Wind farms turn into cash cows

Hamilton Spectator
Saturday 5/5/2007 Page: 6

WIND farms are turning into nice little earners for local government. It has been estimated the Moyne Shire - the most intensive location for wind farms in Victoria with a planned 379 wind towers so far - might reap up to $1 million if all these projects go ahead.

Glenelg Shire Council will receive $180,000 from Pacific Hydro for the electricity generated by its wind farms in lieu of rates. The State Government has initiated a formula which sees a base payment of $40,000 plus $900 per megawatt capacity indexed by CPI annually. Glenelg Shire Mayor, Cr Gilbert Wilson said this will mean Pacific Hydro will initially pay the shire $180,400. However, if the company's Portland Wind Energy Project is built in stages over more than one year, then the amount will be calculated on a pro rata basis based on actual installed megawatt capacity.

"Unlike the rate agreements for other large industries, the proposed rate agreement with Pacific Hydro is a procedural document as the financial formula is prescribed by legislation and cannot be negotiated," Cr Wilson said. Cr Wilson said the Portland Wind Energy Project had resulted in the establishment of the Vestas manufacturing facility in Portland and a number of local contractors would be employed during the construction phase.