Provinces ramp up wind power deals
Ontario announces eight turbine projects worth up to $2-billion
By DAVE EBNER
Tuesday, November 22, 2005 Page B3
CALGARY -- The Ontario government has unveiled plans for eight major wind power projects worth up to $2-billion, the latest sign that a hitherto fringe technology is being embraced in Canada.
"This is the year that wind energy has moved mainstream in Canada," said Robert Hornung, president of Canadian Wind Energy Association of Ottawa.
The government of Ontario announced wind power projects totalling 955 megawatts by 2010, enough to power about 250,000 homes annually. The province issued requests for proposals and awarded projects to private sector bidders to build farms of wind turbines. They are located in several places, including near Kingston.
Also yesterday, the Manitoba government called for expressions of interests to develop 1,000 megawatts of wind power over the next decade.
But both jurisdictions remain laggards compared with Quebec, Canada's wind leader, which in late October announced plans for an unprecedented 2,000 megawatts of new wind power. That is almost quadruple Canada's current operating wind power capacity. Quebec's bold step is in addition to 1,500 megawatts already planned or installed in the province.
The companies driving the clean energy revolution are those most often associated with a far dirtier source of energy, oil. Calgary-based Enbridge Inc. -- which operates the world's longest crude oil pipeline -- is behind two Ontario projects to generate 200 megawatts. They will cost $400-million, and are expected to be profitable in 2007 when they are in operation.
Suncor Energy Inc., the Calgary based oil sands producer, and partner Acciona SA won a 76-megawatt project.
Suncor and Enbridge are partners on three wind projects already operating in Alberta and Saskatchewan, but the latest moves are on a much more significant scale.
"We've been cautious and careful about getting into this business," said Chuck Szmurlo, president of Enbridge Wind Power Inc., an Enbridge subsidiary. "We think it's time to make a more substantial commitment." He said the marriage of big business and the environment is the equation that makes clean power realistic on a major scale. "It helps the environment, and it helps shareholders at the same time. That's what it's going to take."
Wind's growth spurt is just about to begin, as only 570 megawatts of power are now being produced, accounting for 0.3 per cent of Canada's total electricity generation. Hydro power is No. 1, at about 60 per cent, followed by coal and nuclear, both in the mid-teens.
By 2013, wind could generate 8,000 megawatts or about 4 per cent of Canada's total power supply, according to Mr. Hornung. "It still sounds small but natural gas today only accounts for 5 per cent," he said.
SkyPower Corp., a Toronto-based company trying to raise $100-million to build a 200-megawatt wind farm in Quebec, is part of a group that won a 198-megawatt project in Ontario.
"Two years ago there was a lot of talk. Today, in Canada, we're seeing a lot of action," said Kerry Adler, SkyPower chief executive officer. "Governments have woken up, and have recognized the need for clean energy. The industry has hit an inflection point, and there's no turning back. Wind is viable and a reliable source of energy."
Other countries, particularly in Europe, are much further ahead than Canada, even though Canada has among the strongest wind resources in the world. Last year, the federal government unveiled the Canada Wind Energy Atlas -- "a way to see the wind." Available on-line, the atlas made Canada the first large-area country to map its entire territory for wind potential.
The emerging industry has caught the attention of a wide range of companies, including giants such as Fairfield, Conn.-based General Electric Co., a leading maker of wind turbines. Moline, Ill.-based Deere & Co., maker of agricultural equipment, said in July that it has invested in several wind energy projects in the rural United States, and has started a business to help develop and finance such projects.
A big challenge to overcome is the impact of fields of huge wind turbines on the landscape. While it is "clean power," the turbines are notorious bird killers. There is also the aesthetic argument that wind turbines deface the landscape.
Mr. Szmurlo acknowledged the issue: "We need to be cognizant." Others, such as Ontario Energy Minister Donna Cansfield, say they haven't heard about the problem.
But Mr. Szmurlo said it is up to the industry to make it work, building "structures that enhance the landscape rather than detract."
Blowing mainstream
Various provincial governments have been awarded contracts totalling billions of dollars to Canadian firms for power generation from wind. Many of those awarded are big energy firms normally associated with oil and gas.
Canada's wind tracker
PROVINCE INSTALLED PROPOSED*
British Columbia 0 58.5 MW
Alberta 275.47 MW 0 MW
Saskatchewan 21.78 MW 150 MW
Manitoba 0 99 MW
Ontario 14.81 MW 355 MW
PROVINCE INSTALLED PROPOSED*
Quebec 212.25 MW 1,244 MW
Prince Edward Island 13.56 MW 0
Nova Scotia 31.86 MW 37 MW
New Brunswick 0 20MW
Yukon 810 MW 0
TOTAL 570.34 MW 1,963.5 MW
* under construction or awarded a power purchase agreement
SOURCE: CANADIAN WIND ENERGY ASSOCIATION
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