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HANCOCK, MASS.—After the price of electricity jumped 50 percent during the 2005-2006 ski season at Jiminy Peak Mountain Resort, management knew it had to do something significant. It could not just keep passing along rising costs to its customers; it would lose market share. According to Jim Van Dyke, vice president of sustainability at the Hancock, Mass.-based property, the resort had already installed compact fluorescent bulbs and taken other simple steps to reduce costs. “We had exhausted the low-hanging fruit,” he says. The resort was already using more than 2 million kilowatt-hours less of power annually thanks to its conservation efforts. What more could it do?
“I ran into a former employee in the wind industry,” Van Dyke says. “He thought a wind turbine might be a good option.”
That suggestion got the “blades spinning” and today, about two and one-half years after the idea was hatched, a 1.5-megawatt wind turbine sits on the west face of the mountain above the 101-suite resort. The General Electric (GE) turbine, which Van Dyke says ended up costing the resort about $4.2 million, was subsidized in part by a $585,000 grant from the Massachusetts Technology Collaborative. To help defray the costs, the resort is selling about $161,000 of electricity per year back to the local power company. Jiminy Peak is also receiving an annual $46,000 tax credit. Van Dyke says the resort’s owners will recover the investment in about eight to nine years based on today’s electricity rates. However, the ROI should be less based on the expectation that electricity rates will continue to rise.
Mechanical Glitch Last September
The wind turbine, named Zephyr, began producing power for the resort on July 31, 2007. It was projected to produce 4.6 million kilowatt-hours of electricity in its first year. The actual production was 3.97 million kilowatt-hours. The turbine did not operate for 15 days in September 2007 when a ball bearing needed to be replaced. The turbine provides one-third of the resort’s power needs most of the year. During the winter months, when winds are stronger and more consistent, that percentage rises to as high as 50 percent. Jiminy Peak used just 2.3 million kilowatt-hours of the electricity the turbine produced in the first year. That represented 46 percent of total production. It sold the remaining 54 percent back to the power company.
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