Noteworthy Article Regarding 2015 Production
The article also includes an interesting chart showing inter-annual variations in wind energy output. http://www.aweablog.org/record-august-winds-propel-2015-output/
Entries by Brad
Why wildlife issues matter to a wind lease revenue analysis
A recent article in SFGate notes Altamont Winds, Inc. has decided to permanently, and ahead of schedule, shut down 828 turbines at Altamont Pass. While these turbines are planned to be replaced (with 33 units), this early cessation of production will eliminate revenue until then. This is one example of wildlife issues affecting revenue and one […]
Noteworthy article about wind’s long-term role in the power sector
More notably than Xcel’s plan to add wind is its projections regarding long-term (20-year) wind and gas pricing and the hedge value of wind in the case of Xcel, which is moving away from coal. Any Xcel-related wind lease should be analyzed considering Xcel’s plans and projections. http://www.bloomberg.com/news/articles/2015-10-23/wind-energy-cheaper-than-natural-gas-for-xcel-ceo-fowke-says
Changes in PPA Terms and Off-Takers
A recent, interesting article in PowerSource notes a shift in PPA terms in de-regulated markets. For landowners hosting projects in these markets, these shifts need to be considered when valuing long-term wind lease revenue, particularly post-PPA revenue valuations. The PowerSource article also includes interesting information regarding purchasers — namely, corporations. The existence of these corporate […]
Wind Anomalies
A recent North American WindPower article confirms Q2 US wind continued below normal. Anecdotally, we also have heard from some US wind producers that 2015 has been “off.” This evidence confirms the importance of considering wind anomalies (low wind years) when valuing wind lease revenue, especially in the case of a conservative valuation. While there […]
Recent Xcel acquisition is an example of an important consideration when valuing wind revenue
The recently-announced acquisition by Xcel of a 200 MW project in ND confirms utilities remain interested in wind project ownership. The issues that arise in the case of utility ownership, however, may not be adequately addressed in a landowner’s lease/easement. If these issues are not adequately addressed in the lease/easement, then additional consideration may need […]
Selling Your Wind Rights – A few practical considerations
I’ve just returned from a trip to Iowa and have been speaking with more and more landowners and their advisors about turbines, turbine lease revenue stream value, wind rights severances, wind rights sales, …. And the issue of severance associated with wind rights sales seems to be coming up more regularly. And so I wanted […]
RLI Article
Please enjoy the RLI TerraFirma Lease Gen Article by us.
Recent North American Wind Power Articles Regarding Wind Anomalies Worth Noting
Two recent articles in North American Windpower discuss first quarter 2015 wind anomalies for certain projects — resulting in 5% production drops in the first quarter of 2015, and as much as a 20% drop in January. While meteorological review suggests these drops are not outside the range of what should be expected, they confirm […]
MinWind — An Example of Why the Subtle Elements of a Project Require Consideration
The recent MinWind bankruptcy shows why even the seemingly-insignificant elements of a project require consideration when valuing turbine lease revenue — in this case, the developer’s power sector experience. http://www.ferc.gov/CalendarFiles/20141107161054-EL15-5-000.pdf