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April 14-16, 2008
Empire State Plaza Convention Center

Watch Windustry's web-based presentation on Wind Energy Easements from May 9th, 2007.
(Presented in conjunction with Colorado State University Extension Service and Iowa State University Extension Service.)

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Hundreds of megawatts of community wind projects have already been installed throughout the country, but increased policy support for locally-owned projects is needed so that rural America can continue to benefit from this growing industry.

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A power purchase agreement (PPA) is a contract to buy the electricity generated by a power plant. These agreements are a critical part of planning a successful wind project because they secure a long-term stream of revenue for the project through the sale of the electricity generated by the project. Securing a good PPA is often one of the most challenging elements of wind project development.

This section covers the basics of a power purchase agreement and things to consider as you negotiate with a power purchaser. The main topics covered in this section are:

• Length of the Agreement
• Commissioning Process
• Sale and Purchase
• Curtailment
• Transmission Issues
• Milestones and Defaults
• Credit
• Insurance
• Environmental Attributes or Credits

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The Minnesota Flip business model was developed in response to a unique combination of federal incentives for wind development and state policies that encouraged development of community-owned wind projects. The structure has proven a successful model for landowners and equity investors interested in partnering in the development of wind projects. This partnership allows the equity investor to take advantage of federal tax credits, while providing local owners the economic benefits of ownership.

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In order to be financially competitive, most wind projects need to take advantage of federal and, where available, state tax incentives. It is critical to understand the role and mechanics of tax incentives while developing a commercial-scale community wind project because these incentives can represent one-half to two thirds of the total revenue stream over the first 10 years of operation due to the Federal Production Tax Credit (PTC) and Modified Accelerated Cost-Recovery System (MACRS) or other type of depreciation that can be applied to wind energy assets. You will need to consult a tax professional in the early stages of project planning to ensure that your financial projections are valid and accurately take into account the project’s tax burden and benefits.