Presented by Daniel E Du Bois Lessons Learned

Presented by Daniel E. Du. Bois

Lessons Learned • • Developers – don’t fall in love with your projects What do I mean ?

Lessons Learned • • Is your project doomed (and you don’t know it)? Some clues – 1. 2. 3. 4. Unrealistic economics The community hates it (or you) No transmission It’s a money pit

Unrealistic Economics • Major components – – – Scale Wind resource Capital costs (turbines + BOP) Expected return O&M (planned & unplanned) Revenue

Unrealistic Economics • • Create some practical guidelines Example – (assumptions) – – – • Scale = 50 MW (land – 100 acres /WTG) Wind = 7 m/s (30% NCF) Installed costs = $2, 000 / MW installed O&M = $50 -70 k/WTG Projected return 9% IRR Revenue = $80/m. Wh escalated at 2%

Unrealistic Economics

Community relations • Positive community relations is critical – It is the root of every permitting process • Is it not going well? – Some clues – • • • Misinformation (rumors) Organized opposition Law suits

Community relations • What to do? – – – Improve communication Regular local presence (local office) Town hall meetings Enlist supporters (land owners) Monthly newsletter

Interconnection vs. Transmission • • Do you have interconnection problems ? – Distance - On-site vs. miles – Property rights – Competition Do you have transmission problems? – Deliverability standard – Energy/capacity – Curtailment

Money Pit • Is your project a money pit? – Are you over budget? – Unforeseen expenses • • Law suits Transmission studies – Are you behind schedule • • Permitting delays Contingency planning

Conclusions • Evaluate development projects – Objectively – Realistically – Often