Colorado's new energy economy is rising with the wind.

• Author: Ryan, Anthony
• Position: GUEST column

Coloradans are committed to harnessing wind energy as part of a larger goal of generating and using more renewable energy, and the new energy economy is paying dividends to consumers and landowners throughout the state.

Colorado picked up momentum for renewable energy generation at the beginning of the decade. In 2004, the state constitution was amended to require that 10 percent of energy provided by the state's largest utilities, such as Xcel Energy, come from renewable sources by 2015. Less than three years later, Gov. Bill Ritter signed into law a bill that doubled the requirement to 20 percent by 2020.

Last year, new wind farms built on Colorado's Eastern Plains created enough energy to power nearly 250,000 homes.

To comply with these renewable energy requirements, utilities often purchase renewable energy from third-party developers. The Colorado Public Utilities Commission requires utilities to use competitive solicitation when acquiring renewable energy. The contract entered into between the utility and the developer is called a renewable energy supply contract. Before entering into a contract, developers must go through four general steps to bring a wind farm online.

STEP ONE: SITE FEASIBILITY

The first step is to ensure there is adequate wind. To gather this information, a developer typically enters into an option agreement with a landowner allowing them to conduct tests on their property. Developers must also guarantee access to a transmission line that can handle the capacity of the energy created by the wind farm.

If a line is not available, the costs of constructing a new one, if technically practical, are factored into the developer's decision. Finally, developers must conduct significant environmental and wildlife impact studies.

If economically feasible, the developer will enter into a contract with a utility through the competitive bidding process. Without a qualified utility to buy and then resell the electricity to consumers, developers will not construct a wind farm.

STEP TWO: TURBINE LOCATIONS

Once a contract is in place, developers then work with landowners to select locations for the wind turbines, usually by entering into long-term leases on the property. While developers require significant space between...