Representative Lease for Wind Farm

Resource Flat fee $/acre/year Contract Option Construction, road, etc. Flat fee Income/year

Royalty Per turbine (minimum) Escalation

For wind farms, the landowner may receive one or more offers, and the leases (Table 12.2) will differ by region, wind resource, and access to transmission. Some landowners are forming associations for dealing with wind farm developers. In the United States, wind turbines can be installed on land currently under the Conservation Reserve Program (CRP); however, there may be a penalty or reimbursement, which is decided by the CRP district.

Other considerations for the landowner are: Who certifies the energy meter? And when? If there is future revenue from pollution credits, the landowner should share in that return. In countries where the national or state governments control the land, the question concerns present occupants, who and when receives payment (once or annual), and how much is paid for land removed from previous use.

The construction phase of a wind farm project will take from 6 months to a year, while the total development time from selection of land to commission may take up to 6 years (Table 12.3). Wind farms can be installed much faster than transmission lines can be built. Besides the production tax credits, a limiting factor that began in 2008 was that the demand for wind turbines was larger than production, which means lead times for delivery are 2 to 3 years after purchase orders.

12.7.1 Costs

The installed costs have increased from around $1.2 million/MW in 2003 to $1.6-2 million in 2008 (both in $ 2008), because of the increase in the price of steel, copper, and cement. Also, the price

Renewable Energy 101

Renewable Energy 101

Renewable energy is energy that is generated from sunlight, rain, tides, geothermal heat and wind. These sources are naturally and constantly replenished, which is why they are deemed as renewable. The usage of renewable energy sources is very important when considering the sustainability of the existing energy usage of the world. While there is currently an abundance of non-renewable energy sources, such as nuclear fuels, these energy sources are depleting. In addition to being a non-renewable supply, the non-renewable energy sources release emissions into the air, which has an adverse effect on the environment.

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