Showing posts with label Value of South Dakota wind power. Show all posts
Showing posts with label Value of South Dakota wind power. Show all posts

Wednesday, January 9, 2008

Earning $152,878, leasing for $4,000

$152,878 is a conservative estimate of revenue from a large wind turbine on South Dakota ag land. Land owners are being told to accept $4,000 per turbine in a wind lease or their land will be isolated from development.

Sadly, producers have a lot of experience with selling their crops and livestock for poverty-level profits; once again they face marketing a new commodity without knowing its value.

With every hour "superb" wind speed (faster than 24 mph), a 1.5 MW can generate up to 3,195 kW. A South Dakota land owner isn't paid "fair market value" because s/he doesn't yet have "aerinomics" information. S/he has more agronomics information than s/he "can shake a stick at" on other ag practices, but not aerinomics on wind farming.

Utility companies are "cherry picking" some of the nation's fourth-best wind power from land owners from a position of knowing they can

  • sell- at a premium- wind power as "green power" or "blue skies" power and/or
  • sell it as plain ol' power to consumers where rates are 11¢ and even 14¢ kWh.
Larger businesses have, since the dawn of time, "cherry picked" from the low to sell high, so wind farming is just the next "it's only business."