Wind farms vary in price because of size, but typically cost more than $100 million.
First, a site has to be identified. Things such as wind speed, land terrain and proximity to the power grid need to be considered.
If a site can easily be connected to the power grid, then the landowners are contacted. They are told the pros and cons of a wind farm, as well as the installation process.
Local officials are then met and the project is discussed. The site is assessed again and permits are acquired. Once that is done, the six to 12-month construction process begins and the wind is harvested.
“The entire process can take three to five years,” Spencer says.
So, patience is the key for anyone thinking of going into the business.
“There was a general understanding where places are windy,” he says. “And most of the places that are windy, have no people.”
The company now has three wind farms operating in Cambria County, Pennsylvania, and one each in Somerset County, Pennsylvania, Steuben County, New York and Tehachapi, California.
EverPower monitors its current wind farms and planned wind farms from a sophisticated monitor in its control room. Following extensive monitoring, if a site is not deemed windy enough, the company will move onto another location.
The company has six more projects in advanced development: three in Ohio, two in New York and one in Washington state.
Texas currently produces the most harvestable wind power in the U.S., followed by Iowa, California, Minnesota, Oregon and Washington, according to the Department of Energy. Pennsylvania is 15th in the nation, as of 2010.
Growing with the right backing
The first few years after EverPower switched its focus to wind were not easy. But they got better for the fledgling company after it was acquired in 2009 by Terra Firma Capital Partners Ltd., a private equity firm based in the U.K.
Spencer and his management team have a minority ownership stake.
Terra Firma has pumped $600 million into EverPower, allowing it to grow and become profitable. Revenue for EverPower, for example, was $80 million in 2013 and is expected to reach $110 million for 2014.
“The business was growing at a level that could not be sustained by the early shareholders,” Spencer says, explaining the company’s decision to sell to Terra Firma.
