Introduction
Wind Works Ltd, as the company, which provides the alternative energy sources, and makes them available for the wide range of the population needs to resort to a particular assessment strategies. The fact is that, environmental costs, which are required to be calculated for the entire implementation of the wind mill farm. Originally, the main aim of the paper is to create the assessment report, as if it was created for the clients, which are not professional in this sphere. The assessment strategy will be based on the generally accepted practices of calculating environmental costs for the similar project.
In accordance with the assessment practices, it should be stated that the report would entail a brief description of the key impacts of the project explaining where the main environmental costs lie. Considering this fact, the methodology for the assessment will be based on the principles of the description and capturing the analyzed environmental costs.
The survey itself, which is regarded as the key tool for the assessment strategy will be divided into 3 main parts. These are the General understanding of environmental issues, Project description and WTP using a double bounded dichotomous choice format, and standard socio-economic information.
Project Background
A wind farm which is planned to be built on the suburbs of Edinburg is a group of wind turbines Which are interconnected with a medium voltage (up to 34.5 kV) power collection system (which is a web of wires and controllers), as well as the communication network. (Vidal, 2008)
The outline development proposal is for 40 x 2.5 megawatt wind turbines. The new machines would have an 80m tower height and a 45m diameter rotor. The farm will be situated at the eastern end of the Pentland Hills along the ridge line and down the northerly facing slope. The exact layout has not yet been determined but the centre of the wind farm will be approximately at NT 218 661 GB Grid. To define the reasonable considerations and assumptions as for this location will be another task for the report.
As for the location of the wind farm, it should be stated that this factor is selected in accordance with several criteria: these are the wind speed, altitude, the wind park effect, environmental factors and the effect on the allover power grid.
Considering the fact, that Wind Works Ltd aims to provide the highest quality of the services, and create the wind farms in accordance with all the rules of effectiveness, the Wind Power Density coefficient should be considered the first.
As Haselip (2007, p. 190) emphasizes:
- A quantity called Wind Power Density (WPD) is used to select locations for wind energy development. The WPD is a calculation relating to the effective force of the wind at a particular location, frequently expressed in term of the elevation above ground level over a period of time. It takes into account velocity and mass. The results of the above calculation are used in an index developed by the National Renewable Energy Lab and referred to as “NREL CLASS.” The larger the WPD calculation the higher it is rated by class.
The fact is that, the location of any wind farm may be controversial, and there is strong necessity to mention that the calculations of the WPD coefficient of the Pentland Hills is regarded to be high enough for the location of the wind farm. In accordance with the map, the location is in the heights, thus, the Wind Power Density will be sufficient for providing the high amounts of energy. As for the factors of the wildlife or the previously elaborated plans of building the roads through the selected area, it should be stated that these factors have been already considered, and any of the regarded factors will not be violated by the projected wind farm. As Ellis (2006, p. 18) emphasizes:
- Access to the power grid must be taken into consideration. The further from the power grid, there will be need for more transmission lines to span from the farm directly to the power grid or transformers will have to be built on the premises depending upon the types of turbines being used. In comparison with the environmental effects of traditional energy sources, the environmental effects of wind power are relatively minor. Wind power consumes no fuel, and emits no air pollution. The energy consumed to manufacture and transport the materials used to build a wind power plant is equal to the new energy produced by the plant within a few months of operation.
Environmental Factors and Key Impacts
There is strong necessity to mention that the environmental factors, which are generally touched by the projecting of the wind farms, are closely associated not only with the factors of flora and fauna, but also with the factors of human health, nearby buildings and constructions. Infra sound, which is produced by the rotation of the mills, may cause essential health difficulties for the people, living nearby the farm. Nevertheless, in accordance with the map there are no buildings with people within several kilometers, consequently, this problem may not be taken into consideration. (Edinger and Kaul, 2003)
It has been stated that no danger is caused to birds, nevertheless, there is strong necessity to emphasize that several species of bats are endangered. Originally, the previously mentioned low frequency sound may cause serious consequences for the navigation system of the bats. As Greiner (2008, p. 210) claims:
Danger to birds and bats has been a concern in many locations. Some dismiss the number of birds killed by wind turbines as negligible when compared to the number that die as a result of other human activities, and especially the environmental impacts of using non-clean power sources. Almost nothing is known about current populations of these species and the impact on bat numbers as a result of mortality at wind power locations.
In the light of this fact, there is strong necessity to mention that Pentland Hills should be studied for the issues of bats dwelling, the location of their colonies, and routes, in order to avoid the local ecological catastrophe, as well as avoid constant repairing of the mills, caused by the impacts of disoriented bats.
The least financially important factor is the aesthetics, nevertheless, it may influence the touristic potential of the location, where the wind farm is planned. Consequently, this potential should be considered and researched for making the final decision, whether the allover outlook of the territory. At first sight it may seem that industrial constructions will only harm the natural landscape, nevertheless, as McCarthy (2008) describes in his research, the survey in Scotland has revealed the fact that more than 70% of people like such visual impact: “According to a town councillor in Scotland, the overwhelming majority of locals believe that the Ardrossan Wind Farm has enhanced the area, saying that the turbines are impressive looking and bring a calming effect to the town.”
Description of the Offered Methodology
The decision on the matters of the project effectiveness will be taken on the basis of considering several factors. Some of these factors have been described above, the others require more detailed explanation and the deeper analysis from the environmental, social and economic point of view, which will also relate the issues of business performance. Originally, entrepreneurs are regarded to be the most interested in implementation or non-implementation of similar projects, consequently, the opinion of business sphere should be studied, and paid a particular attention.
As for the matters of environmental protection, and the issues of projecting the wind farms, a special accent should be paid to the research by Ottinger and Williams (2002, p. 331):
- Decisions concerning environmental protection hinge on estimates of economic burden. Over the past 30 years, economists have developed and applied various tools to measure this burden. General equilibrium costs reflect the net burden once all good and factor markets have equilibrated. In addition to partial equilibrium costs, these general equilibrium costs include welfare losses or gains in markets with preexisting distortions, welfare losses or gains from rebalancing the government’s budget constraint, and welfare gains from the added flexibilty of meeting pollution constraints through reductions in the use of higher-priced, pollution-intensive products.
Moreover, in accordance with the economic indicators, associated with the development of alternative power sources, it should be emphasized that the aim of the UK government is to produce 20% of electricity in the UK by the year 2020 by the means of windmills, consequently, this project may be regarded as the contribution for the UK’s future. As it is stated in Turner and O’Connell (2007, p. 198):
- The 2002 Energy Review set a target of 10% to be in place by 2010/2011. The target was increased to 15% by 2015 and most recently the 2006 Energy Review further set a target of 20% by 2020. For Scotland, the Scottish Executive has a target of generating 17% to 18% of electricity from renewables by 2010, rising to 40% by 2020. Renewables located in Scotland count towards both the Scottish target and to the overall target for the UK.
From this perspective, there is strong necessity to emphasize that the original value of the windmill project is considered to be close to the matters of environmental protection in general. Building of the wind farm may cause the increased erosion of the soil, thus, potentially causing the landslides. If this happens, the touristic potential, as well as the infrastructure of the farm will be destroyed. Thus, the methodology should incorporate the seismological control and consultation.
Another assessment factor is the correlation with the emission of the greenhouse gases. Originally, wind mills do not produce such gases, nevertheless, the issue is touching upon the matter whether Scotland will be able to refuse from ecologically harmful sources of energy, if the wind farm is built. If the answer is positive, the value of the project will be increased. Thus, as McCarthy (2008, p. 23) emphasizes in the research, aimed at studying the emission of greenhouse gases:
- The correlation of greenhouse gas emissions with climate change and especially the damage caused by climate change are still uncertain and controversial. The uncertainty associated to such damage estimates is still very high. There are, however implied shadow values which can be derived from political decisions or international agreements: avoidance costs might then be used to assess the cost of greenhouse gas emissions.
The final claim, that should be emphasized on the matters of the environmental assessment of the project is associated with the issues of the externalities, such as vibration (caused by rotation), pollution of water and soil (by the oxides of metals), as well as damages to natural ecosystems, visual impacts etc. Naturally, these issues may be assessed only by the ecological experts.
Finally, the social factor should be considered in the context of the business sphere. This entails the research of public opinion, and presupposes the following actions:
- Gathering opinions of a large selection of people representing each demographic of the area
- Defining the scale of positive and negative views in an economically useful way
- Pre-surveys highlighted public interest in wind energy thus setting an estimative response rate
- Consider willingness to pay for/against development
Rationale
The rationale of the methodology is covered in the notion that the real value of a wind farm is concealed in the factors, which form the environmental value of the location, where the farm is projected. The fact is that, the environmental factors, which should be considered by the developers of the project are not just the possible expenses for the research or consultation. Nevertheless, these are the expenses, which will help to avoid possible ecological catastrophe (as in the case with the bats), the decrease of the possible incomes from the touristic capacity of the territory (if the view of the landscape will be harmed) or the natural disasters, such as erosion and landslides, caused by the development of the necessary infrastructure.
The economic side of the problem is closely associated with the environmental protection matters, and the plans of the UK to develop the infrastructure of alternative and renewable sources of energy. The social factor will help to define the monetary value for a non-market perspective of the wind farm creation, will allow quantitative assessment of public opinion and will help to eliminate the bias originated by the financial circumstances.
Advantages and Limitations
The fact is that, the offered methodology provides numerous advantages; nevertheless, it presupposes some limitations. As for the strong part of this methodology, it should be emphasized that it is a widely recognized and generally applied method in renewable energy field. The fact is that, it is a flexible method, which allows analysis of positive and negative impressions, and gives quantitative analysis, which is useful for eventually creating a cost-benefit analysis.
The limitations of this methodology are few, nevertheless, it should be stated that the described methods and considerations do not entail the following factors
- The opportunity of cooperation with local council
- The raise of the awareness of the development
- The possibility of highlighting implication in local activities
- The issues of promoting wind energy, emphasizing the benefits and development of the infrastructure
- Prioritizing local employment
- Offering investment in community projects
Originally, these issues could provide the increased implementation of the necessary practices and methodologies for the project implementation research, nevertheless, these factors would not be able to provide the sufficient level of research reliability. Consequently, it should be emphasized that the original value of the offered methodology is covered in the possibility of the research of the social factor of environmental protection, associated with the creation of renewable energy resources infrastructure.
Relevant Questionnaires
The questionnaires should generally entail the questions, relating the maters of the environmental protection, financial and legal issues of the wind farm engineering. Originally, the most relevant questionnaires are directed to the entrepreneur structures, which are interested the most in implementation or non-implementation of the renewable energy strategies. The following questions are offered in UKERC Report Finds (2009):
- How do you think environmental taxes and charges will develop in the next three to five years?
- Do you think that by implementing environmental measures could reduce the amount of money it has to pay in environmental taxes and charges?
- Do you think that environmental measures can contribute to increasing efficiency in your production processes?
- Do you think that by implementing environmental management companies could obtain loans more easily from your bank or from other financial institutions?
- Do you know which environmental legislation applies to the company’s activities?
- If you lack the necessary information, do you know where or how to get it?
- Are your customers making any demands regarding the environmental impact of your products or services?
- What risks does your business incur if you ignore real or possible changes in your market due to customer environmental concerns?
- Are any of your customers developing specifications on environmental performance?
- How important is it for you to begin to respond to customer/market environmental concerns? (UKERC Report Finds, 2009))
Scope of Work
The offered scope of the work for pollsters entails the marketing, legal and financial spheres. Surely, the offered set of questions may be extended and directed to the other routes, nevertheless, there is strong necessity to pay particular attention to these issues, as these may be regarded as the most relevant factors, which may essentially influence the implementation of the project. These are the social matters, business matters, especially business companies, which are close to the national program of implementing the renewable and alternative sources of energy. The research of these participants will provide the necessary information on the matters of possible obstacles and benefits of building the wind farm.
Conclusion
Finally, it should be stated that the methodology of defining the costs and expenses for the implementation of the wind farm project requires the multi-angle approach towards solving and considering the main issues, associated with renewable energy sources. In the light of the fact that only business and governmental spheres may influence the process of the project implementation. Consequently, the methodology, which presupposes the study of the interests of the business sphere may be regarded as one of the closest to the actual results and necessary considerations on the matters of implementing the project by the Wind Works Ltd.
References List
Edinger, R., & K Sanjay, Sustainable Mobility: Renewable Energies for Powering National Strategies. Westport, CT: Praeger, 2003.
Ellis, J, “Why Promote Renewable Energy?.” OECD Observer a.201 (2006): 17-20.
Greiner, M. Siemens Corporate Technology, plenary talk at the physical colloquium at the university of Regensburg, 2008.
Haselip, J, “Renewable Energy Policy and Politics-A Handbook for Decision-Making.” The Geographical Journal 173.2 (2007): 190.
McCarthy, M, Britain will need 12,500 wind farms to satisfy EU targets. The Independent. 2008. Web.
Ottinger, Richard L., & R Williams. “Renewable Energy Sources for Development.” Environmental Law 32.2 (2002): 331.
Turner, M, & B O’Connell, The Whole World’s Watching: Decarbonizing the Economy and Saving the World. Chichester, England: John Wiley & Sons, 2007.
UKERC Report Finds ‘Significant Risk’ of Oil Production Peaking in Ten Years, 2009, UK Energy Research Centre.
Vidal, J, UK wind farm plans on brink of failure. guardian.co.uk. 2008.
2007 Energy White Paper: Meeting the Energy Challenge, Department of Trade and Industry.