1. Presented by Daniel E. DuBois

2. Lessons Learned Developers – dont fall in love with your projects What do I mean ?

3. Lessons Learned Is your project doomed (and you dont know it)? Some clues – 1.Unrealistic economics 2.The community hates it (or you) 3.No transmission 4.Its a money pit

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

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

6. Unrealistic Economics

7. 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

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

9. 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

10. 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

11. Conclusions Evaluate development projects –Objectively –Realistically –Often