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Test Case: Can Cash Payments Win Over Locals to Wind Project?

| Written by John Farrell | No Comments | Updated on Aug 1, 2011 The content that follows was originally published on the Institute for Local Self-Reliance website at http://www.ilsr.org/test-case-can-cash-payments-win-over-locals-wind-project/

84 Pipestone County Wind TurbinesA 50-turbine wind farm in Goodhue County in southeastern Minnesota has met with stiff local resistance, a frequent tale in the wind industry.  Recently, the project developer won a key court case to move forward, after making concessions about the distance (“setback”) between the wind farm and local homes.  However, many residents remained unconvinced that the project was in their best interest.

But today the project developers offered $10,000 payments (over 20 years) to about 200 local residents to try to win them over.  The concept might work, although the payments – $500 per year – aren’t particularly large. 

In a recent European study, researchers found that citizens generally have two priorities for renewable energy projects: avoiding environmental and personal harm and sharing in the economic benefits from their local energy resources. The $10,000 checks could go a long way toward satisfying local residents that they aren’t being simply colonized for their wind resource. 

Will it work?

The wind project had already been certified as “community-based” under a 2005 state statute, but local opponents contested that a wind farm development by a company owned by Texas oilman T. Boone Pickens hardly qualified.  It remains to be seen whether a more significant a direct benefit for nearby residents is enough to buy their support.

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About John Farrell

John Farrell directs the Energy Self-Reliant States and Communities program at the Institute for Local Self-Reliance and he focuses on energy policy developments that best expand the benefits of local ownership and dispersed generation of renewable energy. More

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