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Community Wind Projects

Many local municipalities are actively pursuing - or at the very least contemplating - the installation of modern wind turbines on town-owned lands. For the Cape, Vineyard, and Nantucket, this page addresses the following topics:

Benefits
Barriers
Institutional Challenges
Coordinated Planning Activities
Current Status of Local Projects
- Cape Cod
- Martha's Vineyard
- Nantucket
- SouthCoast
Information Resources

This website's Wind Energy page provides general information on this green technology, its benefits and barriers, the regional resource base, other local land-based projects, and offshore projects.

Community Benefits
Community wind facilities may either be owned by the town and its residents, or they may be owned by a developer and sited on town lands through a leasing arrangement. The turbines may be connected to the power grid in a consumer-side (behind-the-meter) configuration, where they first meet on-site needs for electricity, or in a supply-side configuration, where all power is delivered to the local transmission and distribution system. In any circumstance, community wind projects promise multiple benefits.

First and foremost, they could help reduce municipal electricity bills, which would free up scarce resources for other uses. At present, towns power their administrative buildings, schools, streetlights, water and wastewater treatment infrastructure, and other electrical loads by purchasing electricity in the retail marketplace. As of January 1, 2006, each kilowatt-hour of delivered electricity costs more than 20 cents on the Cape, the Vineyard, and Nantucket, with more than half that retail rate attributable to power supply costs and the remainder attributable to delivery and customer service charges. Communities could reap savings in the following ways:

• Each kilowatt-hour of on-site demand met by consumer-side turbines - whether owned by the town or a developer - would avoid the full retail cost of delivered electricity (accounting for power supply, power delivery, customer service, and other charges).
  
  
• Developer-owned, behind-the-meter projects could provide additional savings through a power purchase (offtake) agreement negotiated as part of the leasing arrangement: Electricity not used on site would be available for sale to the host community, possibly at a price lower than the standard retail power supply rate.
  
  
• Developer-owned, supply-side installations could yield savings through offtake agreements negotiated as a leasing condition. Up to the entire energy output of such projects could be available for sale to the host community at a price lower than the standard retail power supply rate.

Community wind projects could further stretch municipal budgets by creating new revenue streams:

• For town-owned, consumer-side turbines, any power not used on site would be sold through the wholesale electricity marketplace (unless the current limit on net metering is increased). For town-owned, supply-side projects, all power would be sold on a wholesale basis. In addition, every megawatt-hour produced by a town-owned wind turbine would generate a renewable energy credit (REC), a very marketable commodity created by the Massachusetts Renewable Portfolio Standard.
  
  
• For developer-owned installations, fees for the leasing of town-owned land and taxes on the wind generating equipment would represent new municipal revenue streams.

Community wind projects also could provide broader benefits. They could stimulate economic growth in the Cape & Islands region by creating jobs in the emerging clean energy cluster and by keeping energy dollars in local communities. In addition, they would support the transition to a sustainable energy economy by decreasing reliance on imported energy sources and reducing air pollution and greenhouse gas emissions.

Community Barriers
Wind resources are abundant throughout the region. A ready source of funding is available to facilitate community wind initiatives - the Massachusetts Renewable Energy Trust, to which electricity consumers across the state contribute (except those served by municipal utilities). The federal Energy Policy Act of 2005 provides incentives for wind generation. And on the Cape and Vineyard, a government agency that exists to represent the interests of local communities and consumers in the electricity marketplace is eager to purchase the green power and RECs generated by community wind projects.

These conditions suggest an imminent return to times gone by, when windmills - rather than power lines or the Canal Electric Station's smokestacks - represented the most visible indicators of the local power structure. However, many obstacles remain. The most daunting challenges relate to project economics: Under the current policy and market environment, investments in single, a couple, or a handful of turbines are dicey propositions:

• Modern turbines are expensive machines, and procurement and installation costs are increasing, due in large part to the rising prices of energy commodities and, thus, of steel and other materials and components. Turbines also are becoming hard to come by as manufacturers struggle to keep up with the wind industry's explosive growth.

• The permitting and regulatory path toward project approval is uncertain. A model bylaw prepared by the Cape Cod Commission provides useful guidance for the creation of local policies and processes, but it also includes recommendations that could discourage rather than encourage private sector investment in municipal projects. NStar's interconnection requirements and Federal Aviation Administration (FAA) height restrictions represent additional hurdles.

• Like all wind projects, community-based installations will require substantial up-front capital to realize incremental returns over sustained periods. But unlike developments involving nominally 5 turbines and optimally many more, projects pursued by individual communities will offer no economies of scale - permitting, construction, interconnection, cabling, operations, maintenance, and other costs cannot be spread over many revenue-generating machines. State and federal policy incentives may not be sufficient to overcome this barrier. Barnstable County is initiating a study of an energy cooperative model (M.G.L. Chapter 164, Section 136) that could facilitate the financing of individual projects and, perhaps, project aggregation. A local company, Community Wind Power LLC, also is exploring the possibility of aggregating individual projects.

• Given the scale of contemplated community wind projects, consumer-side installations sized to closely match on-site demand appear most economical. Turbine output used to meet on-site needs is worth more than $0.20/kWh, equivalent to the full retail cost of delivered power. Under current laws, which forbid net metering for installations with rated capacity exceeding 60 kW, all additional generation must be sold via power purchase agreements. Proposed state legislation to change net metering requirements would enhance the value of excess generation from consumer-side turbines to either the retail supply rate or the retail delivered rate, depending on site-specific circumstances. This legislation, which would increase the net metering standard to 2 MW, could prove critical in swaying the cost-benefit equation for individual installations.

• In the current policy environment, the output of supply-side wind projects (and excess generation from behind-the-meter turbines) must compete in wholesale markets with generation by other facilities that are not required to account for "true cost" issues. Wind projects would offer much more favorable economics if, for example, the price of power from gas-, coal-, and oil-burning power plants reflected adverse economic, environmental, and social impacts attributable to pollutant and greenhouse gas emissions and other factors.

Institutional Challenges
Additional obstacles are unique to Cape and Vineyard towns, which belong to the Cape Light Compact. This municipal aggregator, administered by Barnstable County, negotiates retail power purchase agreements with competitive suppliers on behalf of local consumers. Each town has signed an agreement committing its municipal electric load to the Compact. (By contrast, residents, businesses, and other local consumers are free to opt out of the Compact and to purchase power from NStar or other suppliers.)

Community wind projects not only could present conflicts of interest between the towns and the Compact, but also they could represent a threat to the Compact itself, as it is currently governed and configured. A few key institutional challenges are summarized below:

• According to Compact officials, its market leverage depends in large part on its agreements with the towns, which enable the Compact to offer prospective suppliers a "guaranteed" customer base, equivalent in magnitude to the combined electric load of its member municipalities. If a town were to decide to meet some or all of its electricity demands by owning wind turbines or partnering with developers, then it would erode the Compact's guaranteed load. This would reduce the Compact's buying power, likely increasing the cost of each kilowatt-hour purchased through the Compact. In theory, numerous community wind projects could make it difficult for the Compact to negotiate a contract with terms acceptable to towns, residents, and businesses. Without a supply agreement, the Compact unravels.

• The Compact's stated goals are to secure "the best market rate for electricity," to purchase RECs at the cheapest possible prices, and to buy power and RECs from local renewable energy projects. Towns that own wind turbines will want to maximize returns on their investments by seeking the highest possible prices when selling power or RECs. This situation creates the potential for conflicts of interest between the Compact, as a collective of local communities, and the towns, as independent entities.

• Each Cape and Vineyard town, along with Barnstable County and Dukes County, appoints an individual to serve on the Compact Governing Board, which makes decisions on power supply policy issues and purchase agreements. A number of these appointed officials also are involved in exploring community wind projects on behalf of their towns. This situation creates the potential for conflicts of interest for these individuals.
  

• The Massachusetts Technology Collaborative (MTC), which administers the state's Renewable Energy Trust, is encouraging towns receiving technical assistance under its Community Wind Initiative to pursue projects in partnership with developers. This model could undermine the Compact's power supply program by inviting the proverbial fox into the henhouse: A developer not only would negotiate a power purchase agreement with its host community as part of its leasing arrangement, but also it could attempt to sell power to other towns and additional local consumers under terms more favorable than those offered by the Compact. In an effort to mitigate the potential for load erosion, Compact officials have asked the MTC, as well as towns considering partnerships, to include contractual provisions requiring developers to offer power and RECs to the Compact. Such requirements could make investments in municipal wind projects less attractive to developers, and they could reduce the benefits available to host communities.
  
  
• As a municipal aggregator, the Compact can purchase power only at the retail level, whereas excess output from consumer-side municipal wind turbines and all output from supply-side projects must be sold in wholesale markets. The Compact also is not a "bankable" entity," meaning that it lacks the secured assets required to enter into the long-term power purchase agreements that private developers would need to arrange wind project financing at favorable terms. Two strategic approaches for resolving these institutional challenges are being pursued:
  1. In its recently extended competitive supply agreement with ConEdison Solutions, the Compact included provisions requiring this company - which is licensed to operate at both the wholesale and retail levels - to buy output from community wind projects. The effects of these contract provisions on town-owned projects and public-private projects remain to be determined.
  2. The Compact is investigating the possibility of forming a buying cooperative, as authorized under the Massachusetts Electric Utility Restructuring Act (M.G.L. Chapter 164, Section 136). Depending on how this idea evolves, a Cape & Islands renewable energy cooperative could provide the towns with a wholesale outlet to local retail consumers (including, possibly, themselves). It also could offer the institutional capacities required to enter into long-term power purchase agreements with town-owned or developer-owned wind projects, as well as to finance or even own energy supply and delivery infrastructure at the residential-, community-, and utility-scale levels. Click here for more information.

Community wind projects are helping raise substantial institutional issues, while the Compact's regional capacities present unique opportunities to tap renewable resources in ways that maximize local benefits. The challenge facing the towns, the Compact, the MTC, and other parties is to ensure that competing goals"and the possible conflicts faced by institutions and individuals"are resolved through open and transparent processes that engage all stakeholders, particularly local taxpayers and consumers, in expressing their interests and in pursuing common ones.

Coordinated Planning Activities
For several years, Waquoit Bay National Estuarine Research Reserve (WBNERR), Cape & Islands Self-Reliance, and other participants in the Cape & Islands Renewable Energy Collaborative (CIREC) have been working together to promote education and information exchange among municipal officials and others interested in community wind projects. This has included public education, facility tours, and workshops focused on specific topics.

The "Land-Based Municipal Wind: Clean Power Through Cooperation" workshop was held November 18, 2005. The workshop was organized by WBNERR and Self-Reliance in conjunction with representatives from towns, the Compact, Barnstable County Assembly, MTC, and CIREC. Expert speakers provided updates on on policy issues and financing and development options. In addition, towns, the Compact, and the MTC, along with regional economic development, taxpayer, ratepayer, and private sector interests, offered perspectives on the possible benefits of and barriers to municipal wind projects. Presentations from the conference are available at the Coastal Training Program's website, courtesy of WBNERR.

The following high-level commonalities were identified among all stakeholder groups:
1.     Maximize economic benefits and keep them local, to the maximum extent possible.
2.     Increase reliance on renewables and reduce reliance on fossil fuels.
3.     Lead the way toward a sustainable energy future for the region.

Based on discussions at the workshop, the following coordinated planning activities were pursued:

• A "Community Wind Listserv" has been created to facilitate communication among town officials and other stakeholders in southeastern Massachusetts. To join this community of practice, please contact Self-Reliance at 508.457.7679 or send a note to Megan Amsler. (In spring 2006, MTC rejected CIREC's request for funding to support a moderator and other means of enhancing information exchange through this forum.)
  
  
• Workshop attendees emphasized the need for regional and local policies supportive of renewable energy. The Cape Cod Commission held a forum on February 1, 2006, to solicit stakeholder input on energy issues in support of the ongoing update of the Regional Policy Plan for Barnstable County. This forum and follow-on efforts by CIREC participants have supplied information to support a comprehensive reworking of the plan's energy section. Click here for information on the process. At the local level, a number of towns have enacted or are working on bylaws providing a framework for wind project review and permitting.
  
  
• Representatives from Self-Reliance and Cape Light Compact agreed to convene a regional renewable energy task force to organize public inquiry processes, promote information exchange, and coordinate interactions with NStar, MTC, policymakers, and others. (In spring 2006, MTC rejected CIREC's request for funding to support this activity.)

Status of Local Community Wind Projects
Unless otherwise noted, all municipal wind projects below are being explored through the MTC's Community Wind Initiative. This ratepayer-funded program provides the towns with technical and financial resources to support site assessments, wind resource monitoring studies, project feasibility studies, and other steps in the project development process. Wind resource assessments are performed by the Renewable Energy Research Laboratory (RERL) at the University of Massachusetts, while other tasks involve MTC staff, town officials, and contractors chosen by the towns.

The content below reflects information from MTC, municipal officials, and media reports.

Cape Cod

Barnstable (last update 02.15.06)
This project is being pursued by the Public Works Department. Wind conditions at the town's wastewater treatment plant in Hyannis, which could accommodate three or four turbines, are being monitored from a 40-meter meteorological tower operational since March 2005. Because the plant is quite near the airport, the Federal Aviation Administration has granted approval for only smaller turbines (250 kW). Pending analysis of 12 months of wind data, the town will decide whether to pursue a detailed feasibility assessment of this site and/or other possible locations, such as the landfill in Marstons Mills.

Wind resource data and reports

Bourne (last update 05.31.06)
A 50-meter meteorological tower monitored the wind regime at Upper Cape Technical High School from July 2004 - August 2005. Over this period, the mean wind speed at 50 meters was 5.48 meters/second (12.28 mph). The highest monthly mean speed was in April and the lowest in July. Data were applied to justify installation of a 10-kW turbine at this site in May 2006; they may prove applicable to other sites within the community.

Wind resource data and reports

Brewster (last update 01.31.05)
This project is being pursued by the town's Alternative Energy Committee. The parking lot at the Captain's Golf Course was selected as the site for erection of a meteorogical tower. Full-scale monitoring began in early 2006. If data are favorable, wind generation at this site could be used to meet demand from nearby irrigation and water supply pumping systems.

Chatham (last update 12.31.05)
The town reviewed a preliminary site assessment study and decided not to move forward at this time.

Dennis (last update 11.30.06)
The town is assessing its options with regard to municipal projects, with an eye toward possibly siting multiple turbines at the former landfill. An Alternative Energy Committee was formed in November 2006.

Eastham (last update 06.30.06)
Wind projects are being pursued under the direction of the town's Energy Committee. A 40-meter meteorogical tower monitored wind conditions on town land near Oak Leaf Road from July 2003 through August 2004. The mean wind speed at 39 meters over this period was 5.29 meters/second (10.65 mph). Wind speeds were found to be lower in summer and highest in winter.

A detailed report assessing the potential suitability of three sites was completed in December 2005 by Black & Veatch. Options include a North Eastham site near the gravel pit that could accommodate up to six large turbines (but less from a practical standpoint), a site at the Department of Public Works Garage that could handle up to one large machine, and a site at the Town Hall that could host a small unit. A detailed feasibility assessment for the North Eastham site was completed in early 2006, and the town plans to proceed with development of a multi-turbine project in this area in collaboration with a private developer. A new test tower is providing site-specific data for a project that could generate sufficient revenue to offset the town's entire electricity bill.

Wind resource data and reports

Site screening study

Falmouth (last update 04.10.06)
This project is being pursued under the direction of the town's Energy Committee. Wind conditions at the town's wastewater treatment plant (WWTP) on Blacksmith Road were monitored from April 2004-July 2005 using a 40-meter meteorological tower. The mean wind speed at 39 meters was 5.51 meters/second (12.4 mph) over a 1-year recording period, with speeds much higher in winter than summer. Subsequently, a SODAR unit was deployed to assess wind speeds and wind shear at higher elevations during June 2005. The SODAR data and the full year of recorded data were used to estimate that the mean wind speed at 70 meters was between 5.88 and 6.36 meters/second from June 30, 2004 through July 1, 2005.

A detailed screening study for this site was completed by KEMA in April 2005. Based on initial analysis of on-site wind resources, electrical demands, and other characteristics, the study concluded that a turbine with rated capacity in the range of 1.5 to 2.3 MW would be suitable for installation at the WWTP. The town elected to proceed with a full-blown feasibility analysis, with the intention of exploring a variety of ownership scenarios. The project feasibility study was completed by KEMA in August 2005, and a financial analysis was presented to the town in October 2005.

At spring 2006 town meeting, residents granted authorization for the town to take the action required to install a turbine at the WWTP, depending on the ownership model: If a developer is to be the owner, the town has authorization to lease land to the developer at the WWTP site. If the town is to be the owner, the town has authorization to pursue state legislation allowing municipal ownership. The town continues to weigh its options.

Wind resource data and reports

Site screening study

Project feasibility study

Harwich (last update 01.03.06)
A project is being pursued under the direction of the town's Utility & Energy Conservation Commission. Three sites have been evaluated as possible candidates for installation of wind resource monitoring equipment, and the high school has been identified as the best location by RERL.

Previously, the town worked with Community Wind Power LLC to explore a possible project at the landfill. Wind resource data were collected over a 2-year period using a 50-meter meteorogical tower, and these data may be used to inform decision-making going forward.

Mashpee (last update 12.31.05)
The town is not currently pursuing any municipal projects, but local officials have met with MTC officials.

Orleans (last update 12.13.06)
Under the direction of the town's Wind Energy Committee, conditions in the town's watershed were monitored from October 2003-May 2005 using a 50-meter meteorological tower. Over this period, the mean wind speed at 50 meters was 5.77 meters/second (12.9 mph).

A detailed feasibility study was completed by RW Beck and Global Energy Concepts LLC. The study estimated that the town's watershed could accommodate up to six 1.5-MW turbines, and it identified no obstacles to the siting of a single 660-kW or 1-MW turbine and its interconnection with the distribution network at the town's iron and manganese water treatment facility. This facility has the largest electrical load in the vicinity of the proposed wind project, but the load's seasonal nature does not match well with predicted project output. Accordingly, the study determined that the project could serve the on-site load as required, but most of the green power would be delivered to the grid for sale.

The town expressed interest in partnering with a developer to implement its wind project. At the May 2005 Town Meeting, warrant articles were passed supporting the establishment of a leasing agreement for construction and operation of no more than two turbines within the town's watershed. A request for proposals (RFP) from turbine vendors was issued by the MTC in September 2005, and MTC ultimately purchased two 1.65-MW turbines from Vestas Americas for more than $5 million. On MTC's schedule, the turbines were planned for delivery to the site on September 20, 2006, but the town has been working on a different schedule as it attempts to address a range of issues.

As of December 2006, the town is moving forward with plans for a developer-owned project, including pursuit of special legislation to allow wind generation on land protected for watershed uses, drafting of an RFP from developers, etc. The town is hoping to have a project up and running by the end of 2007. The two turbines purchased by MTC for Orleans may end up somewhere else, however.

Wind resource data and reports

Feasibility study

Provincetown (last update 06.30.06)
The town is not currently pursuing any specific municipal projects, but local officials have met with MTC officials to discuss onshore and offshore possibilities, with a goal of siting sufficient wind capacity to achieve electricity independence.

Sandwich (last update 12.31.05)
No activity reported.

Truro (last update 12.31.05)
The town's recently established Energy Committee is evaluating two possible sites near the Truro Central School and the Public Safety Facility.

Wellfleet (last update 12.31.05)
The town's Alternative Energy Committee is evaluating three possible locations for installation of a meteorological tower based on a site visit in October 2005 and a subsequent report prepared by RERL: near the White Crest Beach parking lot, the elementary school, and the transfer station.

Yarmouth (last update 06.10.06)
A project is being pursued under the direction of the town's Energy Committee. A site at the town's school complex that could accommodate up to four large-scale turbines was selected for installation of a meteorological tower. The Federal Aviation Administration issued a Determination of Presumed Hazard due to concerns over possible interference with airspace and radar systems. Alternative sites and development/ownership options are now being examined.

In the mid 1990s, several years of wind data were collected in Yarmouth under sponsorship of the Massachusetts Department of Energy Resources.

Martha's Vineyard

Aquinnah (last update 12.31.05)
No activity reported.

Chilmark (last update 12.31.05)
No activity reported.

Edgartown (last update 12.31.05)
No activity reported.

Oak Bluffs (last update 12.31.05)
No activity reported.

Tisbury (last update 04.10.06)
A project is being pursued under the direction of the town's Renewable Energy Committee. The town is considering its former landfill as the site for installation of meteorological tower.

West Tisbury (last update 12.31.05)
No activity reported.

Nantucket

Nantucket (last update 03.05.06)
Wind monitoring equipment was installed on a radio tower at the town's landfill in July 2005. Data are being collected at elevations of up to 99 m.

Wind resource data and reports

SouthCoast

Mattapoisett (last update 04.10.06)
A project is being pursued under the direction of the town's Wind Power and Renewable Energy Committee. A 50-meter meteorological tower was installed in Nasketucket State Park in January 2006. This is the first time under MTC's Community Wind Initiative that a tower has been sited on state-owned, rather than town-owned, land. It was installed after the Massachusetts Division of Conservation and Recreation granted a special use permit. The data will be used to determine the feasibility of installing a wind turbine on town-owned land. No wind turbines will be installed at Nasketucket State Park.

Mattapoisett/Marion/Rochester (last update 02.01.06)
The towns are collaborating to explore a project to supply green power to the Old Rochester Regional Schools (junior high and high school) on Route 6 in Marion. A meteorological tower is planned for installation in spring 2006.    

Resources
The pages listed below, as well as this website's Wind Energy page, provide access to additional resources.

1. Massachusetts Technology Collaborative (MTC) - Community Wind Initiative
   Information prepared by the MTC on the steps involved in pursuing a municipal wind project and on the technical services provided by MTC to towns on a no-cost basis. Also includes access to wind resource maps and other tools.
   
   
2. Cape Light Compact - A Guide to Land-Based Wind Power
   Information prepared for municipal decision-makers by the Compact and Cape & Islands Self-Reliance, including a detailed "Frequently Asked Questions" page and other resources addressing the pros and cons of alternative ownership structures and financing options.

Disclaimer: This page has been developed based on original research, the sources listed above, and an analysis of strategic issues. It is intended to be informative, not authoritative, with the goal being to support informed and transparent decision-making by putlic officials and the public at large. Readers are encouraged to air their opinions on these issues publicly and to contact elected and appointed officials at the local, regional, and state levels with questions. See the "Civic Participation Guide" for tips.

Last updated 10.27.06