Crosswind Energy Project
Utility-Scale Community Wind
Crosswind Energy Project was one of Iowa’s first locally owned wind farms. The project consists of 10 farmer-owners pooling their investments for a 10-turbine wind farm totaling 21 MW of clean generation capacity.
REAP was key to project financing because local farmer-owners cannot directly use the federal production tax credit. In forming a partnership with a Edison Mission Energy (EME), the entrepreneurs used REAP as a source of equity investment, while EME uses the tax credit.
During the 10 year life of the tax credit, EME owns most of the project. Soon thereafter, the local investors will assume ownership. Corn Belt Power in Humboldt, Iowa purchases all of the power from the local company, just as they would from an outside developer. The addition of Crosswind Energy to its power supply mix brought the renewable content of their members’ electricity to nearly 15%.
Wind farms bring new investment and jobs to rural economies but local ownership, such as the Crosswind Energy Project, retains even more wealth in the community. What’s more, the community roots bring a shared sense of purpose with the local community, building wind farm support.
Community ownership also grows energy independence. Crosswind Energy generates enough power to meet the annual electricity needs of Palo Alto County.
Crosswind Energy demonstrates how REAP can yield multiple benefits for clean energy, rural economic development and energy independence.
$2,326,000 Total grant + $250,000 Total loan Guarantee