The wind beneath their turbines

NSP vows to be supportive, flexible for wind farm developers
By JUDY MYRDEN Business Reporter, Chronicle Herald
Wed. Jan 7 - 6:36 AM

Wind power backers who signed deals to sell electricity to Nova Scotia Power shouldn’t have trouble raising money, says the president of NSP’s parent com­pany.

“All of these contracts are ba­sically being done on the back of Nova Scotia Power’s balance sheet," Chris Huskilson, presi­dent of Emera Inc., told The Chronicle Herald’s editorial board Tuesday in Halifax. “Any­body telling me they can’t raise money on Nova Scotia Power’s balance sheet . . . I have a little trouble with that."

Mr. Huskilson said none of the companies have told NSP they are unable to raise the capital required for the multimillion­dollar projects. Several wind power develop­ers have expressed concern pub­licly over the past several months about financing drying up because of the global eco­nomic crisis. A Nova Scotia developer poised to build a $150-million wind turbine park next year near New Glasgow is looking for more time to get his project op­erating.

Mike Magnus, presi­dent of Shear Wind, has said the economic climate has made it difficult for wind farm develop­ers to raise money, and he is looking for an extension. Shear Wind signed a deal last year with NSP to provide 60 mega­watts of electricity — enough for 17,500 homes — starting in late 2009.

Financial challenges could mean the half-dozen wind pro­jects scheduled to start produc­ing electricity this year fall be­hind schedule.

NSP president Rob Bennett admitted Tuesday during the ed­itorial meeting that all of the wind power developers have met with utility officials about their financial difficulties, but none has “formally" said they cannot follow through.

“Every developer has asked us for flexibility," said Mr. Bennett, adding any extensions to con­tract deadlines would require the agreement of the provincial government, the utility and government regulators.

“We believe every one of these is a viable project. . . . We are doing everything that we can do to be supportive and helpful," said Mr. Bennett. He said it is a “perfect time" for wind projects to move for­ward — the cost of turbines is down 15 to 20 per cent, the price of steel used in the towers is down dramatically, and engi­neering firms are looking for work.

Mr. Bennett said if any of the developers are having trouble or missing any milestones for development, it will be revealed later this month when compa­nies start reporting quarterly results.

NSP has contracted for 247 megawatts of power — enough for 87,000 homes — which, add­ed to its existing wind farms, would account for 10 per cent of the province’s electricity by 2013.

The utility is required by pro­vincial legislation to provide half that amount of power from renewable sources by 2010 as part of the province’s efforts to reduce pollution.

Mr. Bennett said the utility oversubscribed in purchasing renewable energy in case one of the wind projects failed. “So if you have land, a turbine supplier and ultimately, a pow­er purchase agreement with a strong utility like ours, that is a complete project," said Mr. Ben­nett.

http://thechronicleherald.ca/Business/9010071.html