Nova Scotia Power can invest $27.8 million in a wind farm in the Strait area, government regulators ruled Monday.
The Nova Scotia Utility and Review Board gave approval to the utility’s plan to take a 49 per cent stake in the Point Tupper wind farm, which is majority-owned by Renewable Energy Services Ltd. of Lower Sackville.
"It’s really about Nova Scotia Power wanting to change its fuel mix for its customer’s desires and the government’s desires," Robin McAdam, a Nova Scotia Power vice-president, said Monday.
This is the third wind project Nova Scotia Power has invested in to ensure it meets new renewable energy targets set out by the provincial government, he said. It’s also invested in the $120-million Nuttby Mountain project, located about 20 kilometres north of Truro, and a wind farm in Digby. Both will be operational later this year.
The board did attach some conditions to its decision Monday.
While there was no opposition to the approval of the Point Tupper wind project, there were several interveners who raised issues, the board noted.11
The board has ordered revenues from the wind turbine project should be included in the fuel adjustment mechanism to "provide a clear picture of the expenses and cost."
Any further investments in Renewable Energy Services or any changes to the power purchase agreement with the renewable energy company will require prior board approval, the regulator stated.
The board also wants Nova Scotia Power to file a list by July 15 of projects and purchases of renewable energy from others through which the utility proposes to meet provincial renewable energy goals in 2013, 2015 and 2020.
McAdam said the utility plans to purchase wind power from smaller independent developers and is seeking regulatory approval for a biomass project with paper giant NewPage Port Hawkesbury Ltd. That hearing is scheduled to go before the board July 26 in Halifax.
The Point Tupper wind farm ran into financial difficulties in 2008 and the project stalled.
The $55-million project will produce 22 megawatts of electricity from 11 turbines, enough power for 7,500 homes. The wind farm is scheduled to be fully operational by July.
Last week three of the turbines purchased by Renewable Energy Services started producing power, McAdam said.
The project was originally to have been in service and providing electricity to Nova Scotia Power by the end of 2009.
Renewable Energy Services will manage, operate and maintain the facility over the next 20 years, according to an agreement signed between the two companies.
The provincial government ordered Nova Scotia Power to have five per cent of its total electricity purchases generated by independent power producers from renewable energy sources by the end of 2011. The legislation was supposed to encourage competition in the marketplace and allow independent power producers to gain a toehold in the province.
Renewable Energy Services owns and operates turbines across Nova Scotia in Brookfield, Goodwood, Digby, Marshville and Richmond County and has two wind farms under development in Alberta.
No comments:
Post a Comment