SOME independent energy producers in Nova Scotia were cheering Friday after the Dexter government announced a delay of the province’s green energy plan that threatened them and Nova Scotia Power with potential fines.
"I think it is safe to say the people involved in our industry are breathing easier today," said Larry Leblanc, president and CEO of Renewable Energy Services Ltd., which has a $55-million wind energy farm planned for Point Tupper.
"Our project is moving ahead nicely, but we are still awaiting federal environmental approval and this reflects how tight the deadline was for us and for others," Mr. Leblanc said in an interview.
The province announced a change in its 2007 renewable electricity regulation on Friday. The change adds a year to the deadline that required Nova Scotia Power to obtain five per cent of its electricity from renewable sources by Dec. 31, 2010. The utility now has until Dec. 31, 2011, to meet that target.
The change is part of the government’s plan to obtain 25 per cent of its electricity from renewable sources by 2015.
The renewable energy regulation threatens Nova Scotia Power with fines if green targets are missed. There were concerns among some independent energy producers that they would be held liable for portions of the fines due to missed contract obligations.
"This move gives the independents more time to bring projects to completion that encountered delays, mostly because of the downturn of the economy," said Jennifer Parker, a spokeswoman for Nova Scotia Power.
"Our plan remains the same and this is to comply with the regulation as it previously stood and bring more renewable energy sources to Nova Scotia as soon as possible."
Energy Minister Bill Estabrooks said a number of exciting green energy projects faced possible cancellation if the deadline was not extended.
"The change reflects the reality on the ground," the energy minister said in a news release. "The year-long, global credit crisis has delayed wind power projects."
A plan to increase green energy sources by another five per cent by 2013 remains in place and the environment minister said that by then a minimum of 18.5 per cent of the province’s energy will come from renewable sources.
However, the Ecology Action Centre suggested the one year delay reflects the sad state of the province’s renewable energy plan.
"Even before the financial crisis there was a 50 per cent failure rate for renewable energy proposals from independents because of a flawed competitive bidding process," said Cheryl Ratchford, energy co-ordinator with the centre.
She said the government must devise a strategy that encourages independents to come forward with proposals and allows them to secure contracts to connect to the energy grid before they proceed to seek financing.
Problems with financing have threatened the Shear Wind Inc. project near New Glasgow (30 turbines), the Acciona Wind Energy Canada project near Amherst (20 turbines) and the Scotian WindFields project near Digby Neck (20 turbines).
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