Steps in Developing a Wind Farm

Wind Measurement

Rigorous wind measurement using state-of-the-art wind-measurement towers needs to be undertaken for over a year.

Landowner Agreements

Agreements with landowners have to be reached specifying the royalty payments to the landowner and specific concerns the landowner may have. Ridgeline may initially start with a relatively simple agreement giving Ridgeline the right to analyze the potential for wind farm development. Eventually, a full lease or easement agreement specifying in detail the payments to the landowner and Ridgeline's right to use the land for a wind farm will be required to support the investment of potentially over $100 million dollars on the land.

Environmental Analysis

A detailed review of habitat, flora and fauna, and historical and archaeological aspects of the site must be conducted. In addition, detailed avian studies have to be undertaken to ensure that the site will not adversely affect sensitive bird species such as bald eagles.

Wind Farm Layout and Turbine Selection

Detailed modeling of specific and aggregate turbine output is required to determine the optimal turbine model and specific locations of the turbines.

Transmission Interconnection

The ability of the local transmission grid to transfer the wind electricity to demand centers must be verified, and the cost of any upgrades determined.

Power Purchase Agreement (PPA)

A Power Purchase Agreement (PPA) is a contract between the purchaser of electricity (typically a utility) and the project developer. A PPA is usually required before a project will be constructed.

Financing

A utility-scale wind farm requires an investment of over $1 million per megawatt and often exceeds $100 million in total. In addition, the financing has to be structured such the tax benefits available to wind farms are fully utilized to assure the lowest cost of financing.

Turbine Agreements

Wind turbines represent about 75% of the total cost of a wind farm. Detailed agreements need to be reached with the turbine supplier specifying delivery schedule, turbine output, warranties and maintenance.

Construction Agreements

Agreements have to be put in place with construction contractors to build the roads, foundations, electrical collection system and substation, and to erect and commission the turbines. These agreements will include project specifications, schedules, and financial incentives/penalties.

Actual Construction

Construction of a wind farm generally takes about 6 months. During this period the performance of the construction contractors and the turbine suppliers has to be carefully monitored to ensure compliance with the contracts and adherence to landowner requirements.