Thursday, August 30, 2012

Nova Scotia selects three wind power projects totalling 115.8 MW in RFP process: $200 million CAD private sector investment expected

The projects, in Lunenburg and Guysborough counties in the Eastern Canadian coastal province of Nova Scotia include:

- 78 MW South Canoe Wind Project between Chester and Windsor, led by Oxford Frozen Foods;
- 24 MW South Canoe Wind Project in Lunenburg County, led by Minas Basin Pulp and Power; and
- 13.8 MW Sable Wind Project near Canso, led by the Municipality of the District of Guysborough.

According to the province government, the selected projects represented the most cost-effective offers. The average purchase price was in the mid-$70s per megawatt hour, lower than those in the 2007 call for bids in Nova Scotia. Nova Scotia Power is a minority investor in each of the projects.

Collectively, these projects are expected to bring total wind energy close to the 500 megawatt wind threshold by 2015. This is near the technical limit of the amount that can be integrated into the province's electricity grid, according to the 2008 Nova Scotia Wind Integration Study by Hatch Energy. Consequently, the province does not expect to issue more request for proposals for large-scale wind projects in the near future.

The Renewable Electricity Administrator (REA) was appointed by the province to call for bids, evaluate bid submissions and select winning projects based on which projects provide the best value for ratepayers.

The process also completes an objective of the province's renewable electricity plan to determine if the utility or Independent Power Producers could build the lowest-cost renewables for the province. The competition indicates a partnership model produces the best results.

Sources: CANWea, Government of Nova Scotia

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