A: Western Wind's management team includes pioneers of the modern wind energy industry that have been involved in the operation and ownership of utility scale wind energy operations in California since 1981. The team is experienced in many aspects of the wind energy business, including site evaluation and acquisition, energy analysis, transmission, permitting and zoning, turbine selection, construction, environmental, operations, sales, marketing and capital raising.
Q: Where does revenue come from for wind parks?
A: Revenue from wind parks located in the US comes from three sources: current energy prices, green credits and Federal Production Tax Credit (PTC).
Rates for wind energy can differ significantly throughout the US. Presently, Hawaii, California, and the North Eastern US pay the highest rates for energy, which in turn results in higher revenues for wind energy producers.
Q: What are the company's immediate plans?
A: Western Wind has developed a pipeline of planned wind projects, including the expansion of its two operating facilities in California -- Windridge and Mesa.
In September of 2011, the Company completed construction of its 10.5 MW Kingman, AZ wind and solar site, the first ever joint project in the State.
The Company is also in process of constructing its Windstar MW project, located in Tehachapi, California, which is scheduled and on track for completion by the end of December, 2011.
To keep the pipeline of projects flowing, the Company has implemented the California Initiative. The goal of the initiative is to expand the Company's property portfolio in California and develop capacity for wind/solar energy. To that end, Western Wind has acquired wind resource information on 66 prime sites throughout the state and has already secured a 100 megawatt project site near Barstow, California.
Q: Why should I invest in a wind energy company operating in the US?
A: There are many factors that make a wind energy company operating in the US a socially responsible, safe and potentially profitable investment.
With concerns of global warming, soaring fossil fuel prices, eastern blackouts and constant brownouts, the pressure on politicians to find solutions and alternatives is increasing. Government bodies in the US have started to implement legislation and incentives that support renewable energy producers and the use of renewable energy.
Although there is a great demand for renewable energy, the wind energy industry is still very under-developed. The industry is made up of many small operations and very few large to mid-sized companies. Because of the lack of competition, the market potential for a mid-sized wind energy producer such as Western Wind is huge.
Unlike natural gas and oil, wind is an infinitely renewable resource and there is no risk of running out of it. As the technology is constantly being developed and new legislations being introduced the industry will only grow.
Q: Is there much opportunity for growth?
A: The wind energy industry is fragmented and significantly under-developed. There are very few large to mid-sized wind energy producers and many small companies. This opens up a huge market potential for a mid-sized company such as Western Wind. With concerns of global warming and soaring fossil fuel prices the need for renewable energy sources is ever increasing. In California, the government has implemented legislation that requires utilities to generate a minimum of 20 percent of electricity from renewable sources by 2010. As the demand increases for clean, green sources of energy, the opportunity for growth as a wind energy producer is huge.
Q: What is Western Wind's strategy for developing new projects?
A: Western Wind uses its management's expertise in site evaluation, energy analysis, permitting and zoning, environmental and operations in order to acquire and develop new wind energy sites. Because of the team's history within the industry, they are able to quickly assess possible projects based on seven criteria:
- access to grid for transmission
- an average capacity factor between 30 and 40 percent
- a zoning policy that allows for wind park development
- will not have cultural or environmental impact
- regulatory support for renewable energy generation
- local political support of development
- incentives at the regional or federal level
Q: Why is Western Wind focused on California?
A: California has one of the most attractive markets for renewable energy projects. There are many incentives for renewable energy producers operating in California. Not only has government introduced mandates and tax incentives favourable to renewable energy producers, but California also pays one of the highest rates for energy in the US.
The California Public Utilities Commission (CPUC) and the California Energy Commission have jointly implemented the 2010 Renewable Portfolio Standard. This legislation requires California utilities to generate 20 percent of electricity from renewable sources by 2010.
