NS Power awards almost 20 MW of community-based renewable energy

Press release from Nova Scotia Power Incorporated

January 21, 2010

Halifax, NS – Nova Scotia Power has awarded contracts for 18.95 MW of electricity to be supplied from small, community-based renewable energy projects throughout Nova Scotia. The six agreements are the result of a December 2008 request for proposals (RFP) for small, renewable energy projects that would encourage community investment and development.

The small renewables RFP process was designed to encourage small, community-based projects to become part of the province’s energy supply.

“Nova Scotia Power is committed to incorporating more renewable energy into our generation mix,” said Rob Bennett, President and CEO of Nova Scotia Power. “We are proud to be able to work with small community-based projects to bring more green energy to Nova Scotia and create new economic development opportunities in the province at an important time for our economy.”

“We were very pleased to have our project selected as part of this process,” said David Swan, President of The Colchester-Cumberland Wind Field Inc. “The Spiddle Hill wind turbine represents our community’s commitment to renewable energy. We see this project as the beginning of a greener energy future for our region.”

The ten different community projects announced today under six agreements add to the existing 16 wind sites in Nova Scotia with a generation capacity of 112 megawatts (MW). These projects, combined with the five new wind farms (163 MW) committed to be online in 2010, will bring Nova Scotia’s wind generation to a total capacity of 275 MW. These wind projects, in combination with other renewables already in place are expected to bring the total renewable portion of Nova Scotia’s generation mix to 692 MW which will produce approximately 16 per cent of Nova Scotia’s electricity sales.

Nova Scotia Power received a positive response to the community RFP released in December 2008 and closed the competitive bidding process on July 7, 2009. Proposals for 20 projects with a total generating capacity of 40.75 MW were received.

The RFP was open to all types of renewable generation from wind to solar. The six agreements announced today are all for wind power. Criteria for evaluating each proposal included the proposed price of the electricity, the level of local community support and the strength of the proposed project.

A full list of the successful bidders is included below.

Developer	Location	Capacity (MW)
Scotian WindFields Inc. (three sites)	Granville Ferry, Dunvegan, and Isle Madame	6.0
Infinite Energy Limited	Cape North	0.65
The Colchester- Cumberland Wind Field Inc.	Spiddle Hill, Tatamagouche	0.80
Black River Wind Limited (three sites)	Creignish Rear, South Cape Mabou, and Irish Mountain	6.0
Watts Wind Energy Inc.	Watt Section, Sheet Harbour	1.50
Wind Prospect Inc.	Fairmont, Antigonish County	4.0
Total Capacity		18.95

Negotiations are ongoing with one additional community-based wind project. NS Power hopes to announce that agreement in the coming weeks.

An RFP for 10 MW of community-based biomass was also released in December 2008. NS Power hopes to announce the results of that RFP early this year.

Forward-Looking Information
This press release contains forward-looking information and forward-looking statements which reflect the current view of Nova Scotia Power with respect to the Company’s objectives, plans, financial and operating performance, business prospects and opportunities. Wherever used, the words “may”, “will”, “anticipate”, “intend”, “expect”, “estimate”, “plan”, “believe” and similar expressions identify forward-looking statements and forward-looking information. Forward-looking statements and forward-looking information should not be read as guarantees of future events, performance or results, and will not necessarily be accurate indications of whether, or the times at which, such events, performance or results will be achieved. Nova Scotia Power disclaims any intention or obligation to update or revise any forward-looking information or forward-looking statements, whether as a result of new information, future events or otherwise, except as required under applicable securities laws.

http://www.nspower.ca/en/home/aboutnspi/mediacentre/NewsRelease/2010/smallrenewable.aspx

Lost NSP bid irks C.B. firm

Wind developer questions fairness of renewable energy project contracts
By JUDY MYRDEN Business Reporter
Thu. Jan 28 - 4:53 AM

A Cape Breton wind developer is upset about being shut out of Nova Scotia Power’s most recent call for renewable energy projects.

Luciano Lisi, president of Cape Breton Explorations Ltd., submitted a $10-million proposal to construct four wind turbines at two industrial parks in Cape Breton and sell the electricity to Nova Scotia Power.

However, Mr. Lisi’s proposal did not make the successful bidders list last week when Nova Scotia Power awarded six contracts for 18.95 megawatts of electricity to be supplied from small, community-based renewable energy projects.

"We believe the request for proposal (RFP) process is not only unfair, we believe Nova Scotia Power’s team is ill-equipped in assessing RFPs. There should be a third-party organization that assesses RFPs," said Mr. Lisi Wednesday.

Cape Breton Explorations of Sydney was proposing to install two wind turbines, generating two megawatts of electricity, at both the Northside Industrial Park in North Sydney and Harbourside Industrial Park in Sydney.

Mr. Lisi admits his proposed selling price — 12.5 cents per kilowatt — was higher than other projects, but his project offered other benefits, such as supporting local industrial parks that have been hurt by the downturn in the economy.

"The best value should be the guiding light for ratepayers, not the absolute lowest cost," he said.

Nova Scotia Power says Cape Breton Explorations’ proposal was one of 20 renewable energy projects submitted to the utility, totalling 40 megawatts of electricity.

"We were in a fortunate situation where we did have more projects . . . than we needed. We went through all the criteria equally for every project," said NSP spokeswoman Jennifer Parker.

"Once we selected the projects that met all the community requirements for local benefits, we applied the screen that said which ones have the most value for customers and that’s how we made our final decision."

She described the competitive process as a "fair process" and the criteria were applied equally to every project.

In addition to looking for the best price, the utility also examined the track record of the developer, the benefits to the community and support from the local community, she said.

Mr. Lisi, who has been awarded three renewable energy contracts with Nova Scotia Power in the past, also contends his latest project proposal was penalized because it is located in Cape Breton.

However, Ms. Parker said three of the six renewable projects selected are in Cape Breton and will generate 8.6 megawatts of the 18.95 megawatts requested.

These include the Scotian Windfields project in Isle Madame, Infinite Energy in Cape North and Black River Hydro at three sites in Cape Breton.

In the fall, Mr. Lisi complained to the provincial government about the process and wrote Energy Minister Bill Estabrooks, requesting he appoint an independent auditor to review the bidders list and how projects are chosen.

The minister said he could not take such action but indicated the government is developing a new renewable energy policy that is expected to be released this spring.

http://thechronicleherald.ca/Business/1164711.html

Wind turbines in motion

N.S. Power approves $50m in projects
By BILL POWER Business Reporter
Fri. Jan 22 - 4:46 AM

Ten community wind-turbine contracts valued collectively at about $50 million received clearance Thursday to proceed at locations across the province.

"These projects add millions to the provincial economy, and the exciting thing is these facilities will be entirely owned by Nova Scotians," said Dan Roscoe, chief executive officer at Scotian WindFields Inc., which has one of the larger contracts approved by Nova Scotia Power.

Nova Scotia Power awarded contracts for about 20 megawatts of electricity to be supplied from the renewable energy projects. The utility said 20 megawatts of wind power is enough to power about 6,500 homes.

Many of the projects are backed by local investors and community development organizations.

Scotian WindFields will have turbines at Granville Ferry, Dunvegan and Isle Madame.

"Lots of people associated with these projects are cheering this latest development," said Mr. Roscoe in an interview.

He estimated the collective value of the projects would include turbine purchases, engineering and installation.

Ten wind turbine projects are included in six power-purchase agreements signed by the utility.

"Now that we have a power-purchase agreement in place, the really fun stuff begins and we start to build," said David Swan, president of Colchester-Cumberland WindField Inc. This community project features a turbine at Spidell Hill near Tatamagouche.

Negotiations continue with an additional community-based wind project, and the utility indicated a deal should be in place to allow it to proceed in a few weeks.

Besides the Colchester-Cumberland and Scotian WindFields projects, the list of successful bidders includes Infinite Energy Ltd., with a turbine at Cape North; Black River Wind Ltd., with turbines located at Creignish Rear, South Cape Mabou and Irish Mountain; Watts Wind Energy Inc., with a turbine at Watt Section Sheet Harbour; and Wind Prospect Inc., with a turbine at Fairmont, Antigonish County.

Nova Scotia Power claims these projects, combined with five new wind farms scheduled to be online this year, will bring the province’s wind generation to a total capacity of 275 megawatts.

Rob Bennett, president and CEO of Nova Scotia Power, said the utility is committed to incorporating more renewable energy into its generation mix.

"We are proud to be able to work with small community-based projects to bring more green energy to Nova Scotia and to create new economic development opportunities in the province at an important time for our economy," he said in a news release.

http://thechronicleherald.ca/Business/1163564.html

No raises for Shear Wind bosses during tough year

By JUDY MYRDEN Business Reporter
Wed. Jan 20 - 4:46 AM

Salaries for the top executives at Shear Wind Inc., a Bedford renewable energy company, remained unchanged while the company weathered turbulent times.

Michael Magnus, president and CEO, earned a salary of $175,000 in 2009, according to the company’s management circular filed with securities regulators Tuesday.

In addition to his salary, Shear Wind picked up a tab of $56,722 to cover Mr. Magnus’s health club memberships, fees for memberships in professional institutes and group medical plan benefits.

His total compensation was $231,722 in 2009.

The company’s new chief financial officer, William Bartlett, earned $100,000, plus $21,120 for other benefits.

The proxy revealed that Shear Wind’s former chief financial officer, Gary MacKenzie, who resigned on Jan. 19, 2009, did not receive any compensation in connection with performing the duties of his office by agreement with the company.

The proxy is sent out to shareholders prior to the company annual meeting, which is scheduled for Feb. 10 at the Halifax Club.

At the meeting, shareholders will be asked to approve the company’s financial statements for the year ended Aug. 31, 2009.

In the statements, Shear Wind, a publicly traded company formed in 2004, had to pay a $500,000 performance security deposit held by Nova Scotia Power for not delivering wind-generated electricity by Nov. 30, 2009.

The company had to forfeit the cash based on a contract it signed with the utility in April 2008, it reported in documents.

This is tough news for a company that has incurred significant losses over the last three years, including a $628,182 loss last year, according to company documents.

Shear Wind was delayed in starting its proposed $150-million wind turbine park near New Glasgow, called Glen Dhu, because of the collapse in the world credit markets in 2008.

The company, like many others, was unable to borrow the money to finance the project.

Shear Wind had an infusion of cash last month, with a Spanish billionaire investing $27 million in the company and giving the Nova Scotia project a kick start.

The company expects the project to start producing electricity later this year.

Shareholders will also be asked to approve a new nominee to the board of directors from the Spanish company, Inveravante. Jose Fernandez Olano, who spearheaded the acquisition of Shear Wind, has been nominated.

http://thechronicleherald.ca/Business/1163174.html

There’s trouble blowing in the wind

RALPH SURETTE

Halifax Chronicle Herald, Opinion
Sat. Jan 16 - 4:46 AM

BIG wind farms in financial or deadline trouble, sometimes being bailed out by Nova Scotia Power, are almost daily fare on the business pages these days. Like much of the rest of the world, we’ve cast wind as the saviour in our quest for green energy. Here’s stuff we should know while we still have time to reset our options.

In Spain, Italy, the U.S. and elsewhere, big wind power scams have erupted, the result of hundreds of billions of dollars in subsidies being pumped into wind with little control. Some politicians and entrepreneurs are already in jail.

"It’s the same mentality as a Texas oil strike," a crusading lawyer in the Spanish Canary Islands, chasing down a major scandal, told the New York Times a few weeks ago. "This is a gold rush, and everybody wants a wind park at whatever price."

Plus, there are questions about whether big wind is doing what it’s supposed to do — reduce carbon emissions. Spain’s carbon emissions have gone up dramatically (30 per cent over the last 10 years) despite being one of the world’s leading wind power countries. Major analyses have questioned to what extent wind has contributed to Demark and Germany’s relatively better carbon performances.

And there are battles against wind farms wherever people are too close, and health and property values are at stake. A defining study entitled "Wind Turbine Syndrome" has been written by a Dr. Nina Pierpont of New York, as the scientific literature mounts on the problematic effects of noise and subsonic waves. Denials and cover-ups are increasingly reported. Recently there was an uproar in Britain as the government was caught doctoring a report on decibel levels at wind farms.

In Nova Scotia, there’s citizen opposition in places too, notably at Digby Neck and back of Bailey’s Brook on the hill range between New Glasgow and Antigonish, where the complaint is that citizen participation has been shunted aside. This project, called Glen Dhu, to be built by Shear Wind Inc. of Bedford (recently bailed out by a Spanish billionaire who took a big chunk of the company) promoted the project as being two kilometres away from the nearest homes, upped that to three kilometres, but when the application was filed, according to the citizen group opposing the project, it was 640 metres. And the number of turbines started as between 30 and 60, but rose to 130.

The group, the Eco Awareness Society, also filed a complaint with the Nova Scotia Environment Department accusing Shear Wind of providing false or misleading information, mainly on noise effects, in its environmental assessment application. The Environment Department investigated and found no offence.

There is a risk that when the big policy rig is rolling with tens of millions of dollars aboard, the small stuff, including truth and transparency, gets flattened. That’s the time to ask questions about where the contraption is going.

The issue isn’t the value of wind power as such. It’s part of the solution. It’s just that, as with ethanol or biomass, any idea that sounds good goes to extremes immediately on the fantasy that these alternatives can replace existing energy sources seamlessly and we won’t have to change our ways.

Neal Livingston of Mabou, who has been struggling to make it in the alternate energy field for 30 years — and just got a contract with Nova Scotia Power for a six megawatt project involving three to four turbines — says it might not be a bad thing if some of these huge wind projects collapsed.

Since the energy issue is not just that, but also an issue of economics and what kind of society we want for the future as conventional energy gets squeezed, it might inject some realism into the policy picture.

What we need, he says, are community-sized wind projects, owned by local people, that are part of a mix of solar, conservation and others —and the policies to make that happen. "The problems with wind you’ve described to me are mostly problems with big capitalism."

Meanwhile, Bill Phillips, a retired electrical engineer with NSP and its predecessors, phoned to thank me for suggesting we connect to Hydro-Quebec to sidestep our big wind policy muddle, as I did last week.

Wind, he said, "has a place, but not as significant a place as it’s made out to be." But it was "as an NSPI investor" that he was really bothered. The utility was spending "$100 million on Nuttby Mountain alone" — a wind farm it took over from a failed private operator.

Indeed, along with citizen protests, fraud, a subsidy-driven bubble and so on, we have the question of how much big wind is going to cost and who’s going to pay if it doesn’t add up.

http://thechronicleherald.ca/Opinion/1162494.html

NSPI buys into C.B. wind farm

Utility will own 49 per cent of Point Tupper project
By JUDY MYRDEN Business Reporter
Fri. Jan 15 - 4:46 AM

Nova Scotia Power is spending $28 million to kick-start a stalled wind power project in Point Tupper.

Under the agreement, Renewable Energy Services Ltd. of Lower Sackville will build and operate a wind farm in Richmond County, and Nova Scotia Power will have a 49 per cent stake in it.

"This agreement gives us the financial support we need to move this project ahead and build what will be the biggest wind farm yet in Cape Breton," said Larry LeBlanc, president of Renewable Energy.

The $55-million project is to produce 22.5 megawatts of electricity from 11 turbines to go into service later this year.

Nova Scotia Power and its parent company, Emera Inc., now have ownership stakes in three of the six wind power projects for which the utility signed power-purchase agreements in 2008.

The provincial government ordered Nova Scotia Power to have five per cent of its total electricity purchases generated by independent power producers from renewable sources by the end of 2011. The legislation was supposed to encourage competition in the marketplace and allow independent power producers to get a toehold in the province.

Robin McAdam, a Nova Scotia Power vice-president, said the utility believes the newly configured Renewable Energy wind project will qualify under the rules but it’s looking for approval from the provincial government to make sure.

"We will need clarification on that," he said. "It’s RESL’s project, they’re managing and constructing the project and we are a minority player in it."

Energy Department officials were not available for comment.

Last month, Emera Inc. bought 50 per cent of another financially troubled wind farm, in Digby. Troubled SkyPower Inc. of Toronto had partnered with Scotian WindFields on the project.

Last April, Nova Scotia Power bought developmental rights to a 22-turbine proposal for Nuttby Mountain from bankrupt EarthFirst Canada Inc. of Calgary. The $120-million wind farm, about 20 kilometres north of Truro, is expected to be operational this year.

The announcement that Nova Scotia Power is taking a stake in the troubled Point Tupper project comes a week after it was reported that Renewable Energy Services might have to forfeit $550,000 to the power company for missing its deadline to begin delivering wind-generated electricity to the utility by Nov. 30.

Mr. LeBlanc and Mr. McAdam refused to answer questions Thursday about the $550,000 penalty.

Renewable Energy spokesman Jim Meredith told The Chronicle Herald last week that it’s not fair for Nova Scotia Power to take the money, considering the province gave the utility an extension on its agreement to buy electricity generated from renewable sources. Nova Scotia Power did not pass on that extension to its suppliers, Mr. Meredith said.

This fall, the province added a year to Nova Scotia Power’s deadline for obtaining five per cent of its electricity from renewable sources. The new deadline is Dec. 31, 2011.

In 2008, Nova Scotia Power signed contracts with six independent power producers to buy 247 megawatts of power, enough for 87,000 homes, with an eye to meeting the government’s target of having 25 per cent of its electricity generated from renewable sources by 2015.

Of the six contracts, only RMS Energy, which has 34 wind turbines in the Cobequid Range, 25 kilometres west of New Glasgow, began producing electricity on schedule, according to Nova Scotia Power’s website.

Shear Wind Inc. of Bedford has forfeited $500,000 to Nova Scotia Power for failing to meet the delivery date of Nov. 30.

Another wind project, a proposal by Acciona Energy of Spain to build a 20-turbine wind farm on the marsh outside Amherst, also failed to meet the deadline but company officials are refusing to say whether it has forfeited its deposit.

http://thechronicleherald.ca/Business/1162282.html

Wind farm up in the air

Amherst-area project missed deadline
By JUDY MYRDEN Business Reporter
Tue. Jan 12 - 4:46 AM

More uncertainty is hanging over one of Nova Scotia’s proposed multimillion-dollar wind energy projects.

Acciona Energy Canada is reviewing the feasibility of its proposed 30-megawatt wind project near Amherst that would provide enough electricity for 10,000 homes.

The project, to include 20 turbines, has been on hold since last March and missed the Nov. 30 deadline in its contract to begin providing electricity to Nova Scotia Power.

"We’re continuing to look for a good solution for it," Acciona spokesman Eric Schneider said Monday in a telephone interview from the Spanish conglomerate’s North America headquarters in Chicago.

"I wouldn’t say it’s never going to be feasible, but in the current climate it’s definitely made it so that we have to look at options to improve the financial viability of the project."

The $55-million wind project was halted because of the downturn in the economy and an increase in costs, he said.

Many variables, including financing costs, have increased considerably since Acciona, one of the world’s largest renewable energy companies, signed its agreement with Nova Scotia Power in 2008.

"Just like many other projects throughout Canada that ran into that scenario," Acciona spokeswoman Micaela Whalen said Monday.

"Because right now, we’re sitting down and looking at our assets and determining what will work and what will make the project financeable and a project that makes sense for both our company and Nova Scotia. That’s what is being determined right now."

Mr. Schneider was uncertain whether Acciona has forfeited its deposit to Nova Scotia Power because of missing the Nov. 30 deadline to begin generating electricity.

According to other wind power developers who signed contracts with Nova Scotia Power, the deposit was $25,000 per megawatt. That would make the deposit for Acciona’s 30-megawatt project $750,000.

"I’m not sure," Mr. Schneider said. "I’ll check into that."

Last week, The Chronicle Herald reported that Shear Wind Inc. of Bedford had to forfeit a $500,000 deposit to Nova Scotia Power for missing the Nov. 30 deadline. Renewable Energy Services of Lower Sackville also missed the deadline, and its deposit was $550,000.

Renewable Energy spokesman Jim Meredith told The Chronicle Herald last week that it’s not fair for Nova Scotia Power to take the money, considering the provincial government gave the utility a time extension on its agreement to buy electricity generated from renewable sources. Nova Scotia Power did not pass on that extension to its suppliers, Mr. Meredith said.

Last fall, the province added a year to Nova Scotia Power’s deadline for obtaining five per cent of its electricity from renewable sources. The new deadline is Dec. 31, 2011.

Nova Scotia Power signed six contracts with independent power producers in 2008 for 247 megawatts of electricity, enough power for 87,000 homes, to be generated by late 2009. Only RMS Energy, which has installed 34 wind turbines west of New Glasgow, is producing electricity.

Nova Scotia Power spokesman David Rodenhiser said the utility will need 200 megawatts of green electricity by 2011 to meet the government’s target.

http://thechronicleherald.ca/Business/1161760.html

Turbines up, not all running

Testing will determine amount of power that can be generated in given winds
By MONICA GRAHAM
Mon. Jan 11 - 4:45 AM

The wind turbines atop Dalhousie Mountain began sending electricity to the power grid late last month, but not all the vanes will spin all the time throughout January.

Although they’ve been operating since Dec. 23, each of the 34 identical machines must undergo a turbine reliability test to demonstrate it can produce a given amount of power in a given wind, RMSenergy president Reuben Burge said Sunday.

The tests need certain wind speeds, so January’s variable weather has created challenges in trying to complete the process. But Mr. Burge expects the tests will be completed by the end of the month. The tests mean that some turbines will be shut down at various times.

"On and off, you’ll see them," Mr. Burge said during a cellphone interview as he headed toward the Pictou County site to continue the tests.

A breeze of 20 to 25 kilometres an hour is enough to produce electricity, but more wind doesn’t produce more electricity, he said.

"Once it gets to a certain point, it doesn’t matter how strong it is," he said, adding that the vanes are designed to let high winds slip past. If the wind is too high, the turbines operate roughly.

The RMSenergy wind farm, Nova Scotia’s largest, can produce a total of 51 megawatts of power when all the 1.5- megawatt turbines are running.

That’s enough electricity for 17,000 homes.

The electricity is sold to Nova Scotia Power through a long-term fixed-price purchase agreement, a method designed to stabilize energy costs.

The project has generated intense community interest, Mr. Burge said.

It created more than 100 summer and fall construction jobs and 10 full-time jobs to operate the wind farm. Local workers have filled most of the jobs.

Mr. Burge said he plans to operate the site for the next couple of years while assessing opportunities.

"If the market and the economics make sense and the wind blows as it’s supposed to, then I’d plan for another phase," he said.

http://thechronicleherald.ca/NovaScotia/1161618.html

Wind firm, NSP to split hookup bill

Halifax Chronicle Herald, Business section
Sat. Jan 9 - 4:46 AM

Nova Scotia Power and a wind developer in Amherst must split the $4.35-million bill to connect a proposed wind project to the power grid, the Nova Scotia Utility and Review Board ruled Friday.

The utility must hand over $2.18 million and Spanish conglomerate Acciona Energy will pay $2.35 million towards the connection costs of the 30-megawatt wind park in Cumberland County.

The board said this was a "reasonable approach" to resolve the dispute between NSP and Acciona’s representative Amherst Wind Power LP.

Acciona signed a power purchase agreement with the power company in May 2008. The wind project was supposed to be operating by Nov. 30, 2009, but it not in operation and its future is uncertain.

Acciona, which has headquarters in Chicago, did not return phone calls Friday.

http://thechronicleherald.ca/Business/1161283.html

~~~~~~~~~~

UARB decision can be found at: http://www.nsuarb.ca/images/stories/pdf/Decisions/10Jan/168931%20nspi%20and%20amherst%20wind%20power%20lp.pdf

A powerful loophole

NDP admits NSP’s extended deadline had no conditions
By JUDY MYRDENand DAVID JACKSONStaff Reporter
Fri. Jan 8 - 4:46 AM

The Dexter government failed to ensure wind power developers would get a break from Nova Scotia Power when it extended the power company’s renewable energy deadline, Energy Minister Bill Estabrooks admitted Thursday.

"It’s something we certainly probably should have included," Mr. Estabrooks said after the weekly cabinet meeting.

The minister was commenting on this week’s Chronicle Herald story that Bedford company Shear Wind Inc. had to forfeit a $500,000 security deposit to Nova Scotia Power Inc. for missing a Nov. 30 deadline for providing the utility with green electricity.

Renewable Energy Services of Lower Sackville also missed its Nov. 30 deadline, and its deposit was $550,000.

Company spokesman Jim Meredith told The Chronicle Herald this week that it’s not fair of Nova Scotia Power to take the money, considering the province gave the utility an extension on its agreement to buy electricity generated from renewable sources. Nova Scotia Power did not pass on that extension to its suppliers, Mr. Meredith said.

This fall, the province added a year to Nova Scotia Power’s deadline for obtaining five per cent of its electricity from renewable sources. The new deadline is Dec. 31, 2011.

Mr. Estabrooks said the province could have made a similar break for wind energy producers a condition of Nova Scotia Power’s extension.

"In light of the fact that there was . . . some slack which was delivered to NSP, I mean in return we would hope that there would be that sort of shared relationship with some of these other private contractors," the minister said.

He said he would raise the issue with Nova Scotia Power CEO Rob Bennett when they next met.

Mr. Estabrooks ended up speaking with Mr. Bennett late Thursday afternoon, a company spokesman said.

Mr. Bennett "explained the complex nature of these contracts and how each of the contracts is unique in its own right, and how we’re dealing with each of the producers in an equitable fashion," David Rodenhiser told The Chronicle Herald.

He said "our approach to working with the producers hasn’t changed."

Meanwhile, Premier Darrell Dexter said he’s not sure Nova Scotia Power’s decisions were exactly as reported, and there’s more to come on the situation. He wouldn’t elaborate.

The premier said he knows of one independent power producer who absorbed extra costs to make sure the deadline was met.

Nova Scotia Power signed six contracts with independent power producers in 2008 for 247 megawatts of electricity, enough power for 87,000 homes, to be generated by late 2009. Only RMS Energy, which has installed 34 wind turbines west of New Glasgow, is producing electricity.

With Michael Lightstone, staff reporter

http://thechronicleherald.ca/Business/1161178.html

$500,000 penalty 'not fair'

Wind firm misses NSP deadline, argues province gave utility its own extension
By JUDY MYRDEN Business Reporter
Thu. Jan 7 - 4:47 AM

A Nova Scotia wind developer doesn’t want to hand over $550,000 to Nova Scotia Power for not meeting its deadline to deliver green electricity.

"It’s a big issue," said Jim Meredith of Renewable Energy Services Ltd. "That’s a lot of money."

The private wind company, headquartered in Lower Sackville, signed a power purchase contract with NSP in February 2008 to provide the utility with 22 megawatts of wind-generated electricity by Nov. 30, 2009.

Under the contract, the company provided a security deposit for $550,000, or $25,000 per megawatt, to NSP in case the company didn’t meet the terms of the contract, he said.

"Contractually, we signed a contract saying that we’re supposed to be in operation by Nov. 30, 2009. We put a security deposit down based on that. From a pure contract, I would say we’re offside. From a fairness point of view, I would say it is not fair," said Mr. Meredith.

Mr. Meredith said the firm was hit hard by the financial crisis in 2008, which made borrowing money difficult for its proposed $55-million wind project at Statia Terminals in Cape Breton.

The company lobbied both the provincial government and NSP for an extension, he said.

He said the provincial government gave the power utility an extension in November to buy renewable energy from independent power producers because the financial meltdown has stalled many of the projects.

"The theory is NSP would pass it along to the people that bid," he said. "But they haven’t."

Mr. Meredith said the company plans on continuing to talk to the utility and hopes to have an answer in a month.

"I can’t say we have or haven’t forfeited (the money) because . . . it’s a decision that hasn’t been made by either party," he said.

The Chronicle Herald revealed on Wednesday that Shear Wind Inc., a Bedford renewable energy company, had to pay NSP $500,000 for not producing the promised green electricity on time from its proposed $160-million wind park near New Glasgow.

The company was unable to get the necessary financing.

Renewable Energy Services Ltd. and Shear Wind are two of the six groups that signed contracts in 2008 with NSP to sell wind-generated electricity, for delivery in late 2009.

NSP contracted for 247 megawatts of power, enough for 87,000 homes. The utility signed up with the independent power producers to meet the government’s target of 25 per cent of its electricity from green sources by 2015.

Of the six contracts, only RMS Energy, which has 34 wind turbines in the Cobequid Range, 25 kilometres west of New Glasgow, is producing electricity on schedule, according to NSP’s website.

NSP spokesman David Rodenhiser would not say which companies have forfeited their security deposit.

"Nova Scotia Power wants to see all of these projects move forward. We have worked closely with the developers of these projects, allowing flexibility where possible, to help move the projects forward and bring more renewable energy to the grid as soon as possible for the benefit of our customers," Mr. Rodenhiser wrote Wednesday.

There are 75 wind turbines across the province generating electricity for the utility, according to its website.

The other wind developments that signed long-term purchase power agreements with NSP have been delayed, purchased by other developers or remain uncertain.

Last April, NSP purchased developmental rights to a 22-turbine proposal for Nuttby Mountain from bankrupt EarthFirst Canada Inc. of Calgary. The $120-million wind farm, about 20 kilometres north of Truro, is expected to be operational this year.

http://thechronicleherald.ca/Business/1160946.html

Delay costs Shear Wind

Energy firm forfeits $500,000; wind farm behind schedule
By JUDY MYRDEN Business Reporter, Halifax Chronicle Herald

Shear Wind Inc., a renewable energy company, must pay $500,000 to Nova Scotia Power for not producing green electricity on time.

"It’s a contractual obligation. Obviously, we really would have liked some relief from it," Bill Bartlett, Shear Wind’s chief financial officer, said in an interview Tuesday.

The Bedford company reported the writedown in its year-end financial statements filed with securities regulators before Christmas.

Under the contract signed in April 2008, Shear Wind promised to deliver 20 megawatts of wind-generated energy to NSP by the end of November 2009.

Shear Wind, a publicly traded company formed in 2004, provided a $500,000 performance security deposit held by NSP in case the company didn’t deliver.

The company had to forfeit the cash Nov. 30, it reported in documents.

This is tough news for a company that has incurred significant losses over the last three years, including a $628,182 loss last year, according to company documents.

"Obviously, we don’t have a lot of comfort giving someone $500,000, but a contract is a contract," said Mr. Bartlett.

NSP spokesman David Rodenhiser would not comment about the Shear Wind contract or any other wind contracts for confidentiality reasons.

Shear Wind was delayed in starting its proposed $150-million wind turbine park near New Glasgow, called Glen Dhu, because of the collapse in the world credit markets in the 2008.

The company, like many others, was unable to borrow the money to finance the project.

Mr. Bartlett said the utility was sticking to the contract and Shear Wind was unsuccessful in trying to negotiate not paying the penalty.

Last month, Shear Wind had an infusion of cash with a Spanish billionaire investing $27 million in the company and giving the Nova Scotia project a kick start.

The company expects the project to start producing electricity later this year.

Mr. Bartlett said financial statements for the period ending Aug. 31 included the $500,000 loss since the company knew it was not going to meet its fall commitment.

Shear Wind was one of six companies that signed contracts in 2008 with NSP to sell wind-generated electricity for delivery in late 2009.

NSP contracted for 247 megawatts of power, enough electricity for 87,000 homes.

The wind developments have been critical to moving Nova Scotia beyond its heavy reliance on dirty coal-fired electrical generation. The wind contracts are key for the utility to meet the government’s renewable energy targets of producing 25 per cent of electricity from green sources such as wind by 2015.

Of the six contracts, only RMS Energy, which has installed 34 wind turbines in the Cobequid Range 25 kilometres west of New Glasgow, is producing electricity to the power grid on schedule, according to NSP’s website.

Mr. Rodenhiser said RMS Energy has been producing electricity for over a month for the utility.

Currently, NSP has 75 wind turbines generating electricity for the privately owned utility across the province, he said.

The other wind developments that signed long-term purchase power agreements with NSP have either been delayed, purchased by other developers or remain uncertain.

In April 2009, NSP purchased the developmental rights of the proposed Nuttby Mountain 22-turbine wind farm from bankrupt EarthFirst Canada Inc. of Calgary. The $120-million wind farm, located about 20 kilometres north of Truro, is expected to be in operation later this year.

Last month, NSP parent company Emera Inc. took a stake in another financially troubled wind farm in Digby. Emera made an undisclosed offer to purchase a 50 per cent interest in the project held by troubled SkyPower Inc. of Toronto, which had partnered with Scotian WindFields.

Renewable Energy Services Ltd. proposed to build an 11-wind turbine farm at Statia Terminals in Point Tupper with a capacity of 24 megawatts, enough to produce electricity for 6,000 homes.

Company officials were unavailable for comment. NSP does not have the project listed on its website as operational.

Acciona Energy of Spain, with offices in Chicago, proposed to build a 20-turbine wind farm on the marsh outside Amherst.

NSP reported earlier this year to government regulators that it had been delayed.

http://thechronicleherald.ca/Business/1160834.html