Wind Power

Canadian RFP Goal Spurs Project Development

The likelihood of the Canadian Government mandating a national Renewable Portfolio Standard (RPS) calling for 300 MW of clean energy is helping to spur development arrangements to provide some of that power. The most recent is between Canadian Hydro Developers, RenewableEnergy Corporation (CREC). CREC has granted Canadian Hydro an option to jointly develop the Wolfe Island Wind Project, a potential 300 MW wind power project located on Wolfe Island, near Kingston, Ontario.

Calgary, Canada – April 13, 2004 [SolarAccess.com] The likelihood of the Ontario Government mandating a national Renewable Portfolio Standard (RPS) calling for 300 MW of clean energy is helping to spur development arrangements to provide some of that power. The most recent is between Canadian Hydro Developers, RenewableEnergy Corporation (CREC). CREC has granted Canadian Hydro an option to jointly develop the Wolfe Island Wind Project, a potential 300 MW wind power project located on Wolfe Island, near Kingston, Ontario. In addition, Canadian Hydro has granted CREC an option to jointly develop the potential 240 MW Melancthon/Grey Highlands Wind Project previously announced. Included in the arrangement is an option for CREC to acquire 50% of the Corporation’s 10.9 MW Ontario hydroelectric plants on or before December 31, 2004. The company and CREC expect to bid these projects to the upcoming request for proposals for up to 300 MW of renewable energy capacity recently announced ambitions for a RPS by the Ontario Government. It is anticipated that the RFP will be issued this spring. The Ontario Government has targeted 5% (1,350 MW) of all generating capacity to come from renewables by 2007. “The Ontario Government is creating market certainty through its announced RFP to purchase 300 MW of greenpower. Canadian Hydro views this as a very positive signal to independent producers of green electricity,” said John Keating, CEO of Canadian Hydro. “We are extremely fortunate to have two top-quality, large-scale wind prospects in the province. The Wolfe Island Wind Project is expected to be comprised of five 60 MW phases. Land for the project is currently being assembled under option to lease agreements, wind data has been collected in the area, interconnection approval is currently underway with the Independent Electricity Market Operator, and the project is registered and has met the basic eligibility criteria that will allow it to apply for the Federal Government Wind Power Production Incentive (i.e.payment of $10/MWh for 10 years if project is commissioned before March 31, 2006; $8/MWh for 10 years if project is commissioned after March 31, 2006, but on or before March 31, 2007). Regulatory approvals, long-term power sales contracts and financing are required prior to proceeding with this project.