Benefits of Land Leasing for Wind Power Development

Our latest video highlights the benefits and processes involved in land leasing for wind power development. Wind power operations often coexist on farming and ranching land, benefiting both landowners and turbine operators. Wind turbine developers require large open tracts of land, which can be privately owned or public. In Colorado, the State Land Board manages a land lease program allowing long-term leases on public lands for multiple uses, including wind and solar energy conversion. The state manages three million acres of public land, with about 95% of leases for farming or cattle grazing. Approximately 4% of Colorado's renewable energy production uses these leases, enough to power 75,000 homes. Leaseholders pay only for the portion of land they use.

Half of the state's lease income funds the BEST program (Building Excellent Schools Today), which supports capital improvement projects like new schools. Companies can also lease land directly from private landowners, providing economic benefits as wind turbines occupy only a small portion of the land, allowing continued farming or ranching. Wind turbines have long operational lifespans, requiring long-term lease agreements. Landowners typically receive fixed payments per turbine or per acre, or royalty payments based on electricity produced, ranging from $5,000 to $8,000 per megawatt per year. For example, a project with 5-megawatt turbines can generate $25,000 to $40,000 per turbine annually.

Wind power projects require large amounts of open land, with turbines spaced far apart to reduce wake effects. The land requirement can range between 20 to 80 acres per large scale wind turbine, in areas with sufficient wind resources and proximity to transmission lines. The lifecycle of wind power projects includes four phases: Development, Design and Construction, Production, and Decommissioning. Civil Renewables plays a role in all lifecycle phases, offering services such as geotechnical studies, foundation designs, construction drawings, QA/QC requirements, operational performance advice, and consulting services for life extension, repowering, or decommissioning. Civil Renewables aims to ensure the success of wind power generation for landowners, project developers, project owners, and the public.