Wind Energy Feasibility Study - Town Of Orleans

Wind Energy Facility Economic AnalysisTown of Orleans, MA3.0 POTENTIAL VALUE OF WIND GENERATED ELECTRICITYThis section provides an analysis of the various benefits and revenue factors associated with thetypical behind the meter commercial scale wind turbine project. Estimates of project costs areconsidered later in this report. One of the key drivers of this project is the economic value ofhaving the Town of Orleans utilize the electricity generated by the wind turbine under a “virtualnet metering” framework. Provisions included in the recent Green Communities Act would allowthe town to utilize all of the electricity produced by a turbine to offset Town-wide electricity use,not just electricity used at time and location of generation. Further discussion regarding thesescenarios is provided in the following sections.3.1 Net MeteringNet metering included in the Green Communities Act legislation, signed into law July 2, 2008allows for net metering up to 10.0 MW for government owned projects, subject to final rulemaking. This would allow the town to utilize all of the electricity produced by a turbine to offsettotal electricity use at the facility, not just electricity used at time of generation. If a wind turbinewere to produce more energy than the town would consume in a given month, the credit wouldbe carried forward to the next month. If there were unused credits at the end of the year, it is notyet clear how the credits would be applied. In addition, the Green Communities Act has aprovision for “virtual” net metering, which would allow the excess energy to be credited toanother facility (or facilities) within the same ISO-NE load zone.A 600 kW wind turbine would be classified as a Class II wind net metering facility. A Class IInet metering facility is defined as an agricultural net metering facility, solar net metering facility,or wind net metering facility with a generating capacity of more than 60 kilowatts but less thanor equal to 1 megawatt; provided, however, that a Class II net metering facility owned oroperated by a customer which is a municipality or other governmental entity may have agenerating capacity of more than 60 kilowatts but less than or equal to 1 megawatt per unit.13