CWDP FAQs
Frequently asked questions about the Community Wind Development Program
Click on the Question to Scroll Directly to the Answer:
What is CWDP?
What are the phases of CWDP?
What is the aim in each of each of the four phases?
How much does each phase cost?
Do I need to follow the phases sequentially?
Are we obligated to proceed to the next phase once the process is begun?
What are the three project delivery methods and their advantages/disadvantages?
Which project delivery method do you recommend?
Where will I site my project?
Who will own my project?
Who will operate and maintain my project?
What financial incentives and support are available?
I'm interested, what's next?
What is CWDP?
The CWDP is a phased approach for developing community sized wind projects (<10 MW) for private landowners and businesses, as well as schools, cities, counties, utility districts, colleges, and other units of local government.
What are the phases of CWDP?
There are four phases to a CWDP project. They are:
1. The Preliminary Project Assessment (Phase I),
2. Wind Resource Assessment and Project Plan (Phase II),
3. Project Feasibility and Implementation Plan (Phase III) and
4. Project Implementation (Phase IV)
What is the aim in each of each of the four phases?
Click on the Phase you are interested in to scroll directly to it:
Phase I
Phase II
Phase III
Phase IV
Phase I
seeks to broadly determine whether a community wind project is worth pursuing in your area, by assessing the “three legged stool” that any wind project needs:
1. Resource
2. Transmission
3. and Buyer.
The fundamental questions asked during phase include, but are not limited to:
- Is there adequate wind in your region to support a wind project?
- Is electrical interconnection and transmission available?
- What are the typical power purchase rates in your area?
The answers determine whether you should proceed to Phase II.
Phase II
provides an assessment of your area’s wind resources, as well as a Project Plan that details how to bring your Project from concept to completion.
Phase II will generate a FirstLook™ Report for your area created by industry leader 3TIER™, which will verify and quantify your wind resource through historical data and atmospheric modeling.
If your area’s wind resource proves to be adequate, the Report will recommend proceeding to Phase III.
Phase III
verifies the legal, technical, and financial viability of your proposed Project.
Serving as due diligence for potential bond buyers, investors, grantors and loan guarantors, Phase III will provide site, transmission, and regulatory assessments, as well as identify turbine, project ownership, financing, and operation and maintenance options.
Additionally, a financial pro-forma will be developed by applying the wind resource data generated in Phase II to the power curve of your selected turbines. The pro forma will result in a projection of your Project’s revenue, expense, and financial returns.
Finally, MFE will provide you with an Implementation Plan that will outline the best strategy for bringing your Project to completion.
Phase IV
will bring your Project concept to reality by carrying out the Implementation Plan determined in Phase III.
We will assist you with land acquisition and financing procurement, as well as engineering drawings and specifications, construction management, and operation and maintenance contracting. Phase IV proceeds in one of three ways: Design-Bid-Build Approach, Design-Build Approach or Third-Party Developer Approach.
How much does each phase cost?
Phase I The fee for Phase I is $1,000.
Phase II The fee for Phase II is $5,000.
Phase III The fee for Phase III should be in the $7,500 to $20,000 range depending on your Project size.
Phase IV The cost of Phase IV is entirely determined by your Project’s size and design.
Do I need to follow the phases sequentially?
No; for clients who already have their wind resource verified by a third party, Phases I and II may not necessary, and for projects which are already in progress, a client may wish to begin with Phase III or IV.
Are we obligated to proceed to the next phase once the process is begun?
No; each phase is independent and provides valuable deliverables, which may be used to support this or other projects in the area. Each phase includes a recommendation of whether or not to proceed to the next phase. It will be your choice on whether or not to proceed.
What are the three project delivery methods and their advantages/disadvantages?
- Design-Bid-Build Approach. An engineer is selected through a Request for Qualifications (RFQ) process. The engineer then prepares bid documents with drawings and specifications for qualified contractor responses. Once a contractor has been selected through the formal bidding process, the engineer oversees the construction, final project approval and payment. You finance, own and operate the project. The Design-Bid-Build approach is the most traditional and takes the most time.
- Design-Build Approach. A Request for Proposals (RFP) is issued to qualified design-build firms to provide a “turn-key” installation including design and construction. The proposals are selected based on both concept and price. You own finance and operate the project. The Design-Build Approach is efficient because project responsibility lies with one firm. This approach is growing in popularity but is still a relatively new concept for public entities.
- Third-Party Developer Approach. A RFP for third-party development of the project is issued. After the third-party developer has been chosen, you would enter into a long term relationship with the selected developer, who finances, owns and operates the project, as well as pays you an annual royalty for the right to operate the project. The Third-Party Developer Approach has the advantage of minimal financial outlay, but you must consider developer qualifications and proposed royalty. The advantage to the developer is freedom to move ahead quickly without the need for a public bidding process. The project can be “flipped” into your ownership after the major tax benefits due the developer have been realized (typically after 10 years).
Which project delivery method do you recommend?
Each approach has its own strengths and weaknesses. Your chosen approach will depend on which method works best for your particular situation. If you are unsure of which approach is best for you or your community, we are happy to work through the different pros and cons of applying each method to your unique situation.
Where will I site my project?
The process of determining where to locate your Project will require evaluating wind data, transmission access/capacity, and energy sales options. Project sites will be recommended in Phase III.
Who will own my project?
Project ownership structure will be determined by your specific project and financing conditions. Examples of possible ownership structures include self-financed, private equity flip, and developer-financed. Ownership options will be outlined and recommended in Phase III.
Who will operate and maintain my project?
There are 2 possible options for operation and maitenance:
1. Conduct operation and management yourself with guidance from MFE, or
2. Sub-contract operation and management responsibilities to a qualified third-party O&M firm.
Again, MFE will work with you to discover the best method for you. An O&M plan will be recommended in Phase III.
What financial incentives and support are available?
There are many, such as the US Department of Agriculture Farm Bill Program, Clean Renewable Energy Bond (CREB) Program, Production Tax Credit (PTC), green tag/renewable energy credit sales, and various other federal, state, and local financial incentives.
I'm interested, what's next?
Initiate Phase I or skip to a later phase if you already have preliminary work complete. You may call Matney-Frantz Engineering to begin your Community Wind Development Program or to ask any questions that remain unanswered. MFE’s CWDP coordinator is Claud Matney.
