John Farrell, April 18, 2013 (Institute for Local Self-Reliance)
“…Brian Minish, CEO of South Dakota Wind Partners [talked] about a community wind project that attracted over 600 local investors. The project was the brainchild of four state organizations rooted in rural South Dakota–the East River Electric Cooperative, South Dakota Farm Bureau, South Dakota Farmers Union and South Dakota Corn Growers. Hoping to broaden ownership in a wind farm project proposed by Basin Electric in Crow Lake, these groups worked with Brian to figure out how to add local investors to the mix.” “…The result was a community-based carve out of the 100+ megawatt facility: 7 turbines owned by over 600 farmers and local residents. The turbines were constructed as part of the larger wind farm, and the Wind Partners organization contracted with the cooperative electric utility for operations, maintenance, and purchase of the electricity…[Structured with] the now-expired federal cash grant (in lieu of the Investment Tax Credit) to broaden the opportunity for more local investment…”
click to enlarge“…[T]he four organizations kick-started the fundraising with $20,000 [each] and shares were sold in increments of $15,000 to other investors…Some were able to invest as equity partners and share in the tax losses generated in the early years, while others just wanted a fixed return on the debt (basically making a fixed interest loan to the project)… “…[Much of the success was in] the willingness of Basin Electric to partner with local groups…Unfortunately, the federal cash grant has since expired, making it more difficult to make [similar investments] open to normal investors…[but] Brian keeps searching for ways to open up opportunity for community-based energy projects and overcome barriers, and…SDWP website highlights two other community-based projects, one in New York and one in Texas…SDWP may be a model for community wind…”
0 comments:
Post a Comment