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Development: How it Works


Wind energy development is a simple process compared to fossil and other energy project development and can be implemented quite quickly to add new power capacity when needed. The following information provides a basic overview of the process.
So...how does it work?

Following are key questions to answer in order to ensure the success of a wind project in your area. Click the links below to learn more...

1. Is the site windy enough?

2. Does the site have access to transmission lines nearby?

3. What would the project layout look like if we were to build a project here?

4. How much land would be required for the project?

5. Who owns the land needed to build the project? Has access to the sites been secured with legal agreements?

6. What are the economic needs of the community?

7. Is there capital to support the project development efforts?

8. Have all the local and environmental permits been obtained?

9. Who will purchase the power?



1. Is the site windy enough?

The most essential question that a developer must answer is whether or not the proposed site has enough steady and strong wind to make the project economical to build.  A small increase in wind speed results in a large increase in power output, so finding the best wind sites is essential to a developer.

So how does a landowner or developer determine a site’s wind resource?  It helps to start first with a wind map of the state, where we can verify areas of strong wind.  Eventually, an official wind monitoring device will need to be installed on the site at a minimum height of 2/3 of the height of the wind turbine being considered. (For example, if an 80m turbine tower height would be used at site, a minimum of a 50m wind monitoring device would need to be installed.)  Typically, the wind must be measured for a minimum of 1 year in order to capture seasonal differences.  In addition, the recorded data would then need to be correlated to wind data from a local airport or other monitoring station that has collected wind data in the area for 10-20 years.  Why so long?  Since the project will last for over 20 years, we want to be sure that we don’t install wind turbines on a site that may have had just a few windy years.

So how much wind is enough?  It depends on project costs and economic conditions of the area, but typically, a viable wind project will have a minimum average annual wind speed around 7.0 – 8.0 meters per second or 15-18 miles per hour.

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2. Does the site have access to transmission lines nearby?

One of the ironies in wind energy is that a large amount of the strong winds are located in areas where there are not large numbers of people.   So nearby transmission lines that can carry the power to where it is needed are a very important aspect of selecting a successful wind project site.

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3. What would the project layout look like if we were to build a project here?

Even though wind energy is a clean, reliable source of power, we certainly understand that the local community may be hesitant to see a large project built in their area.  What will the project look like?  How will it affect the local surroundings?  What view of the turbines will be seen from my house?  Creating a proposed wind project layout is an important but challenging task that can answer some of these questions.  Prominent wind direction and one turbine’s interference with another requires sophisticated modeling efforts to ensure maximum turbine output and efficiency.  Once a layout is completed, a developer will oftentimes provide simulated images of the project to local communities and landowners in order to give them a better idea of what the final project may look like.

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4. How much land would be required for the project?

Even though a wind energy project will utilize only a small fraction (less than 3%) of the total land area, the dynamics of wind and the size of the equipment require that the turbines be spaced a good distance apart from one another.  Depending on the wind regime, the site topography, and existing structures in the area, wind turbines typically require 3-5 rotor diameters (approximately 1000 -1650 feet) between them.   Developers will use the proposed project layout and site conditions to determine the optimal number of turbines and thus the amount of land needed for the project to be built.

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5. Who owns the land needed to build the project?
Has access to the sites been secured with legal agreements?

As you have seen in the previous steps, wind energy projects require large amounts of land.  Typically, there are numerous landowners involved in a proposed wind project site.  In most cases, a developer will not purchase the land outright from the landowners since the majority of land can continue to be used for other purposes.  Instead, developers will work closely with all of the landowners to negotiate individual land lease agreements, typically for 30-40 year terms.  The amount of money paid to landowners each year is typically dependent upon the number and size of the installed turbines and the amount of electricity those turbines produces each year.

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6. What are the economic needs of the community?

Every community is different.  Therefore, as a developer approaches an area for a potential project, it is important to fully understand the economic needs and concerns of the neighborhoods nearby.  Oftentimes, developers will hold a public meeting locally to introduce wind energy and the potential project to the community.  We will listen to individual concerns and try to address those concerns with an open dialogue throughout the project.  In addition, we will meet with local government and area representatives to ensure that we understand the potential project benefits to the community.

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7. Is there capital to support the project development efforts?

As you have seen, there are many steps in building a wind energy project.  The time and effort certainly is not cheap, and a developer must always be certain that they have secured the investments needed to finish the project.  Depending on the strength of the wind at the site along with market conditions, an average wind energy project takes approximately $1.2 to $1.5 million per megawatt (MW) of capacity to install.  That would mean that a 10 MW wind energy facility would cost approximately $12 - $15 million to fully install.  To help lower the capital costs, developers often try to build larger wind farms so that they can take advantage of economies of scale.  For instance, the larger projects enable substation and transmission costs of the project to be spread over more megawatts, thus lowering the cost per MW. 

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8. Have all the local and environmental permits been obtained?

Once the project location has been determined, getting the needed environmental and siting permits in place can be challenging.  Unfortunately, not all windy sites are suitable for wind project development.  Aesthetics, bird migration, height restrictions, sound, and endangered species are some of the many areas that need to be carefully researched and addressed by the developers. Every site has its own zoning regulations, local ordinances, and permitting requirements, so developers will often use local professionals in the project area to guide them through the process.  Due to the fact that the permitting steps involves federal, state, and local governments and can often take longer than any other step in the process, ensuring a strong understanding of the local laws and a solid process timeline is essential to a developer’s success.

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9. Who will purchase the power?

Wind energy projects are only useful if there is someone to buy the power that is produced.  There are three different types of wind generation facilities – one that secures a long-term power purchase agreement with a local utility for a set price; one that sells the electricity produced by the project openly on the market (“merchant plant”); and one that is a utility ownership.  The type of project structure that is chosen depends upon the local area’s electricity supply and demand conditions along with current and projected electricity prices.

Once we have fully answered the questions above, construction of the project can begin.  Project construction contains many steps and because the circumstances and dynamics of each project differ, the time for completion may vary.  Below are the basic steps involved in construction:

Initial Road construction
Substations and turbine foundation construction
Electrical infrastructure and Collection System
Turbine Installation
Startup and Commissioning
Project Completion and dedication

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