Mission
The purpose of this prospectus is to provide those who are interested in developing locally-owned wind projects a tool to create and manifest projects in accord with project definitions provided and agreed upon by their local community. An explicit part of the mission is to stimulate new ways of thinking about wind energy development and in so doing broaden public participation in the development process.
Goals and Objectives
The goal of this prospectus is to supply the Helderberg Community Energy team with a document that can be used as a means to seek project financing.
Distinction between Development Entity and Ownership Entity
It is important to understand that the project development entity will be separate from the project owner, although it is possible that members of the Helderberg Community Energy team may also be members of the ownership entity provided that an ownership structure allows for that ownership interest to exist.
The main role of a development entity is to create a finance-worthy project in the form of project assets. Some of the assets that are necessary to secure project financing include: an interconnection agreement, wind resource assessment and energy yield analysis, land leases, project civil and electric design, turbine and tower purchase agreements, a project proforma, and all permits necessary to construct a project. The money that goes into creating the assets will, in this document, be referred to as predevlopment funding. Typically, at the point when project development assets can show a future return on investment to an interested and capable owner, then a developer can sell or transfer those assets to a project owner. The project owner is an entity that has the means to finance and operate the project.
In the course of executing project deliverables for this NYSERDA-funded project, the project team has created several valuable project assets. The Helderberg Community Energy team has agreed to utilize the assets that have been created by the project team and use them in a manner “to develop a commercially viable, community owned renewable energy project to address climate change with local solutions while strengthening our rural economy in a way that is compatible with agriculture.”
Next Steps and Recommendations
Some of the project development tasks that remain before any construction can occur can be found below:
- Identifying the maximum amount of capacity that can be added to the three-phase line
- Securing land lease agreement and right -of –ways between turbines and turbine to interconnection point
- Securing an interconnection agreement
- Identifying and securing agreement with project owner
- Project civil design
- Project electric design
- Securing power off-take agreement
- Securing agreement with turbine vendor
- Securing permits with town to build wind farm
-Loren will provide budget w/ tasks above separately-it will not be in the prospectus –
To help the Helderberg Community Energy Group realize its mission the following steps are recommended to help execute the above tasks:
- Formalize structure to legal entity
- Identify and secure project manager
- Identify what tasks group members are capable and willing to perform
- Form relationships with similar-like entities
- Seek predevelopment funding
- Educate
- Continue to clarify the group’s intentions
In the near term, the Helderberg Community Energy Group will needs to formalize their structure to allow the group the capacity to contract with other entities that can aid with the execution of the tasks outlined above.
Prior to the creation of a legal entity or shortly thereafter, the Helderberg Community Energy Group will likely find it beneficial to appoint a project manager to the development team, who will essentially act as a “seeing-eye dog” or guide, for those interested in walking down the path of developing a project for the first time. The project managers responsibilities can include but not be limited to: executing the project teams plan, helping to create the project teams plan, generating and maintaining a project budget, updating project proforma’s from potential owner feedback, identifying and recommending experts, using his or her experience and contacts to help navigate through any unforeseen project hurdles. Knowing the steps involved in a project is one component to project success-knowing how to execute the steps is what ensures project success and that is precisely what a good project manager will allow a development entity to do.
There are several groups of people throughout New York State, and outside of the state, who have similar missions to the Helderberg Community Energy Group. It is likely that defining mutual efforts and sharing “lessons learned” will create a relationship that synergistically benefits both entities.
To execute project development tasks funding will be necessary. Sources of predevelopment funding may include but not be limited to: local residents, a government entity (local or county), the New York State Research and Development Authority (NYSERDA), the USDA, the project owner, or a combination of those listed above.
Predevelopment funding for community projects is the single greatest hurdle to market development at this point. When a predevelopment funding program for community projects is established community wind farms will begin emerging throughout the state.
Educating all potential project stakeholders and interested parties about community wind energy and project specifics is a crucial element to the success of any project. Educating others about the efforts of the team will allow a broader spectrum of people to participate with finding ways to make this project and others a success.
As the group continues to walk down the path of developing a community-owned project a tremendous amount of knowledge will be gained. It is important to assimilate this knowledge in a flexible manner that allows the intentions of the group to refine. Periodic examinations of the groups intentions will help the team stay on course and will help provide the integrity necessary to overcome project obstacles.