Commercial Scale

Chapter 12: The Minnesota Flip

The Minnesota Flip business model was developed in response to a unique combination of federal incentives for wind development and state policies that encouraged development of community-owned wind projects. The structure has proven a successful model for landowners and equity investors interested in partnering in the development of wind projects. This partnership allows the equity investor to take advantage of federal tax credits, while providing local owners the economic benefits of ownership.

Scale:

Commercial Scale

Topic:

Business Models

Community Wind - Resources

Project Development/Planning

Project Economics

Windustry Publication

Ownership:

Community Owned

Wisconsin Community Based Windpower Business Plan

A summary of this project is available as a pdf on the Focus on Energy web site.

Chapter 11: Choosing a Business Model

There are several options for structuring a community wind energy project. Business structure options should be evaluated based on their ability to deliver low-cost wind energy and local benefits, as well as on their profitability. In general terms, business arrangements are best when they:

Scale:

Commercial Scale

Topic:

Business Models

Community Wind - Resources

Windustry Publication

Ownership:

Community Owned

Chapter 10: Tax Incentives

In order to be financially competitive, most wind projects need to take advantage of federal and, where available, state tax incentives. It is critical to understand the role and mechanics of tax incentives while developing a commercial-scale community wind project because these incentives can represent one-half to two thirds of the total revenue stream over the first 10 years of operation due to the Federal Production Tax Credit (PTC) and Modified Accelerated Cost-Recovery System (MACRS) or other type of depreciation that can be applied to wind energy assets. You will need to consult a tax professional in the early stages of project planning to ensure that your financial projections are valid and accurately take into account the project’s tax burden and benefits.

Scale:

Commercial Scale

Topic:

Community Wind - Resources

Incentives

Policy - State Level

Policy - Federal Level

Project Economics

Project Financing

Windustry Publication

Ownership:

Community Owned

Case Studies on Iowa Wind

These case studies are from the Iowa Energy Center. Click here to view the case studies.

Wind Projects

Staples Residence, New Providence, IA (PDF 1.48 MB)
Wind Turbine

Akron-Westfield Schools, Akron, IA (PDF 174 KB)
Wind Turbine

Ashler Residence, Hamburg, IA (PDF 645 KB)
Wind Turbine

Clarion-Goldfield Schools, Clarion, IA (PDF 185 KB)
Wind Turbine

Eldora-New Providence Schools, Eldora, IA (PDF 170 KB)
Wind Turbine

Forest City Schools, Forest City, IA (PDF 171KB)
Wind Turbine

Hawkeye Dental, Ely, IA (PDF 1.23 MB)
Wind Turbine

Montgomery Residence, Bryan, IA (PDF 567 KB)
Wind Turbine

Neppel Energy, LCC, Armstrong, IA (PDF 236 KB)
Wind Turbine

Spirit Lake Schools, Spirit Lake, Iowa (PDF 151 KB)
Wind Turbine

Tjaden Farms, Charles City, IA (648 KB)
Wind Turbine

Tran Lam Residence, Vinton, IA (PDF 712 KB)
Wind Turbine

Fishback Financial Corporation/First National Bank of Pipeston (MN)

http://www.fnbpipe.com/index.htm

Chapter 9: Financing

Most commercial-scale community wind projects are multi-million dollar investment endeavors that require outside financing assistance. This section will give you some background on how to approach a bank or other financing entity. Loan terms will affect the bottom line of your wind energy project revenue, so understanding the requirements and options for financing your wind development are critical. Getting organized in the beginning will put your project in a much better negotiating position for acquiring favorable financing. With enough due diligence documentation, your project will be less risky and more attractive to a financing entity.