A Case Study in Community Wind

1
Welcome

• A Case Study in Community Wind
• New Ulm Public Utilities Commission -
• Success with Due Diligence

2
Introduction
Advanced wind resource assessment brings success
to community wind developments
3
Defining Community Wind

• What is community wind?
• Is it
• Size?
• Location?
• Economics?
• Community-based wind energy development is
  partially owned by local land owners or local
  stake holders

4
Who is New Ulm Public Utilities Commission?

• New Ulm Public Utilities Commission (NUPUC) is a
  municipal utility serving 6,000 consumers
• Goal to identify an economically viable and
  long-term new electrical generation resource
• NUPUC analyzed 10 options for existing and new
  generation
• NUPUC ascertained that wind was the most
  competitive long-term
• Called for RFPs form third party power producers
• This was unsuccessful because third party vendors
  were too costly

5
NUPUC and Wind Energy

• Advanced methodology wind resource assessment
  enabled NUPUC to make time and risk sensitive
  decisions
• By providing detailed long-term analysis in weeks
  vs. years
• Leads to making time sensitive and capital
  investment decisions
• Robust methodology and detailed analysis results
  were used in the economic analysis
• 3D gridded data vs. singular met data
• Giving high detail across the entire development
  site
• Long term data analysis vs. 1-year data
• Provided opportunity-cost benefits and project
  planning advantages
• Original wind turbine cost estimates were for
  1,200/kW, now 1,500/kW

6
Economics

• NUPUC has completed their economic projections
• Determined that they need 5 MW of wind energy
• They were able to scope and model project cost
• They will achieve their MN RPS mandate
• (Renewable Portfolio Standard)
• They will be able to use CREBs for their project
• (Clean Renewable Energy Bonds IRS website)
• Project output and projected revenue are now
  known
• NUPUCs high confidence in economic projections
  started with detailed wind resource analysis

7
Determining Economic Benefit

• Three main initial due diligence components
• Wind speed
• Access to transmission/site constructability
• Economic analysis

8
Wind Resource Assessment Value

• Long term wind resource assessment provided NUPUC
  with valuable data
• P-95 wind speed is around 7 to 7.5 m/s annual
  average
• NUPUC has less risk in spending capital
• Interconnection studies and permitting
• Met tower assessment
• Turbine vendors down payments
• Balance Of Plant design
• High value at the beginning of project

9
Next Steps for NUPUC?

• The challenges of being local working with your
  neighbors
• Further planning and investment is now feasible
• BOP
• Local stakeholder negotiations
• Validation of wind speed
• Financing
• Permitting
• Maintenance contracts
• Building in 2009 2010 season

10
Points to Remember

• Community wind is economically viable and
  valuable to communities
• Advanced wind resource assessment mitigates
  long-term and near-term capital and time
  sensitive risk issues
• The development process is sensitive work with
  and educate your neighbors about the advantages
  of community based wind
• Successful community wind is based not just on
  economics but also local ownership and involvement

11
Thank you!

• Wind energy is great for communities local wind
  farms empower communities
• A special thank you to Pat Wrase and the New Ulm
  Public Utilities Commission
• Yusef Orest
• WindLogics Inc
• yusefo_at_windlogics.com