NaiKun Applauds Canada's New Federal ecoENERGY Program

The Renewable Power program provides for a one cent per kilowatt-hour incentive for up to 10 years for renewable, clean energy programs built by 2011. The program commits $1.48 billion to support the advancement of renewable energy sources and has the potential to assist in the development of enough generating capacity to power one million homes.

"This program will help renewable energy projects advance to electricity production. It is a concrete measure to help build clean energy sources, like wind, in Canada," said NaiKun President and CEO Ray Castelli.

A key new feature of the federal program is a specific reference to the energy potential of offshore wind when compared to onshore wind and other renewable energy alternatives. The maximum allowable capacity factor for offshore wind has been increased to 42% as compared with 35% for onshore wind projects. This is significant in that this maximum capacity factor has a bearing on the incentive calculation and is also recognition that offshore wind energy has the potential for higher energy output per installed MW of capacity.

"One of the key benefits of offshore wind is the potential for a higher capacity factor and we are delighted that the Federal government has considered this potential in designing the new program," added Castelli.