In 2005, the Minnesota legislature passed an omnibus energy bill which included important new mechanisms to support community wind. This system, known as C-BED, is intended to make it easier for community wind projects to be successful without putting an excessive burden on utilities. It accomplishes this by requiring utilities to create a new tariff utilizing a net present value rate for electricity, and the option of front-loading the rate in the first half of the contract's lifespan. This page is intended to provide information to make this new system easier to understand.
Understanding C-BED: A short explanation of the original C-BED legislation and how it benefits community wind. Additional information on C-BED and the other contents of Minnesota's 2005 Omnibus Energy Bill is available in this fact sheet.
The Next Generation Energy Act of 2007: A short description of the changes to the C-BED legislation passed in 2007. Additional information on The Next Generation Energy Act and other energy legislation passed in conjunction are available in this fact sheet.
A simple example spreadsheet comparing front-loaded and fixed rates, in Microsoft Excel format
For More Information:
C-BED.org is a website for an organization (also called Community-Based Energy Development or C-BED) that includes detailed information about the program, including a C-BED calculator.
MN Public Policy History
Even before C-BED was created, Minnesota has had a long-standing commitment to supporting renewable energy and especially community wind development through public policy and regulatory action. A variety of programs, including Minnesota’s Renewable Energy Objective and Xcel Energy’s wind energy mandates, have created a steady market wind in Minnesota. Community wind has grown to fill an important role in this market through the support of the MN Renewable Energy Production Incentive for projects under 2 MW, Xcel Energy’s small wind tariff and standardized power purchase agreement for projects under 2 MW, and the Renewable Development Fund. Some Minnesota community wind projects have also taken advantage of federal programs such as USDA grants, the federal Renewable Energy Production Incentive, and the Production Tax Credit.
Minnesota farmers and entrepreneurs have used public policy support combined with their own resources and ingenuity to create a variety of profitable business models for locally owned wind projects. Schools, colleges, and local utilities have followed, seeing the opportunity to bring new investment and clean energy to their communities, while creating a source of community pride.