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Implementing a Wind Power Project
Implementing a Wind Power Project
James MurphyManager, New Project Development
Ontario Sustainable Energy Association
Project FundamentalsProject Fundamentals
• Feasibility Studies• Project & Communication Plans• Permits/Approvals• Financing
– Development & Capital Financing– Power Purchase Agreement
• Purchasing Turbines
Pre - Feasibility StudiesPre - Feasibility Studies
• Identify preliminary sites• What are your requirements?
– Performance? Visibility? • Highlight opportunities, barriers, challenges• Do preliminary modeling of project• RETScreen www.retscreen.net
– Excellent tool, software free to download– Perform preliminary financial analysis, model
anticipated production
RETScreen Financial AnalysisRETScreen Financial Analysis
RETScreen Financial AnalysisRETScreen Financial Analysis
Feasibility StudiesFeasibility Studies
• Wind Resource Assessment– Secure land rights!– Important to measure as close to hub height as
possible– Potentially do-it-yourself, however, implications
• Environmental Assessment– Provincial and Federal EA triggers– Contract consultants – Public consultation extremely important
Project FundamentalsProject Fundamentals
• Feasibility Studies• Project & Communication Plans• Permits/Approvals• Financing
– Development & Capital Financing– Power Purchase Agreement
• Purchasing Turbines
Project and Communications PlansProject and Communications Plans
• Business Plan: Core document– Determine audience (funders, public, internal)– Be concise in communication– Cover all relevant steps (structure, resources,
projections etc.)• Communication Plan
– Overarching communication strategy which ties in with public consultation for EA
– Community can be best friend or biggest obstacle
Project PlanProject Plan
• Essential in the development of a successful project
• Wind projects are extremely complex– Highly technical– Market is still in infancy– Expensive
• Numerous overlapping tasks • Utilize project planning software
(ex. MS Project, Gantt chart in Excel)
Project Plan OverviewProject Plan Overview
Permits/ApprovalsPermits/Approvals
Interconnection• System & Customer Impact Analysis• Completed reports available visit:
www.theimo.comMunicipal• Zoning approval, building permits etc.• Early contact, consistent communication
Project FundamentalsProject Fundamentals
• Feasibility Studies• Project & Communication Plans• Permits/Approvals• Financing
– Development & Capital Financing– Power Purchase Agreement
• Purchasing Turbines
Development Financing Development Financing
• Difficult financing to raise• Need to develop project to point of Power
Purchase Agreement (PPA)• Higher risk, therefore offer higher return• Partnerships/Joint ventures• Investment Funds • Grants, Low-interest loans
Power Purchase AgreementPower Purchase Agreement
• Ontario Government Request for Proposals– Awarded nearly 400MW of renewables– Expect second RFP end of February
www.ontarioelectricityrfp.ca• OSEA’s proposed Advanced Renewable
Tariffs– Fixed rate for fixed term with guaranteed rights
to interconnect– Projects 10MW and under
Financing AlternativesFinancing Alternatives
Canadian Renewable & Conservation Expense• Through the issue of flow through shares,
pass on costs to develop ‘test turbines’ to investors who require tax shelter
• Number of Flow Through Financers emerging:– Crest Street: www.creststreet.com– Quantum Leap: www.quantumleapco.com– Etc.
IncentivesIncentives
Wind Power Production Incentive• Provides production incentive to generators• Program extended from 1,000MW to 4,000MW• Till March 31, 2006 new applicants receive
$0.01/kWh generated for 10 years• Triggers Federal EA• More info and apply online:
www.canren.gc.ca
Project FundamentalsProject Fundamentals
• Feasibility Studies• Project & Communication Plans• Permits/Approvals• Financing
– Development & Capital Financing– Power Purchase Agreement
• Purchasing Turbines
Direct Drive ManufacturersDirect Drive Manufacturers
Enercon800kW E482MW E70www.enercon.de/enAWE750kW LW 52http://awe-wind.com
Traditional ManufacturersTraditional Manufacturers
Vestas1.8MW V90www.vestas.com
General Electric1.5MW SLE Modelwww.gepower.com
Purchasing Wind TurbinesPurchasing Wind Turbines
• Direct contact with manufacturer is important• Know production availability (beware of
bottlenecks)• Joint purchasing potential for single turbine
sales and small orders • Manufacturer financing increasingly
available• Investigate all your options
For More InformationFor More Information
• Join OSEA– Visit www.communitygreenpower.ca
• Contact:James MurphyManager, New Project DevelopmentOntario Sustainable Energy Association(p) 416.977.4441(e) james@ontario-sea.org
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