URB: Wind projects can jump queue

By JUDY MYRDEN Business Reporter

A lineup of clean energy projects looking to hook up to Nova Scotia’s power grid was given the green light Tuesday, but with conditions by government regulators.

Nova Scotia Power Inc. asked its regulator, the Nova Scotia Utility and Review Board, to step in during the summer and allow seven wind projects to jump the queue in obtaining engineering studies needed for connecting to the power grid. The seven projects had won renewable energy contracts from NSP this spring,

While the regulator approved NSP’s request, the board stated in its decision that it has "concerns" about NSP’s process.

"Based on the evidence before the board, it appears that NSPI was aware of the potential problem during RFP (requests for proposals) process in 2007," the board stated in its nine-page decision. "NSPI chose to seek the board’s ruling to impose a temporary waiver, which has the potential to prejudice some of the projects in the queue."

Other wind developers complained to the board about NSP’s request and lack of consultation with the utility.

The board has directed NSP to meet with all developers no later than Nov. 17, 2008, and report back to the board no later than Dec. 15, 2008.

NSP had complained there was a logjam of requests before the provincial transmission system operator forinterconnection generation studies, which can take months to carry out.

Nova Scotia Power awarded contracts for renewable energy projects this spring in the hope of producing 246 megawatts of new renewable energy by 2010.

The province has mandated a standard of 130 megawatts of renewable energy by 2010.

Twenty-six interconnection requests, amounting to more than 1,390 megawatts, are in the generation interconnection queue, according to Nova Scotia Power.

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Link to latest NSPI Interconnection Request Queue: http://oasis.nspower.ca/documents/GIP_Queue.pdf

Plenty of wind planned for Amherst

Acciona to build 20 turbines on marsh, will sell electricity to NSP

By TOM McCOAG Amherst Bureau

AMHERST — One of the world’s leading developers of green energy announced Thursday that it will invest $55 million in construction of a 20-turbine wind farm on a marsh just outside Amherst.

"We will be using turbines manufactured by our own company that will generate 30 megawatts of power, enough to provide electricity to 10,000 homes annually," Daniel DuBois, vice-president of Acciona Energy North America Corp., said during a news conference.

The electricity generated by the wind farm will be sold to Nova Scotia Power through a 25-year power purchase agreement. Details of the agreement were not released.

The 80-metre turbines, with 37-metre blades, will be built just west of the Trans-Canada Highway on land that Acciona and its partner, Wind Dynamics of Saint John, have rented from the Amherst Sod Co.

Nova Scotia Power and several firms have announced several wind projects for the province this spring. With Thursday’s news, the power company has entered into purchase agreements that will see a total of 214 megawatts of power being generated in the province by 2010 — enough to power about 80,000 homes annually.

Rob Bennett, NSP vice-president, said the latest deal will help the power company meet its goal of producing cleaner, greener energy.

The renewable energy projects signed in recent weeks will help stabilize electricity prices in the province over the next two years, Mr. Bennett said.

Amherst Mayor Jerry Hallee welcomed the news.

"When I first came to power in 1997, this was the first project we began working on," he said. "It’s great to see it coming to fruition."

Mr. Hallee said he believes the wind farm’s proximity to the highway will make it a tourist attraction that will help make Cumberland County a destination area.

"We now need to get an interpretation centre created, one that will tell the tourists how important renewable energy projects like this are," he said.

The project will generate about $200,000 in property taxes for the Municipality of Cumberland.

"However, the taxes we get is not what is important," Warden Keith Hunter said. "The fact that we will be taking carbon dioxide out of the air is what is important, not only for Cumberland County, but the province, the country and the world."

Before construction can go ahead next spring, the project will have to pass an environmental review.

Shear Wind signs power deal with NSP

Shear Wind Inc. of Halifax announced Wednesday a 60-megawatt power purchase agreement with Nova Scotia Power Inc.

The electricity for the 20-year agreement is to come from the Glen Dhu wind park in Pictou County, near Merigomish, where Shear Wind plans to put up 30 turbines in a $150-million development.

"In addition to the initial 60 megawatts, the expansion potential . . . is an additional 170 megawatts," Mike Magnus, president of Shear Wind, said.

"This positions the Glen Dhu wind park in an optimal position to participate in export opportunities as well as future requests for proposals in order to secure additional power purchase agreements."

Shear Wind has nine wind projects in various stages of development in Alberta, Saskatchewan, New Brunswick and Nova Scotia.

The Glen Dhu wind park will be the first to produce electricity and the company’s first turbine park development.

The project is the result of a request for proposals from NSP last year for more energy from renewable sources. NSP has announced 184 megawatts of wind generation and expects to sign contracts totalling 240 megawatts.

The price per kilowatt was not disclosed.

Wind farm needs a bit more breeze

By JUDY MYRDEN Business Reporter
Fri. Mar 28

Atlantic Canada’s largest wind farm could use a little more fuel, say the owners of the Pubnico Point Wind farm in Yarmouth County.

Electrical production from the turbines was down along with wind volumes in 2007, said Derren Newell, chief financial officer for Creststreet Power and Income Fund LP, which is trying to sell the wind turbine farm.

Creststreet Power and Income of Toronto, a majority owner of the $50-million wind farm, released results showing wind production was five per cent below management’s long-term projection.

"The majority of the deviation in energy production was the result of wind speeds that were below the projected long-term average," Creststreet Power reported Thursday in its annual financial results for 2007.

Mr. Newell would not discuss the lower production in relation to the company’s "voluntary" shutdown of the turbines.

Today, Creststreet is expected to release "more complete financial information" on its two wind projects, Pubnico Point and Mount Copper in Quebec, said Mr. Newell of Calgary.

Despite Pubnico Point’s declining electricity production, the company reported higher revenues, crediting higher wind speeds.

Electrical revenues were $17.6 million, an increase from $15.3 million from 2006.

In its latest financial results, the company said a special committee is continuing to work on selling the wind farm.

The decision to sell the wind farm was announced last fall in response to the federal government’s decision to eliminate the tax benefits of trusts.

An independent board of directors of Creststreet has set up a special committee to conduct a "strategic review" of the income fund’s two wind energy projects in Quebec and Nova Scotia, which have a total of 47 wind turbines and power generating capacity of 84.6 megawatts.

The new tax rules come into effect in 2011, but the board is looking at selling the assets while renewable energy is a "hotly traded commodity," Mr. Newell has previously said.

EarthFirst buys out wind farm

Calgary firm pays $450,000, share of revenue for Nuttby Mountain project

By JUDY MYRDEN Business Reporter

Nova Scotia’s gales blew in a late blast of winter Tuesday, along with a Calgary company determined to create power and make money in this windy province.

EarthFirst Canada Inc., a newly created wind company, announced it has bought the proposed 45-megawatt Nuttby Mountain wind energy project in Colchester County from Atlantic Wind Power Corp. and its partner, Cobequid Area Windfarms.

EarthFirst paid $75,000 cash, along with $374,400 in shares (based on 192,000 shares at $1.95 of EarthFirst) and a small share of gross revenue over the life of the project, Derren Newell, vice-president finance, said in a telephone interview from Calgary.

EarthFirst, which has two other wind projects in B.C., will enter into a service agreement with Atlantic Wind Power to provide services for the construction of the project in exchange for a monthly fee and project completion fee.

Before the project proceeds, the developers must obtain municipal and provincial permits. Negotiations for a turbine sale and warranty and service agreements are underway.

"Nuttby is a good example of EarthFirst’s expertise in acquiring advanced stage wind projects that can be moved forward into construction and operation quickly," Robert Toole, EarthFirst CEO, said at a news conference. "Our goal is to have the project completed and in service by the end of 2009."

Nova Scotia Power will purchase the wind-generated power but details of that agreement, including the price paid per kilowatt, were not disclosed.

The wind farm, with up to 22 turbines, will cost $90 million to $100 million and will be located about four kilometres north of the village of Nuttby and six kilometres east of Earltown. The turbines will produce enough energy to power about 15,000 homes.

NSP’s contract with EarthFirst is the second of six agreements for renewable energy resulting from a competitive bidding process announced last year by the privately owned utility. The utility is expected to make another wind purchase announcement on Thursday.

Atlantic Wind Power, also the developer of a proposed wind farm in the Pugwash area, has worked with principals of EarthFirst in developing Nova Scotia’s largest wind farm, at Pubnico Point.

EarthFirst was formed last December after a restructuring of Creststreet, a co-owner of the Pubnico Point wind farm. Creststreet recently put the Pubnico Wind farm up for sale.

Rob Bennett, NSP vice-president of resource and sustainability, filled in for president Ralph Tedesco, who was unable to attend the news conference at the Marigold Centre.

Lisa Betts, chairwoman of the Gulf Shore Preservation Association, which is opposed to Atlantic Wind Power’s other proposed project in Pugwash, endorsed the Nuttby project.

"The Nuttby wind project appears to be well located, with turbines 1.5 kilometres from homes, the majority of local people in favour of it and NSPI transmission lines nearby. . . . This is a good example of how important it is for wind energy companies to strongly consider location as it affects the local population and economic structure," she said in an e-mail after attending the news conference.

Purchasing more renewable energy is part of NSP’s overall business strategy to use less pollution-causing coal at power plants across the province in the future.

EarthFirst’s share price remained unchanged on Tuesday at $1.95 per share. The stock’s 52-week high is $2.10 and its 52-week low is $1.45.

Creststreet to sell stake in Pubnico power project

Winds of change blow in

By JUDY MYRDEN Business Reporter

Atlantic Canada’s largest wind farm is up for sale.

Creststreet Power and Income Fund LP of Toronto, a significant owner of the $50-million wind farm in Pubnico Point, Yarmouth County, wants to sell its share of the development in response to the federal government’s decision to eliminate the tax benefits of trusts.

"The change in the federal income trust rules doesn’t allow trusts to grow," said Derren Newell, Creststreet’s CFO. An independent board of directors of Creststreet has set up a special committee to conduct a "strategic review" of the income fund’s two wind energy projects in Quebec and Nova Scotia, which have a total of 47 wind turbines and power generating capacity of 84.6 megawatts. Mr. Newell said the new tax rules come into effect in 2011, but the board is looking at selling the assets while renewable energy is a "hotly traded commodity" that will make sense for the unitholders of the income fund.

"The committee is looking at maximizing unitholder value," he said.

To help in the review, the committee hired CIBC World Markets Inc. and Davies Ward Phillips Vineberg.

The Harper government passed legislation last year to start taxing income trusts at corporate rates.

The proposed rules will apply a new tax on the money distributed to shareholders by newly formed income trusts and tax some of the income at corporate rates. These new rates started for trusts trading after October 2007. But existing trusts such as Creststreet were given a four-year transition period, ending in 2011. PPWF Management Ltd., Creststreet’s partner in the Pubnico wind farm and its operator, is a local firm owned by four Nova Scotians and headed by lawyer Charles Demond.

Creststreet has been a "good partner" and expects any transaction to be completed by the end of this year, said Mr. Demond, president of Atlantic Wind Power Corp., a wind developing company.

The Pubnico wind farm has 17 turbines, has been generating electricity since 2005 and sells directly to Nova Scotia Power through a long-term-power purchase agreement.

Creststreet’s recent quarterly results show that for the first nine months of 2007, Pubnico Point’s production was eight per cent below the independent engineer’s projection, compared with seven per cent the previous year.

The lower production is being blamed on lower wind speeds, according to the Creststreet report.