Breezy business

A six-year search for a properly windy location led Tim Carlson, managing partner of Nevada Wind LLC, to Virginia Peak in the Pah Rah Range.

But while the site near Pyramid Lake meets scientific criteria for wind-powered generation of electricity, social issues pose a second hurdle.

Set for construction in 2010, the 150-megawatt wind farm would be the first such project in the state. (One megawatt can power about 600 homes.) Carlson and Nevada Wind partner John Johansen hold leases on various parcels for periods of 25 to 45 years.

Carlson, a former executive director of Nevada Development Authority, maintains offices in Las Vegas and Incline Village. Johansen, a past president of American Wind Energy Association, resides in Spanish Springs.

Consistency of wind determines site selection, says Carlson. To be profitable, a wind farm must generate at full capacity 30 to 40 percent of the time.

"It takes 18 to 24 months to determine if a site is capable of sustaining an energy development process. It's scientific. It's only in certain places, based on characteristics of the land; how the mountains channel the wind into a certain area."

But desert dwellers enjoy a vast view and some don't want it studded with 300-foot-high windmills.

"People object to the noise," says Carlson. "But they're not noisy. Three hundred feet from turbines the sound is equal to that of an HP printer."

John Berkich, assistant Washoe County manager, says the county wants to work closely with citizen groups and Native American interests before it approves the project.

Project proponents cite environmental issues.

A single wind turbine generates 2.5 megawatts of power, which equals 8,000 tons of carbon dioxide removed from the atmosphere each year, says Carlson.

"The majority of people want to see this kind of energy developed," he adds. "But individuals are concerned. We must be sure they understand. We will listen to their problems and try to solve those problems."

If approved, the project would employ 250 to 300 over a six-month construction period, says Carlson. Ninety percent would be local hires. Once the 45 to 50 turbines have been erected, ongoing maintenance would require 10 permanent jobs.

To finance a project of such magnitude, Nevada Wind will turn to investment bankers, says Carlson. Firms such as Goldman Sachs can reap federal tax credits for environmental involvement. The turbines cost $1.5 million to $2 million each, installed and carry a nine- to 13-year payback period.

Another challenge is how to get the wind power to market. That could mean upgrading existing transmission lines or developing a new corridor to take the energy to a power substation.

"We've put together a small team to work through issues on a critical path approach that meets their timetable," says Berkich. "We see an opportunity to put together a public-private team to make it work, needed for a regional project of such magnitude."

Says Carlson, "We said there's got to be a way to develop wind energy in this state. We're eager to get the first one built."

Nevada Wind partners Carlson and Johansen met while working on a previous wind power project. The federal government sought a commercial use for the former Nevada nuclear test site. In response, Johansen founded Global Renewable Energy Partners. Carlson was president of Nevada Test Site Development Corp.

After three years work and with millions of dollars invested, the Air Force quashed the project, deciding the turbines would pose a detriment to radar testing.

Airspace over Nevada has been heavily populated by Air Force training and research missions for 50 years, says Carlson. "So when developing something that sticks up in the air, you've got to be careful."