Author: Alicia Webb
Building a community wind farm is a long, complex process. In order to break this process down and make it easier to understand, here is a list of major milestones to work towards.
Project planning and development
Project planning and development generally refers to the work that goes on before construction begins. These sections include pre-feasibility, wind monitoring, feasibility, detailed assessment, and lodgment (and approval) of a planning application.
Prefeasibility site selection and wind speed studies
This milestone occurs when you have identified a region of interest and done some desktop investigation into the potential wind speed at the site. Wind engineering consultants can help you with this, or your could check out the Pre-feasibility section
Prefeasibility grid connection study
Access to grid connection is a vital part of building a community wind farm. It's worth considering very early in the process because if you can't connect to the grid, or if grid connection will be prohibitively expensive, a project will not be viable. Often it's useful to engage a technical consultant who is an expert in grid connection studies. They can write a prefeasibility report, which will involve speaking with the distribution network service provider in your region.
Landowner access agreements
If your site looks like it has good wind and a viable grid connection option, you'll need to sign agreements with the landowners so that you can do some feasibility investigations on their land, and put up a wind monitoring mast. There's more information on landowner access agreements in the Land owner engagement section.
Wind monitoring
Putting up a wind monitoring mast is important to do early as you'll need at least a year of measured on-site data. There is lots of information in the wind monitoring section about choosing a location for your mast, and getting one installed.
Community support building
Community wind farms, by definition, involve a lot of work with the community and a fundamental part of any project will be constant consultation and support building. A key milestone is surveying the community for their attitudes towards your project to ensure that you have a good amount of engagement and support. An example survey is included in the article Measuring community engagement and support.
Feasibility report
A feasibility report is an early stage business case for the project. In it, you'll write about the anticipated costs of your project, use the wind data to inform anticipated revenues from the project, and write about early environmental and social investigations to discuss the viability of your project. More information on the contents of a feasibility report is in the relevant section of this wiki.
Planning permit application
This milestone involves undertaking lots of detailed studies and assessments including wind farm layout design, noise assessment, shadow flicker assessment, traffic management planning, and flora and fauna impact assessments. Speaking with the authority responsible for approving your wind farm development will inform exactly what type of assessments are required. Most of these studies will involve hiring an expert. Detailed descriptions of all of the typical wind farm development assessments are in this section of the wiki.
Grid connection offer
Once you have designed your wind farm layout and established that your project is feasible, it's important to secure a grid connection offer from your local electrical distribution network service provider. Again, a technical consultant can help you navigate this process. Some background is described on this wiki.
Legal and pre-investment contracts
This section includes major milestones regarding the financial side of the project. Coincidentally to the project planning and development, you should be raising interest in the project, forming the right legal structures to proceed and of course fund raising from community share holders.
Investor interest survey
Having undertaken your support building since the beginning of the project, an investor interest survey is a natural part of the progression. Essentially, a survey of investor interest involves contacting all of your supporters and contacts to ask them how much they support the project and whether they would consider investing in the project.
Legal establishment of cooperative
This is a really important milestone for a community owned renewable project. Co-operatives do not have a pro-forma structure and yours will need to meet the unique needs of your community and your project. There is lots of information in the article Co-op formation and initial capital but it will be necessary to get legal advice for this stage.
Receipt of planning permission
Obtaining planning permission from the relevant authority, whether it be local council, state government or some other body, may not be straight forward. Often permission with include certain conditions and sometimes you may encounter opposition. Requirement to undertake further technical studies or further community engagement is common in wind farm permit applications.
Appointment of a project manager
When you have planning permission, it's time to get to work and it's likely that you will need a staff member dedicating several days a week to your project.
Independent review of Co-operative structure and Operating Company expertise
Before you begin raising funds, you will need to obtain an independent review of your organisation. This review will take into account the structure of your legal entity, and the suitability and expertise of your board members and staff for undertaking your project.
Writing and releasing your Product Disclosure Statement
Once you have set up your co-operative and undertaken appropriate business planning and modelling, you will write a product disclosure statement (PDS) in order to raise funds from investors. This document will describe your structure and project to investors and set out the rules for investing and how much investment you are seeking.
Completion of fund raising
Fund raising will commence when you issue your PDS and will continue until the shares are fully subscribed. The completion of fund raising will bring your project to financial close, and it is time to construct your wind farm.
Project construction
Once you have the planning approval and the legal structures and funds in place, it's time to build a community wind farm. There are several important milestones to help you guide your way through this process.
Contract for supply of wind turbines
This stage in your project will involve deciding on the best type of turbine for your site, and signing contracts with a supplier. It is important to have an expert assist you with negotiating these contracts as they are very technical and complex. Ensuring you get the best possible power output guarantee involves understanding of wind engineering.
Contract for operation and maintenance
Often the firm that will operate and maintain your turbines is the same firm that supplies your turbines, however this does not have to be the case. Also, operation and maintenance services for some fixed term is often bundled with the installation contract.
Contract for Balance of Plant
Apart from turbines, your wind farm will also need roads, turbine foundations, and electrical works. Sometimes turbine suppliers will undertake the entire wind farm project, this is called an EPC contract (Engineer, Procure, Construct). In the case that you have an EPC contract with your turbine supplier, this milestone is meaningless.
However, some turbine suppliers provide an S&I contract (Supply and Install) which involves only the turbines themselves. In the case of this type of contract, you will need to get other firms to complete civil and electrical works, called the Balance of Plant.
Construction completion
This milestone is one of the most exciting. It will be achieved when your lead contractor issues a formal letter of completion. At this stage, your wind farm is completed, your turbines are operational and your electricity is being fed into the grid.