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| THE SALIENT FEATURES OF THE PROJECTS |
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| TECHNO- COMMERCIAL |
- The projected wind potential at the site (21,000 acres) is around 500 MW.
- The wind resource assessment seems to be very promising with a wind speed class 4 (i.e above 8 m/s) Upto Sep 2010. The prevailing wind at Harte Ranch is West to East. The major axis of the site is same as well, which is a favorable condition for micro-siting of wind trbines.
- Excellent opportunity for additional PV Solar Energy Production as the Ranch is located in an area declared to be a Solar Generation Development Area by the Governor Bill Ritters’s Energy Office of Colorado
- Gross annual revenues for the project are expected to start at about $11 million a year and the Project IRR is 23.9%, based on current market condition and projected performance.
- A number of utilities (44) in Tri-State area and tens of Municipalities, Defense Area in Pueblo, and all important cities in Colorado can be approached to sell our electricity. Also we can sell electricity in wholesale market as the rates of wholesale electricity prices are promising. We can go to San Isabel and other companies to take our interconnection nn and wheel it to other places easily.
- There is good access to the market through a number of utility companies and grids in the area, including Blank hills, Tri-State, and Xcel. (The company has filed an interconnection request with PSCo/Xcel, Queue No. 34). The interconnection can be done in various other ways and areas.
- Due to favorable geographical condition, there are no issues with the wind right, landowners, environmental aspects, and permitting etc.
- There is hundred of thousand of stone & gravel at the wind farm which can be crushed at site and millions of USD can be saved in Royalty & cartage of stone by trucks.
- The VIPO ENERGY RESOURCES INC., Wind Energy Project would produce enough energy to supply approximately thousands of US households at 500 MW.
- Electricity produced by VIPO ENERGY RESOURCES INC., Wind Energy Project will replace traditional energy production generating. It will also reduce SO2 and NOx, both precursors of acid rain and components of Smog.
- There is a queue of consumers wanting to buy green power instead of conventional.
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As Per Value added chart the total work done on the Project is about $210/kW |
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| FEDERAL & LOCAL INCENTIVES |
- Tax Credits – The project qualifies for tax credits worth as much as 30¢ or more per dollar of capital cost. There are there options when it comes to tax credits -
- We can claim Production Tax Credits (PTC – 2.1 cents per kWh produced) for 20 years on the electricity output,
- We can forego tax credits and be paid 30% of the project cost in cash by the US Treasury within 60 days of project completion (most favorable option, which we are considering)
- Colorado House Bill 07-1279 exempts machinery used to produce electricity for wind energy from Colorado Sales Tax and Use Tax.
- Subsidies – Renewable energy projects in the United States are heavily subsidized through the tax code. The more subsidies, the less the project will cost. There are as many as 10 different subsidies.
- Carbon Credits - Colorado is targeting emissions at 20% below 2005 levels by 2020 and 80% below by 2050. VIPO Wind Energy Project will help to reduce generation of green house gases (GHGs) as well to meet these targets and consequently earn carbon credits.
- Loan Guarantees – The stimulus bill guarantees loans for renewable energy projects, certain manufacturing facilities and transmission, subject to the National Environmental Policy act up to 80%. We will have to pay “prevailing wages” to construction workers, meaning more money and more good paying jobs in this area.
- New Markets Tax Credit – With our 500 MW project at Harte Ranch outside of Walsenburg. We may also be able to qualify for a 39% New Markets Tax Credit which helps invest in community and alternative energy.
- Accelerated Depreciation – 85% of the capital cost may be depreciated at 29.8¢ per dollar. The other 15% percent may fall into four other depreciation classes with various returns.
- Special Stimulus Provision – Starting in 2010, power companies can deduct 9% of income from electricity sales under a special provision meant to encourage “domestic manufacturing.” This includes electricity from local solar and wind farms, giving you even more payback when you invest in wind energy.
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STRENGTH OF THE SITE |
- The wind monitoring station (metrological tower) studies conducted for one year during year 2009-10 shows favorable wind conditions of more than 8.0 m/s average wind speed.
- The site is easily accessible by road and railroad for required infrastructure, yet remote enough to not visually impact the surroundings or affect the ecosystem.
- Preliminary soil analysis indicates a rock layer that is favorable for easy construction of turbine foundation.
- VIPO Energy will access the grid via a 115kV transmission line to Walsenburg Substation only 19 miles away for interconnection. In addition, there are other places where this power can be placed into the grid.
- The Climate is southeast Colorado and at Harte Ranch is relatively mild.
- A leading turbine manufacturer Vastas or equivalent are located approximately 250 miles from the site. Vestas is opening a turbine manufacturing facility less than 55 miles from the site.
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