One of the best-known clichés of industry is that bigger is
better – that a larger plant is more efficient, reliable and
cost-effective than a smaller one would be. We've heard that
observation from many folks in the utility business. They know
the advantages of wind power, but some assume that a large wind
farm will somehow automatically be better than a small one or a
distributed series of small ones.
Having worked with wind farms large and small across
the U.S. and having witnessed firsthand that when it
comes to wind farms, smaller really can be
bigger, I thought I’d list a few of those ways.
A Bigger Success Rate
Anyone who has developed wind farms can tell you that
navigating the maze of bureaucracy in the development
process can be one of the more frustrating roadblocks in
the process. Long before construction can begin,
or financing sought, or a power purchase agreement
negotiated, there are any number of permissions that
have to be obtained – zoning, land use, and
environmental impact, to name just a few – from a whole
alphabet soup of agencies at every level of government.
We have found that the time it can take for any given
permit is directly related to the size of the project:
the bigger the wind farm, the longer it takes at this
stage of the process. Simply put, with smaller
wind farms, more projects can get to construction faster
than with a single, larger one – which means that
communities can start enjoying the economic benefits
that wind power development brings sooner.
Bigger Impact
Smaller projects are frequently developed under a
business model called Community Wind, in which there is
local ownership in the project and size range of no more
than 100 MW. These local owners, rather than
simply leasing their property to a wind development
company, have an ownership interest in the project.
This results in some well-documented further benefits to
community. Studies prepared by the
National
Renewable Energy Laboratory (NREL) found that for
every dollar spent on the project, Community Wind farms
had two to three times the economic impact on the local
community as wind farms with absentee owners.
Let’s use a 50 MW Community Wind project as an
example. This could produce fifty to seventy-five
full-time jobs during the construction phase; four or
five permanent jobs (on-site) once the farm is up and
running; $155 million in revenue during operating period
(25-yrs); more than $7.3 million in income to farmers
and ranchers who lease their land to the project and
significant equity remaining in the hands of local
owners of the project.
Bigger Savings
It’s often assumed that simply by virtue of their
size, the large wind farms must be less expensive to
build, megawatt for megawatt, because they have the
advantage of scale. The reality of the situation
though is that’s not always the case. Although any
one of the Community Wind projects we work on may only
need a few turbines, because of the number of farms we
are involved with, we are able to leverage similar
economies of scale when it comes to procuring equipment
because we have a portfolio of projects we are
developing across the country with our local partners.
One of the major cost advantages a small wind farm
has over larger wind farms occurs when it’s time to
connect to the grid. Frequently, mega-farms will
require substantial upgrades to the transmission system
in order to ensure reliability. Smaller wind farms
are able to use lower voltage lines, avoiding the
problems of system overloads and costly upgrades to the
system caused by the large wind farms. A series of
wind farms that can use 69 kV lines are easier and
cheaper to hook up than a project that needs to connect
to the grid at higher transmission voltages such as 230
kV or 345 kV.
Bigger Reliability
When a given capacity of wind energy is divided among
a series of smaller farms spread out across a broader,
more regional area, it not only helps alleviate
transmission difficulties that face large farms, but it
also helps address the problem of wind intermittency.
Although no single spot will be windy all of the time,
the wind is almost always blowing somewhere.
Distributing smaller wind farms over a broad regional
area can result in electricity being put onto the
regional grid.
[Editor’s note: for a complete and heady
discussion of whether or not distributed wind farms
increase the stability of the energy resource, see these
two pieces of commentary: Geographic
Diversification of Wind Power Has No Bearing on its
Variability, which states there is no evidence that
geographical distribution increases stability and this
one,
Why Geographic Diversification Smooths Wind Power.
The latter post argues that we can reduce the volatility
of wind power output by building out the national
electric grid and considering the correlation of local
winds to the output of other wind farms and local
electric demand.]
I have been in this industry for a number of years
and the one thing I am most fond of when it comes to
smaller projects is the community aspect. To know
I have had a hand in creating a revenue generating,
renewable energy system that will benefit a community
for the next 20-25 years is a tremendous feeling. The
decision about what kind of wind farm best suits a
particular location, community or utility is a complex
one. But in looking at wind energy, it’s
important to remember that sometimes “thinking smaller”
is really “thinking bigger.”
Robert Crowell is Head of Development at
OwnEnergy, a wind development company that partners with
landowners to help them develop and have an ownership
stake in Community Wind farms. He can be reached
at robert.crowell@ownenergy.net