Wind Development Plan to Deliver Energy Independence

Wind Development Plan to Deliver Energy Independence, Economic Growth
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NEWS RELEASE
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October 17, 2008

WIND DEVELOPMENT PLAN TO DELIVER ENERGY INDEPENDENCE, ECONOMIC GROWTH

CHARLOTTETOWN, PEI -- A 500 megawatt wind power development plan will help provide energy security and price stability to Islanders while benefitting consumers and communities, and reducing the province’s dependence on imported power, Premier Robert Ghiz announced Friday.
At an afternoon press conference, Premier Ghiz outlined provincial wind development policy in a paper called Island Wind Energy, Securing Our Future: The 10 Point Plan. The plan is the first step toward the goal of having 500 megawatts of wind energy produced on Prince Edward Island by 2013. The $1 billion undertaking will be the largest development on the Island since construction of the Confederation Bridge.
Premier Ghiz said wind energy will provide economic growth and business opportunities while letting the Island meet environmental targets.
“Countries, provinces and states are turning to clean renewable energy sources like wind to replace fossil fuels. There is a strong and growing demand for clean energy - particularly in the New England market. And Prince Edward Island is well-positioned to meet some of that demand,” said the premier.
The plan calls for Prince Edward Island to use 50 megawatts of wind power to bring renewable energy to the point that it provides 30 percent of the province’s electricity consumption - up from 18 percent today. Most of the new generating capacity will be used by developers to sell clean energy into mainland markets. The private sector will be building, financing and operating the new generating capacity, the premier said.
Government is planning a November meeting with developers in order to explain to them the 10 Point Plan and to issue a Request for Proposals for the first round of new wind farm development.
The premier said the 10 Point Plan strikes an important balance between providing opportunities to developers and bringing benefits to the Island community.
“First and foremost, Prince Edward Island’s wind energy resource will be used to maximize energy security, independence and price stability for Islanders,” said Premier Ghiz.
Other points in the plan – Islanders will share in revenue from wind exports; developers must demonstrate community support for proposals; all projects must pass environmental impact reviews; fair land leases must benefit landowners and others affected by wind developments; and wind development will be used to create a green technology cluster in the province.
Construction of 500 megawatts of wind capacity on Prince Edward Island is expected to generate $1 billion in capital spending (more than $200 million expected to be spent on the Island), to create 850 construction jobs and to deliver $16.5 million in tax revenue. Once completed the 500 megawatt Prince Edward Island wind industry will create $40 million in economic activity annually for the next 25 years.
“It is a plan that sets clear ground rules and establishes a fair, open and transparent process for developers,” the premier said. “And it is a plan that will ensure Prince Edward Island’s wind energy resource is developed in the best interests of our one Island community – a plan that will see all Islanders share in the benefits.”

BACKGROUNDER

WIND DEVELOPMENT PLAN TO DELIVER ENERGY INDEPENDENCE,
ECONOMIC GROWTH
Securing Our Future: The 10 Point Plan

1. Maximizing Energy Security, Independence and Price Stability for Islanders
2. Generating Revenue from Green Energy Exports
3. Demonstrating Community Support
4. Building a Collaborative Partnership Approach to Cable and Transmission Planning
5. Maximizing Economic Benefits
6. Promoting Sound Land-Use Planning
7. Assuring Compliance with Environmental Review Processes
8. Promoting Fair and Equitable Land Leases
9. Advancing a Consistent Taxation and Business Support Environment
10. Partnering with Proven Developers

Wind Power Development on Prince Edward Island - History

1980 - Atlantic Wind Test Site opens at North Cape. Now the Wind Energy Institute of Canada.
2001 - Prince Edward Island Energy Corporation builds Atlantic Canada’s first commercial wind farm at North Cape with 10.56 megawatts of capacity.
2003 - Vestas V-90 turbine installed at North Cape just south of wind farm. First North American prototype of V-90 delivers three megawatts of electricity.
2007 - Energy Corporation develops Eastern Kings Wind Farm.
2007 - Suez Energy develops two wind farms - nine megawatts at Norway and 20 megawatts at West Cape.
End of 2008 - Suez anticipates completion of 99 megawatt wind farm begun earlier in year, with nine megawatts for Summerside utility and 90 megawatts intended for export use.

Anticipated Economic Impacts of Wind Development to 500 megawatts

- Capital cost over $1 billion
- 850 construction jobs
- $218 million in local construction spending
- $16.5 million in tax revenues over construction
- After construction ends, wind development will contribute $40 million annually to provincial gross domestic product

Implementation Timeline

- Stage 1- development of 100 megawatts for export via existing cable capacity - complete 2011
- Stage 2 - development of 200 megawatts for export subject to negotiation of agreement for new cable and transmission infrastructure - complete 2013
-Government to work with Maritime Electric and Summerside power utility on plans to add 50 megawatts of wind power for domestic use
- Government to call for proposals in November 2008 with a closing date of January 2009
- Final decisions on proposals expected by April 2009



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For more information, contact Ron Ryder, Premier's Office by email at rrryder@gov.pe.ca or phone (902) 368-5286.

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