Wind Energy Feasibility Study - Town Of Orleans

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Wind Energy Facility Economic AnalysisTown of Orleans, MARenewable Generation, as opposed to using RECs banked from 2006 compliance surplus. Lessthan one percent of the 2007 compliance obligation was met using by making AlternativeCompliance Payments (ACPs) to the Massachusetts Technology Collaborative (MTC). In 2007,the value of all ACPs totaled only $623,740.40 (10,920 MWh at $57.12/MWh). This is in starkcontrast to the ACPs of the previous three compliance years, 2004-06, which were in excess often million dollars each year.A supply surplus for 2007 RPS compliance replaced the supply shortages of the previous fouryears of RPS, 2003-2006. The total supply of qualified electricity from New RenewableGeneration Units exceeded the demand for the first time since the program began in 2003. Thetotal retail load obligation in 2007 was about 50,978 GWh, of which the three percent RPSobligation was about 1,529 GWh. The total supply of RECs was about 1,606 GWh. The RPSobligation in 2007 was three percent. As a result, REC credits were purchased at an average rateof $57.12 per MWh.Under the Community Wind Collaborative, Standard Financial Offer, Phase II REC ContractOffer (Revised March 3, 2008), the MTC was offering to purchase REC at $40 per MWh forqualified projects. In a press release from October 25, 2007, Evolution Markets Inc. announcedthat it had completed a forward auction of RECs for the MTC in which all of the Massachusetts“New” Renewable Certificates sold at auction for an average price of $52.52. A total of 25,000vintage 2008 REC (Quarters 1 through 4) were offered, with the highest bid reported to be$53.00 per REC (where 1 REC equals 1 MWh).The more general concept of green power marketing refers to selling green power in thecompetitive marketplace, in which multiple suppliers and service offerings exist. Electricitymarkets are now fully or partially open to competition in more than a dozen states. To date,competitive marketers have offered green power to retail or wholesale customers in District ofColumbia, California, Illinois, Maryland, New Jersey, New York, Pennsylvania, Texas, Virginia,and several New England states.17
Wind Energy Facility Economic AnalysisTown of Orleans, MAResidential REC market data, maintained by the U.S. Department of Energy Office of EnergyEfficiency and Renewable Energy (EERE) report that the national residential REC prices rangedfrom $5 to over $50 and average just over $20 per MWh. The REC prices varies regionally,based on the retail electric rates. The average residential REC prices for New England werereported to be approximately $50, which were near the highest in the nation. The residential RECmarket supports projects for those electric customers who want the energy they purchase to bederived from clean, renewable sources. There are five marketers of green energy listed inMassachusetts, including the Cape Light Compact.Under the Cape Light Compact Green program, customers can purchase 100% of their electricityfrom renewable energy sources including run of the river hydro (75%), landfill gas or wind(24%), and solar (1%) for 8.9¢/kWh, or a premium of 1.768¢/kWh over the Compact's standardelectricity product. Alternatively, customers can choose a 50% renewable energy option for8.3¢/kWh, which represents a premium of 2.336¢/kWh for the green power portion. Initially,25% of the product will come from "new" renewable resources. A portion of the renewableenergy premium can be deducted from federal taxes. Additionally, the state will match up to75% of the premium to provide funds for community-based renewable energy projects andsimilar initiatives for low-income residents across the state.Based on review of the market data referenced above, Weston & Sampson believes that aconservative market value of REC is on the order of $40 MWh, at least for the first few yearsafter commissioning. For the purpose of this study, we have assigned a value of $40 first 10years of production, falling to $30 MWh for the period from 11 to 20 years, noting thatpredicting energy prices and market value into the future is inherently uncertain.18
Page 1: proposalTown ofMASSACHUSETTSFebruar
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Page 42 and 43: ELECON - TURBOWINDSDESIGN AND SUPPL
Page 44 and 45: 1 GENERAL DESCRIPTIONThe T600 is de
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Page 50 and 51: 2 MECHANICAL2.1 RotorThe rotor asse
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Project:Orleans, MA Wind FSDescript
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APPENDIX DMUNICIPAL OWNERSHIP MODEL
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Project Summary• Single 1.65 MW V
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Project Ownership & Financing• Ow
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Pro Forma Economic ResultsBase Case
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Pro Forma Economic Results: BaseSum
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APPENDIX EECONOMIC CALCULATIONSANDP
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ECONOMIC SUMMARYWind Turbine Instal
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Wind Turbine Pro FormaOrleans, MAB
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Wind Energy Feasibility Study - Town Of Orleans

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