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Q: WIND ENERGY public co-ops ( Answered 5 out of 5 stars,   1 Comment )
Question  
Subject: WIND ENERGY public co-ops
Category: Business and Money
Asked by: brudenell-ga
List Price: $15.00
Posted: 14 Dec 2002 17:00 PST
Expires: 13 Jan 2003 17:00 PST
Question ID: 124754
I am seeking text information on existing (or developing) wind energy
producing public co-operatives that allow the owners to reduce their
grid power dependence with their ownership.

Clarification of Question by brudenell-ga on 15 Dec 2002 10:04 PST
A tip will be paid for a detailed description of the steps on how a
publicly owned wind energy co-operative is established. Thank you.
Brudenell
Answer  
Subject: Re: WIND ENERGY public co-ops
Answered By: sublime1-ga on 15 Dec 2002 12:54 PST
Rated:5 out of 5 stars
 
brudenell...

Per this page, at Hearthmakers Energy Cooperative:
"The first large scale use of wind generated
 electricity began in the early 1980s in Denmark
 and California. Both of these initiatives were
 strongly supported by government programs."

"Today, wind power is the fastest growing energy
 technology in the world — according to NEG Micon,
 wind power has grown at an average rate of 22%
 annually since 1990, and 40% annually since 1995.
 Denmark is the world's largest manufacturer of
 wind turbines, with a market share of 53%."

"Canada has 150 wind turbines installed, of which
 133 of are located on a newly developed site on
 the Gaspé Peninsula in Quebec. This wind farm
 will generate 100 Megawatts of electricity.
 Canada's other major wind farm is now being
 developed by Vision Quest Windelectric Inc.,
 and consists of fourteen wind turbines in the
 Pincher Creek area in the foothills of the
 Rocky Mountains."
http://www.hearthmakers.org/services/wind.php

Hearthmakers is part of the 'Greater Kingston
Trade Winds Project', whose site is here:
http://tradewinds.hearthmakers.com

It is evident from links and information on
this page, that government subsidy is a big
part of the funding of such projects:

"Federation of Canadian Municipalities
 Announces Funding of $200,000 for Trade
 Winds Projects"

"The Greater Kingston Trade Winds Project
 has received two separate grants from the
 Green Municipal Enabling Fund."

"The Green Municipal Enabling Fund (GMEF) is
 a five-year, $25 million fund that provides
 grants to support feasibility studies."

"GMEF expects to support up to 150 studies a
 year to assess the technical, environmental
 and/or economic feasibility of innovative
 municipal projects. Grants cover up to 50
 per cent of eligible costs to a maximum
 grant of $100,000."
http://www.fcm.ca/pcp/gmefcrit-e.html

and:

"More Than $400,000 in Federal Funding
 Announced to Support Community Development
 in Rural Canada"

Local workshops seem an integral part of
developing interest and initiative:

"Kingston, July 12/ — Thirty-eight business,
 technology and environmental leaders met at
 St.Lawrence College this week to consider
 steps for bringing renewable energy projects
 to Kingston. The workshop discussed the
 actions necessary to making Kingston a model
 community in the use of new energy
 technologies"
http://www.hearthmakers.org/tradewinds/news/20020712.php

***************************************************
Soliciting the support of environmental organizations
also seems to be a necessary component of the process:

"'Businesses and municipalities in southeast Pennsylvania
 can now buy wind energy for a significant portion of
 their electric needs with a minimal, or no, increase
 in their electric bill," stated Nadia Adawi, the Energy
 Cooperative's director of operations. "By switching to
 us for their electricity supply and applying the
 savings to purchasing wind power, we can help offset
 the slightly higher cost to generate wind power. 
 The Energy Cooperative is proud to partner with
 Community Energy to bring this innovation to our
 customers.'"

"...Clean Air Council provided technical assistance
 to the borough during the decision-making process
 that ultimately led to the wind energy purchase.
 "Clean Air Council urges everyone to follow the
 lead of Media and purchase wind energy," said
 Joseph Otis Minott, Esq., executive director of
 the Council. "Wind generation facilities emit no
 health-threatening pollution, add to the local
 tax base, and provide much needed revenue for
 family farmers. The Council applauds the Energy
 Cooperative and Community Energy for creating more
 options for customers looking to buy wind energy'"

"Clean Air Council is a regional environmental
 group that focuses on clean energy policy in
 addition to its air pollution and transportation
 programs." www.cleanair.org 
http://www.newwindenergy.com/regional/mid-atlantic/press_release/borough_of_media_press.htm

***************************************************
New Wind Energy's site is here:
http://www.newwindenergy.com/index.html

"New Wind Energy™ from Community Energy, Inc.
 is electricity supplied from newly developed
 wind resources. New wind turbines are the
 fastest growing and most cost-effective
 renewable energy technology, producing
 electricity with no fuel and no pollution.
 Community Energy, Inc. was formed by people
 committed to protecting our environment, and
 to the development and promotion of NEW clean,
 renewable energy. Community Energy, Inc.,
 brought the first commercial wind turbines
 online in Pennsylvania in December 1999, and
 is currently working to bring the largest wind
 farm east of the Mississippi online in 2002."

"New Wind Energy is Sold in Blocks at a Fixed
 Premium Price"

"New Wind Energy is sold in affordable blocks of
 pure wind energy. Customers choose the amount of
 wind energy they would like to purchase as part
 of their ordinary electric supply with no change
 in reliability. The price for each block of New
 Wind Energy is set at a fixed premium over
 conventional supply, currently $2.50 for each
 100 kWh of wind energy. The more blocks customers
 purchase, the more wind turbines are built."
http://www.newwindenergy.com/common/nwe.html

"In partnership with a utility supplier and
 environmental partners, CEI brought the first
 wind plant on line in the competitive Pennsylvania
 market in 1999, and sold the output immediately.
 In the fall of 2001, CEI subscribed the five
 largest wind energy purchases nationally for the
 output of two new wind-farms adding 24 megawatts
 in the mid-Atlantic. These marketing arrangements
 have resulted in 140 megawatts of new wind
 generation under contract-about five times the
 previous capacity east of the Mississippi. The
 Company built its marketing program on a
 pioneering wind energy marketing effort that
 attracted 20,000 residences, 500 businesses, and
 two-dozen governmental entities."
http://www.newwindenergy.com/common/aboutcei.html

***************************************************
The mE3 site (Minnesotans for an Energy-efficient
Economy) has a HUGE number of related links, including
at least two pages of non-Minnesota links, a page of
links to publications on the subject, and Federal
Government Resources:
http://www.me3.org/issues/wind/

I therefore searched this abundant site for information
on establishing cooperatives.

Here's the rsesults of a project to determine the 
feasibility of "farmer-initiated and owned wind
energy developments in Minnesota":
http://www.me3.org/projects/seed/localfease.html

"The project began with three outreach meetings..."

"...One of the key research questions involved the
 appropriate legal structure for farmer-owned wind
 businesses. A Minnesota law passed in 1995 provided
 production incentive payments to small wind project
 of 2 MW or less owned by individuals or agricultural
 cooperatives. The law is important because farmers
 and other small investors do not have tax liabilities
 large enough to take full advantage of the federal
 tax credits offered for wind development. Research
 conducted through this project found that in most
 cases, a cooperative is an inappropriate legal
 structure for a wind business. Limited liability
 corporations (LLCs) and limited liability partnerships
 (LLP) were identified as two business forms that
 could be structured to accommodate local ownership,
 equitable decision-making and no taxation at the
 corporate level."...

..."Advocates here have looked to northern Europe
 for possible windpower development models. Much
 of the wind power development there is being done
 in small clusters of wind turbines by cooperatives
 of farmers who own the windy land"...

..."A 1996 study of the economic impacts of wind
 development in southwest Minnesota done by the
 Southwest Regional Development Commission confirmed
 this presumption. The study documented the benefits
 of local ownership to the local economy. Local
 investors would retain the return on investment and
 energy sales profits in the local economy, creating
 between 25 and 150 more jobs and adding $700,000 to
 $4.3 million in additional value added, over a large
 corporate wind farm model."

"Minnesota lawmakers have shared the belief that rural
 areas in the state would benefit more from smaller,
 locally-owned wind projects, and have put a number
 of provisions in place over the years that support it."

"The project had its roots in three renewable energy
 conferences held in rural Minnesota in the fall of
 1995 and early winter of 1996. Over 150 local
 landowners, economic development professionals,
 state and local officials, and others attended the
 Wind Across the Prairie conference held in southwest
 Minnesota."

The document goes on to discuss the outcomes for 3 
specific groups of farmers who centered in 3 geographic
areas, and were interested in forming cooperatives.

The outcomes were varied, with a number of obstacles
particular to each group, and several obstacles in 
general, being identified, including the following:

* Legal Structure
* Getting the Policy Supports Right
* Difficulty Raising Local Equity
* Difficulty in Securing Local Debt Capital
* Lack of a Model
* Lack of Technical Support
* It's Never Been Done Before - First Project
  Requires More Time and Resources
* Utility Expectations
* Existing Wind Leases

Necessary 'next steps' were identified:

1. Policy changes to ensure a growing market for
   renewable energy
2. Policy changes to support locally-owned and
   farmer-owned wind developments
3. Work with utilities to promote renewables
4. Look ahead to future opportunities
5. Develop one or more projects
6. Funding for Technical Support
7. More in-depth research
8. More education for farmers, local educators,
   lenders, and others
9. Resource information more available to farmers

Further recommendations created as a result of this
study can be seen at the conclusion of this page:
http://www.me3.org/projects/seed/harvestwind.html

***************************************************
One thing that becomes evident is that support is needed
from the state govenment in formulating an energy
restructuring program that allows a successful integration
of sustainable resources:

"Energy efficiency, renewables, and environmental
 policies are needed in restructuring because the
 public benefits of energy efficiency and renewables
 are not reflected in electricity prices (or
 conversely the external costs of fossil fuels and
 nuclear).  This is a fundamental market failure
 that puts energy efficiency and renewable energy
 at a competitive disadvantage and causes consumers
 to underinvest.  Without supportive policies, it
 will become even more difficult to capture these
 benefits under a competitive electricity industry
 focused on the bottom-line.  Evidence of this is
 the decrease in utility spending on public benefits
 programs over the past five years as utilities cut
 costs to prepare themselves for potential
 restructuring."
http://www.me3.org/projects/dereg/LEETFcomments2.html


Searches done, via Google:

"wind energy" cooperative
://www.google.com/search?hl=en&ie=UTF-8&oe=UTF-8&q=%22wind+energy%22+cooperative

"cooperative" site:www.me3.org
://www.google.com/search?num=50&hl=en&lr=&ie=UTF-8&oe=UTF-8&safe=off&q=%22cooperative%22+site%3Awww.me3.org&btnG=Google+Search

"establishing cooperative" site:www.me3.org
://www.google.com/search?num=50&hl=en&lr=&ie=UTF-8&oe=UTF-8&safe=off&q=%22establishing+cooperative%22+site%3Awww.me3.org&btnG=Google+Search

"forming cooperative" site:www.me3.org
://www.google.com/search?num=50&hl=en&lr=&ie=UTF-8&oe=UTF-8&safe=off&q=%22forming+cooperative%22+site%3Awww.me3.org&btnG=Google+Search

forming cooperative site:www.me3.org
://www.google.com/search?num=50&hl=en&lr=&ie=UTF-8&oe=UTF-8&safe=off&q=forming+cooperative+site%3Awww.me3.org

establishing cooperative site:www.me3.org
://www.google.com/search?num=50&hl=en&lr=&ie=UTF-8&oe=UTF-8&safe=off&q=establishing+cooperative+site%3Awww.me3.org&btnG=Google+Search


Please do not rate this answer until you are satisfied that
the answer cannot be improved upon by means of a dialog with
the researcher through the "Request for Clarification" process.

sublime1-ga

Clarification of Answer by sublime1-ga on 05 Jan 2003 17:44 PST
brudenell...

Thanks very much for the great rating and the generous tip!

sublime1-ga
brudenell-ga rated this answer:5 out of 5 stars and gave an additional tip of: $15.00
Thank you!

Comments  
Subject: Re: WIND ENERGY public co-ops
From: neilzero-ga on 16 Dec 2002 05:20 PST
 
By public, do you mean government or open ended private that allows
additional members? In the USA, the power lines and most of the power
grid are owned by corporations, an occassional one of which is what we
call a co-operative with a minimum of a few thousand members. A few of
these corporations get some power from the wind, but good locations
for wind power are rare and thouand dollar istalations typically
produce $10 worth of electricity per year in less than perfect
locations. In theory, home owners can put electricity on the grid, but
most places this is done illegaly because the rules make tiny systems
totally impractical. I can't think of any practical way 3 or 4 close
neighbors could share perhaps 5 kw when the wind blows hard. It would
be helpful if you tell us your location and why you think it is good
for wind power.  Neil

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