Why royalties matter — and why wind lease revenues may increase

A recent article regarding MidAmerican’s repowering efforts estimate production increases, across seven projects, between 19-28%. If other project factors remain the same (e.g. if the power price remains the same, there’s no additional curtailment, and any minimum rent has been exceeded), then for the lessors in these projects who are paid royalties, they can expect a corresponding increase in revenue. This is significant, especially if the royalty rates escalate over time. And this is a good sign for lessors who host good projects likely to be repowered.


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