A Win-Win Approach
An understanding of the
connections between a variety of problems can sometimes lead to a common
solution.
Summary
Wind-Do has a decentralized approach to energy generation
from wind turbines. A variety of local
actors working together can generate electricity and benefits, which will
stimulate local economic activity.
The Wind-Do modular wind farm can be optimized in many
ways. In addition to producing a target amount of electricity that is sold to
the network, a significative amount of excess electricity will be generated.
This extra energy is free, but must be used locally, for example providing heat
for a greenhouse or for other industrial uses.
By saving on energy costs, greenhouses can become more
profitable in Northern countries. This could be one factor that leads to their
construction. In turn, local employment
is created, and as the greenhouses are located where produce is needed, fruits
and vegetables will be fresher and cheaper. In addition to enhancing the local
economy and creating jobs, this will
reduce greenhouse gas emissions in many ways: less food transportation, clean
electricity, and even carbon capture with winter culture.
This is a win-win approach.
Here are some examples of problems
that have common links:
Over
time, many cities and villages have lost their economic vitality.
In Quebec, there are about 150 cities
and villages with higher than average unemployment rates. About half of these communities have a
population of less than 500. Young
people tend to leave these villages, and the average age is often higher than
for communities of similar size.
To stimulate the economy and create
jobs, the benefits of local activities must remain in the communities. To keep
the youth in their community, either jobs or business opportunities must be
created.
Climate change is
likely to lead to problems of food security.
Certain
agronomists argue that 75% of the world's agriculture should be carried out in
enclosed spaces by 2050, in good part due to climate changes.
The only way of significantly reducing the
production of greenhouse gas is to reduce the production of energy from sources
that produce those gases.
This implies a significant reduction in
the burning of all carbon-based fuels, not only for electricity production, but
also for heating and industrial processes.
Not in my backyard.
Most people want green energy. One current source is the use of giant wind
turbines. However, many people do not
want them in their backyard. Energy production from the wind needs to minimize
visual and noise pollution, and be widely distributed to more evenly balance
its contribution to the grid.
The
costs of clean energy have to be reduced.
In many regions and countries, green
energy currently costs more than that produced by burning carbon fuels.
To favour rapid uptake, clean energy
must be profitable even without subsidies, and it should be relatively simple
to finance projects. The production of green energy should provide an
interesting profit margin for those who invest and maintain the facilities.
There are advantages with facilities that are at human scale, require
relatively little training, need minimal capital and are easy to finance at a
low interest rate.
The Wind-Do Proposal
Energy is at
the centre of all human activities:
- Energy production generates significative benefits and
income.
- Energy availability at low cost generates opportunities
that are sources of economic growth.
Wind-Do proposes the installation of
several mid-scale wind turbines grouped in a wind farm that can produce from
one to a few megawatts. These
wind-farms can be the starting point of a development plan for remote or
devitalized communities.
Our wind turbines are the size of a
tree, and so have little visual or noise impact. The cost of each KWh produced is quite competitive, and does not
require ongoing government subsidies.
To meet their production targets, very often the wind farms will need to
be oversized. There will be a surplus
of electricity that is free, but this surplus must be used locally.
Our wind farms may have a variety of
business models:
-
A cooperative can be created to manage the wind farm and
other related projects that are part of a revitalization initiative. Profits are then reinvested in the local
community.
-
A local business or entrepreneur could decide to be part
of a wind farm close to his facility. The main production of electricity is
used by the business to reduce its energy cost and/or to sell to the grid. The
surplus production is given to a cooperative to empower a greenhouse.
-
An electricity producer such as Hydro-Québec could also be
the owner of a wind farm. The surplus electricity can be used to stimulate the
local economy.
The
Economic Advantage for the Electricity Distributor:
-
The cost of electricity production, using the Wind-do
approach, will be between 2 and 4.5 ¢/KWh.
Depending on the project and its particular situation, electricity could
be purchased by the grid administrator at 4.5 to 7 ¢/KWh, a win win situation.
The electricity distributor could decide to create and manage its own
wind-farms, although it is unlikely to want to do this for small wind farms of
a few megawatts. This leaves the field
open to small producers.
-
Our wind farms are small and spread over the grid, so the
electricity produced can be linked into the network at a minimal cost. Over time, and as experience is gained, the
local electricity production could be increased, based on the community needs
and the capacity of the grid interconnection.
-
A wide distribution of wind energy production in the
network will facilitate the integration of this intermittent source for the
grid manager. Distance between each farm make sure that wind variations will
never create sudden changes in grid loads.
-
In Northern countries, the wind in the winter has 50-100%
more energy, so the production will be highest during weather-related peak
loads.
Greenhouses and Wind Energy
One of the characteristics of the
Wind-Do wind farms is that a good deal of surplus electricity will be produced
(beyond the target that is set), but this energy must be used on site. The
availability of almost free electricity can spur a number of local economic
activities that would be advantaged by very low cost energy. Here
are a few examples: heating of
commercial buildings, drying wood, commercial food preparation, the production
of hydrogen, electricity storage to make it available at spot prices, or any
industrial processes that need electricity or heat.
The
use of free electricity by greenhouses has a number of advantages:
-
Greenhouses in northern latitudes are hardly profitable
due to heating costs. Our low cost energy will enable them to compete with food
produced in the south.
-
Local vegetables will be fresher, often cheaper and be
healthier than imported ones.
-
Local production will favour food autonomy and security,
stabilize prices and increase the diversification of the production with local
species.
-
Most of the local jobs that would be created require
little education.
-
Part of the greenhouse could be used as a community garden
or coffee shop.
A basic Wind-Do wind farm is designed
to supply one MW of nominal power.
Based on wind availability and configuration, it will provide 3-4.5 GWh
of electricity to the grid each year.
In most cases, the wind farm will produce 1 to 2.5 GWh of free
electricity, which can only be used on site. It is possible to heat and light a
1,250 square metre greenhouse with an annual surplus of one GWh.
A general scenario is proposed below. Various combinations or options could be customized for a given
community.
The creation of a local cooperative
would allow the participation of the local population in their economic
development.
This cooperative would not be a
financial institution, but rather an investment club. The group could include entrepreneurs, small or large businesses,
angel investors and even VC funds; anyone interested in local development.
The
business plan needs to insure the profitability of the cooperative.
Ideally, the cooperative would be the
owner of the wind farm. To support the
development potential of the COOP, the wind farm annual benefit should be $100K
or more. With a sale price of 2 ¢/KWh higher than the production cost, a sale
of 5 GWh per year would be required.
This can be accomplished with an initial connection to the grid of 1.5
MW.
A local greenhouse could create 2 to 4
fulltime jobs and several part time ones.
A typical wind farm with a connection of 1.5 MW would generally produce
2.5 GWh of electricity surplus. This
could meet the needs of a greenhouse up to 3,000 square meters, which could be
profitable even with local sales.
The greenhouse should include
activities that enhance the community,
but do not compete with existing activities.
For example, the greenhouse could house a garden coffee shop, a
restaurant, a vegetable market, or any other useful activity for the
community.
The cooperative should start with local
funds of $100K, which could be reached by having 100 investors contribute
$1,000 each for a share in the cooperative. Adaptations could allow unemployed
people and those on welfare or retired people to contribute and participate in
other ways. Members of the cooperative
should have the right to:
1- Work 2
hours a week in the greenhouse in exchange for a basket of vegetables (which
would reduce their weekly expenses).
2- Work an
additional 2-5 hours per week and be paid minimum wage (which will not reduce
their government support). This income could also be used to pay for a share in
the cooperative.
3- Receive
dividends. A minimum of 10% of the
annual benefits should be distributed to its members.
Individuals and companies could buy
additional shares, with the understanding that the cooperative's initiatives
would be with local business, including micro-loans and the funding of new
projects.
The local availability of low cost
energy, as well as the economic potential associated with the COOP, would
contribute to the local economy. Over
time, this activity could attract new residents.
A prerequisite
In order to obtain a surplus, a basic
amount of electricity has to be sold.
Every state and province has its own rules. In Quebec for example, only
Hydro-Quebec can sell electricity, so a basic requirement is that they purchase
the primary electricity production from the wind-farm cooperative.
Useful contributors
Several organizations and corporations
could contribute to this approach to community revitalization, for example:
-
The Ministry of Municipal Affairs could provide some
financial aid to devitalized communities that wish to carry out feasibility
studies.
-
The Ministry of Finance could lend the money required to
build greenhouses and wind farms.
-
Credit unions could hold the mortgage, guide the creation
of the cooperatives, and participate in their management.
-
A distribution agreement could be drawn up for the
greenhouse's production (IGA, Metro…).
-
Other sponsors could contribute to this revitalization
activity, while pursuing their own commercial development. (Subway, Couche-Tard…)
Project Partners
The main project promoter is Wind-Do
Inc. The development of greenhouses
would be assumed by Serres Harnois.
Other project partners are needed. In Québec, these could be: 1)
an investor or lender, such as the Ministry of Finance, Investment Québec,
or a bank... 2) a Cooperative like
Desjardins or an agricultural COOP, 3)
a contractor to build the foundations, and if needed, additional buildings. Etc…
A range of project partners will help
to accelerate the creation of cooperatives and enhance the local economy and
jobs.
Conclusion
The
scenario proposed here does not resolve all the problems identified at the
beginning, but its implementation can help to reduce several of them.
-
Economic stimulus of remote communities will enhance living
standards, help keep the youth in the community and favour the integration of
newcomers.
-
The wind farm and greenhouse activity will create 2 to 4
permanent new jobs, and dozens of part time ones that will energize the
community.
-
For off grid communities, wind power can replace diesel
generators, reduce the associated greenhouse gas emission, and lower the cost
of electricity generation. Instead of
money flowing to the oil producing countries, it stays in the community.
-
The addition of a local greenhouse can increase the
availability of fresh produce and for a number of remote communities, lower its
cost. The greenhouse could also become
a local meeting place.
-
The local cooperative is likely to be a source of learning
about entrepreneurial activity. Youth
could use this knowledge, and the financial potential of the local investment
club, to create their own projects.
Please feel free to contact us for
additional information.
François Gagnon ing.ind.
Duncan Sanderson Ph.D.
V.P. Community Relations of Wind-Do Inc.
