Wind Project Externalities

Externalities will be covered later in Green Tags. These Green Tags are increasingly important to your economic performance.

The current level for the Federal Production Tax Credit (PCT) is valued at 2 Cents/KWH.

This is a large revenue-stream for Wind Farm projects that produce typically hundreds of thousands of KWH per month.

The economic structure you choose for your project will be key in leveraging your finance. Your principle objective is to minimize the up-front costs for your wind installation. Use all of the State Rebates that apply to your equipment. Choose your hardware from their pre-approved list.

Contact your Utility, to determine their interconnection policy, then contact your State Energy Office.

The second most important aspect of your wind facility will be the Energy Production. This is key to squeezing out as many KWH of delivered energy to the grid as possible. Use as high a tower as you can. Site your towers where they have the least obstructions nearby.

Markets with the highest cost of electricity are prime targets for wind development. States like Hawaii and Alaska are the new frontier for clean energy technologies, and specifically wind generators.

Innovation is ripe for the current market in the form of Third Party Financing. One of the most explosive and exciting areas in wind project development is the integration of a Third-Party to provide bridge-finance. Often, these emerging Third-Parties will take all or part of the Green Tags (i.e. State and Federal Tax Credits such as the Production Tax Credit PTC worth 2 Cents/KWH for projects installed before the end of fiscal year 2008.

Wind Power Economics - Externalities wipoecxxx