Energy company secures loan

Shear Wind borrows $5 million for wind power development in Alberta
By JUDY MYRDEN Business Reporter
Thu, Dec 30 - 4:54 AM

A Bedford renewable energy company is borrowing $5 million for the development of a wind project in Alberta.

Genera Avante Holdings Canada Inc., majority owner of Shear Wind Inc., is loaning Shear Wind money for project development, expenditures and operating expenses, the company disclosed in a filing with securities regulators on Friday.

The loan will be advanced to Shear Wind’s Alberta subsidiary, Vindt Resources Inc., and an initial amount of $3 million will be loaned at an interest rate of 10 per cent.

Genera Avante Holdings Canada is a division of Inveravante, a privately held Spanish utility conglomerate that bought a 62 per cent stake in Shear Wind for $27 million last year.

This news comes as Shear Wind, a publicly traded company formed in 2004, is on schedule to meet its current contractual obligation to provide Nova Scotia Power with 20 megawatts of wind-generated electricity, enough for about 6,000 homes, by the end of December.

The green energy is being generated at the $150-million wind turbine park near New Glasgow.

Glen Dhu Wind Energy was supposed to be in operation by the end of 2009. However, the company had difficulty raising money during the recession, which delayed the project by a year.

The company has installed nine wind turbines in Pictou County. Over the next few weeks, it will install another three turbines. By the end of March, it aims to have another 15 installed.

The site straddles Antigonish and Pictou counties.

Shear Wind’s project is one of six contracts Nova Scotia Power signed with wind developers in 2008 for 247 megawatts of electricity, enough for 87,000 homes, to be generated by late 2009.

Nova Scotia Power has purchased two of the struggling projects, which should be fully operational by the end of this year, and bought a 49 per cent stake in Renewable Energy Services Ltd.’s Point Tupper wind project, which is already producing power.

Shares of Shear Wind remained unchanged at 21 cents Wednesday on the Toronto Stock Exchange.

http://thechronicleherald.ca/Business/1219588.html

NSP wins tax deferral for wind projects

But URB wants more details on finances at January hearing
By JUDY MYRDEN Business Reporter
Fri, Dec 24 - 4:53 AM

Nova Scotia Power was given last-minute permission to postpone paying taxes this year on three wind projects, the Nova Scotia Utility and Review Board ruled Thursday.

But the Halifax-based power utility is being hauled before the board in January to answer further questions about the company’s finances and how much money would be saved by the tax deferral.

"It may well be that it is appropriate that the deferral be used in the manner which Nova Scotia Power suggests, but the board believes that under the circumstances . . . a further examination of these issues by the board and interested parties is both necessary and warranted," the board wrote in its decision.

Nova Scotia Power wanted to roll over an undetermined amount of tax savings from the renewable energy projects — wind farms near Digby Neck, Nuttby Mountain and the Strait of Canso — to 2011. It applied to the board last week and demanded a decision by Dec. 31.

The board took issue with the ultimatum, the tight timeline and suggested Nova Scotia Power knew they were going to face an over-earning situation in 2010.

"The board believes Nova Scotia Power would have known about this issue long before Dec. 15 and (it) should have brought the application in a more timely manner," board chairman Peter Gurnham and Murray Doehler wrote in the decision.

In its application, Nova Scotia Power also told the board it "must" approve its request but this direction didn’t sit well with the regulator.

"The board wishes to make it perfectly clear that it, and not Nova Scotia Power, will determine whether directives ‘must’ be issued," the decision said.

The board also said the utility can follow its decision or appeal it to the Court of Appeal.

David Rodenhiser, Nova Scotia Power spokesman, said the power company is reviewing the decision.

"We’re pleased that the board has agreed to the deferral and has confirmed that it provides an advantage to customers as we submitted," he said. "We look forward to the hearing on how the deferral will be implemented."

Postponing the tax payments was opposed by Nova Scotia’s consumer advocate, NewPage Port Hawkesbury Corp., Bowater Mersey Paper Co. Ltd., the Municipal Electric Utilities of Nova Scotia Co-operative, and the Avon Group, which represents several medium to large Nova Scotia businesses.

They argued that any extra earnings belong to customers and not the shareholders. They also asked the board to order a hearing for full disclosure to ensure shareholders do not receive the full benefit of any excess earnings.

http://thechronicleherald.ca/Business/1218765.html

Shear Wind expansion OK, judge rules

By JUDY MYRDEN Business Reporter
Fri, Dec 24 - 4:53 AM

An environmental group has lost its appeal of Antigonish County council’s decision to rezone land for a proposed wind farm.

The Eco Awareness Society failed to file an appeal within the requisite time, Nova Scotia Supreme Court Judge Heather Robertson ruled in a decision released Thursday.

The dispute started after county council approved the rezoning of nine properties in February. The rezoning opened the door for Shear Wind Inc. of Bedford to proceed with the $150-million Glen Dhu wind power project with 30 turbines along the boundary of Antigonish and Pictou counties.

"This is a good example where the statutory decision makers should have finality in the public decision-making process," Robertson wrote.

"The community, the government officials, as well as the developers, should be entitled to understand the finite time lines that apply, without fear of interference months after the decision through a further judicial review."

She further noted that the evidence presented showed a development officer carrying out his duties with a "recognized expertise."

Shear Wind has proceeded with the project. The company has installed nine wind turbines near Baileys Brook, Pictou County, and will begin delivering green electricity next week.

The company wants to install 14 turbines in Antigonish County and the remainder near Baileys Brook.

Under a contract signed in 2008, Shear Wind must provide NSP with 20 megawatts of wind-generated electricity, enough for almost 6,000 homes, by the end of December.

Last year, the Bedford renewable energy company had to forfeit a $500,000 performance deposit to Nova Scotia Power after failing to deliver electricity to the utility by the end of 2009.

Shear Wind was unable to secure enough financing until late last year, when Spanish conglomerate Inveravante bought a 62 per cent stake in Shear Wind for $27 million.

http://thechronicleherald.ca/Business/1218768.html

Financial headwind slows down Shear Wind

Green energy firm loses $1.7m
By JUDY MYRDEN Business Reporter
Tue, Dec 21 - 4:53 AM

Shear Wind Inc. is reporting another financial loss.

The Bedford renewable energy company suffered a $1.7-million hit for the year ending Aug. 31, according to company documents filed with securities regulators on Monday.

Last year, Shear Wind reported a loss of $938,975, for the same period.

Part of the company’s reported loss is attributable to $500,000 it had to pay Nova Scotia Power for missing its deadline to generate electricity for the power company by the end of 2009. The penalty for missing the deadline was set in a contract Shear Wind signed with the utility in 2008.

Shear Wind, a publicly traded company formed in 2004, missed the deadline because the collapse of the financial markets forced it to delay the start of construction of its $150-million wind turbine park near New Glasgow. Called Glen Dhu Wind Energy, it was supposed to be in operation by the end of 2009.

The company is on schedule to meet its current contractual obligation to provide 60 megawatts of green electricity to Nova Scotia Power by the end of March. As part of that agreement, Shear Wind must provide the power company with 20 megawatts of wind-generated electricity, enough for about 6,000 homes, by the end of December.

Missing that deadline would be costly as Shear Wind has provided a $1.5-million performance security deposit to the utility.

As of last Friday, Shear Wind had installed nine wind turbines near Baileys Brook, Pictou County, and will begin delivering green electricity next week, Ian Tillard, the company’s chief operating officer, said last Friday.

For the year ending Aug. 31, Shear Wind reported expenses of $1.59 million, $586,033 for salaries and benefits and $232,983 for professional fees. Another $96,000 was spent on consulting fees, $35,000 was charged by an unnamed director for helping with various meetings and financing activities in 2009 that was not incurred in 2010.

Travel expenses were $70,121, up from $63,788 in the same period the previous year. The increase is attributed to the travelling Shear Wind officials did in relation to negotiations that resulted in a $27-million cash infusion last November by the Spanish conglomerate, Inveravante, in return for 62 per cent ownership of Shear Wind.

As of Aug. 31, the company had total assets of $60.6 million, according to the financial statements.

Shear Wind has other wind-power projects in various stages of development in New Brunswick and Alberta.

As of the end of August, the company had spent $3.9 million on wind development. Of this total, $2.9 million has been spent in Alberta, $14,603 with respect to land controlled in Nova Scotia, $867,387 in New Brunswick and $153,520 in Saskatchewan, according to the management discussion and analysis filed with regulators.

The stock was trading up three cents Monday, trading at 20 cents share on the Toronto Stock Exchange.

http://thechronicleherald.ca/Business/1218397.html

It’s power time, Shear says, as N.S. wind farm set to go

By JUDY MYRDEN Business Reporter
Sat, Dec 18 - 4:54 AM

The largest wind farm in Nova Scotia is ready for its product to go to market.

Shear Wind Inc. executives said Friday the company will beat the deadline to generate wind energy for Nova Scotia Power by the end of the month.

"It’s a major infrastructure investment in Nova Scotia, and we’ve accomplished this with no government assistance — a company that started a little over five years ago," said Shear Wind CEO Mike Magnus.

"When was the last time an investment of this magnitude was made in this province? That’s the accomplishment of this company, one that management, shareholders and the citizens of Nova Scotia should be proud of."

The company has installed nine wind turbines near Baileys Brook, Pictou County, and will begin delivering green electricity next week, said Ian Tillard, Shear Wind’s chief operating officer.

"Everyone has a smile on their face," said Tillard in a telephone interview from Baileys Brook on Friday. "When you see one come online, it is a very positive feeling."

It’s a significant milestone for the Bedford renewable energy company, which last year forfeited a $500,000 performance deposit to Nova Scotia Power after failing to deliver electricity to the utility by the end of 2009.

"The nine will get us there," Tillard said. "Nine is the minimum requirement to meet our contractual side of that. We are very pleased with that, and we have one online right now."

He intends to notify Nova Scotia Power on Monday or Tuesday that at least one of the turbines is generating electricity. Under a contract signed in 2008, Shear Wind must provide NSP with 20 megawatts of wind-generated electricity, enough for almost 6,000 homes, by the end of December.

Tillard said work continues on the installation of another three turbines, with a further 15 to be up and running by March 31. A crew of about 90 people started erecting the 2.3-megawatt Enercon wind turbines Nov. 3. Close to 85 per cent of the workforce is from Nova Scotia.

Shear Wind is developing the $150-million Glen Dhu wind power project to produce 60 megawatts of power. The site straddles Antigonish and Pictou counties, with the original schedule calling for 27 turbines to be online by the end of this month. A shortage of wind turbines caused the delay.

Ironically, construction was affected this month by unusually high winds at the construction site.

"Here’s the issue," said Tillard. "This time of the year is the windiest month at the site. There’s no sense of desperation about it, it’s just the way things get dealt with in the wind industry."

In May, Shear Wind signed a $100-million contract with German wind turbine manufacturer Enercon.

"With all the years of preparatory work both on the project development side and the (environmental assessment) process and the intense process on the financing side, to actually now see these things erected is very satisfying," said Tillard.

Shear Wind’s project is one of six contracts Nova Scotia Power signed in 2008 with wind developers for 247 megawatts of electricity, enough for 87,000 homes, to be generated by late 2009.

Nova Scotia Power has purchased two of the struggling projects, which should be fully operational by the end of this year, and bought a 49 per cent stake in Renewable Energy Services Ltd.’s Point Tupper wind project, which is already producing power.

When all the projects that are currently under construction are completed, wind power will account for 280 megawatts of electricity, representing 13 to 16 per cent of the province’s supply.

Shares of Shear Wind were trading up three cents Friday on the Toronto Stock Exchange at 18 cents.

http://thechronicleherald.ca/Business/1217810.html

Skinny steel ribbons brighten solar picture

By The Economist
Sun, Dec 12 - 4:52 AM

The future, according to MiaSole, a Californian startup, is unrolling at one centimetre a second in a bland-looking building in Silicon Valley. Despite the location, and the fact that most other solar cells are made from silicon, MiaSole’s cells are not. Ribbons of steel a metre wide and half a hair’s width thick spool through vacuum chambers in which they are sputtered with copper, indium, gallium and selenium — collectively known as CIGS. Out of the end comes a new type of solar cell which promises to be both efficient and cheap.

MiaSole’s current cells turn 10.5 per cent of the light that hits them into electricity. A tweaked version that manages 13 per cent should go into production early next year. Further tweaks have produced cells with an efficiency of 15.7 per cent. This is as good as the best silicon cells and much better than those of First Solar, an American company which uses another cheap technology and is the biggest maker of solar cells in the world. MiaSole says its manufacturing costs work out to less than $1 per watt of generating capacity. This is better than all silicon-cell makers and far less than the $3 per watt of Solyndra, a rival CIGS firm that won a large loan guarantee.

All to the good: The rationale for the industry’s generous subsidies has been that as volumes increase and manufacturers get more experienced, costs will decline. For much of the 2000s, with a shortage of pure silicon and lavish support from European governments, the price of solar panels failed to fall as expected. But since January 2009, according to pvXchange, an online marketplace, the wholesale price of solar modules in Europe has dropped by 43 per cent. This is bad news for high-cost producers. And cheap, efficient thin-film cells like MiaSole’s will make life harder still. So will a slackening in the growth of demand for solar panels: This year it doubled, but demand is likely to grow by just 10 per cent or so in each of the next two years.

The solar-cell boom has been a mostly European phenomenon. Spain, then Germany, boosted demand by giving generous "feed-in tariffs" (subsidies) to anyone who produced solar power for the grid. Spain’s subsidies were slashed after 2008. Germany’s generosity has lasted longer. As a result of this, and falling prices for solar cells, demand for solar power doubled to 7,400 megawatts in the past year, calculates GTM Research, a consultancy. Solar power now produces up to a tenth of Germany’s electricity on sunny days.

However, electricity consumers’ anger at their big bills is forcing Germany to cut its subsidies. By January they will be a quarter lower than in early 2010. Politicians elsewhere have watched and learned. On Dec. 2, France’s prime minister, Francois Fillon, suspended all non-household applications for his country’s feed-in tariff scheme. In Italy, Europe’s second-biggest market, fat tariffs will be trimmed in stages next year. Even so, Italy’s combination of sunny skies and high electricity prices mean demand for solar power is likely to keep growing.

Most of the growth will be elsewhere, however. China will become a big user, as well as a maker and exporter, of solar cells. America is likely to build lots of large-scale solar plants. Shayle Kann of GTM Research calculates that the power-purchase agreements signed by America’s utilities will expand its solar capacity from 214 megawatts now to 5,400 megawatts by 2014.

Travis Bradford of the Booth School of Business at the University of Chicago says that taking into account all the costs of construction including its finance, a state-of-the-art solar plant in a sunny state is broadly competitive, over its life, with a new "peaker" gas-fired station. Gas peakers, turned on only when demand is at its highest, are the most expensive fossil-fuel plants. Even so, getting to this level of competitiveness is a big step forward.

http://www.thechronicleherald.ca/Business/1216719.html

Turbine to be commercialized in Bay of Fundy

Swiss firm, B.C. partner target 2012 for 13- by 20-metre tidal generator
By JUDY MYRDEN Business Reporter
Wed, Dec 8 - 4:55 AM

International power giant Alstom revealed its plans to commercialize its industrial-scale Beluga 9 tidal energy turbine in the Bay of Fundy in 2012.

The Beluga 9 is intended for "very powerful currents" and will be the company’s first tidal turbine generator, the firm announced Tuesday.

The underwater turbine will be 13 metres in diameter and 20 metres high, the height of a six-storey building.

"Now, we are firmly establishing ourselves in the tidal stream power business," Michelle Stein, Alstom’s spokeswoman, said Tuesday in a telephone interview from Montreal.

Clean Current Power Systems of Vancouver, B.C., was originally awarded a berth site in the Bay of Fundy and proposed testing its Mark III turbine. Then in 2009, Alstom Hydro of Switzerland partnered with Clean Current and has been working on a redesign of the original proposal.

"So what we’ve done is we’re building on the technology and the experience Clean Current had on their initial demonstrator. Now we are preparing our commercial demonstrator to be tested in the Bay of Fundy," she said.

She said the Beluga 9 prototype is a one-megawatt unit being tested at Alstom’s facilities in Europe and in Quebec. "We’re conducting an extensive series of tests before deploying the turbine at sea," she said.

Alstom will join two other developers — Nova Scotia Power and Minas Basin Pulp and Power of Hantsport — that have berths for turbines on the Bay of Fundy floor.

Nova Scotia Power and its partner, OpenHydro of Dublin, Ireland, have experienced the trials and tribulations of developing working tidal turbines. Most recently, OpenHydro failed to retrieve its damaged turbine from the floor of the Minas Passage for an inspection, and has postponed the recovery until December.

Patty Faith, Nova Scotia Power spokeswoman, said the companies may go back again next week and try and recover the turbine, depending on the weather.

"It is the last window of opportunity until spring," she said Tuesday.

The two companies deployed a $10-million turbine in the Minas Passage about 10 kilometres west of Parrsboro last November. They discovered that two blades — made from blends of plastic and glass — on the 400-tonne experimental turbine had broken off in May. The malfunction is forcing the company to pull the device out of the water a year ahead of schedule.

"We feel our technology is different. However, we will continue to monitor the experience of those companies and obviously take lessons learned and see what we can do to ensure the success of our product," said Stein of Alstom.

Minas Basin Pulp and Power and its partner, Marine Current Turbines Ltd. of Bristol, England, will join Alstom and deploy their turbine in 2012.

http://www.thechronicleherald.ca/Business/1216027.html

Glen Dhu wind farm being sued over unpaid site work

N.B. firm says it’s owed more than $185,850
By CHRIS LAMBIE Business Editor
Fri, Nov 26 - 4:53 AM

A New Brunswick construction company is suing over $185,850 in unpaid work it did at the site of a future wind farm that straddles Antigonish and Pictou counties.

Greenfield Construction Ltd. of Miramichi launched the suit against Shear Wind Inc., Glen Dhu Wind Energy Inc. and Enercon Canada Inc. to recoup money it is owed for site preparation and form work it did at Baileys Brook that wrapped up in early September, said a statement of claim made public Thursday in Nova Scotia Supreme Court.

Greenfield has also registered a claim for a lien on the property.

"That’s something between our contractor (Enercon) and their subcontractor (Greenfield)," Bill Bartlett, Shear Wind’s chief financial officer, said in an interview Thursday.

"It’s nothing to do with us."

At first, Bartlett said the claim had been resolved. Then he changed his tack.

"It’s going to be settled in the next day," Bartlett said.

Greenfield’s lawyer, James MacNeil, confirmed Thursday that the companies are in discussion. "There are certainly talks going on," MacNeil said.

Bartlett said there is no chance the legal dispute could set back the wind power project that has already experienced delays due to a shortage of turbines.

"None whatsoever," Bartlett said. "It’s just a hiccup that happened and it’s being settled."

Shear Wind is developing the $150-million Glen Dhu wind power project to produce 60 megawatts of power. It was scheduled to have 27 turbines up and running by the end of December.

But the Bedford renewable energy firm has said it will erect only 12 of 27 turbines by Dec. 31, and the remainder will be installed by March 31.

Shear Wind is contractually obligated to provide Nova Scotia Power with 20 megawatts of wind-generated electricity, enough for almost 6,000 homes, by the end of December under a contract signed in 2008.

http://www.thechronicleherald.ca/Business/1214078.html

Society for Wind Vigilance - first international symposium proceedings now available

FIRST INTERNATIONAL SYMPOSIUM

THE GLOBAL WIND INDUSTRY AND ADVERSE HEALTH EFFECTS: Loss of Social Justice?

The Waring House Inn and Conference Center,

Picton, Prince Edward County, Ontario October 29-31, 2010

Introduction

“Social justice is a matter of life and death. It affects the way people live, their consequent chance of illness, and their risk of premature death.” [1]

Globally, many individuals living in close proximity to industrial wind turbines report experiencing adverse health effects. In some cases families have felt compelled to abandon their homes to protect their health.

Pleas for recognition of their situation remain largely ignored by authorities and the public at large.

“I can’t believe the government is doing this to me”…”interference with the normal political processes”…”our rights as citizens…have been eroded” illustrate the feelings of hopeless by those impacted by industrial wind turbines.

Comments such as these formed the inspiration for an international symposium to explore the theme: THE GLOBAL WIND INDUSTRY AND ADVERSE HEALTH EFFECTS: Loss of Social Justice?

The symposium explored topics related to industrial wind turbine noise and the risk to health, the urgent need for research, and the loss of social justice. Legal, economic and social impacts were also explored.

Research from clinicians and presentations by experts in acoustics, physics, epidemiology, law, environmental economics and policy analysis were given. The role of advocacy journalism was also presented.

Each presentation formed a logical building block for the next, culminating in a description of the impacts to the loss of social justice.

http://www.windvigilance.com/symp_2010_proceedings.aspx

Wind firm CEO says fear limiting opportunity

By BILL POWER Business Reporter
Fri, Nov 19 - 4:53 AM

Fear and ignorance at the municipal level is inhibiting growth of the wind power industry in Nova Scotia, a legislative committee heard Thursday.

Barry Zwicker, chief executive officer at Scotian Windfields, called for provincial intervention as some municipalities introduce restrictions that make it increasingly difficult for proponents of new wind farm projects to obtain required local approval.

"We’ve had wind farms with us for more than 20 years and repeated studies concluded they present a zero health risk," said Zwicker.

He said municipalities around the province are responding to unfounded local concerns about health risks like noise with an assortment of inconsistent land-use controls.

"Controls are approved by people who don’t understand the issues and who are scared of change."

He said if some people do not like the appearance of wind turbines they should just look the other way.

Zwicker told members of the province’s standing committee on resources that the Municipal Government Act and the Electricity Act should be tweaked to provide guidance to municipalities. He suggested this would include a provincial interest statement on energy, along the lines of the interest statement currently used to protect groundwater.

Interviewed after the committee session, Zwicker said Richmond County recently ruled that wind energy developers must proceed through a development agreement or rezoning process that will delay approval by months, while the Municipality of the County of Kings recently banned wind turbines larger than 100 kilowatts.

He added that the Municipality of the County of Annapolis recently ruled that wind turbines can only be erected in areas where there is little or no wind.

He said inclusion of an appropriate interest statement in Nova Scotia legislation would allow municipal planners and decision makers to check that proposed local controls are consistent with provincial energy objectives.

Zwicker also said the province could strengthen the wind power industry by supporting developers with loan guarantees to make it easier to raise capital.

http://www.thechronicleherald.ca/Business/1212826.html

Bid to lift turbine fails

NSP, OpenHydro to try again today to retrieve machine from Fundy bottom
By JUDY MYRDEN Business Reporter
Tue, Nov 16 - 4:53 AM

NOVA SCOTIA Power and its Irish partner OpenHydro ran out of time Monday and failed in their first attempt to remove their 400-tonne turbine from the bottom of the Bay of Fundy.

"We definitely had it in the frame and we are just running out of time, so unfortunately we are looking at another repeat operation tomorrow but with a little more experience," said OpenHydro president James Ives, who was on board the barge and giving instructions to the crew on a marine radio.

Ives made the decision shortly before 12:30 p.m. to abort the operation after engineers and tugboat crews had worked for hours trying to position the catamaran-style barge Installer over the turbine.

They were trying to lift it up to the barge before the tide started to come back in but they ran out of time.

The one-megawatt turbine, almost as tall as a six-storey building, is designed to harness the tidal action of the Bay of Fundy to generate enough electricity to power 300 households, but it is being pulled out of the water a year before the end of its scheduled testing period.

The retrieval operation, shrouded in secrecy, started at about 4:30 a.m. Monday in the Minas Channel, part of the Bay of Fundy about 10 kilometres west of Parrsboro.

The open-centred turbine and its subsea base are 16 metres in diameter, and crews tried to lift the unit using winches.

Closely watching the operation was John Woods, vice-president of Minas Basin Pulp and Power of Hantsport.

"All of us are benefitting from OpenHydro’s experience and expense," said Woods, whose company plans to launch its own test turbine in 2012.

He was anxious to see how OpenHydro stationed the barge and handled the wind and powerful tidal currents.

"We have pictures of how they got it down, and now we need to know how they stay on station and with tides and wind interaction," said Woods.

Representatives of government, business and academia were also watching from two chartered fishing boats. Among those on board was OpenHydro’s insurance broker, Alex Dunlop of Halifax.

"Anything, when you are dealing with prototypes (and) with heavy masses of water like this, is extremely risky," said Dunlop, who works for the global renewable energy insurance company AON of London, England.

The recovery operation is the first for a commercial-size underwater turbine, he said.

"It’s new technology, so we don’t really know a lot about it."

Dunlop said AON is interested in learning about the costs involved in bringing such a massive underwater turbine to the surface.

The turbine stopped transmitting information a mere seven days after it was lowered to the ocean floor almost exactly a year ago. The acoustic modems intended to allow crucial data to be recovered from the turbine didn’t work, and several attempts to activate them failed.

This summer, Nova Scotia Power and OpenHydro revealed that two blades had snapped off the turbine. The damage was discovered in May when a video camera was lowered 15 metres into the murky waters to film the turbine and caught the image in a two-second clip. Then the companies decided it was time to bring the turbine up and find out what had gone wrong.

Although it was always touted as experimental, it was Canada’s most ambitious attempt at harnessing the tides with a commercial-scale turbine.

The demonstration turbine cost $10 million, with Nova Scotia Power investing the lion’s share and $4.6 million coming from Sustainable Development Technology Canada, a non-profit green energy foundation.

Two other test turbines are expected to be placed in the Bay of Fundy by 2012.

Clean Current Power Systems Inc. of British Columbia and its partner, international industrial giant Alstom of Switzerland, will deploy one turbine, and Minas Basin Pulp and Power and its partner, Marine Current Turbines Ltd. of Bristol, England, are handling the other.

The tests are intended to determine how turbines on the floor of the Bay of Fundy would affect marine life, including fish and whales.

Nova Scotia Power customers have a big stake in the outcome of the tests — turbines could provide cheap, clean and abundant electricity in the future.

"We are a province addicted to coal, and this offers a solution to get away from coal over time," Woods said.

Minas Basin has built a $12-million demonstration facility that includes underwater transmission lines to take the power generated by future turbines to a building containing electrical equipment that links up with the Nova Scotia power grid.

The building will also house a research laboratory to help the province and private companies determine whether turbines are environmentally and commercially feasible in the Bay of Fundy.

Lobster fisherman Croyden Wood of Parrsboro believes tidal power will become reality in the Bay of Fundy but he is concerned about how many turbines would be put there.

"We want to put traps down there, and they want to put turbines," Wood said. "I’m afraid if (there are) too many, the fish and lobsters won’t come to the area."

Wood, 47, owns one of the two boats that Minas Basin Pulp and Power hired to take people out on the water to watch Monday’s operation.

After the turbine is eventually retrieved, probably sometime this week, it will be towed to Cherubini Metal Works, a Dartmouth fabrication company.

OpenHydro is picking up the tab for recovering the turbine.

http://www.thechronicleherald.ca/Front/1212226.html

Turning to tides for power

Fundy energy could light N.S. homes by end of 2011, Dexter says after project funding announced
By MICHAEL GORMAN Truro Bureau
Mon, Nov 15 - 4:53 AM

PARRSBORO — Premier Darrell Dexter believes energy from tidal power could be flowing into Nova Scotia homes as early as the end of next year.

Dexter made the comment Sunday after a news conference to announce $20 million in funding from the federal government for a tidal project in the Bay of Fundy and the purchase of four subsea cables.

"As soon as that technology is in the water and as soon as it’s generating electricity, it will literally go right into the grid," said Dexter. "It’s in the best interest of all the proponents to get their technology in the water as soon as possible and I’m told by the proponents that they feel that this is a realistic expectation."

The Fundy Ocean Research Centre for Energy, a non-profit institute receiving government and corporate funding, signed an $11-million contract for the production and installation of four subsea cables for the Minas Passage test site. The cables will connect tidal devices to the power grid and allow for the collection of real-time data.

IT International Telecom Inc., which won the contract, will complete about half of the work at its marine terminal in Halifax Harbour, creating about 100 jobs. The combined length of the cables is 11 kilometres and it is expected that they will be installed by next summer.

Paul Kravis, IT International Telecom’s vice-president, said the company is proud to be able to lay a green footprint in its own province.

"This is a great chance for our Nova Scotia-based employees to bring their skills and expertise to work right here in Nova Scotia. For us, this is more than a local contract; it’s a world-class project."

The Parrsboro location, which overlooks the Bay of Fundy, will be home to research labs, a community room and tidal energy-related educational tools.

Although Sunday’s announcement was good news, the project has not been without its challenges.

An experimental turbine is scheduled to be removed from the test site sometime this week because of two broken blades. Nova Scotia Power lost contact with the turbine just seven days after it was launched last spring. The turbine had wireless sensors that were to collect data about environmental impacts and potential electrical production.

Dexter said this remains a research project and such challenges will continue to be addressed moving forward.

"These technologies are, by their very nature, experimental. They are going to continue to experiment with various kinds of technology in order to find the very best (and) in order to make this commercially viable."

The province has started a consultation process to help create legislation for renewable marine resources before considering larger developments and to ensure such projects don’t interfere with the fishery or environment in general.

Power rates in the province continue to rise due to increases in the price of carbon-based fuels. The development of renewable resources such as tidal and wind power should ultimately help reduce electricity rates, said Dexter, although he admitted it will take time.

"They’re not short-term projects; they’re long-term projects. They mean that you are able to wean yourself off of your dependence on carbon-based fuels and give you a reliable fuel source for many years to come."

Dexter said part of changing the way people use energy in Nova Scotia includes partnering with other provinces, whether it is Newfoundland and Labrador with its Lower Churchill project or other provinces with which energy projects can be shared.

"There is a great opportunity for us to rewrite the entire energy standard, the entire energy equation, for this region."

http://www.thechronicleherald.ca/NovaScotia/1212115.html

Record earnings for Emera

Halifax-based energy company posts third-quarter profit of $44.8 million
By JUDY MYRDEN Business Reporter
Sat, Nov 6 - 4:54 AM

Emera Inc., the owner of Nova Scotia Power and other utilities, is reporting record earnings of $44.8 million, compared to $37.3 million the previous year, in third-quarter financial results released Friday.

"We have momentum in our business and this is translating into record earnings for the first three quarters of this year. In fact, Emera shares have provided an annualized total return to shareholders of 14.5 per cent over the last five years. This result is one that we are particularly proud of as it is proof that our strategy is working," Chris Huskilson, Emera president, told analysts during a conference call.

Emera’s stock was up 25 cents on the Toronto Stock Exchange late Friday, trading at $30.20 a share.

The Halifax-based company also reported profits of $151.5 million for the first nine months of this year, compared to $138.2 million for the same period in 2009.

Huskilson also noted several milestones for the company over the past three months, with the advancement of the Maine and Maritimes Corp. as well as a transaction with NV Energy.

NB Power and Emera continue to work together to "formalize an agreement" to develop a new transmission line from Nova Scotia to southern New Brunswick, said Huskilson.

"New capacity in Nova Scotia and New Brunswick benefits everyone in the region. It improves our options for future renewable energy development. It enhances the reliability of the systems," he said.

This week, Nova Scotia Power and its partner, NewPage Port Hawkesbury, closed a deal after receiving regulatory approval to go ahead with a $208-million project to burn wood waste at a new power plant at the mill’s site in Point Tupper starting in 2012.

Also, Nova Scotia Power appeared before government regulators this month to hike power rates for residential customers by 6.5 per cent starting next year. If approved by the board, it would be the sixth power rate increase in nine years in Nova Scotia.

Nova Scotia Power’s earnings were $22.4 million for the third quarter this year, compared to $16.6 million for the same period last year.

The company stated the increase relates primarily to lower income tax expenses as a result of tax deductions associated with NSPI’s increased renewable investments.

Emera has $508 billion in assets. Besides Nova Scotia Power, it operates Bangor Hydro Electric Co. in Maine and the Brunswick Pipeline, a 145-kilometre gas pipeline in New Brunswick.

Bangor Hydro Electric contributed $11.5 million to earnings in the third quarter of 2010, compared to $8.8 million in the same period in 2009. The increase was primarily due to increases in transmission pool revenue due to recovery of regionally funded transmission investments, in addition to other increases in transmission revenues in 2010.

Emera’s pipelines contributed $8.5 million to earnings in the third quarter, compared to $5.7 million in the same period in 2009.

http://www.thechronicleherald.ca/Front/1210651.html

NSP biomass project going ahead

By JUDY MYRDEN Business Reporter
Tue, Nov 2 - 4:53 AM

Nova Scotia Power will go ahead with its plan to burn wood to generate electricity at a new power plant in Port Hawkesbury, says the utility’s vice-president of sustainability.

"We are proceeding and will be closing that transaction as soon as possible," said Robin McAdam at an energy conference in Halifax hosted by the Atlantic Provinces Economic Council on Monday.

Nova Scotia Power and its partner, NewPage Port Hawkesbury, received regulator approval for the $208-million project two weeks ago but had been reviewing the decision, which had conditions attached stipulating any cost overruns must be paid by the utility’s shareholders, not customers.

The decision to proceed came three days before NewPage Port Hawkesbury’s parent company, NewPage Corp. of Ohio, releases its third-quarter financial results.

The paper company has been confident the project would go ahead and that it would receive an $80-million upfront payment from Nova Scotia Power for a 30-year-old boiler.

The utility intends to spend about $200 million, including $80 million to buy NewPage’s boiler and $93 million in construction costs.

NewPage has said the $80 million from the boiler sale will enhance its liquidity. The company has reported having $7 million in cash and $113 million available on a line of credit, but it also has a $3.4-billion debt.

Later Monday, Nova Scotia Power issued a news release stating the sale of the boiler is expected to "close in the near term."

The 60-megawatt power plant is expected to create 150 new jobs in northern Nova Scotia, primarily in the forestry business.

"This new biomass facility is important for NewPage, for the Port Hawkesbury mill and rural Nova Scotia," said Bill Stewart, NewPage Port Hawkesbury’s director of woodlands and strategic initiatives.

On Monday, McAdam defended the controversial project and the use of burning 650,000 tonnes of wood a year to fire a steam generator at NewPage’s mill in Cape Breton. The project has an in-service date of early 2013 and would account for about three per cent of Nova Scotia’s electrical generation.

The utility says the facility will burn stem wood and won’t include tree tops, stumps and branches from the forest floor, which are considered necessary in restoring nutrients to the soil so new trees can grow.

"Still, it’s evident that there is a lot public concern about using biomass as fuel for electricity. We certainly have not had our head in the sand as these concerns have been raised," said McAdam.

He said the utility has no interest in using a fuel source that isn’t sustainable.

"We fully appreciate the value of Nova Scotia’s forest from an environmental, recreational and economic perspective. Using biomass for electricity doesn’t conflict with these values."

McAdam said biomass is wood that has no other commercial use.

"Biomass is wood that needs to come out of the forest so the higher-value tree can grow and replace that diseased, crooked and knotty tree that isn’t doing anything."

NewPage, the utility’s largest customer, will be responsible for supplying fuel to the plant and will be utilizing about 1.1 per cent of the land it manages, said McAdam.

The deal between the two companies stated that if Nova Scotia Power gives notice to proceed after Sept. 30, the contract price will escalate by 0.2 per cent per month.

The Nova Scotia Utility and Review Board released its decision Oct. 14 and stated the most important part of the project is a contract worth $92.9 million covering engineering, procurement and construction costs. Any additional costs cannot be passed along to power customers on their bills.

Also, if there are capital cost overruns, the power company must come back before the board for another public hearing.

The utility says it needs the biomass project to proceed in order to meet the province’s renewable energy target of generating 10 per cent of its electricity from wind, tides or biomass by 2013.

http://www.thechronicleherald.ca/Business/1209878.html

NSP wants your power

New plan will see utility pay customers for surplus electricity
By JUDY MYRDEN Business Reporter
Tue, Nov 2 - 4:53 AM

Nova Scotia Power wants to start paying customers for surplus electricity generated from renewable sources.

This is good news for one of the region’s largest landlords. Killam Properties Inc. wants to be able to install more and larger turbines at its properties around the province.

"That would encourage us to take a serious look at adding new turbines at areas where there is good wind," company president Philip Fraser said Monday.

This year, Killam installed two wind turbines at its 300-home trailer park in Lake Echo to generate electricity for the community’s street lighting, water supply and water treatment facilities.

"If we actually produce more, we would be offsetting our consumption and reducing our power bill," Fraser said.

He was reacting to Nova Scotia Power’s announcement that it has filed a proposal with the provincial Utility and Review Board to expand a program referred to as "net metering."

Net metering allows customers to generate electricity from a small renewable source to meet all or part of their own power requirements. Nova Scotia Power has offered this option to its customers since 1989, and more than 80 residential and business clients across the province participate, the utility says.

A new proposal would allow producers to generate one megawatt of electricity, up from 100 kilowatts, to reduce the amount of their power bills.

"Net metering is a great way for our customers to make a direct contribution to the renewable electricity transformation taking place in this province," said Robin McAdam, Nova Scotia Power’s vice-president of sustainability.

"We have supported expansion of the program for some time and are delighted to bring forward these enhancements," he said in a news release. "They were developed with input from government and other stakeholders to offer greater options and benefits for customers who wish to generate electricity for their own use."

Earlier this year, amendments were approved under the Electricity Act ordering Nova Scotia Power to enhance its metering program and file its proposal by Monday.

http://www.thechronicleherald.ca/Business/1209854.html

Decision on biomass project may come by Friday

By JUDY MYRDEN Business Reporter
Thu, Oct 28 - 4:53 AM

An announcement is expected as early as Friday on the controversial $208-million project to generate electricity by burning wood proposed by NewPage Port Hawkesbury and Nova Scotia Power, a source has told The Chronicle Herald.

After getting the government go-ahead Oct. 14 to build the biomass-burning project outside Port Hawkesbury, the power company has yet to make a definitive decision on the plant.

Instead, it has been reviewing the regulator’s decision, which stipulated any cost overruns must be borne by the utility’s shareholders, not its customers.

"There hasn’t been much said. Were the conditions so onerous that it scared them off? I don’t know, from the point of view of Nova Scotia Power, perhaps they just don’t like that much risk," said Wade Prest, a small woodlot owner and director of the Nova Scotia Woodlot Owner and Operators Association, on Wednesday.

A Nova Scotia Power vice-president has said the utility has yet to make a decision on the project and is examining the conditions.

"There’s a process we have to go through to carefully consider the conditions and we are doing that," said Robin McAdam on Oct. 15.

Nova Scotia Power wasn’t supportive of the idea of sharing any risks of the project with its shareholders during a hearing into the development last month.

McAdam told regulators that sharing the risk with shareholders would be "proposing a different kind of regulatory construct than exists today in Nova Scotia."

Neither McAdam nor Bill Stewart, NewPage Port Hawkesbury’s lead manager on the project, were available for interviews Wednesday.

NewPage Port Hawkesbury, a subsidiary of Ohio-based NewPage Corp., is a partner with Nova Scotia Power in the plan to build the power-generating plant. The utility intends to spend about $200 million, including $80 million to buy NewPage’s boiler and $93 million in construction costs.

NewPage has previously said the $80 million from the boiler’s sale will enhance its liquidity. The company has reported having $7 million in cash and $113 million available on a line of credit, but it also has a $3.4 billion debt.

Next week, both NewPage and Emera, parent company of Nova Scotia Power, release third-quarter financial results.

In its 50-page decision, the Nova Scotia Utility and Review Board ordered the utility be on the hook if a penalty clause kicks in for a late start to the project.

The deal between the two companies stated that if Nova Scotia Power gives notice to proceed after Sept. 30, 2010, the contract price will escalate by 0.2 per cent per month.

The board also stated the most important part of the project is a contract worth $92.9 million covering engineering, procurement and construction costs. Any additional costs cannot be passed along to power customers on their bills.

Also, if there are capital cost overruns, the power company must come back before the board for another public hearing.

The utility says it needs the biomass project to proceed in order to meet the province’s renewable energy target of generating 10 per cent of its electricity from wind, tides or biomass by 2013.

http://www.thechronicleherald.ca/Business/1209022.html

Change is in the wind

Turbine demand drops in EU, rises in Canada
By KRISTINE OWRAM The Canadian Press
Wed, Oct 27 - 4:53 AM

TORONTO — Call it a tale of two continents: the world’s biggest maker of wind turbines announced that it will lay off nearly a third of its workforce because of a weak outlook for the European wind energy market in 2011, while Canada is expecting a year of record growth.

Denmark-based Vestas A/S on Tuesday posted a 24 per cent drop in third-quarter earnings and said it will lay off some 3,000 workers in Denmark and Sweden to adjust to lower demand in Europe.

The company said it shipped a total of 719 wind turbines in the quarter, or 27 per cent less than a year earlier, and CEO Ditlev Engel said growth in the European market next year will be below earlier expectations.

"When we look into 2011 we see a lot of uncertainty in a number of European markets which, for instance, the Danish factories have been servicing," Engel said in an interview posted on the company’s website Tuesday. "So you could say we have maybe been too optimistic for too long."

But the weaker outlook for European demand is having no impact on optimism on the other side of the Atlantic.

Robert Hornung, president of the Canadian Wind Energy Association, said over 1,000 megawatts of new wind energy capacity is expected to be installed in Canada next year — exceeding the record 950 megawatts of capacity that was installed in 2009. One megawatt is equal to one million watts.

"We are quite confident that we’re entering a period of sustained strong growth for the industry in Canada, and we think that’s going to provide some significant benefits, both environmental but also economically, to the country," Hornung said in an interview.

Contracts have already been signed for 6,000 megawatts of new capacity to be installed over the next five years, and Hornung said he expects that number will increase to 8,000.

Canada currently has 3,499 megawatts of installed wind energy capacity, and the wind energy association expects that to increase to 4,073 megawatts by the end of the year — enough energy to power more than 1.4 million homes annually.

Every province in the country generates some wind power, and there are commitments to build new capacity in every province except Newfoundland and Labrador over the next few years, Hornung said.

The biggest areas of expansion will be Quebec, with contracts in place for 3,000 new megawatts of capacity by 2015; Ontario, with contracts for 1,500 megawatts; and British Columbia, with contracts for 800 megawatts.

Currently, only about 1.5 per cent of Canada’s total energy demand is met by wind power, but Hornung said this is expected to increase to five per cent by 2015.

This demand is primarily being driven by government policy. Many provinces are working to reduce their reliance on polluting sources of energy like coal and are encouraging increased use of clean energy sources like wind. The development of wind farms is also helping to boost the economy of some regions.

Quebec, for example, is developing wind farms on the Gaspe Peninsula, an area that has been hard hit by declines in the fishery and forestry industries, Hornung said.

http://www.thechronicleherald.ca/Business/1208928.html

Williams edges closer to decision on N.L.-N.S, undersea cable

By ROGER TAYLOR Business Columnist
Tue, Oct 26 - 4:53 AM

Newfoundland and Labrador Premier Danny Williams seems to be the only one willing to talk openly about the possibility of Lower Churchill hydro electricity from Labrador landing in Nova Scotia via undersea cable.

Williams told the annual convention of his Progressive Conservative party on the weekend that the provincially owned Nalcor Energy was in talks with Emera about developing Lower Churchill in two phases — Muskrat Falls first, then the larger Gull Island phase.

Williams says the Muskrat Falls portion alone would be enough to eliminate the need to build a new generating station on the island of Newfoundland, with any excess power being sold to Nova Scotia and New England.

There is nothing new to the idea that negotiations are taking place between Nalcor and Emera. In January 2008, the two energy companies signed a memorandum of understanding to carry Lower Churchill electricity to Nova Scotia and the U.S. market.

The energy trading arm of Emera already sells a small amount of power from the original Upper Churchill hydro project on behalf of Newfoundland and Labrador.

But this time, Williams says he’s ready to announce a decision on the Nova Scotia option "sooner rather than later."

An Emera representative was reported to have indicated only that talks with Nalcor and NB Power are ongoing. Nalcor didn’t respond when contacted Monday. In an email, Murray Coolican, Nova Scotia’s deputy minister of energy, declined to comment on the status of discussions.

The fact that the federal government is expected to make some decisions on funding so-called gateway energy projects may be bringing this issue to a head. Williams confirmed on the weekend that the federal government will be asked to provide loan guarantees to assist in getting the project built.

It had been reported earlier that both Newfoundland and Labrador and Nova Scotia already asked Ottawa for $375 million from a federal fund for public-private projects.

One of the reasons the Nova Scotia option is on the table is the ongoing dispute the Newfoundland government has with Quebec over how it was treated for the original Churchill Falls power project.

"Imagine how exciting a day it would be if we could see that power avoid Quebec altogether," Williams was reported to have told his supporters during his speech.

If a deal is reached, Lower Churchill power would first have to be brought from Labrador onto the island part of Newfoundland, likely via undersea cable, and then by undersea cable to a landing point in Cape Breton.

The cost of building the cable from Newfoundland to Nova Scotia has been predicted to cost about $2 billion.

Negotiating an arrangement with Nova Scotia and Emera isn’t the least of the problems facing the Lower Churchill project. There is political opposition in Newfoundland by those who doubt whether it is possible to develop only half of the project and make money on it. Others question whether it is wise to bypass Quebec.

An agreement with the Innu of Labrador must also be ratified by the Innu before the Lower Churchill could be developed. There are some influential native leaders who fear building the Lower Churchill project will result in flooded burial grounds and the loss of traditional Innu hunting areas.

And that’s not all. The Quebec government took steps earlier this year to block Newfoundland and Labrador and Nova Scotia from gaining access to federal funds to help with the building of a Maritime transmission route.

Nova Scotia can’t count on Williams signing a deal for a Maritime transmission route just yet, either.

The Newfoundland premier seems to be leaving the door open to Quebec participating in the Lower Churchill if Quebec Hydro would agree to reasonable transmission rates.

On another note, the price of natural gas is calculated based on a per million British thermal unit measurement. The wrong measurement was used in a recent column.

http://www.thechronicleherald.ca/Business/1208814.html

Subsea cable still up in the air

Emera mum on talks to get Churchill power to N.S., U.S.
By The Canadian Press
Tue, Oct 26 - 4:53 AM

Emera Inc. is declining comment on whether a deal is imminent with Newfoundland’s Nalcor Energy on the proposed $6.5-billion Lower Churchill hydroelectric project in Labrador.

Over the weekend, Premier Danny Williams of Newfoundland and Labrador said talks continued between Emera and his province’s Crown-owned agency.

Williams said the project would likely be completed in two phases with the help of Halifax-based Emera and that he planned to make an announcement "sooner rather than later."

Emera spokeswoman Sasha Irving confirmed Monday that talks are ongoing with Newfoundland and Labrador, and New Brunswick on an energy link.

"When we have something that we are able to announce, certainly we will be happy to do that and provide details," said Irving.

Emera’s subsidiary, Nova Scotia Power Inc., has been talking with Nalcor about a subsea cable to carry electricity to Nova Scotia and the U.S. market since a memorandum of understanding was signed in January 2008.

Nova Scotia and Newfoundland and Labrador have also asked Ottawa for $375 million for the project from a federal fund for public-private projects.

Nova Scotia Energy Minister Bill Estabrooks said although he isn’t involved in the negotiations between the two utilities, he recognizes the talks are central to getting all the "moving parts" of the project off the ground.

"They are the key particularly when it comes to finances," said Estabrooks.

Meanwhile, Newfoundland and Labrador’s Liberal Opposition called on Williams on Monday to release details on any deal, saying "secrecy on this file doesn’t cut it."

"Taking just any deal doesn’t mean it’s a good deal," Kelvin Parsons, the Liberal party’s interim leader, said in a news release.

"I hope the premier is not grasping at straws just for the optics of him keeping his promise to cut a deal on this project."

The cost of the cable project hasn’t been revealed, although a study by SNC-Lavalin for the Nova Scotia government estimated the price tag at $800 million to $1.2 billion.

The Newfoundland and Labrador government vowed to seek an alternate route to get Lower Churchill power to the U.S. after losing a four-year battle with Quebec about moving electricity through that province. In May, Quebec’s energy board ruled that Hydro-Quebec was entitled to refuse to negotiate a contract with Nalcor Energy.

‘Taking just any deal doesn’t mean it’s a good deal. I hope the premier is not grasping at straws just for the optics of him keeping his promise to cut a deal on this project’

Interim N.L. Liberal Party leader

KELVIN PARSONS

http://www.thechronicleherald.ca/Business/1208808.html

World's largest wind-turbine maker to lay off 3,000

Firm says cheaper to build a windmill in Spain than in Denmark
By The Canadian Press
Tue, Oct 26 - 5:17 AM

COPENHAGEN, Denmark — Vestas A/S, the world's biggest maker of wind turbines, has posted a 24 per cent drop in third-quarter earnings and says it will lay off some 3,000 workers in Denmark and Sweden to adjust to lower demand in Europe.

Net profit was C126 million, down from C165 million in the same period last year. Sales dropped to C1.7 billion from C1.8 billion.

The company, based in Randers, Denmark, said Tuesday it shipped a total of 719 wind turbines, or 27 per cent less than in the third quarter of 2009.

Vestas CEO Ditlev Engel says it has become cheaper to build a windmill in Spain than in Denmark and that growth in the European market in 2011 will be below earlier expectations.

http://www.thechronicleherald.ca/Business/9018430.html

Why PEI’s wind plan is dying

RICHARD BLACKWELL

CHARLOTTETOWN— From Tuesday's Globe and Mail

Published Monday, Oct. 11, 2010 6:59PM EDT

Last updated Wednesday, Oct. 13, 2010 6:42PM EDT

In October, 2008, Prince Edward Island Premier Robert Ghiz made a bold promise. The province was going to dramatically increase the amount of wind power it produced, boosting production to 30 per cent of its total electricity consumption from the 18 per cent it then generated.

The move would make the province a green powerhouse, and the North American jurisdiction with by far the highest proportion of wind-generated electricity. At the same time, PEI would become an energy exporter – despite having no other homegrown sources of power – by building additional wind projects to sell power into the New England market.

All this was to be accomplished by 2013, when the province would have 500 megawatts of wind turbines churning out power – a substantial amount for a tiny island province. Only Ontario, Quebec and Alberta would have had more.

Mr. Ghiz vowed that the $1-billion worth of wind farm and transmission construction would be the largest project on the island since the building of the Confederation Bridge.

Two years later, the plan is in disarray. While PEI tried to attract private developers to the province, several of their proposals demanded higher power prices than the province was willing to pay. The government and its utility rejected the offers because they would have driven up electricity prices, which are already the highest in Canada.

Currently, the government is in negotiations with two developers to build projects that will add just 30 MW to the 164 MW of wind power already in production in the province.

PEI’s tarnished vision underlines the delicate economics of renewable energy around the world, where subsidies and high energy prices are often the keys to getting projects off the ground.

While there is tremendous pressure on governments to wean their power grids off fossil fuel, renewables are still an expensive alternative that can push up electricity prices. There is also an increasing public pushback against huge turbine developments – or other “clean” generation projects – near populated areas, forcing politicians to think twice. Just last week, the Ontario government backed down on a proposed natural-gas-powered electricity plan in the populous – and wealthy – Toronto suburb of Oakville, after a well-organized and intense public protest.

In PEI’s case, a key problem was that expected North American “cap-and-trade” carbon-pricing policies did not come to pass, Energy Minister Richard Brown said in an interview at his office in Charlottetown. If they had, carbon credits associated with wind power would have made development on PEI much more viable, he said.

At the same time, the plunge of the global economy into recession didn’t help. “Economic conditions went down the tubes, and that opened up a lot of excess [power generation] capacity,” Mr. Brown said. Consequently, energy prices dropped, making wind less viable.

Still, “the plan is not dead ... we are still committed to 500 MW of wind,” Mr. Brown insists. The time frame has merely been extended until the economy turns around and energy prices make wind projects more viable. “Any developer that wants to come forward with a project on Prince Edward Island, I am more than pleased to entertain [their plans],” he said.

PEI’s plan was formulated at time when oil prices were above $100 (U.S.) a barrel, noted Dinara Millington, a senior economist with the Canadian Energy Research Institute in Calgary. But that didn’t last. “They did not foresee these kinds of issues, with the economy being so depressed and prices for fossil fuel energy being so low,” she said. That removed any incentives for private developers to jump in with big projects.

Essentially, unless energy prices show substantial and sustainable increases, in most jurisdictions wind power is not economical without subsidies of some sort, Ms. Millington said.

The dilemma for PEI is that if it pays too much to wind developers, electricity prices for consumers and businesses will have to go up, and some of those businesses may leave the island as a result, damaging the overall economy.

By contrast, Ontario can pay high “feed-in tariffs” for the wind and solar power it buys from developers because those renewables still make up just a tiny proportion of that province’s power generation and thus put less upward pressure on overall electricity prices. Even in Ontario, however, the shift to renewables has raised the spectre of higher power prices over the longer term.

“I’ve had developers come in here and say ‘well I can go to Ontario.’ ” Mr. Brown said. “My comment to them is, ‘If Ontario is offering a better deal, see you later.’ ”

Indeed, Ontario currently pays 13.5 cents per kilowatt-hour for on-shore wind power, while PEI pays just 7.75 cents. That makes PEI far less attractive, unless a developer can export some of its power at a much higher price.

With 22 per cent of PEI’s electricity currently generated by wind, “we’re already a world leader in renewable energy,” Mr. Brown said, but he’s not willing to push those numbers higher if it means subjecting islanders to higher rates.

Transmission is also an issue, if PEI is to become a bigger wind energy exporter. Currently, undersea cables carry power to the province from New Brunswick, and some wind power (from a privately owned wind farm) off the island. But that capacity is limited.

The federal government needs to help finance new transmission lines, Mr. Brown said, but Ottawa should also be taking the lead in creating a better east-west power grid that connects the provinces together. The current situation, where most provinces connect north-south to U.S. states, is inefficient and counterproductive to Canada’s energy and environmental interests, he said.

http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/why-peis-wind-plan-is-dying/article1752506/

NSP, Daewoo ink deal on wind power

By The Canadian Press
Wed, Oct 20 - 4:53 AM

Nova Scotia Power and Daewoo Shipbuilding and Marine Engineering have agreed to build and use made-in Nova Scotia wind towers and blades across the province.

Premier Darrell Dexter says his government has signed a letter of intent that provides the opportunity for Daewoo to supply wind turbine components for up to 100 megawatts of capacity over the next four years.

The Nova Scotia government is a partner with Daewoo to build a wind turbine plant at the former TrentonWorks railcar factory.

Nova Scotia Power will work with Daewoo on having the Trenton plant supply the towers and blades required by the utility during the next several years.

The private utility company will also encourage the use of those components by independent power producers working on their own or in partnership with communities. Under the letter of intent, Daewoo would supply Nova Scotia Power with the wind turbine components, subject to competitive pricing and quality, and the ability to meet requirements of the utility’s turbine suppliers.

http://www.thechronicleherald.ca/Business/1207865.html

Power rate discussion being held in the dark

Hearings on latest NSP hike mostly behind closed doors
By JUDY MYRDEN Business Reporter
Wed, Oct 20 - 4:53 AM

Nova Scotians are being asked to pay an additional $7 per month for electricity starting next year but the public isn’t getting to hear much of the evidence.

The second day of public hearings into the rate increase were mostly held behind closed doors before the provincial Utility and Review Board, which sets power rates in Nova Scotia.

If approved, this will be the sixth power rate increase in nine years, with the average residential customer paying $244.08 every two months to keep the lights on, according to Nova Scotia Power.

Several consultants criticizing the proposed rate increase for homeowners and businesses testified in camera to the three board members hearing the case.

Other information about Nova Scotia Power’s coal contracts, the utility’s credit rating and mercury emissions were also marked confidential for only lawyers, consultants and board members to view.

One consultant testified Nova Scotia Power shareholders should pick up the tab for the utility ordering excessive amounts of coal in 2009, which resulted in higher carrying charges.

"I stand by my analysis of the costs borne by customers due to additional coal handling costs incurred in 2009 and would ask the board to consider that a portion of those cost should be borne by NSP and not the ratepayer base," Colin Gubbins, a U.K. coal consultant with McCloskey Group, told the board Tuesday.

He was hired by two of the province’s largest consumers of electricity, paper giants NewPage Port Hawkesbury and Bowater Mersey, which are facing an 11.3 per cent hike in power rates.

He also testified he could not find any evidence of Nova Scotia Power trying to renegotiate the coal supply contracts.

Gubbins criticized Nova Scotia Power for testing pricey low-sulphur coal during a time of year when electricity demand is high and requires more coal be burned. The utility was using the coal to ensure it met environmental rules.

The utility conducted its mercury testing in November and December of 2009, which resulted in higher fuel costs and environmental emissions that were much lower than regulations required, Gubbins testified in written evidence.

"It is unclear why ratepayers should incur additional costs in 2009 on account of a requirement effective in later years," Gubbins stated in the submission.

Earlier this year, Nova Scotia Power forecast power rate hikes of 12 per cent for residential customers and 18 per cent for industrial customers, so it could buy more expensive coal with reduced mercury content as the provincial government required.

But in late July, the Dexter government softened its pollution rules to save power customers money on their power bills. It extended until 2014 the deadline for the utility to lower its mercury emissions to 65 kilograms a year from 168 kg.

The deadline extension from 2010 will reduce Nova Scotia Power’s fuel expenses by $60 million for 2011, the company says.

It is forecasting fuel costs of $544.7 million for the year.

On Monday, a proposal was put forth to phase in the power rate increase over three years, but that was rejected by Nova Scotia Power.

The hearing continues today in Halifax.

Board chairman Peter Gurnham has stated a decision would probably be made in late November.

http://www.thechronicleherald.ca/Business/1207861.html

NSP rejects phased-in rate hike

Utility asking review board to approve 6.5% increase in power bills next year
By JUDY MYRDEN Business Reporter
Tue, Oct 19 - 4:53 AM

Nova Scotia Power rejected a proposal Monday recommended by a majority of its electricity customers to phase in a planned power rate increase over the next three years.

Senior utility executives distanced the company from any deferral of fuel costs, arguing that financial markets want the utility’s costs paid in a timely manner or it will face higher borrowing costs when it builds a wind farm.

Nova Scotia’s consumer advocate, representing the province’s 440,000 residential customers, supports the proposal so customers don’t face rate shock next year.

In the coming years, Nova Scotia Power’s customers will be faced with "significant" increases to pay for energy savings programs, higher fuel costs and capital expenses on renewable energy projects required to meet new environmental targets, said Bill Mahody.

"The compromise reached by many of the interveners properly allows for the smoothing out of fuel costs paid by ratepayers over a relatively brief period," said Mahody.

"This deferral mechanism provides NSP with an opportunity to share in the burden faced by its ratepayers while also making the company whole by the end of the deferral period."

News of Nova Scotia Power rejecting the deal came on the first day of a scheduled hearing into its application before the Utility and Review Board to hike power rates for residential customers by 6.5 per cent starting next year.

If approved by the board, it would be the sixth power rate increase in nine years in Nova Scotia.

The utility is also seeking rate increases of 8.6 per cent for commercial customers and 11.3 per cent for industrial customers. In addition, customers are facing an increase of almost three per cent on power bills starting Jan. 1 to cover the $41-million budget of setting up a new government agency to run energy efficiency programs.

"What we are concerned about is future costs for customers. . . . We truly have customers in mind when we think about future costs of financing," Brian Rendell, Nova Scotia Power’s vice-president of finance, testified Monday.

The utility requires low-cost financing as it is investing over $1 billion in renewable energy such as wind projects and tidal development, said Rick Janega, Nova Scotia Power’s chief operating officer.

Nova Scotia Power’s largest customer, NewPage Port Hawkesbury Corp., maintains double-digit power rate increases are "very troublesome" at any time but, in these "uncertain economic times," they are of even "greater concern," said NewPage lawyer David MacDougall.

He said the energy efficiency charges combined with the proposed rate increase will mean an 8.8 per cent increase for homeowners and 12.4 per cent increase for large industrial customers.

Nova Scotia Power argues that those figures are "exaggerated" and higher than its estimates.

The proposed phasing in of the rate increases was agreed to by NewPage, Bowater Mersey Paper Co. and the so-called Avon Valley group, representing businesses, as well as the consumer advocate.

MacDougall said the board has the discretion to defer power rate increases under the new method, which was approved by the board in 2009, for recovering fuel costs called the fuel adjustment mechanism.

Under the plan, an estimate of Nova Scotia Power’s base fuel costs is reset every two years and built into power rates. The estimate is later adjusted in two stages so customers pay the actual fuel costs.

Nova Scotia Power is estimating its fuel costs to be $544.7 million in 2011.

The hearing continues today in Halifax.

http://www.thechronicleherald.ca/Business/1207674.html

New Regulations Encourage Community-Based Renewable Projects

NS Dept of Energy

October 15, 2010 9:23 AM

New energy regulations announced today, Oct. 15, will help stabilize electricity costs for Nova Scotians, while promoting a greener, more sustainable province for generations to come.

The new regulations enable the province to increase the amount of renewable electricity produced in communities across Nova Scotia, to help government achieve the goals it set in the province's new Renewable Electricity Plan.

"These regulations are another step towards implementing some of the most aggressive renewable energy goals in the world," said Premier Darrell Dexter.

"These greener, local projects will help to create good jobs, provide a better future for Nova Scotians and reduce our overall dependence on imported carbon-based sources. This will help stabilize electricity prices over the long term and improve the environment."

The Renewable Electricity Regulations follow a consultation process that determined eligible technologies and who would qualify for a community-based feed-in tariff program, which involves a fixed pricing structure for renewable electricity production.

The Nova Scotia Utility and Review Board will immediately begin the process of setting rates for community-based feed-in projects, with a hearing in the new year and a decision expected by spring.

An on-line application and approval system is scheduled to be in place in the spring. A website and preliminary guide detailing how to participate is available at www.nsrenewables.ca.

Rates will vary for developmental tidal projects and community-based projects such as small-scale in-stream tidal, run-of-the-river hydroelectricity, and biomass combined heat and power systems.

Wind projects will also face different rates -- one for projects over 50 kW and another for micro-scale projects under 50 kW. This ensures a variety of community opportunities and support development of Nova Scotia companies.

"The new regulations are an exciting step forward for Nova Scotia and it should help our company build its wind turbine business both locally and globally," said Jonathan Barry, president of Seaforth Energy. "The ability of Nova Scotians and businesses to participate in community energy will help us to scale up our operations, research and development and manufacturing and will make us more competitive globally."

"The new Renewable Electricity Regulations are very important in helping provide us with direction to move forward with the implementation of our Regional Energy Strategy for Cumberland County," said Shawna Eason, Cumberland County energy officer. "Our strategic priorities, especially wind energy development of both large scale and community projects, will benefit from the COMFIT program, helping us to increase the amount of sustainable, clean energy generated in Cumberland County."

The regulations put the Renewable Electricity Plan into action and puts Nova Scotia on course to reach its target of 25 per cent of renewable electricity supply by 2015 and a goal of 40 per cent by 2020.

The new regulations provide opportunities for combined heat and power projects, where a proponent has direct access to a biofuel source, such as sawmills, farms and greenhouses.

Medium to large-scale renewable electricity projects by independent power producers will be subject to a competitive bidding process overseen by a renewable electricity administrator who will set rates.

Talks are continuing between the province and the Mi'kmaq to encourage the development of renewable electricity projects on First Nations. The regulations are expected to be amended to incorporate agreements reached.

The province will review and analyze the progress of the Renewable Electricity Plan, with a special focus on the COMFIT program, within 18 months of implementation to determine whether the regulations are achieving its goals.

http://gov.ns.ca/news/details.asp?id=20101015002

NSP reviewing biomass decision

Utility weighing conditions imposed by utility and review board
By JUDY MYRDEN Business Reporter
Sat, Oct 16 - 4:54 AM

A day after getting the government go-ahead for its proposed $208-million biomass-burning project outside Port Hawkesbury, Nova Scotia Power couldn’t say Friday if it will proceed.

Executive vice-president Robin McAdam told The Chronicle Herald that the power company is still reviewing the provincial regulator’s decision, which approved the electricity-generating project but stipulated that any cost overruns must be borne by the utility’s shareholders, not its customers.

"So, I don’t have a clear fix on that," McAdam said.

"But be assured there’s a lot of work going on."

Nova Scotia Power will not appeal the Utility and Review Board’s ruling but is studying the conditions the board imposed.

"That’s something we’re still working our way through, but I expect there’s a way to advance the project," McAdam said. "There’s a process we have to go through to carefully consider the conditions and we are doing that."

Nova Scotia Power and its largest customer, NewPage Port Hawkesbury, have been given the green light to burn 650,000 tonnes of wood waste a year for 40 years at NewPage’s Point Tupper plant, producing enough electricity for 50,000 homes.

The review board’s 50-page decision, written by chairman Peter Gurnham, includes several conditions intended to protect Nova Scotia Power’s 470,000 customers.

Gurnham wrote that the most important part of the project is a contract worth $92.9 million covering engineering, procurement and construction costs.

Any additional costs cannot be passed along to Nova Scotia Power customers, he ruled.

The board noted that Nova Scotia Power "has shown an unusual aversion to shareholder risk" in twice presenting this project to the board for approval.

McAdam was noncommittal Friday on whether the utility is prepared to shift any risk to its shareholders.

"Our job is to provide electricity at the lowest possible cost to our customers of Nova Scotia, and we are able to do that because of the kind of regulatory regime that we have here," he said.

"We work to keep the risk at the right level so we can raise money at the lowest possible cost. When we raise money at the lowest possible cost, customers benefit.

"We manage the risk profile to the best of our ability."

The board also ordered that Nova Scotia Power’s shareholders, not its customers, be on the hook if a penalty clause kicks in for a late start to the project.

Also, if there are capital cost overruns, the power company must come back before the board for another public hearing.

The board also addressed the financial woes of NewPage Corp., the Ohio parent company of NewPage Port Hawkesbury.

NewPage has reported having only $7 million in cash and $113 million available on a line of credit while being $3.3 billion in debt and facing annual debt servicing charges of $330 million.

If NewPage or its Nova Scotia subsidiary fails, no additional project costs can be passed on to Nova Scotia Power customers, the board ordered.

The utility has said it needs the biomass project to proceed in order to meet the province’s renewable energy target of generating 10 per cent of its electricity from wind, tides or biomass by 2013.

http://www.thechronicleherald.ca/Business/1207146.html

$208m biomass project gets OK

By JUDY MYRDEN Business Reporter
Fri, Oct 15 - 7:02 AM

A $208-million project to generate electricity by burning wood waste in a paper mill outside Port Hawkesbury was approved with conditions Thursday by the province’s Utility and Review Board.

Nova Scotia Power and its largest customer, NewPage Port Hawkesbury, were given the go-ahead to proceed with the project at the Point Tupper mill, and they expect to burn 650,000 tonnes of biomass a year for 40 years, producing enough electricity for 50,000 homes.

Opponents say the regulatory board’s decision will clear the way for more tree-cutting in the province and increase carbon emissions.

The board’s 50-page decision, written by chairman Peter Gurnham, includes several conditions to provide safeguards for Nova Scotia Power’s 470,000 customers.

Gurnham wrote that the most important part of the project is a contract worth $92.9 million covering engineering, procurement and construction costs. Any additional costs cannot be passed along to Nova Scotia Power customers.

The board also ordered that Nova Scotia Power’s shareholders, not its customers, be on the hook if a penalty clause kicks in for a late start to the project. Also, if there are capital cost overruns, the power company must come back before the board for another public hearing.

The board also addressed the financial woes of NewPage Corp., the Ohio parent company of NewPage Port Hawkesbury. NewPage has reported having only $7 million in cash and $113 million available on a line of credit while being $3.3 billion in debt and facing annual debt servicing charges of $330 million.

If NewPage or its Nova Scotia subsidiary fails, no additional project costs can be passed on to Nova Scotia Power customers, the board ordered in its decision.

The utility says it needs the biomass project to proceed in order to meet the province’s renewable energy target of generating 10 per cent of its electricity from wind, tides or biomass by 2013.

The Ecology Action Centre of Halifax, which opposes the project, is concerned over the supply of biomass and said the review board should have waited for the provincial government’s new policy on forestry practices, expected to be unveiled later this month.

"We’re especially disappointed that this decision is going forward before the natural resources strategy is being released," said Jamie Simpson, forestry program co-ordinator for the Ecology Action Centre.

"(The new) regulations should come first, and then decide where we want to go with forest biomass harvesting."

Simpson also said the project will place a major new stress on forests and will require an extra 350,000 tonnes of clearcutting a year.

NewPage Port Hawkesbury said it was pleased with the board’s approval, especially since the board rejected a similar proposal last year.

"It’s great news for all of Nova Scotia that we are going to be able to provide a significant contribution to the generation of renewable energy in the province," said Bill Stewart, the company’s director of woodlands and strategic initiatives.

Stewart said the project will create about 150 new jobs in the seven eastern counties of Nova Scotia in trucking, harvesting and silviculture.

Port Hawkesbury Mayor Billy Joe MacLean acknowledged there is deep opposition to the project in some quarters but he said NewPage is a reputable company that will manage the forests properly.

"The company is a good community-minded company and they are the mainstay of our economic base here," the mayor said.

Independent sawmill operator Murray MacDonald, who owns or leases more than 6,000 hectares of timber in Pictou County, said the news was like a shot in the arm to the forestry industry.

"It builds confidence and it is positive news for our industry," said MacDonald, president of M.R. Holdings Ltd. "Everyone in the industry is going to benefit from this, but we must make sure to keep biomass secondary to the sawmills."

Energy Minister Bill Estabrooks applauded the review board’s decision.

"It’s important for Port Hawkesbury particularly, (and all of) rural Nova Scotia," he said.

Estabrooks also noted that Nova Scotia Power customers are protected from any risks.

With Jeffrey Simpson and Mary Ellen MacIntyre, staff reporters

http://www.thechronicleherald.ca/Front/1207046.html