St Agatha Open House: Questions and Answers

At our open house meeting in St Agatha in December 2010, we posed a few questions to participants in order to find out more about local interest in, and local concerns about, our wind project. We asked participants:

1) In what ways is the development of renewable energy important to you?

2) What do you see as the advantages and disadvantages of local electricity generation?

3) How do you think LIFE’s wind project would affect you, as a local resident, and investor, and/or a member of the co-op?

Participants tended to respond to these questions in fairly general terms. The first question received many responses in support of renewable energy technologies, and phrases like ”important”, “sustainable” and “investment opportunity” were used to answer this question. In this and the other questions, a number of respondents raised concerns about house values and “safety”. Many raised concerns about health impacts, and a few indicated they felt there was inadequate information from government, industry and developers in response to concerns raised from residents and anti-wind activists. These included concerns about “low frequency” noise, “stray voltage”, effects on wildlife, and concerns about the divisive impact on communities.

LIFE has developed the Questions and Answers below to address these concerns. We do not expect to alleviate all concerns, but would like to share our understanding of the current state of research, as well as our own understanding of the advantages of renewable power in general, and of our Co-op in particular.

In general, we believe that energy is a crucial issue for all of us as we move toward the future. We share the concerns of those who would like to have less impact on the environment, especially in terms of carbon emissions and reduced pollution (as compared to coal, nuclear, and natural gas). We also share a belief that distributed energy is ultimately preferable to centralized energy production, especially due to the opportunities for local ownership of the electrical infrastructure.

Are Wind Turbines Safe?

A lot of the opposition to wind turbines seems to focus on “health effects” and other questions of safety. We recognize that wind developments have caused some people discomfort, but we are not convinced by claims of “wind turbine syndrome”. Rather, we agree with the Chief Medical Officer of Health, who notes that for some people, “annoyance” with turbines can lead to stress and illness (see page 6 of her report). No doubt this annoyance has causes – noise and visual changes, especially – but we hope that by inviting residents to take part in the project, we can help build their sense of ownership and participation, which we hope will reduce the feelings of powerlessness and imposed change that lead to annoyance and stress for locals. Many who have studied the issue believe that the absence of opposition in Europe is related to the fact that community-driven projects have been very common there. That is, it seems that participation in a wind project can make it substantially “safer”.

We also believe questions of safety need to be seen in the context of other forms of energy production. Coal is well recognized as a major contributor to respiratory illness; a 2005 Ministry of Health Study estimated coal causes 668 deaths per year in Ontario, and many thousands of hospitalizations. Many deaths around the world are caused by natural gas explosions, in Canada and elsewhere. And nuclear, while generally safe, can be catastrophic when something goes wrong (as we are seeing today in Japan). Compared with these other risks, even the worst claimed effects of wind turbines seem rather benign. (It is worth noting that Japan's wind turbines, even offshore, all survived the earthquake and tsunami).

And this does not include the ultimate dangerous impacts of climate change, which both coal and natural gas contribute to significantly. These include severe weather events, rising sea levels, droughts and crop failure, and the loss of fresh water and biodiversity. In light of the threats from climate change, renewable energy (along with conservation) is really the only safe option.

LIFE supports calls for health studies on the effects of turbines, in order to settle the debate over health impacts. However, we believe that the evidence and studies to date indicate that wind power is a worthwhile pursuit, and that the development of this promising technology should not await health studies, which will take years to complete.

What about the price? Wind power is heavily subsidized by taxpayers: is it worth it?

For many years we have heard about how cheap nuclear power is, which provides about 50% of Ontario’s electricity. Yet we all know that Ontario’s nuclear investment is still being paid for through “debt reduction” charges on our electricity bills. Moreover, nuclear power is subsidized through 1) the lack of insurance requirements (which means all the risk is carried by the taxpayers) and 2) the unknown costs of decommissioning plants and disposing of nuclear waste. Some estimate that the true costs of nuclear are somewhere between 16 cents and 37 cents per kWh, as opposed to feed in tariff (FIT) rates for wind of 13.5 cents per kWh (See also a US study which puts the cost at 25-30 cents/kWh). The Ontario Clean Air Alliance has calculated that existing subsidies on power generation are almost $8 billion/year; if these were eliminated, our electricity bills would rise by about 60%.

The rates being paid for wind power are higher than current wholesale electricity rates, but since they change little over a 20-year contract, they may well be cheap in the long run. More important, perhaps, is that the initial capital costs of investment are being provided by private investors, and not the Province. Thus the developments under the Green Energy Act do not add to the Province’s debt burden, and as a result lower taxpayers’ costs in the short term.

We should not forget the major non-monetary benefits of wind power, from creating awareness of the potential for renewable power, to reduced water use and pollution, to extra income for farmers, to reduced greenhouse gases. LIFE’s 2MW turbine will offset some 5,000 tons of CO2 annually, which has the same effect of taking 1,000 cars off the road, or planting 25,000 trees.

What about the house values of those who live near a wind farm?

Ultimately, it is the perception of wind turbines that will determine how they affect property values. For farmers who lease land for projects, the steady lease payments have been shown to be beneficial to land values. For others, we expect that once wind power becomes more common in the Province, property values will settle into their normal patterns. These patterns are more dependent on amenities, economic opportunities, and community vitality than they are on the presence of industry or infrastructure. In this sense, we believe that LIFE’s wind project could contribute to a sense of community achievement, and we hope for broad participation from local residents who will take pride in their achievement of erecting one of Ontario’s first “village turbines”.

Will the turbine kill birds and bats?

Studies have shown that office buildings, house cats, cars, and pesticides kill many more birds every year than wind turbines. Even these are small worries compared to climate change, which threatens to wipe out up to 25% of all bird species within this century, and may also impact bat populations.

Wind projects are subject to extensive bird and bat-oriented environmental assessments before installation, and post-construction mortality studies are a requirement of all new wind farms. If mortality is deemed too high, measures can be taken to reduce the impacts, including shutting down the turbine during migratory periods or at certain times of day.

What is the insurance cost for a wind project?

Liability insurance costs reflect the chances of the project being sued for damages to property and well-being. To date, we are not aware of any claims against a wind project that have been successfully pursued. We have not yet confirmed a rate for insurance, but the industry standard is about $15,000 per year. This cost is included in our business plan.

What about stray voltage? Is it dangerous?

Stray voltage – or what is sometimes called “dirty electricity” – refers to electrical energy that jumps between sites where there is an unplanned difference in voltage. Stray voltage problems are not unique to wind projects; they are caused by improperly grounded systems, and are all too common on farms where electrical systems are complex and often improperly engineered. Many associated health complaints are stemming not from the turbines, but from poorly designed electrical systems.

Complaints regarding stray voltage have nonetheless contributed to stronger oversights for new wind projects. We will work closely with engineers and Kitchener-Wilmot Hydro to ensure that the electricity our turbine produces will not in any way affect the electricity being delivered to homes in the area.

What does membership in LIFE Co-op cost, and what are the returns?

Membership costs $175, and a commitment to invest a minimum $250 once our offering statement is passed (“receipted”) by the Financial Services Commission of Ontario. The returns policies for investors will be outlined in detail in our business plan and offering statement. LIFE has committed to directing 10% of its returns to community initiatives through LIFE’s Community Fund. This commitment reflects our hope that the community will see this project as its own, and will be encouraged to participate in its development. For more information please see our Members’ Handbook.