equivalent to $20/
MWh, and to around $30/MWh if replacing coal plants.
12.7 WIND PROJECT DEVELOPMENT
The three most important considerations for development of wind farms are:
1. Land with good to excellent wind resource
2. Contract to sell electricity produced
3. Access to transmission lines (proximity and carrying capacity)
The American Wind Energy Association [11, 12] and Wind Powering America [13] also have
information on project development. The project development list covers many areas; however, it
was placed in economics, as that is the final decision on a project. Much of the information was
from Disgen [14].
PROJECT DEVELOPMENT
1. Site selection
1.1. Evidence of significant wind resource
1.2. Preferably privately owned remote land
1.3. Proximity to transmission lines 69 kV (up to 25 miles for good site and 135 kV).
Note possibility of future transmission lines.
1.4. Reasonable road access
1.5. Few environmental concerns
1.6. Receptive community
2. Land
2.1. Term: Expected life of the turbine (early, 20-30 years, 10-year option; later, 30-50 years,
multiple 10-year options)
2.2. Rights: Wind rights, ingress/egress rights, transmission right-of-way for wind farm
2.3. Owner compensation: Percentage of revenue, per turbine, or combination
2.4 Assignable: Financing requirement
2.5 Indemnification
2.6 Reclamation provision
2.7 Bond to remove wind turbines at end of project
2.8 Wind energy easements, legal issues
3. Wind resource assessment
3.1. Lease, $/acre, 1-5 years, or flat fee
3.2. Corollary data: Wind maps (national, state, other), NWS data, other
3.3. Install meteorological tower(s), hub height or at least 50 m
3.4. Collect 10 min or an hour of wind speed and direction data, 1-2 years, minimum
1 year
3.5. Quality report on meteorology
3.6. Output projections for several turbine types
3.7. Landowner receives data, meteorology report, and output projections if developer
does not exercise option for installation of project.
4. Environmental
4.1. Cursory review for endangered species
4.2. Biological resources
4.2.1. Wildlife habitat
4.2.2. Loss of vegetation