People living near wind turbines will receive a piece of the revenue pie if Melancthon’s Bob Younker gets his way.
He’s proposing the creation of a wind power co-op designed to see more money stay in the community and a wider swath of people benefit from renewable energy generation.
“I’ve talked to a lot of landowners and I think there is a lot of enthusiasm,” he told The Banner. “There’s a lot of money at stake. Once you’ve got the debts paid off, you’ve got a free-flow of money.”
His plan calls for the creation of several co-operatives working collaboratively; one of electrical consumers, another of farmers hosting turbines, and a third comprised of neighbouring property owners.
All would share in the financial benefits of the turbines, he says — $20,000 per year for host farmers, $5,000 split between neighbouring property owners, and a decreased purchase price for consumers.
“Instead of $7,500 staying in the community we’re going to have ... a couple million a year staying in the community,” he predicted, referencing the money host farmers may be offered by a large wind power developer.
The plan calls for 12 turbines, producing 18 MWs of power. Younker anticipates 20-year financing for the machines, after which ownership will be shared with the host farmers (40 per cent) and neighbouring property owners (10 per cent).
Creation of a wind power co-op is “music to my ears,” said George Smitherman, Ontario’s minister of energy and infrastructure.
“The concept is one that excites me very much. I think part and parcel of making more local supporters, of getting past some of the concerns that people raise, is making sure that people have the opportunity to actually share in the economic pie,” the minister said.
“If we can find models that create more co-op kinds of movements, local groups of community coming together to be proponents for projects like this, I think that’s a healthy thing.
“I’m working on policies that should enable that even more vigorously,” he added.
There is currently only one wind turbine owned by a co-op turning in the province, said Jane Story of the Ontario Sustainable Energy Association (OESA) — the one by the CNE in Toronto. She points out most of the wind power generated in places like Denmark come from farmer-owned co-ops.
“We believe that they are great economic opportunities,” she said, noting co-ops help communities retain wind power revenue, rather than shipping it elsewhere to a corporate head office.
They also help to reduce the “social frictions” of large corporations moving in to rural areas, Story added.
“It’s about community ownership.”
The OSEA, of which Younker is a member, helps connect people and groups interested in developing renewable energy projects to available information and resources. It also works on behalf of its members — largely co-ops, farm groups, municipalities and First Nations — to lobby policy makers.
Several “social frictions” came up during Ontario Municipal Board hearings for the Melancthon Wind Project by Canadian Hydro Developers. While the initiative was ultimately approved, residents raised concerns about property values, impacts on their lands and more.
“What I’m trying to do, in a way, is cater to the fear factor,” Younker acknowledged of his plan to spread the revenue around more.
“I think the whole community will feel much better. In the Canadian Hydro deal, some of those neighbours are as close to the turbine as the farmer hosting the turbine on his own land,” he points out. “(The neighbour) has no upside of a turbine coming to his neighbourhood.”
Under Younker’s plan, property owners within a 3.2 kilometre distance of each turbine would split about $5,000 annually. Those living closest to the turbine would receive the largest piece of that pie, with quantities decreasing with distance.
Many property owners, Younker said, would be partners in several turbines.
Electricity consumers, likely customers of Orangeville Hydro, would be able to purchase power at a discounted rate — Younker proposes savings of one cent per Kwh.
George Dick, president of the local utility, is supportive of the co-op concept. However, he pointed out there are several hurdles the Melancthon man must jump before his dream becomes a reality.
“The idea is a good idea,” he said, explaining Hydro One would have give permission for Younker to tap into its transformer station and endorsements must be received from the Ontario Energy Board and the Independent Electricity System Operator regarding prices and billing.
“He has got to follow all the rules set down by others,” Dick said, suggesting Orangeville Hydro would have little involvement in the initiative.
If all goes according to plan, the turbines are still a few years away from erection. Right now Younker is working on an Ontario Trillium Foundation grant application to help pay for a wind study.
Such a study — several have already been done by various companies, showing the area is suitable for wind power — is critical to lining up the necessary governmental approvals and financial investment.
“I’ve put a lot of time into getting the concepts down,” Younker said, adding, “Canadian banks appear to like wind projects.”