Wind Power Project Models

Every well-designed wind power project model should benefit landowners and the local economy, produce clean energy, and add to the growing level of local support for renewable energy. Not all wind development models, however, benefit the local economy equally. In a study done at the University of Minnesota-Morris, researchers found that a project following a community-based model could generate as much as five times more local income and create three times as many local jobs as a traditional wind development.

Take a quick look at the following overviews of community- and non-community-based wind energy development to see the difference.

Photo of a wind energy project developer in front of wind power turbines at a wind farm

National Wind's Community Wind Model:

We form a legal business partnership and create a joint ownership structure for each wind project with the landowners and area community members as our partners. Landowners have an opportunity to influence the project and have their voices heard through landowner forums and a local advisory board. The primary goal of all of our projects is to develop clean, renewable wind energy that delivers a majority of any potential profits back to the local community.

Competition's “Fixed Payment” Model:

Many wind project developers utilize this fixed payment model without any long-term ownership involved. The developer is the primary stakeholder who enters into a lease or easement contract with the land owner for a set period of time, usually twenty years. Although the landowners receive turbine lease payments that are fixed and predictable, this is not what we consider to be community ownership. Profits are not shared and property owners have limited influence over the project.

Competition's Royalty Leasing:

Many large wind project developers pay landowners a percentage or royalty payment to landowners for their wind project. The landowners enter into a lease or easement agreement in exchange for a small percentage of the revenue. Landowners don't receive an actual share in the profits, instead the developer and institutional investor retains the profits. We do not consider this model to be a true community ownership.