Three of six projects expected to produce power by end of year; credit crunch affects others
Half of Nova Scotia’s six wind projects will be producing power by the end of this year, despite the collapse in the world credit markets, according to interviews conducted by The Chronicle Herald.
Two others will not meet this year’s deadline — one is in bankruptcy, the other has pushed its startup back to 2010. A third company with North American headquarters in Chicago remains uncertain.
The wind developments are critical to moving Nova Scotia beyond its heavy reliance on dirty, coal-fired electrical generation.
"It’s a nervous time and anything can happen but we are working our hardest to meet the 2009 deadline," said Reuben Burge, president of RMSenergy of Westville.
RMSenergy plans to install 34 wind turbines in the Cobequid Range, just 25 kilometres west of New Glasgow, and is the largest of the six wind projects.
Work has already begun on the site of this ambitious wind project with foundation holes being dug during the winter, and cement poured for turbine foundations, beginning April 1, said Mr. Burge.
RMSenergy will take delivery of the GE turbines this summer and then begin commissioning the turbines in August and September with plans to produce electricity by the end of December, he said.
Mr. Burge said his company purchased the turbines and raised the necessary capital before the credit crunch.
"It still has drastically affected our project with higher borrowing costs," said Mr. Burge.
RMSenergy was one of the six groups that signed long-term power agreements with Nova Scotia Power last year, all scheduled to come on stream in late 2009.
Last year, NSP contracted for 247 megawatts of power — enough power for 87,000 homes. When added to its existing wind farms this 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.
NSP executives have admitted they contracted nearly twice the wind power they needed to meet that deadline.
RMSenergy, along with Scotian Windfields and its partner SkyPower, and Renewable Energy Services Ltd. (RESL) confirmed they are on schedule to start producing green energy by the end of the year.
Meanwhile, EarthFirst Canada Inc. of Victoria, B.C., announced last November its wind energy project in Colchester County is in doubt after the struggling developer sought creditor protection and is restructuring the company.
To date, EarthFirst has submitted the Nuttby project for a federal environmental assessment. But last week the company filed court papers indicating funding for its wind projects, other than its one B.C. project, "will be discontinued and only minimal and critical payments will be made."
Shear Wind Inc. has pushed back the in-service date to 2010 of its $143-million to $160-million wind turbine park.
The Halifax company still has to secure financing for the Glen Dhu wind farm near New Glasgow and expects to have a deal within two months. It is also still awaiting regulatory approval for the wind park and to purchase 30 wind turbines.
Acciona Energy of Spain was not commenting on whether it will meet the 2009 deadline for its 20-turbine wind farm near Amherst.
"Well, it’s moving along," said Eric Schneider, Acciona spokesman, in a telephone interview from Chicago. "At this stage of the development we’re trying to secure permits and trying to meet the in-service date of 2009."
Meanwhile, RESL continues to proceed with its 12-turbine wind farm in Cape Breton.
"We’re working hard to make it," said Larry LeBlanc, a former oilman turned wind power entrepreneur. RESL has received all its necessary government permits and plans on starting construction in late spring and has contracted with German manufacturer Enercon for the turbines.
Scotian Windfields CEO Barry Zwicker remains confident the project will proceed and meet its contract by the end of 2009.
"We’re targeting for that date," said Mr. Zwicker.
Scotian Windfields and its partner, SkyPower, have purchased their turbines and expect
delivery this summer.
The group expects to file its environmental assessment paperwork this month.
