CommunityBased Energy Development

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Community-Based Energy Development (C-BED) Presen
ted by Joe Logan Slides contributed by Dan
Juhl joelogan_at_nlc.net djuhl_at_woodstocktel.net
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• What is C-BED?
• The C-Bed initiative is designed to optimize
  local economic benefits from wind energy
  development, and to facilitate widespread
  development of community-based wind energy
  projects.
• The purpose is to foster more Community-Based
  Energy Development (C-BED)
• C-BED projects are, and will be, owned by
  farmers, local businesses, schools, colleges and
  local communities.
• C-BED development will help to create a stable
  market which would attract component and turbine
  manufacturing
• C-BED projects can serve to reconcile local
  community opposition via inclusion

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• Why is C-BED Important?
• Without C-BED, nearly all of the ownership of
  renewable energy projects will be by very large
  companies -which have historically been
  headquartered out of state and in most cases, out
  of country. As a result, most all of the
  ownership benefits from conventionally developed
  projects do not accrue to the local or state
  economies.
• Local ownership of renewable energy projects
  keeps more of the financial benefits of ownership
  in the community. (Grassroots / viral form of
  Economic development).
• The preference for renewable energy development
  has been made clear by the people on both the
  state and federal level. If we are going to do
  wind development, lets do it right, and
  leverage the environmental benefits of renewable
  energy into long term economic sustainability for
  our rural communities.

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Over 130 MW of C-BED projects 150 million in
economic activity Created hundreds of new
jobs Provides long term revenue stream for
communities
Over 130 MW of C-BED projects in operation. 150
million in Economic activity. Hundreds of new
Jobs. Long term revenue. stream for rural
community
Over 130MW of C-BED projects 150 million in
economic activity Hundreds of new jobs Long term
revenue stream for local community
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• Quantifying the Economic impacts of C-BED
  Projects?
• A September 2004 General Accounting Office
  (GAO) report evaluated the economic benefits
  for rural communities and compared the benefits
  of projects owned by out of area interests and
  locally owned projects.
• - A comparison of tables 11 and 12 in the
  report shows that local ownership can generate
  significantly higher economic impacts for a
  county. For example, a single 40 MW project
  built in Pipestone County, Minnesota, would
  generate about 650,000 in new income for the
  county annually. In contrast, that same 40MWs
  locally owned, would
• generate about 3.3 million annually in the
  same county.
• - Their evaluation looked at 3 counties in Iowa
  and 2 in Minnesota. For these 5 counties, local
  ownership provided 2.5 times more jobs and 3.7
  times more total local area dollar impact.
• Recently released 2008 study by 25x25 and the
  Energy Foundation confirmed the findings.

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• What does C-BED mean to all the various
  stakeholders?
• By using a front loaded 20 year contract with a
  NPV rate of .035/kwh, which is below the avoided
  cost today of most all utilities from
  non-sustainable resources, it will impact
• RATEPAYERS Clean, stable, long term low cost
  electricity to the ratepayers that is not subject
  to fuel adjustment or environment penalties.
• UTILITIES The utilities will have in their mix,
  energy that costs them less as time moves out, a
  source that mitigates the fuel risk of natural
  gas plus all the green values to offset emission
  penalties from fossil fuels and the costly and
  dangerous storage of nuclear waste.
• Rural Communities C-BED can create 100s of
  millions of dollars in economic development
  activity and thousands of jobs. Referring to the
  GAO report, every 100 MWs of C-BED development
  would create over 150 million of economic
  activity and bring 15 million in revenue income
  benefits annually for our rural communities.
• STATE State wide economic development. New stable
  tax revenues from generation and income. Increase
  the EDAs ability to attract manufacturing and
  technology by creating a stable market.

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• What Would Happen Without C-BED?
• There will still be a significant amount of
  additional wind generation built in our country.
  The overall need for more energy and the
  economics of power generation are driving the
  demand for wind farms.
• The more important difference lies in Who
  benefits the most from this additional renewable
  generation?
• C-BED development will ensure that some of this
  new generation will be owned by local community
  members. This local ownership provides
  significantly more financial benefits for the
  local communities and the state as a whole. These
  local and state economic benefits will
  significantly improve the long term economic
  health of our rural communities.
• If we are going to do renewable energy--Lets do
  this right!!

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• Development Models
• Farmer Model 1-2 Turbines/Outside
  Equity--Minnesota Flip, Marriage of Venture Cap
  with Local Owners
• Community Based Model Multiple Turbines
  Community Raised Equity

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Whats Missing in Ohio?

• Clarity regarding the feasibility of Front-
  loaded tariff
• Clarity regarding flip Mechanism
• Carve-out
• SB221 has existing Carve-out for solar.
• SB221 requires that half of renewable energy sold
  in Ohio is generated in Ohio. Why not have a
  proportion of that designated to C-BED projects?

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Whats missing nationally?

• Permanent / long term PTC
• Feed in Tariff, or similar mechanism to broaden
  the appetite for tax credits
• Carve-out

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Still Work to do

• OFU and others will work to attain clarity from
  PUCO regarding Flip and Front loading.
• Will work for legislation to prioritize C-BED

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C-BED projects are

• Very good for rural communities
• Very good Economic development tools
• Leverage associated development
• Compound the economic impact of wind