Selling wholesale electric power to a utility requires three main steps. First, the wind project will need an interconnection agreement to connect the project to the local utility’s grid. Second, the project will need a power purchase agreement to secure the utility’s obligation to buy the generated power according to the terms of the agreement. Third, if the generated power moves over the local grid to a utility or end user that does not own the local grid, the farmer will need to negotiate a transmission agreement to move the power over the local grid.
Specific state for federal laws may affect the terms of any of these agreements and give the wind developer/farmer particular rights, depending on the project. It is crucial to understand your rights and responsibilities before negotiating any contracts and to get the advice of experts in your state.
For more information: Farmers’ Guide to Wind Energy: Legal Issues in Farming the Wind.
Contributor: Christy Anderson Brekken, Oregon State University
