Fairhaven Wind turbines still benefit the town: What to know in 60 seconds

It has been 20 years since Fairhaven voters amended the town’s bylaws in May 2004 to allow for the siting of commercial and municipal wind facilities.

The project was put out for bid in the spring of 2006, and awarded to CCI Energy, part of a group of local developers that also included Palmer Capital and Solaya Energy.

A majority of residents at a Special Town Meeting ultimately voted to proceed, the project then went through a series of permitting hearings requiring abutter notification, and the turbines began operating in 2012.

Fairhaven Wind LLC continues to operate its two turbines – the North and South turbines – located at the site of the town’s wastewater treatment facility on Arsene Street.

The town of Fairhaven entered into a 20-year agreement with Fairhaven Wind to lease town property and purchase 100% of the power from the two 1.5-megawatt turbines.

The benefits to Fairhaven

Fairhaven Wind LLC Manager and Palmer Management Corporation President Gordon L. Deane said a new mark in production will soon be set.

As of the most recent production report from Eversource, with an ending date of May 2, 2024, the total benefits to Fairhaven are $3.917 million. The last two months have averaged over $50,000 of savings to the town.

“Hence, we would expect to be over the $4 million mark at the end of a couple of more billing periods,” Deane said.

Select Board Chair Stasia Powers said they are grateful for the savings that the turbines have provided over the years and that it is especially helpful in these lean times.

“As a Massachusetts designated Green Community, we are proudly committed to green energy and consistently look for opportunities to reduce the town's reliance on fossil fuels, while providing revenue opportunities or cost reduction to our residents,” she said. “We recognize that as a coastal community, we are directly impacted by sea level rise and understand that we need to contribute to the solution.

How the data is reported

While Fairhaven Wind does not submit progress reports on the turbines to Fairhaven, they do submit monthly reports showing the most recent production, the net metering credits provided to the town, and the payments due from the town to Fairhaven Wind for those credits.

Deane said in addition, they usually submit a summary to the town when milestones in terms of the town’s benefits are achieved. Fairhaven Wind expects to be doing so in the next two to three months when the cumulative financial net benefits to the town are projected to exceed $4 million.

The town receives lease payments, property taxes and power at a rate less than if the local utility continued to provide electricity to the town. The lease payments are $100,000 per year.

The town receives a cash payment from Eversource for the value of energy – via net metering credits –that the turbines generate.

Over the years, the spread between what the town pays to Fairhaven Wind LLC for the power and the value of delivered energy paid to the town has grown significantly, Deane said.

For example, when the project commenced operation in late spring of 2012 – or April 26 to be exact –the net metering credits generated and paid to the town averaged under 12.6 cents per kilowatt hour, for which the town paid 11.4 cents per kilowatt hour.

Currently the credits are almost 27 cents per kilowatt hour, and the town is paying the wind project 16.35 cents per kilowatt hour.

The Fairhaven Wind site states that the two turbines were designed to produce 7,227,000 kilowatt hours of electricity annually, and that this was equivalent to displacing over 10 million pounds of carbon dioxide, over 550,000 gallons of oil, or providing electricity for 678 homes each year.

Deane said there would not be much change in the equivalent projected reduction of emissions, although in New England the electric grid has been getting greener with the closure of coal-fired plants and the addition of more renewable energy, such as Fairhaven Wind.

“The power produced from the project to date has a positive environmental impact analogous to displacing 94 million pounds of carbon dioxide emissions or 4.8 million gallons of gasoline consumed,” he said. “The reduced CO2 is equivalent to the amount of carbon sequestered in a year by almost 50,000 acres of U.S. forests.”

Newer technology a possibility

At 12 years old, the turbines are less than halfway through their projected lifespan, Deane said. However, as with any equipment, there is wear and tear due to moving parts despite the equipment having a rigorous maintenance schedule and those maintenance costs continue to rise.

Also, technology has improved over time, which is why the industry standard generators these days are 4 to 6 times the generating capacity of the two 1.5 megawatt turbines installed in Fairhaven, he added.

Fairhaven Wind has begun to look at whether it makes sense to repower the turbines with newer technology, Deane said.

Under its agreements with the town, the town has an option to purchase the project after the initial 20-year lease term. However, if not purchased by the town, Fairhaven Wind is required to decommission the project at the end of its useful life.

The major components retain salvage value even after the project is decommissioned and are expected to be similar in value to that of the decommissioning costs.

What's next with the turbines

Deane said the wind turbines are still generating significant economic benefits to the town on a monthly basis. Those payments vary with production and the market cost of electricity.

The dollar savings to the town for fiscal 2023 was close to $600,000, with the second highest just over $400,000 in fiscal 2019. It’s approximately just over $400,000 so far in 2024.

Deane said there is no specific timeframe for the future of the turbines. The current agreements have an initial term of 20 years, and there are extension provisions in those agreements.

“If Fairhaven Wind determines it is beneficial to the town of Fairhaven and Fairhaven Wind to repower the turbines, it would work with the town to seek to amend the agreements to cover the costs of repowering and to continue to share the benefits of wind power with the town,” he said.

Standard-Times staff writer Kathryn Gallerani can be reached at [email protected]. Follow her on Twitter: @kgallreporter.

This article originally appeared on Standard-Times: Fairhaven Wind LLC continues operating the two 1.5 megawatt turbines