The Chilean Committee on Geothermal Energy Analysis has recommended that Chile’s Energy Ministry award five geothermal energy exploration concessions to Ormat Technologies, Inc. Ormat will own the licenses through its Chilean subsidiary, Ormat Andina SA.
The Geothermal Committee recommended awarding Ormat Andina SA all five of the concessions it bid for, as part of a tender for 20 new areas of geothermal energy exploration. The concessions are called "Aroma", "Quinohuen", "Marimar" "San Jose II", and "Sollipulli." Ormat is required to invest in an exploration program at the concessions over the next two years. Successful exploration results will be followed by an exploitation license, which is the first step for power plant construction.
Studies indicate Chile has a large untapped geothermal energy potential and is expected to lead geothermal development in the region.
These concessions add to Ormat's diverse portfolio of interests and developments in Latin America and worldwide, which include activities as owner and operator of power plants in Nicaragua, Guatemala, Kenya and the US.
Monday, October 31, 2011
Tuesday, October 25, 2011
NDP stand by goal of 400 MW in 4 years and 50% from renewables by 2025 - Saskatchewan Party remain firmly committed to investing in wind
If recent comments by both parties in the ongoing provincial election campaign in Saskatchewan are any indication, wind power seems to have a very promising future in the province. Both the governing Saskatchewan Party and opposition NDP continue to state a clear commitment to wind energy development in the province but differ in their position on targets, standards, costs and technical challenges.
What the NDP are saying about their support for wind energy
As part of the ongoing election campaign, the provincial opposition NDP party leader, Dwain Lingenfelter noted that the NDP’s previously stated goal of adding 400 MW of new wind power over the next four years is as affordable as the province's other options and also easier on the environment. The new 400 MW of wind power would put the province well on the way toward having 50% of all generation in the province of Saskatchewan coming from renewable sources by 2025, which a NDP government would mandate, Lingenfelter said. "We're going to be building 400 MW in that (four year) period at any rate, and the question is what are you going to use for your source of power. What we're saying is rather than more coal or more natural gas, more fossil fuels, the next 400 MW of power will come into the grid through wind after we form government," Lingenfelter told reporters. When asked about the cost, Lingenfelter insisted the "numbers are within the budget of SaskPower." "It would be the same cost impact as the plan in place now which is mainly to do more retrofitting in coal, to get more from that area, or more natural gas," Lingenfelter said. The costs of wind and natural gas production are "very comparable over the life of the project," Lingenfelter said. Lingenfelter said the NDP, if re-elected, would look to get up to 20% of its power from wind. To achieve 50% from renewable sources, the province would boost its hydro complement and look at solar and geothermal as well as efficiency measures, he added. There are 171 MW of wind generation in Saskatchewan that was implemented under the previous NDP government. It is unclear what type of procurement process the NDP would implement and what the role of independent power producers would be.
What the Saskatchewan Party are saying about their support for wind energy
Premier Brad Wall of the governing Saskatchewan Party accused the NDP of failing to account for the above promise in its campaign platform and being mistaken on their assessment of costs. "Our cost on that, SaskPower's cost on that, is about a billion dollars. It's got to come from somewhere. It's either going to come from people's power bills - they're going to be paying more - or it comes from the budget," Wall said. "It's not accurate to say that adding the wind power would be the same as other power plans," he added. "There is an additional premium that comes with wind operationally because you need backup for when the wind's not blowing and to some extent from a capital standpoint. " Wall said. "We want to be environmentally sustainable. We're also investing in wind. But again, it has to be reasonable and affordable for Saskatchewan families." Under the Saskatchewan Party, SaskPower is currently in the process of purchasing up to 175 MW from one or more independent power producers selected through a competitive RFP process and a further 25 MW of wind power from developers with smaller-scale projects on an annual basis. The Saskatchewan Party Policy Resolutions publicly available online have set the goal of making the province of Saskatchewan “the energy heart of North America” by 2020 by assessing the potential for further development of power generation from wind, clean coal, natural gas, nuclear, biomass, coal bed methane, ethanol, solar, oil sands, co-generation, hydrogen fuel cell technology and any other power source that may be viable in Saskatchewan for provincial consumption and/or export.
This is the kind of debate I like – a debate about targets, standards, costs and technical challenges associated with renewable energy development. The question is not whether we will develop our renewable energy resources in Saskatchewan, but rather what the most appropriate way to do that is. Both the Saskatchewan Party and the NDP clearly support development of our vast renewable energy resources in Saskatchewan. From my perspective, I am optimistic that renewable energy in Saskatchewan has a promising long-term future under either a Saskatchewan Party or NDP government.
Source: (in part) The StarPhoenix, October 25, 2011 edition
What the NDP are saying about their support for wind energy
As part of the ongoing election campaign, the provincial opposition NDP party leader, Dwain Lingenfelter noted that the NDP’s previously stated goal of adding 400 MW of new wind power over the next four years is as affordable as the province's other options and also easier on the environment. The new 400 MW of wind power would put the province well on the way toward having 50% of all generation in the province of Saskatchewan coming from renewable sources by 2025, which a NDP government would mandate, Lingenfelter said. "We're going to be building 400 MW in that (four year) period at any rate, and the question is what are you going to use for your source of power. What we're saying is rather than more coal or more natural gas, more fossil fuels, the next 400 MW of power will come into the grid through wind after we form government," Lingenfelter told reporters. When asked about the cost, Lingenfelter insisted the "numbers are within the budget of SaskPower." "It would be the same cost impact as the plan in place now which is mainly to do more retrofitting in coal, to get more from that area, or more natural gas," Lingenfelter said. The costs of wind and natural gas production are "very comparable over the life of the project," Lingenfelter said. Lingenfelter said the NDP, if re-elected, would look to get up to 20% of its power from wind. To achieve 50% from renewable sources, the province would boost its hydro complement and look at solar and geothermal as well as efficiency measures, he added. There are 171 MW of wind generation in Saskatchewan that was implemented under the previous NDP government. It is unclear what type of procurement process the NDP would implement and what the role of independent power producers would be.
What the Saskatchewan Party are saying about their support for wind energy
Premier Brad Wall of the governing Saskatchewan Party accused the NDP of failing to account for the above promise in its campaign platform and being mistaken on their assessment of costs. "Our cost on that, SaskPower's cost on that, is about a billion dollars. It's got to come from somewhere. It's either going to come from people's power bills - they're going to be paying more - or it comes from the budget," Wall said. "It's not accurate to say that adding the wind power would be the same as other power plans," he added. "There is an additional premium that comes with wind operationally because you need backup for when the wind's not blowing and to some extent from a capital standpoint. " Wall said. "We want to be environmentally sustainable. We're also investing in wind. But again, it has to be reasonable and affordable for Saskatchewan families." Under the Saskatchewan Party, SaskPower is currently in the process of purchasing up to 175 MW from one or more independent power producers selected through a competitive RFP process and a further 25 MW of wind power from developers with smaller-scale projects on an annual basis. The Saskatchewan Party Policy Resolutions publicly available online have set the goal of making the province of Saskatchewan “the energy heart of North America” by 2020 by assessing the potential for further development of power generation from wind, clean coal, natural gas, nuclear, biomass, coal bed methane, ethanol, solar, oil sands, co-generation, hydrogen fuel cell technology and any other power source that may be viable in Saskatchewan for provincial consumption and/or export.
This is the kind of debate I like – a debate about targets, standards, costs and technical challenges associated with renewable energy development. The question is not whether we will develop our renewable energy resources in Saskatchewan, but rather what the most appropriate way to do that is. Both the Saskatchewan Party and the NDP clearly support development of our vast renewable energy resources in Saskatchewan. From my perspective, I am optimistic that renewable energy in Saskatchewan has a promising long-term future under either a Saskatchewan Party or NDP government.
Source: (in part) The StarPhoenix, October 25, 2011 edition
Monday, October 24, 2011
Expression of Interest (EOI) for Development of a Wind Generation Facility: City of Saskatoon issues EOI for innovative utility-scale wind facility
The utility-scale wind energy generation facility will be located at the Green Energy Park in Saskatoon, Saskatchewan, Canada. The EOI was published in the October 22, 2011 edition of the Saskatoon StarPhoenix on page D3.
The EOI follows below:
The City of Saskatoon is seeking expressions of interest (EOI) from parties in respect of the above referenced project.
Scope of Work: The City of Saskatoon will be seeking proposals from wind energy developers interested in developing a wind energy generation facility at the Saskatoon Waste Management Centre (Saskatoon Landfill). The facility will consist of a single tower and turbine which should not exceed 2 megawatts (MW) in nameplate capacity. The commercial operation date (COD) for the project is March 31, 2013.
Interested developers should submit a statement to the undersigned containing the following details:
- Respondent’s mailing address and head office location;
- Name and contact information of the respondent’s primary contact person;
- Brief summary of respondent’s background, relevant experience and ability to undertake and complete such project.
EOI’s will be received up to 2:00 p.m. C.S.T., Monday October 31, 2011.
This project is partially funded by the Governments of Canada and Saskatchewan through the Canada-Saskatchewan Provincial-Territorial Base Funding.
Responses shall be mailed or delivered to:
City of Saskatoon
Purchasing Services
222 Cardinal Crescent
Saskatoon, Saskatchewan, Canada
S7L 6H8
Telephone: + 1 306 975 2600
Facsimile: +1 306 975 2612
The EOI follows below:
The City of Saskatoon is seeking expressions of interest (EOI) from parties in respect of the above referenced project.
Scope of Work: The City of Saskatoon will be seeking proposals from wind energy developers interested in developing a wind energy generation facility at the Saskatoon Waste Management Centre (Saskatoon Landfill). The facility will consist of a single tower and turbine which should not exceed 2 megawatts (MW) in nameplate capacity. The commercial operation date (COD) for the project is March 31, 2013.
Interested developers should submit a statement to the undersigned containing the following details:
- Respondent’s mailing address and head office location;
- Name and contact information of the respondent’s primary contact person;
- Brief summary of respondent’s background, relevant experience and ability to undertake and complete such project.
EOI’s will be received up to 2:00 p.m. C.S.T., Monday October 31, 2011.
This project is partially funded by the Governments of Canada and Saskatchewan through the Canada-Saskatchewan Provincial-Territorial Base Funding.
Responses shall be mailed or delivered to:
City of Saskatoon
Purchasing Services
222 Cardinal Crescent
Saskatoon, Saskatchewan, Canada
S7L 6H8
Telephone: + 1 306 975 2600
Facsimile: +1 306 975 2612
Thursday, October 20, 2011
Energy in Alberta: Premier Redford shifts focus of Alberta from conventional hydrocarbons to renewables - time for Saskatchewan to follow?
On October 1, 2011 Alison Redford was elected by her Progressive Conservative (PC) party as the premier of Alberta. As part of the energy strategy Redford proposed during the PC leadership race, Redford stated that she envisions Alberta “as a global leader in sustainable hydrocarbon production and the global leader in renewable energy production.” Premier Redford also stated in her energy strategy that the proposed shift from the conventional hydrocarbon sector to renewable energy will leverage revenues generated from conventional sources “to ensure that Alberta remains a leader when the shift to renewables occurs on a large scale.” The Alberta energy strategy does not suggest (or rule out) subsidies, standard offer programs, subsidized tariff rates or feed-in-tariffs for renewable energy generation.
Premier Redford has also committed to establishing an authority to direct government involvement in renewable energy, operating in partnership with the academic and private sectors, promoting education and research initiatives and updating the Alberta Electric System Operator’s terms of reference to facilitate connection of renewables to the grid.
With British Columbia already a significant and long-standing supporter of renewable energy development and Alberta seemingly following suit, if Saskatchewan adopts a similar position on renewable energy we would have a consensus from all major hydrocarbon producing jurisdictions in Western Canada. A clear position on renewable energy is a critical pillar in a Canadian energy strategy and full credit must go to Alberta for taking the lead in the absence of Federal direction.
Premier Redford has also committed to establishing an authority to direct government involvement in renewable energy, operating in partnership with the academic and private sectors, promoting education and research initiatives and updating the Alberta Electric System Operator’s terms of reference to facilitate connection of renewables to the grid.
With British Columbia already a significant and long-standing supporter of renewable energy development and Alberta seemingly following suit, if Saskatchewan adopts a similar position on renewable energy we would have a consensus from all major hydrocarbon producing jurisdictions in Western Canada. A clear position on renewable energy is a critical pillar in a Canadian energy strategy and full credit must go to Alberta for taking the lead in the absence of Federal direction.
Wednesday, October 19, 2011
Mining giant Rio Tinto takes on Saskatoon-based Cameco and makes a bid for uranium junior Hathor
Global mining powerhouse Rio Tinto PLC has just announced a friendly $578 million CAD bid for junior uranium company Hathor Exploration Ltd. staging a battle against Saskatoon-based uranium giant Cameco for a promising uranium property in Saskatchewan adjacent to Cameco's existing mine.
London-based Rio, the world’s second-largest mining company, said Wednesday it is offering $4.15 per share for Hathor, a 55 per cent premium to the company’s closing price on Aug. 25, the day before Cameco made a hostile bid for $3.75 per share. It’s also the first bid for a Canadian company Rio has made since it bought Montreal-based Alcan in 2007.
Hathor shares, which had been trading above Cameco’s offer price since the bid was made, jumped more than 10 per cent on Wednesday to a high of $4.47, suggesting investors expect Cameco may come in with a higher offer.
Hathor has urged its shareholders to reject the offer from Cameco, calling it “predatory” and opportunistic given depressed uranium prices in the wake of Japan’s nuclear disaster earlier this year. Spot uranium prices have fallen about 25 per cent to around $53 (U.S.) per pound, followed by a drop in equities in the sector, since Japan's earthquake and ensuing nuclear crisis struck in mid-March.
Vancouver-based Hathor, whose flagship asset is the Roughrider deposit in northern Saskatchewan, said its board unanimously recommends the Rio offer instead.
“The strategic context of the Rio Tinto offer underscores the ‘best of breed’ global stature of the Roughrider uranium deposit relative to its peers of undeveloped uranium deposits around the world,” Hathor chief executive officer Mike Gunning said in a statement Wednesday. “The superior Rio Tinto offer provides fair value to Hathor shareholders over Cameco’s current hostile, unsolicited takeover offer.”
“The acquisition of Hathor provides a quality opportunity to expand the Rio Tinto presence in the Athabasca Basin which currently provides approximately 20 per cent of global uranium production,” Rio stated.
“The medium and long-term outlook for the uranium market is positive, with uranium assuming a significant role in the world’s primary energy needs,” Rio Tinto Energy chief executive Doug Ritchie stated.
Rio also said last month that it would form a joint-venture with North Atlantic Potash Inc., the Canadian subsidiary of Russia's JSC Acron, to explore for the fertilizer ingredient in nine areas of Saskatchewan.
Source: (in part) Globe & Mail
London-based Rio, the world’s second-largest mining company, said Wednesday it is offering $4.15 per share for Hathor, a 55 per cent premium to the company’s closing price on Aug. 25, the day before Cameco made a hostile bid for $3.75 per share. It’s also the first bid for a Canadian company Rio has made since it bought Montreal-based Alcan in 2007.
Hathor shares, which had been trading above Cameco’s offer price since the bid was made, jumped more than 10 per cent on Wednesday to a high of $4.47, suggesting investors expect Cameco may come in with a higher offer.
Hathor has urged its shareholders to reject the offer from Cameco, calling it “predatory” and opportunistic given depressed uranium prices in the wake of Japan’s nuclear disaster earlier this year. Spot uranium prices have fallen about 25 per cent to around $53 (U.S.) per pound, followed by a drop in equities in the sector, since Japan's earthquake and ensuing nuclear crisis struck in mid-March.
Vancouver-based Hathor, whose flagship asset is the Roughrider deposit in northern Saskatchewan, said its board unanimously recommends the Rio offer instead.
“The strategic context of the Rio Tinto offer underscores the ‘best of breed’ global stature of the Roughrider uranium deposit relative to its peers of undeveloped uranium deposits around the world,” Hathor chief executive officer Mike Gunning said in a statement Wednesday. “The superior Rio Tinto offer provides fair value to Hathor shareholders over Cameco’s current hostile, unsolicited takeover offer.”
“The acquisition of Hathor provides a quality opportunity to expand the Rio Tinto presence in the Athabasca Basin which currently provides approximately 20 per cent of global uranium production,” Rio stated.
“The medium and long-term outlook for the uranium market is positive, with uranium assuming a significant role in the world’s primary energy needs,” Rio Tinto Energy chief executive Doug Ritchie stated.
Rio also said last month that it would form a joint-venture with North Atlantic Potash Inc., the Canadian subsidiary of Russia's JSC Acron, to explore for the fertilizer ingredient in nine areas of Saskatchewan.
Source: (in part) Globe & Mail
Tuesday, October 18, 2011
CanWEA announces wind energy award winners at Annual Conference
At its gala Awards Banquet in Vancouver, British Columbia, the Canadian Wind Energy Association (CanWEA) recognized organizations and individuals who have worked tirelessly to advance the Canadian wind energy industry towards a record year of growth in 2011. The following awards were presented:
Individual Leadership Award - First awarded in 2003, to the individual who has, through their own efforts, significantly advanced the wind energy industry in Canada. Award winner: Richard Legault (President of Windev Corporation) for his dedication to the industry through his unsurpassed experience in assessing the certainty of energy yields from wind for projects in the Canadian context.
Group Leadership Award - First awarded in 2001, this award recognizes the government, corporation or non-profit organization that has contributed significantly to the advancement of wind energy in Canada. Award winner: Peace Energy Cooperative and its Directors for their ability to recognize the tremendous opportunities that exist for British Columbians in renewable energy sources.
R.J. Templin Award - First awarded in 1985, in recognition of any individual or organization who has undertaken scientific, technical, engineering or policy work that has significantly advanced the wind energy industry in Canada. Award winner: Wind Energy Institute of Canada (WEICAN), for advances made in the development of wind energy across Canada through research, testing, training, and collaboration - recipient Mr. Scott Harper.
Friend of Wind Award – Awarded in recognition of outstanding contributions made by individuals or groups in advancing awareness of the benefits of wind energy at the community level. Award winner: Jutta Splettstoesser, Kincardine farmer, mother, and tireless supporter of wind energy in Ontario communities through Friends of Wind Ontario.
Congratulations!
Individual Leadership Award - First awarded in 2003, to the individual who has, through their own efforts, significantly advanced the wind energy industry in Canada. Award winner: Richard Legault (President of Windev Corporation) for his dedication to the industry through his unsurpassed experience in assessing the certainty of energy yields from wind for projects in the Canadian context.
Group Leadership Award - First awarded in 2001, this award recognizes the government, corporation or non-profit organization that has contributed significantly to the advancement of wind energy in Canada. Award winner: Peace Energy Cooperative and its Directors for their ability to recognize the tremendous opportunities that exist for British Columbians in renewable energy sources.
R.J. Templin Award - First awarded in 1985, in recognition of any individual or organization who has undertaken scientific, technical, engineering or policy work that has significantly advanced the wind energy industry in Canada. Award winner: Wind Energy Institute of Canada (WEICAN), for advances made in the development of wind energy across Canada through research, testing, training, and collaboration - recipient Mr. Scott Harper.
Friend of Wind Award – Awarded in recognition of outstanding contributions made by individuals or groups in advancing awareness of the benefits of wind energy at the community level. Award winner: Jutta Splettstoesser, Kincardine farmer, mother, and tireless supporter of wind energy in Ontario communities through Friends of Wind Ontario.
Congratulations!
Monday, October 17, 2011
SunEdison raises $300 million USD for North American solar PV projects
To support the construction costs of utility and rooftop solar PV projects throughout the United States and Canada, SunEdison, the solar energy subsidiary of MEMC Electronic Materials, Inc., has arranged for a three-year, $300 million USD revolving credit facility with Deutsche Bank Securities, Inc. and Rabobank. SunEdison described the arrangement as one of the largest non-recourse project financing revolving credit facilities ever issued for solar PV projects. Currently, SunEdison has more than 500 solar PV energy systems deployed throughout the United States and Canada and 330 MW of installed solar PV capacity. The company said that it is continuing to look for additional banking partners to finance its pipeline of projects.
Wednesday, October 12, 2011
Saskatoon City Council approves innovative wind turbine project at the landfill
City of Saskatoon Councillors approved a city administration request to seek proposals for the design and construction of an 80 metre tall wind turbine at the landfill. Three councillors - Pat Lorje, Darren Hill and Tiffany Paulsen - voted against the proposal.
With the approval, the city administration will issue a request for proposals (RFP) for the $5 million CAD project. The city plans to have the turbine running by January 2013.
Saskatoon Light and Power has been studying the project's feasibility - including wind and foundation stability tests - since 2006. The wind turbine concept used by the city would have a capacity of 2 MW, which would power about 500 homes. The annual 3,000 tonne reduction in greenhouse gas emissions is the equivalent of removing 600 vehicles from Saskatoon streets.
The project will be sited on an existing landfill thereby reclaiming otherwise unusable land.
With the approval, the city administration will issue a request for proposals (RFP) for the $5 million CAD project. The city plans to have the turbine running by January 2013.
Saskatoon Light and Power has been studying the project's feasibility - including wind and foundation stability tests - since 2006. The wind turbine concept used by the city would have a capacity of 2 MW, which would power about 500 homes. The annual 3,000 tonne reduction in greenhouse gas emissions is the equivalent of removing 600 vehicles from Saskatoon streets.
The project will be sited on an existing landfill thereby reclaiming otherwise unusable land.
Thursday, September 29, 2011
Trillium Power sues Ontario for $2.25 billion CAD over future lost profit for development of offshore wind farms in the Great Lakes
Trillium Power Wind Corp. (“Trillium”), which had planned to build a series of offshore wind farms in Lake Ontario is suing the Ontario provincial government for $2.25 billion CAD for alleged damages suffered as a result of Ontario cancelling all offshore wind projects in the Great Lakes earlier this year.
Trillium’s Statement of Claim was filed yesterday in Ontario Superior Court and alleges that the decision to cancel offshore wind projects was made for purely political reasons in order to appease wind-power critics. Of course this is merely a Statement of Claim and none of the allegations have been proven in court.
It is alleged that Trillium spent millions of dollars over many years planning its offshore projects, and had dutifully followed the government’s application processes, but was taken completely by surprise when Ontario said it would not consider any offshore development in the Great Lakes until more scientific studies were done.
Unlike other onshore wind projects in Ontario Trillium did not have a FIT contract (or as I understand, any contract) with the government of Ontario for any of its offshore wind projects.
In the lawsuit, Trillium alleges that the province’s decision constituted “a confiscation of property rights, without warning or substantive justification” and that as a result, Trillium had to “effectively cease its corporate operation and organization, to lay off staff and to cancel contracts with advisers.”
The Statement of Claim indicates that the majority of damages claimed are for future loss of profits, as Trillium had only spent about $5.3 million CAD in planning for its first wind farm.
Canada has 202, 080 km of coastline – by far the greatest amount of coastline in the world - Greenland has 44,087 km and Russia has 37,653 km. Canada has a wealth of prime locations for offshore wind farm projects in British Columbia, Prince Edward Island, Newfoundland, Nova Scotia and other parts of Canada. From the outset of this project I questioned the wisdom of building an offshore wind farm in an inland freshwater lake in the most densely populated part of Canada - other than the fact that an offshore wind farm in Lake Ontario would have afforded a great view from Trillium’s head office in downtown Toronto.
Trillium’s Statement of Claim was filed yesterday in Ontario Superior Court and alleges that the decision to cancel offshore wind projects was made for purely political reasons in order to appease wind-power critics. Of course this is merely a Statement of Claim and none of the allegations have been proven in court.
It is alleged that Trillium spent millions of dollars over many years planning its offshore projects, and had dutifully followed the government’s application processes, but was taken completely by surprise when Ontario said it would not consider any offshore development in the Great Lakes until more scientific studies were done.
Unlike other onshore wind projects in Ontario Trillium did not have a FIT contract (or as I understand, any contract) with the government of Ontario for any of its offshore wind projects.
In the lawsuit, Trillium alleges that the province’s decision constituted “a confiscation of property rights, without warning or substantive justification” and that as a result, Trillium had to “effectively cease its corporate operation and organization, to lay off staff and to cancel contracts with advisers.”
The Statement of Claim indicates that the majority of damages claimed are for future loss of profits, as Trillium had only spent about $5.3 million CAD in planning for its first wind farm.
Canada has 202, 080 km of coastline – by far the greatest amount of coastline in the world - Greenland has 44,087 km and Russia has 37,653 km. Canada has a wealth of prime locations for offshore wind farm projects in British Columbia, Prince Edward Island, Newfoundland, Nova Scotia and other parts of Canada. From the outset of this project I questioned the wisdom of building an offshore wind farm in an inland freshwater lake in the most densely populated part of Canada - other than the fact that an offshore wind farm in Lake Ontario would have afforded a great view from Trillium’s head office in downtown Toronto.
Wednesday, September 28, 2011
SaskPower to invest $550 million CAD to upgrade Saskatoon power station with natural gas and waste-heat conversion
The project, at the Queen Elizabeth Power Station in Saskatoon, the largest city in the province of Saskatchewan, Canada, will involve the construction of three 35 MW natural gas turbines, six steam generators and a steam turbine designed to produce 95 MW of power. The project will provide an additional 200 MW of cleaner energy to the provincial grid by 2015.
“These natural gas generating units will emit half the carbon dioxide of coal-fired generators, as well as less sulphur dioxide, nitrogen oxide and mercury,” said Robert Watson, SaskPower President and Chief Executive Officer. “Emissions will be reduced even further because the operation will utilize waste heat to generate electricity rather than venting it to the atmosphere.”
SaskPower has stated that the private sector will play a major role in the design, construction and commissioning of the project. Those developers and suppliers involved in natural gas and waste heat generation will want to take note, as it is anticipated that SaskPower will issue a request for proposals (RFP) in the near future.
“These natural gas generating units will emit half the carbon dioxide of coal-fired generators, as well as less sulphur dioxide, nitrogen oxide and mercury,” said Robert Watson, SaskPower President and Chief Executive Officer. “Emissions will be reduced even further because the operation will utilize waste heat to generate electricity rather than venting it to the atmosphere.”
SaskPower has stated that the private sector will play a major role in the design, construction and commissioning of the project. Those developers and suppliers involved in natural gas and waste heat generation will want to take note, as it is anticipated that SaskPower will issue a request for proposals (RFP) in the near future.
Tuesday, September 27, 2011
Raising finance through carbon credits
Earlier this week international law firm, Shearman & Sterling LLP announced they had advised East Asia Power (Xiamen) Company Ltd., a subsidiary of Pacific Oil and Gas, on the sale of certified emission reductions to be generated under the UN Kyoto Protocol’s Clean Development Mechanism regime. Switzerland-based Mercuria Energy Trading SA is purchasing the credits from East Asia Power (Xiamen) Company Ltd. for an undisclosed amount. East Asia Power (Xiamen) Company Ltd. intends to generate the carbon reduction credits over a seven-year period at its less carbon-intensive Fujian Xiamen Dongbu natural gas-fired plant. Emission reduction credits certified under the Kyoto Protocol’s Clean Development Mechanism regime are freely tradable and may be used to satisfy emission reduction targets under the Protocol itself and in the European Union Emissions Trading System under certain circumstances.
It is believed that East Asia Power (Xiamen) Company Ltd. used a portion of the funds to finance the construction of the natural gas-fired plant. Such arrangements can be comparable to a joint venture in many ways and in my view, are a fairly good method of raising finance for smaller projects. I expect that other renewable energy developers will be selling their certified emission reductions in order to secure funding for their projects.
Given the delays with Saskatchewan’s carbon credit legislation, and the huge number of offsets generated by farmers from zero-till agriculture in Saskatchewan, I would have assumed that some enterprising developer, aggregator or emissions trader would have already capitalized on the idea of using the Kyoto Protocol’s Clean Development Mechanism to generate credits in Saskatchewan for sale to European energy traders such as Mercuria.
It is believed that East Asia Power (Xiamen) Company Ltd. used a portion of the funds to finance the construction of the natural gas-fired plant. Such arrangements can be comparable to a joint venture in many ways and in my view, are a fairly good method of raising finance for smaller projects. I expect that other renewable energy developers will be selling their certified emission reductions in order to secure funding for their projects.
Given the delays with Saskatchewan’s carbon credit legislation, and the huge number of offsets generated by farmers from zero-till agriculture in Saskatchewan, I would have assumed that some enterprising developer, aggregator or emissions trader would have already capitalized on the idea of using the Kyoto Protocol’s Clean Development Mechanism to generate credits in Saskatchewan for sale to European energy traders such as Mercuria.
Monday, September 26, 2011
BC Hydro’s future energy procurement practices for projects in British Columbia
In September of 2010, BC Hydro retained Merrimack Energy Group Inc. to conduct an independent review of its energy procurement practices. BC Hydro is in the process of adopting the majority of the recommendations. Both the report and BC Hydro’s response to the recommendations are available for viewing on BC Hydro’s website at http://www.bchydro.com/planning_regulatory/acquiring_power/how_power_is_acquired.html.
Merrimack is recommending the following:
1. Link the Integrated Resource Planning (IRP) process and procurement activities, (i.e. the timing and level of need for new resources should be determined through the IRP process)
2. Make the energy procurement process more transparent for all stakeholders and First Nations
3. Implement smaller but more frequent energy procurements in the future which are linked to the IRP
4. Continue to follow the recent trend in BC Hydro’s procurements, combining or mixing procurement vehicles to match the type of overall solicitation being implemented
5. For larger procurement processes, utilize a multi-stage evaluation process
6. Develop standards for evaluating and negotiating bilateral contracts and make the standards transparent to stakeholders.
7. Consider creating an Advisory Group comprised of nonsupplier stakeholders and First Nations to advise BC Hydro on procurement activities.
8. Complete financial analysis, in collaboration with stakeholders and First Nations, to assess if more flexible contract provisions, which shift less risk to the supplier
9. In the process of integrating BC Hydro and BCTC, assess how other utilities are addressing these issues
BC Hydro has expressed agreement with the above recommendations, except #7.
BC Hydro is a crown corporation with operates 30 hydroelectric facilities and three natural gas-fueled thermal power plants and generates between 43,000 and 54,000 gigawatt hours (GWh) of electricity annually, depending on prevailing water levels. BC Hydro’s energy policies are laid out in the 2007 BC Energy Plan. Several elements and targets included in that plan were updated in the Clean Energy Act of 2010.
Merrimack is recommending the following:
1. Link the Integrated Resource Planning (IRP) process and procurement activities, (i.e. the timing and level of need for new resources should be determined through the IRP process)
2. Make the energy procurement process more transparent for all stakeholders and First Nations
3. Implement smaller but more frequent energy procurements in the future which are linked to the IRP
4. Continue to follow the recent trend in BC Hydro’s procurements, combining or mixing procurement vehicles to match the type of overall solicitation being implemented
5. For larger procurement processes, utilize a multi-stage evaluation process
6. Develop standards for evaluating and negotiating bilateral contracts and make the standards transparent to stakeholders.
7. Consider creating an Advisory Group comprised of nonsupplier stakeholders and First Nations to advise BC Hydro on procurement activities.
8. Complete financial analysis, in collaboration with stakeholders and First Nations, to assess if more flexible contract provisions, which shift less risk to the supplier
9. In the process of integrating BC Hydro and BCTC, assess how other utilities are addressing these issues
BC Hydro has expressed agreement with the above recommendations, except #7.
BC Hydro is a crown corporation with operates 30 hydroelectric facilities and three natural gas-fueled thermal power plants and generates between 43,000 and 54,000 gigawatt hours (GWh) of electricity annually, depending on prevailing water levels. BC Hydro’s energy policies are laid out in the 2007 BC Energy Plan. Several elements and targets included in that plan were updated in the Clean Energy Act of 2010.
Friday, September 23, 2011
Ormat receives approval for $310 million USD OPIC financing for geothermal project upgrade in Kenya
The Overseas Private Investment Corporation (OPIC) has approved $310 million USD in financing for Ormat Technologies Inc. to double the generation of an existing geothermal plant in Kenya. Ormat will utilize the OPIC financing to add 52 MW to the existing 48 MW of power generation capability of the Olkaria geothermal plant located in the Rift Valley of Kenya approximately 75 kilometres northwest of Nairobi.
The loan is comprised oa refinancing tranche of up to $85 million USD to prepay the existing loan and fund transaction costs, and a construction loan tranche of up to $165 million USD to finance the construction of an additional 36MW expansion currently underway. The loan also includes a $60 million USD stand-by facility to finance an additional optional 16 MW capacity expansion, that, if exercised by Ormat, could bring the total capacity of the complex to 100 MW. According to the Ormat Press Release, the maturity dates of the construction tranche and the refinancing tranche are expected to be June 2030 and December 2030, respectively.
Sources: Ormat Press Release and Energy Business Review
The loan is comprised oa refinancing tranche of up to $85 million USD to prepay the existing loan and fund transaction costs, and a construction loan tranche of up to $165 million USD to finance the construction of an additional 36MW expansion currently underway. The loan also includes a $60 million USD stand-by facility to finance an additional optional 16 MW capacity expansion, that, if exercised by Ormat, could bring the total capacity of the complex to 100 MW. According to the Ormat Press Release, the maturity dates of the construction tranche and the refinancing tranche are expected to be June 2030 and December 2030, respectively.
Sources: Ormat Press Release and Energy Business Review
Thursday, September 22, 2011
$1.5 million CAD wind turbine lawsuit filed against Suncor et al. in Ontario
The Michaud family of Thamesville, Ontario is suing Kent Breeze Corp., MacLeod Windmill Project Inc. and Suncor Energy Services Inc. for $1.5 million CAD claiming they have suffered vertigo, nausea and sleep disruption caused by the Kent Breeze wind farm. The wind farm, which began operating in May 2011, consists of eight turbines, the closest of which is 1,146 metres from the Michaud's property. Interestingly, the same largely German made turbines, seem to cause adverse health effects only to Ontarians and Germans living much closer to the turbines seem to be unaffected. To put this lawsuit into perspective it may be useful to compare Ontario to Germany, the country with the longest experience operating wind turbines:
Setbacks
Ontario: 550 meters
Germany: 80 meters
Number of turbines in operation
Ontario: 900
Germany: 22,000
Approximate number of years utility-scale turbines have been in operation
Ontario: 5
Germany: 25
Area
Ontario: 1,076,395 sq. km.
Germany: 357, 022 sq. km.
Future development
Ontario: The incumbent in the current Ontario provincial election, Tim Hudak, has vowed to stop all future wind energy development in Ontario and tear up a $7 billion CAD deal to expand renewable energy manufacturing in Ontario.
Germany: just announced plans to further increase financing opportunities to quickly and efficiently promote further development of wind farms in the country.
Setbacks
Ontario: 550 meters
Germany: 80 meters
Number of turbines in operation
Ontario: 900
Germany: 22,000
Approximate number of years utility-scale turbines have been in operation
Ontario: 5
Germany: 25
Area
Ontario: 1,076,395 sq. km.
Germany: 357, 022 sq. km.
Future development
Ontario: The incumbent in the current Ontario provincial election, Tim Hudak, has vowed to stop all future wind energy development in Ontario and tear up a $7 billion CAD deal to expand renewable energy manufacturing in Ontario.
Germany: just announced plans to further increase financing opportunities to quickly and efficiently promote further development of wind farms in the country.
Wednesday, September 21, 2011
German utility Stadtwerke München and German developer wpd target Canada through joint venture for future renewable energy projects
Stadtwerke München has taken a 33% stake in German wind developer wpd's onshore wind projects in Europe and Canada. The deal is reported to include 70 MW of operational wind assets and a project pipeline of over 4 200 MW in 12 European countries and Canada.
Stadtwerke München (SWM) has the ambitious aim of generating 100% of all energy from their own renewable generation facilities sufficient to power the entire city of Munich, Germany which has a population of over 1 million inhabitants.
Wpd has projects in the Canadian province of Ontario and was awarded 5 contracts under the Ontario feed-in-tariff program. It is expected that with the additional financial resources of Stadtwerke München, wpd will develop projects in other Canadian provinces.
Stadtwerke München (SWM) has the ambitious aim of generating 100% of all energy from their own renewable generation facilities sufficient to power the entire city of Munich, Germany which has a population of over 1 million inhabitants.
Wpd has projects in the Canadian province of Ontario and was awarded 5 contracts under the Ontario feed-in-tariff program. It is expected that with the additional financial resources of Stadtwerke München, wpd will develop projects in other Canadian provinces.
Tuesday, September 20, 2011
Opposition party pledges 50% renewable generation in Saskatchewan by 2025 and 400 MW of new wind power within 4 years
The provincial opposition party, the NDP, is proposing a new provincial Renewable Energy Act which will expand clean and renewable energy sources to provide 50% of Saskatchewan's electricity by 2025. The NDP have also stated they will build 400 MW of new capacity in wind power in the first four years of government. Given the outstanding and considerable renewable energy resources in Saskatchewan this is not an unrealistic goal and I commend the NDP for having the foresight to recognize this opportunity.
The proposed Renewable Energy Act will legislatively mandate the province of Saskatchewan to aggressively pursue more wind power opportunities and construct those in tandem with other sources to balance the intermittent electricity generated by wind. The Renewable Energy Act will also mandate that the province of Saskatchewan work with northern communities to develop low-impact (e.g. run-of-river) hydroelectricity projects and biomass power plants along the forest fringe that utilize forestry residues to generate energy.
Although the governing Saskatchewan Party have been less ambitious in their renewable energy targets, they have opened up new opportunities for Independent Power Producers (IPPs) to design, build and own their renewable energy generation in the province and sell the electricity to SaskPower under a 20-year Power Purchase Agreement (PPA). The Saskatchewan Party has prudently recognized that IPPs are essential to developing a competitive renewable energy market and I commend the Saskatchewan Party for having the foresight to recognize this and take action to welcome renewable energy developers into our province.
The NDP candidate for Saskatoon-Greystone and environmental advocate, Peter Prebble has excluded a role for IPPs and is proposing that the provincial monopoly utility, SaskPower, own all renewable energy generation. This prevents private developers from entering the market, restricts foreign investment in Saskatchewan and precludes the deployment of new and cheaper renewable energy technology in the province.
What Saskatchewan needs to capitalize on our abundant renewable resources is a policy which combines the NDPs ambitious (but attainable) renewable energy targets and the Saskatchewan Party’s pragmatic market-oriented approach to building and owning generation. Irrespective of the outcome of the upcoming provincial election, if the NDP and Saskatchewan Party can find some common ground regarding renewable energy we have a real opportunity to transform Saskatchewan into a renewable energy powerhouse.
The proposed Renewable Energy Act will legislatively mandate the province of Saskatchewan to aggressively pursue more wind power opportunities and construct those in tandem with other sources to balance the intermittent electricity generated by wind. The Renewable Energy Act will also mandate that the province of Saskatchewan work with northern communities to develop low-impact (e.g. run-of-river) hydroelectricity projects and biomass power plants along the forest fringe that utilize forestry residues to generate energy.
Although the governing Saskatchewan Party have been less ambitious in their renewable energy targets, they have opened up new opportunities for Independent Power Producers (IPPs) to design, build and own their renewable energy generation in the province and sell the electricity to SaskPower under a 20-year Power Purchase Agreement (PPA). The Saskatchewan Party has prudently recognized that IPPs are essential to developing a competitive renewable energy market and I commend the Saskatchewan Party for having the foresight to recognize this and take action to welcome renewable energy developers into our province.
The NDP candidate for Saskatoon-Greystone and environmental advocate, Peter Prebble has excluded a role for IPPs and is proposing that the provincial monopoly utility, SaskPower, own all renewable energy generation. This prevents private developers from entering the market, restricts foreign investment in Saskatchewan and precludes the deployment of new and cheaper renewable energy technology in the province.
What Saskatchewan needs to capitalize on our abundant renewable resources is a policy which combines the NDPs ambitious (but attainable) renewable energy targets and the Saskatchewan Party’s pragmatic market-oriented approach to building and owning generation. Irrespective of the outcome of the upcoming provincial election, if the NDP and Saskatchewan Party can find some common ground regarding renewable energy we have a real opportunity to transform Saskatchewan into a renewable energy powerhouse.
Monday, September 19, 2011
Vertical-axis wind turbines could further reduce the cost, size, and environmental impacts of wind farms in the future
John Dabiri of the California Institute of Technology recently published an interesting article in the Journal of Renewable and Sustainable Energy which concludes that vertical-axis wind turbines (VAWTs) could significantly alter our approach to structuring wind farms in the future.
An abstract of the article follows below:
Modern wind farms comprised of horizontal-axis wind turbines (HAWTs) require significant land resources to separate each wind turbine from the adjacent turbine wakes. This aerodynamic constraint limits the amount of power that can be extracted from a given wind farm footprint. The resulting inefficiency of HAWT farms is currently compensated by using taller wind turbines to access greater wind resources at high altitudes, but this solution comes at the expense of higher engineering costs and greater visual, acoustic, radar, and environmental impacts. We investigated the use of counter-rotating vertical-axis wind turbines (VAWTs) in order to achieve higher power output per unit land area than existing wind farms consisting of HAWTs. Full-scale field tests of 10-m tall VAWTs in various counter-rotating configurations were conducted under natural wind conditions during summer 2010. Whereas modern wind farms consisting of HAWTs produce 2–3 W of power per square meter of land area, these field tests indicate that power densities an order of magnitude greater can potentially be achieved by arranging VAWTs in layouts that enable them to extract energy from adjacent wakes and from above the wind farm. Moreover, this improved performance does not requirehigher individual wind turbine efficiency, only closer wind turbine spacing and asufficient vertical flux of turbulence kinetic energy from the atmospheric surface layer. The results suggest an alternative approach to wind farming that has the potential to concurrently reduce the cost, size, and environmental impacts of wind farms.
The full version of the article is available here:
http://dabiri.caltech.edu/publications/Da_JRSE11.pdf.
An abstract of the article follows below:
Modern wind farms comprised of horizontal-axis wind turbines (HAWTs) require significant land resources to separate each wind turbine from the adjacent turbine wakes. This aerodynamic constraint limits the amount of power that can be extracted from a given wind farm footprint. The resulting inefficiency of HAWT farms is currently compensated by using taller wind turbines to access greater wind resources at high altitudes, but this solution comes at the expense of higher engineering costs and greater visual, acoustic, radar, and environmental impacts. We investigated the use of counter-rotating vertical-axis wind turbines (VAWTs) in order to achieve higher power output per unit land area than existing wind farms consisting of HAWTs. Full-scale field tests of 10-m tall VAWTs in various counter-rotating configurations were conducted under natural wind conditions during summer 2010. Whereas modern wind farms consisting of HAWTs produce 2–3 W of power per square meter of land area, these field tests indicate that power densities an order of magnitude greater can potentially be achieved by arranging VAWTs in layouts that enable them to extract energy from adjacent wakes and from above the wind farm. Moreover, this improved performance does not requirehigher individual wind turbine efficiency, only closer wind turbine spacing and asufficient vertical flux of turbulence kinetic energy from the atmospheric surface layer. The results suggest an alternative approach to wind farming that has the potential to concurrently reduce the cost, size, and environmental impacts of wind farms.
The full version of the article is available here:
http://dabiri.caltech.edu/publications/Da_JRSE11.pdf.
Friday, September 16, 2011
Samsung & Pattern Energy acquire 180 MW Acciona wind project in Ontario
Acciona, the developer of the Armow project in the Canadian province of Ontario has sold the project to a newly formed partnership between South Korea’s Samsung Renewable Energy and Pattern Energy Group. The price and other terms of the deal have not been released. The project is located in Kincardine township about 235 kilometres northeast of Toronto. Turbine components for the 180 MW Armow project will be procured from the new Siemens factories in Tillsonburg, Ontario and Windsor, Ontario. Construction is scheduled to begin in 2013 and the wind farm is expected to reach COD the following year.
Samsung has agreed with the provincial government of Ontario to develop up to 2500 MW of renewable energy projects in the province. Samsung has recently acquired PPAs from the Ontario Power Authority for Armow and 3 other projects in Ontario: the 270 MW South Kent Wind project under development in Chatham-Kent, the 270 MW K2 Wind project in the Township of Ashfield-Colborne-Wawanosh and 150 MW of wind from the Grand Renewable Energy Park, a wind and solar power project under development in Haldimand County. The terms of the PPA have not been released.
Samsung has agreed with the provincial government of Ontario to develop up to 2500 MW of renewable energy projects in the province. Samsung has recently acquired PPAs from the Ontario Power Authority for Armow and 3 other projects in Ontario: the 270 MW South Kent Wind project under development in Chatham-Kent, the 270 MW K2 Wind project in the Township of Ashfield-Colborne-Wawanosh and 150 MW of wind from the Grand Renewable Energy Park, a wind and solar power project under development in Haldimand County. The terms of the PPA have not been released.
Thursday, September 15, 2011
GHG emissions offset program launch date unknown causing uncertainty in oil and gas industry in Saskatchewan
The Management and Reduction of Greenhouse Gases Act (the “Act”) passed third reading in the Saskatchewan provincial legislature in May 2010. After passing third reading a Bill can be proclaimed law and receive Royal Assent anytime thereafter - this has not yet happened in the province of Saskatchewan.
Somewhat surprisingly there seems to be little pressure from the provincial government or environmental groups to proclaim the Act law. However, business requires certainty as to government regulation and with the booming oil and gas sector in the province of Saskatchewan responsible for the majority of GHG emissions it would certainly be beneficial to all stakeholders to implement this legislation as soon as possible so that business in the province can plan accordingly.
The Act will create an emissions trading system giving regulated emitters the option to purchase emission offsets or make a carbon compliance payment into a technology fund in order to invest in solutions and research into greenhouse gas emission reduction in the province.
The full version of Bill 195 is available here: http://www.legassembly.sk.ca/bills/pdfs/3_26/bill-126.pdf
Somewhat surprisingly there seems to be little pressure from the provincial government or environmental groups to proclaim the Act law. However, business requires certainty as to government regulation and with the booming oil and gas sector in the province of Saskatchewan responsible for the majority of GHG emissions it would certainly be beneficial to all stakeholders to implement this legislation as soon as possible so that business in the province can plan accordingly.
The Act will create an emissions trading system giving regulated emitters the option to purchase emission offsets or make a carbon compliance payment into a technology fund in order to invest in solutions and research into greenhouse gas emission reduction in the province.
The full version of Bill 195 is available here: http://www.legassembly.sk.ca/bills/pdfs/3_26/bill-126.pdf
Wednesday, September 14, 2011
Canadian Brookfield to merge hydro and wind assets to take on Europeans to create global renewable energy powerhouse
Canadian asset manager Brookfield Asset Management Inc. is proposing to merge its hydroelectric and wind power assets presently held by Brookfield Renewable Power Inc. to create the world's second-largest public renewable energy company. The merged entity would have a market capitalization of $6 billion USD, ranking behind Italy's ENEL GP's $10 billion USD equity value but ahead of EDP of France and Portugal's EDF Group.
The new corporation, Brookfield Renewable Energy Partners LP (“BREP”) will be headquartered in Bermuda but will run its Canadian division from Gatineau, Quebec. Brookfield has 2,000 MW of projects under development, including a wind farm in south-western Ontario and other projects in Saskatchewan.
Mr. Richard Legault, CEO of Brookfield’s power operations noted that the deal would position BREP "as one of the largest publicly listed pure-play renewable power businesses, one that is roughly 1 1/2 times the size of the fund today with almost 4,800 megawatts of capacity at 179 facilities producing 18 million megawatt hours of power per year.” Legault said the new company would "rank among the very best renewable businesses globally in terms of its quality of assets, scale of operating platform, geographic diversification, access to capital, and global reach."
The focus in the medium term will be on its core markets in Canada, the United States and Brazil. But in the longer term, it could target opportunities in Europe and Australia where Brookfield's infrastructure and real estate operations have a strong presence.
The new corporation, Brookfield Renewable Energy Partners LP (“BREP”) will be headquartered in Bermuda but will run its Canadian division from Gatineau, Quebec. Brookfield has 2,000 MW of projects under development, including a wind farm in south-western Ontario and other projects in Saskatchewan.
Mr. Richard Legault, CEO of Brookfield’s power operations noted that the deal would position BREP "as one of the largest publicly listed pure-play renewable power businesses, one that is roughly 1 1/2 times the size of the fund today with almost 4,800 megawatts of capacity at 179 facilities producing 18 million megawatt hours of power per year.” Legault said the new company would "rank among the very best renewable businesses globally in terms of its quality of assets, scale of operating platform, geographic diversification, access to capital, and global reach."
The focus in the medium term will be on its core markets in Canada, the United States and Brazil. But in the longer term, it could target opportunities in Europe and Australia where Brookfield's infrastructure and real estate operations have a strong presence.
Tuesday, September 13, 2011
Learn more about Saskatoon’s world-class Green Energy Park
The following presentation will be held tomorrow evening in Saskatoon regarding the Green Energy Park:
Saskatoon’s Green Energy Park – Achieving a Diverse and Environmentally Sustainable Energy System Using Local Renewable Energy Supplies
Date: Wednesday, September 14, 2011
Start Time: 7:00 pm
End Time: 8:30 pm
Event Title: Saskatoon’s Green Energy Park – Achieving a Diverse and Environmentally Sustainable Energy System Using Local Renewable Energy Supplies
Location: Cliff Wright Library (1635 McKercher Drive, Saskatoon, SK., Canada)
Description: The City of Saskatoon is developing a world-class energy park at its landfill that has potential to power over 5,000 homes using only local renewable energy supplies, and is expected to achieve an annual reduction in greenhouse gas emissions for the city of over 115,000 tonnes CO2 equivalent. Green energy projects feature renewable power generation technologies using landfill gas, a turboexpander pressure reduction application with SaskEnergy, a tall wind turbine sited on top of the landfill, and other considerations for the future that could include utility-scale solar and heat recovery applications. Come find out more about this exciting project. Event co-sponsored by the Cliff Wright Library and the Saskatchewan Environmental Society. For more information, please contact the Saskatchewan Environmental Society at 306-665-1915.
Kevin Hudson, P. Eng. will be delivering the presentation. Kevin is one of the leading renewable energy engineers in Saskatchewan. The presentation is open to the public.
Saskatoon’s Green Energy Park – Achieving a Diverse and Environmentally Sustainable Energy System Using Local Renewable Energy Supplies
Date: Wednesday, September 14, 2011
Start Time: 7:00 pm
End Time: 8:30 pm
Event Title: Saskatoon’s Green Energy Park – Achieving a Diverse and Environmentally Sustainable Energy System Using Local Renewable Energy Supplies
Location: Cliff Wright Library (1635 McKercher Drive, Saskatoon, SK., Canada)
Description: The City of Saskatoon is developing a world-class energy park at its landfill that has potential to power over 5,000 homes using only local renewable energy supplies, and is expected to achieve an annual reduction in greenhouse gas emissions for the city of over 115,000 tonnes CO2 equivalent. Green energy projects feature renewable power generation technologies using landfill gas, a turboexpander pressure reduction application with SaskEnergy, a tall wind turbine sited on top of the landfill, and other considerations for the future that could include utility-scale solar and heat recovery applications. Come find out more about this exciting project. Event co-sponsored by the Cliff Wright Library and the Saskatchewan Environmental Society. For more information, please contact the Saskatchewan Environmental Society at 306-665-1915.
Kevin Hudson, P. Eng. will be delivering the presentation. Kevin is one of the leading renewable energy engineers in Saskatchewan. The presentation is open to the public.
Enbridge shifts renewable energy projects to affiliate
One of Enbridge Inc.'s separately-traded sister companies recently approved a deal to buy three renewable energy projects for $1.23 billion CAD from the parent company. Under the deal, Enbridge Income Fund Holdings Inc. will buy ownership of the Ontario Wind, Sarnia Solar and Talbot Wind renewable energy projects from the Calgary oil and gas pipeline company. An Enbridge spokeswoman said the Enbridge Income Fund was created to hold assets that generate reliable and stable cash flow, for investors that pay a premium for the fund's dividend stream. Separating the renewable assets into the income fund provides a lower-cost way to fund Enbridge's investments in renewable power, she said. Enbridge Inc. will retain operational control of the projects, which generate 369 megawatts of power in total and include the world's largest operating photovoltaic solar facility in the Sarnia Solar project. The income fund currently owns Enbridge's Saskatchewan crude oil pipeline system, a 50% interest in the Canadian portion of the Alliance Canada natural gas pipeline that runs from British Columbia to Chicago, and partial interests in several smaller wind power and waste-heat generation plants in western Canada.
Friday, September 9, 2011
South Africa issues massive 3725 MW Request for Proposals (RFP) from Independent Power Producers (IPPs) for wind, solar PV, biomass, biogas, landfill gas and small hydro
Selection for the projects will be by way of a competitive request for proposals (RFP) process with a pre-qualification phase.
Important details regarding the RFP follow below:
Generation Allocation
3725 MW of renewable generation will be allocated in the first round as follows:
- Onshore wind – 1850 MW;
- Concentrating Solar Power (CSP) – 200 MW;
- Solar photovoltaic (PV) – 1450 MW;
- Biomass – 12.5 MW;
- Biogas – 12.5 MW;
- Landfill gas – 25 MW;
- Small hydro – 75 MW;
- Small projects (1 MW-5 MW), using wind, solar PV, biomass or biogas technologies – 100 MW.
Price Caps
The price caps are as follows:
- Wind – $157.33 CAD/MWh;
- Solar PV – $390.29/MWh;
- CSP – $390.29/MWh;
- biomass – $146.63/MWh;
- biogas – $109.63/MWh;
- landfill gas – $82.21/MWh;
- small hydro – $141.13/MWh.
A respondent will be non-compliant and automatically rejected during the qualification phase if the price cap is exceeded.To put the wind cap into perspective for those in Saskatchewan, SaskPower is paying $96.09 CAD/MWh for wind power under the Green Options Partners Program (GOPP). Under the South African RFP, Eskom will pay nearly 40% more than SaskPower for wind generation and almost 75% more than SaskPower for solar PV.
Evaluation and RFP
Norton Rose, counsel for the South African Department of Energy (DoE) and Eskom, who structured and will likely run the procurement process have provided some details about the evaluation criteria and the RFP:
- If a respondent is successful in the pre-qualification phase, their submission will be evaluated based primarily on price and economic development.
- In regard to price, a formula will be used to calculate an "equivalent annual tariff" for the MWh price proposed.
- As to economic development, a scorecard has been formulated to which bidders are obliged to respond, thereby enabling the department to determine bidders’ commitment to economic development requirements.
- Each technology will have their own economic development matrix, but common to all are requirements for job creation, local content (with special emphasis on local manufacturing), rural community development, skills development and education, enterprise development, socio-economic development, and participation by the historically disadvantaged.
- The points allocation between price and economic development is 70/30.
- Bidders whose responses rank the highest will be appointed "Preferred Bidders" with as many being appointed as may be necessary in order to provide the maximum allocation of MW for each technology.
- In the event of selection, a Preferred Bidder will be held to compliance with the price and economic development proposals in its bid, with regular reporting to demonstrate compliance during the life of the project.
- Non-compliance will result in progressive demerits, and may eventually result in cancellation of the PPA and other agreements.
- The draft PPA, Implementation Agreement, Direct Agreement and Connection Agreements are non-negotiable, although the DoE reserves the right to revise the templates of any of these draft agreements during the course of the procurement program.
- Bidders will be required to lodge, along with their bids, a bid guarantee issued by a first class South African bank for an amount equal to R100,000.00 per MW proposed in the bid.
- There are 5 bidding "windows"- November 4, 2011; March 5, 2012; August 20, 2012; March 4, 2013; August 13, 2013.
- If the maximum allocatable MW for any particular technology has been allocated during any particular window, then the subsequent windows will not be opened for that technology.
Given the significant amount of generation allocated and the relatively high prices, it is anticipated that there will considerable interest from developers around the world. South African law firm Deneys Reitz merged with Norton Rose along with Canadian law firm Ogilvy Renault on June 1, 2011. A number of Canadian renewable energy developers formerly represented by Ogilvy Renault (now Norton Rose) are expected to participate in the South African procurement process but will likely have to seek alternate counsel in Canada given Norton Rose is already acting for the utility. I have renewable energy experience working in Namibia, bordering on South Africa and serviced by Eskom, and would be happy to discuss a possible submission further with any interested wind, solar PV/CSP, biomass, biogas, landfill gas or small hydro developers.
Important details regarding the RFP follow below:
Generation Allocation
3725 MW of renewable generation will be allocated in the first round as follows:
- Onshore wind – 1850 MW;
- Concentrating Solar Power (CSP) – 200 MW;
- Solar photovoltaic (PV) – 1450 MW;
- Biomass – 12.5 MW;
- Biogas – 12.5 MW;
- Landfill gas – 25 MW;
- Small hydro – 75 MW;
- Small projects (1 MW-5 MW), using wind, solar PV, biomass or biogas technologies – 100 MW.
Price Caps
The price caps are as follows:
- Wind – $157.33 CAD/MWh;
- Solar PV – $390.29/MWh;
- CSP – $390.29/MWh;
- biomass – $146.63/MWh;
- biogas – $109.63/MWh;
- landfill gas – $82.21/MWh;
- small hydro – $141.13/MWh.
A respondent will be non-compliant and automatically rejected during the qualification phase if the price cap is exceeded.To put the wind cap into perspective for those in Saskatchewan, SaskPower is paying $96.09 CAD/MWh for wind power under the Green Options Partners Program (GOPP). Under the South African RFP, Eskom will pay nearly 40% more than SaskPower for wind generation and almost 75% more than SaskPower for solar PV.
Evaluation and RFP
Norton Rose, counsel for the South African Department of Energy (DoE) and Eskom, who structured and will likely run the procurement process have provided some details about the evaluation criteria and the RFP:
- If a respondent is successful in the pre-qualification phase, their submission will be evaluated based primarily on price and economic development.
- In regard to price, a formula will be used to calculate an "equivalent annual tariff" for the MWh price proposed.
- As to economic development, a scorecard has been formulated to which bidders are obliged to respond, thereby enabling the department to determine bidders’ commitment to economic development requirements.
- Each technology will have their own economic development matrix, but common to all are requirements for job creation, local content (with special emphasis on local manufacturing), rural community development, skills development and education, enterprise development, socio-economic development, and participation by the historically disadvantaged.
- The points allocation between price and economic development is 70/30.
- Bidders whose responses rank the highest will be appointed "Preferred Bidders" with as many being appointed as may be necessary in order to provide the maximum allocation of MW for each technology.
- In the event of selection, a Preferred Bidder will be held to compliance with the price and economic development proposals in its bid, with regular reporting to demonstrate compliance during the life of the project.
- Non-compliance will result in progressive demerits, and may eventually result in cancellation of the PPA and other agreements.
- The draft PPA, Implementation Agreement, Direct Agreement and Connection Agreements are non-negotiable, although the DoE reserves the right to revise the templates of any of these draft agreements during the course of the procurement program.
- Bidders will be required to lodge, along with their bids, a bid guarantee issued by a first class South African bank for an amount equal to R100,000.00 per MW proposed in the bid.
- There are 5 bidding "windows"- November 4, 2011; March 5, 2012; August 20, 2012; March 4, 2013; August 13, 2013.
- If the maximum allocatable MW for any particular technology has been allocated during any particular window, then the subsequent windows will not be opened for that technology.
Given the significant amount of generation allocated and the relatively high prices, it is anticipated that there will considerable interest from developers around the world. South African law firm Deneys Reitz merged with Norton Rose along with Canadian law firm Ogilvy Renault on June 1, 2011. A number of Canadian renewable energy developers formerly represented by Ogilvy Renault (now Norton Rose) are expected to participate in the South African procurement process but will likely have to seek alternate counsel in Canada given Norton Rose is already acting for the utility. I have renewable energy experience working in Namibia, bordering on South Africa and serviced by Eskom, and would be happy to discuss a possible submission further with any interested wind, solar PV/CSP, biomass, biogas, landfill gas or small hydro developers.
Thursday, September 8, 2011
Finavera signs MOU with McLeod Lake Indian Band in Peace River Region of British Columbia
The MOU covers the construction and operation of 4 wind projects totalling 300 MW on First Nations land. In the MOU the McLeod Lake Indian Band has provided its acknowledgement and acceptance for the 45 MW Tumbler Ridge Wind Energy Project, 77 MW Wildmare Wind Energy Project, 117 Meikle Wind Energy Project and the 60 MW Bullmoose Wind Energy Project. The MOU establishes the processes and sharing of benefits between the developer and the McLeod Lake Indian Band. In return for their consent and support of Finavera’s wind projects in the Peace River region of British Columbia, the McLeod Lake Indian Band will benefit through training, employment, business opportunities and financial participation in the projects. The MOU Finavera has signed with the McLeod Lake Indian Band is the second of five such agreements that Finavera hopes to conclude in the Peace River Region. The Company signed an MOU with Halfway River First Nation in 2010 and is presently in discussions with three other First Nations (West Moberly First Nation, Doig River First Nation and Saulteau First Nations).
Wednesday, September 7, 2011
EU joins Japan, US and files WTO complaint against Canada over Ontario renewable energy FIT
The European Union (EU) has officially requested World Trade Organization (WTO) consultations on the subsidies the province of Ontario gives to renewable-energy producers that use domestic technology. The EU’s formal request was issued on August 11, 2011 and just accepted by the WTO. The EU’s request follows on the establishment of a WTO dispute panel to hear Japan’s complaints against Canada regarding the feed-in-tariff (FIT) program. Under WTO rules, the EU and Canada must now hold talks for at least two months in a bid to resolve the dispute. If the talks fail, the EU can ask WTO judges to rule. The US is also involved in discussions regarding the same matter. Canada, the EU, Japan and the US are all major players in the green energy industry.
Under the Ontario FIT, which was created by the provincial Green Energy Act, developers are paid above-market rates for provision of renewable energy provided it is generated with a certain percentage of Ontario-made equipment. Under the Ontario FIT up to 50% of the initial costs to develop a solar-energy project must be made of up products or services from. The Ontario FIT pays as much as $0.802 CAD per kilowatt hour for PV energy electricity generated which compares to the industry average of about $0.10 – a difference of almost 8x and one of the most significant feed-in-tariff payments in the world for PV electricity. From the perspective of Ontario and Canada the Ontario FIT has been a resounding success and is in the process of being emulated in many jurisdictions across North America. The Green Energy Act aims to help Ontario meet its goal of shutting all its coal-power generators by 2014. Germany, the UK, the US and soon Japan have their own feed-in-tariff programs but the dispute focuses on the specific “Buy Ontario” provisions.
EU exports to Canada in wind power and photovoltaic (PV) power- generation equipment are “significant,” according to the European Commission, ranging from 300 million EUR ($416 million CAD) to 600 million EUR ($833 million CAD) between 2007 and 2009.
Bloomberg is reporting that Caitlin Workman, a spokeswoman for Canada’s Trade Department in Ottawa, has stated that Canada will “vigorously defend Canada’s interests during these proceedings” at the WTO.
This announcement comes at a difficult time, as the province of Ontario kicks off a provincial election campaign which pits current Liberal party premier Dalton McGuinty (who spearheaded the Ontario FIT and is a significant supporter of renewable energy) against Conservative incumbent Tim Hudak. In a move reminiscent of post-colonial African dictators of the 1950s, Hudak vowed to rip up a $7 billion CAD MOU for wind and solar power which the Ontario government signed with multinational Samsung. If elected Hudak also vowed to scrap the Ontario FIT.
Under the Ontario FIT, which was created by the provincial Green Energy Act, developers are paid above-market rates for provision of renewable energy provided it is generated with a certain percentage of Ontario-made equipment. Under the Ontario FIT up to 50% of the initial costs to develop a solar-energy project must be made of up products or services from. The Ontario FIT pays as much as $0.802 CAD per kilowatt hour for PV energy electricity generated which compares to the industry average of about $0.10 – a difference of almost 8x and one of the most significant feed-in-tariff payments in the world for PV electricity. From the perspective of Ontario and Canada the Ontario FIT has been a resounding success and is in the process of being emulated in many jurisdictions across North America. The Green Energy Act aims to help Ontario meet its goal of shutting all its coal-power generators by 2014. Germany, the UK, the US and soon Japan have their own feed-in-tariff programs but the dispute focuses on the specific “Buy Ontario” provisions.
EU exports to Canada in wind power and photovoltaic (PV) power- generation equipment are “significant,” according to the European Commission, ranging from 300 million EUR ($416 million CAD) to 600 million EUR ($833 million CAD) between 2007 and 2009.
Bloomberg is reporting that Caitlin Workman, a spokeswoman for Canada’s Trade Department in Ottawa, has stated that Canada will “vigorously defend Canada’s interests during these proceedings” at the WTO.
This announcement comes at a difficult time, as the province of Ontario kicks off a provincial election campaign which pits current Liberal party premier Dalton McGuinty (who spearheaded the Ontario FIT and is a significant supporter of renewable energy) against Conservative incumbent Tim Hudak. In a move reminiscent of post-colonial African dictators of the 1950s, Hudak vowed to rip up a $7 billion CAD MOU for wind and solar power which the Ontario government signed with multinational Samsung. If elected Hudak also vowed to scrap the Ontario FIT.
Tuesday, September 6, 2011
Sprott Power Corp. closes project financing on Nova Scotia wind farm
Toronto-based Sprott Power Corp. and joint venture partner Firelight Infrastructure Partners LP have closed $45 million CAD in non-recourse, construction and take-out debt financing for its 31.5 MW project in Amherst, Nova Scotia. Construction started in May, 2011 and is expected to be completed in early 2012.
Sprott Power Corp. is developing the Riverhurst I Wind Project in Saskatchewan and was awarded a 10 MW PPA by SaskPower in May 2010. Sprott expects to execute the PPA with SaskPower before the end of 2011. The Riverhurst project is located on 320 acres of private land with an additional 800 acres under lease option. Commercial operation is scheduled for 2013.
Sprott Power Corp. is developing the Riverhurst I Wind Project in Saskatchewan and was awarded a 10 MW PPA by SaskPower in May 2010. Sprott expects to execute the PPA with SaskPower before the end of 2011. The Riverhurst project is located on 320 acres of private land with an additional 800 acres under lease option. Commercial operation is scheduled for 2013.
Friday, September 2, 2011
Renewable energy rebate program in Saskatchewan extended to 2012
Up to $35,000.00 CAD is available to individuals in Saskatchewan to install small (less than 100 kilowatt) wind, solar or other renewable generation equipment and connect to the SaskPower's grid.
The Saskatchewan government announced this week that an additional $2.9 million CAD will be available to support environmentally friendly power generation options and reduce greenhouse gas emissions in Saskatchewan.
Funding for the program, administered by the Saskatchewan Research Council (SRC), is provided by the province's Go Green Fund and SaskPower. As of March 31, 265 small-scale renewable power systems have been installed in Saskatchewan and more than $1.7 million CAD provided in refunds.
The program is being extended to March 30, 2012, due to the significant increase in uptake during the past year. The Net Metering Rebate Program timeline follows below:
January 3, 2012 - Project Registration Form (SRC-NM-PR) and supporting documents;
March 30, 2012 - Project Confirmation form (SRC-NM-PC) and proof of payment for equipment deposit of at least 10%;
August 31, 2012 - Request for Rebate form (SRC-NM-RR), proof of payment for all eligible expenditures, and the electrical inspection form.
The Net Metering Rebate Program complements SaskPower's Net Metering Program, which supports those who wish to generate their own power from environmentally friendly sources. A bi-directional or net meter is installed by SaskPower allowing customers to record both the electricity they used and the electricity they generated. If customers generate more power than they use, that excess electricity is fed back to SaskPower's electricity system and the customers are given a credit on their power bill.
The Saskatchewan government announced this week that an additional $2.9 million CAD will be available to support environmentally friendly power generation options and reduce greenhouse gas emissions in Saskatchewan.
Funding for the program, administered by the Saskatchewan Research Council (SRC), is provided by the province's Go Green Fund and SaskPower. As of March 31, 265 small-scale renewable power systems have been installed in Saskatchewan and more than $1.7 million CAD provided in refunds.
The program is being extended to March 30, 2012, due to the significant increase in uptake during the past year. The Net Metering Rebate Program timeline follows below:
January 3, 2012 - Project Registration Form (SRC-NM-PR) and supporting documents;
March 30, 2012 - Project Confirmation form (SRC-NM-PC) and proof of payment for equipment deposit of at least 10%;
August 31, 2012 - Request for Rebate form (SRC-NM-RR), proof of payment for all eligible expenditures, and the electrical inspection form.
The Net Metering Rebate Program complements SaskPower's Net Metering Program, which supports those who wish to generate their own power from environmentally friendly sources. A bi-directional or net meter is installed by SaskPower allowing customers to record both the electricity they used and the electricity they generated. If customers generate more power than they use, that excess electricity is fed back to SaskPower's electricity system and the customers are given a credit on their power bill.
Thursday, September 1, 2011
Canada's Environment Minister Announces Further Reduction of Electricity Sector Emissions
Canada's Environment Minister Peter Kent recently announced that the Government of Canada is moving forward with Regulations for the coal-fired electricity sector.
Fittingly, the announcement was made in Saskatchewan which generates nearly 60% of electricity from burning coal, making Saskatchewan one of the largest per capita emitters in the developed world.
The proposed Regulations will apply a stringent performance standard to new coal-fired electricity generation units and those coal-fired units that have reached the end of their economic life.
The gradual phase-out of traditional coal-fired electricity generation is expected to have a significant impact on reducing emissions. The proposed regulations, in addition to other measures taken by federal and provincial governments and utilities to reduce electricity emissions from coal and other sources, are projected to result in a decline in the absolute level of GHG emissions from electricity generation.
The Government first announced its intention to reduce greenhouse gas emissions in the electricity sector on June 23, 2010. Since then, consultations have been ongoing with key stakeholders to inform the development of the proposed Regulations. The regulations were published in the Canada Gazette Part I on August 27 for a 60-day public consultation period.
The draft regulations are available here: http://www.gazette.gc.ca/rp-pr/p1/2011/2011-08-27/html/reg1-eng.html.
Final Regulations are expected to be published in 2012, and regulations are scheduled to come into effect on July 1, 2015.
The Government of Canada is making progress towards our ambitious target of reducing our greenhouse gas emissions 17 per cent from 2005 levels by 2020 through a sector-by-sector approach aligned with the U.S.
Fittingly, the announcement was made in Saskatchewan which generates nearly 60% of electricity from burning coal, making Saskatchewan one of the largest per capita emitters in the developed world.
The proposed Regulations will apply a stringent performance standard to new coal-fired electricity generation units and those coal-fired units that have reached the end of their economic life.
The gradual phase-out of traditional coal-fired electricity generation is expected to have a significant impact on reducing emissions. The proposed regulations, in addition to other measures taken by federal and provincial governments and utilities to reduce electricity emissions from coal and other sources, are projected to result in a decline in the absolute level of GHG emissions from electricity generation.
The Government first announced its intention to reduce greenhouse gas emissions in the electricity sector on June 23, 2010. Since then, consultations have been ongoing with key stakeholders to inform the development of the proposed Regulations. The regulations were published in the Canada Gazette Part I on August 27 for a 60-day public consultation period.
The draft regulations are available here: http://www.gazette.gc.ca/rp-pr/p1/2011/2011-08-27/html/reg1-eng.html.
Final Regulations are expected to be published in 2012, and regulations are scheduled to come into effect on July 1, 2015.
The Government of Canada is making progress towards our ambitious target of reducing our greenhouse gas emissions 17 per cent from 2005 levels by 2020 through a sector-by-sector approach aligned with the U.S.
Wednesday, August 31, 2011
Japan approves renewable energy feed-in-tariff (FIT): Pressure increases on North American jurisdictions and EU countries to follow suit
Japan's upper chamber has just approved a new law implementing a feed-in-tariff policy for renewable energy. The law will take effect July, 2012 and sets a target of 30,000 MW of new renewable development within the next 10 years.
This new FIT in Japan has wide-reaching global implications for the EU and North America. The following countries now have feed-in-tariffs for renewable energy:
- China (2nd largest economy in the world)
- Japan (3rd largest economy in the world)
- Germany (4th largest economy in the world)
A key feature of the new Japanese FIT law is the creation of a special parliamentary committee to determine the details of the program, including specific tariffs. In the past, this function would normally have been assigned to the powerful Ministry of Economy, Trade and Industry.
While specific details have not been released the Japanese FIT program will be tailored to 20-year contracts for wind, solar, biomass, geothermal and small hydro. The tariffs are cost-based and include cost recovery from utility ratepayers with reduction for heavy industrial users. The program will be reviewed every three years.
As in Germany, heavy industry in Japan can apply for a reduction in the surcharge on electricity to support the program. Similarly, those affected by the Great East Japan Earthquake will not have to pay the surcharge for the program through the end of March 2013, according to the Japan Electric Association.
Reuters reports that a ruling party lawmaker said he expects the tariff for solar PV to start at 40 Yen per kilowatt-hour ($0.50 CAD/kWh), and the tariff for wind energy to start at 20 Yen per kilowatt-hour ($0.25 CAD/kWh).
If implemented as suggested, the wind energy tariff would be among the highest in the world.
The widely expected passage of the new law has unleashed a burst of entrepreneurial activity not seen in Japan for some time with domestic developers like Japan Wind Development (JWD) well-positioned to take advantage of the FIT.
Sources (in part): Reuters, Paul Gipe in SustainableBusiness.com
This new FIT in Japan has wide-reaching global implications for the EU and North America. The following countries now have feed-in-tariffs for renewable energy:
- China (2nd largest economy in the world)
- Japan (3rd largest economy in the world)
- Germany (4th largest economy in the world)
A key feature of the new Japanese FIT law is the creation of a special parliamentary committee to determine the details of the program, including specific tariffs. In the past, this function would normally have been assigned to the powerful Ministry of Economy, Trade and Industry.
While specific details have not been released the Japanese FIT program will be tailored to 20-year contracts for wind, solar, biomass, geothermal and small hydro. The tariffs are cost-based and include cost recovery from utility ratepayers with reduction for heavy industrial users. The program will be reviewed every three years.
As in Germany, heavy industry in Japan can apply for a reduction in the surcharge on electricity to support the program. Similarly, those affected by the Great East Japan Earthquake will not have to pay the surcharge for the program through the end of March 2013, according to the Japan Electric Association.
Reuters reports that a ruling party lawmaker said he expects the tariff for solar PV to start at 40 Yen per kilowatt-hour ($0.50 CAD/kWh), and the tariff for wind energy to start at 20 Yen per kilowatt-hour ($0.25 CAD/kWh).
If implemented as suggested, the wind energy tariff would be among the highest in the world.
The widely expected passage of the new law has unleashed a burst of entrepreneurial activity not seen in Japan for some time with domestic developers like Japan Wind Development (JWD) well-positioned to take advantage of the FIT.
Sources (in part): Reuters, Paul Gipe in SustainableBusiness.com
Tuesday, August 30, 2011
Saskatoon Green Energy Park and Feed-in-tariff part of global trend
A great article by Paul Hanley in The Star Phoenix, the local Saskatoon, Saskatchewan, Canada newspaper was published this morning regarding the proposed Green Energy Park at the Saskatoon Landfill and the need for a feed-in-tariff in the province.
BY PAUL HANLEY, SPECIAL TO THE STARPHOENIX AUGUST 30, 2011
Saskatoon should get behind the city's plan to create a green energy park at the landfill site. The proposed renewable energy project has the potential to power more than 5,000 homes and achieve an annual reduction in greenhouse gas emissions of more than 115,000 tonnes. Not only is local green energy production good for the ecosphere, it can be a money maker too.
Europe has had some major successes with municipal energy production of this kind. The German village of Wildpoldsried, for example, produces 320 per cent more energy than it needs, generating $5.7 million in annual revenue from renewable energy sales to the national power grid.
According to an article in Bio-Cycle, the green initiative started in 1997 when the village council decided it should build new industries, keep initiatives local and bring in new revenue, all without creating debt. Fourteen years later, the community of 2,600 can boast a massive list of accomplishments that include nine new community buildings (including the school, gym and community hall) complete with solar panels, four biogas digesters with a fifth underway, seven windmills with two more on the way, 190 private households equipped with solar, a district heating network with 42 connections, three small hydro power plants, ecological flood control and a natural waste water system.
This is quite an accomplishment for a modest farming community with no local industries. Small businesses have now sprung up to sell and install technologies and provide services to the renewable energy installations, from solar panels and district heating to the anaerobic digesters and energy efficiency retrofits.
It's particularly successful, but Wildpoldsried is not unique. After investing $80 million over 10 years, the Danish island of Samsoe now produces enough energy to satisfy local needs and export 40 per cent of its energy to the mainland. Going 100 per cent renewable wasn't easy, but the results have paid off handsomely. Farmers on the island who are powering their facilities with wind turbines are seeing a six-to seven-year payback on those investments.
With 4,000 people, Samsoe has the highest per-capita concentration of nearly every kind of renewable energy on the planet. It has 11 onshore and 10 offshore turbines. Offshore wind alone produces 28,000 MWh of electricity per year, the equivalent of 690,000 gallons of oil. The island also uses its renewable biomass resource for heating, using three straw-fired plants and a 900kw wood chip boiler.
Wildpoldsried's mayor points out that the renewable approach requires strong support from the citizens and the village council. The model cannot be forced from only one side, he says. He spends a lot of time talking to visitors about how to motivate local politicians to start thinking differently. He shows them a best practice model in motion and many see the benefits immediately. Guests understand how well things can operate when you have the enthusiasm and conviction of the people behind it. Saskatoon take note.
It also helps to have national or provincial policies like a feed-in tariff in place to make it economic to promote novel power sources like wind and solar. Germany, which has recently decided to phase out nuclear power and go all out on renewable sources, has such a feed-in tariff. It is now moving to create a smart energy grid to better manage multiple renewable power sources. Saskatchewan take note.
Meanwhile, Japan has positioned itself as the next large growth market for renewable energy. Its upper chamber of parliament recently approved legislation that will create a national feed-in tariff. The new law is expected to bolster solar, wind and geothermal projects by mandating that utilities buy power from renewable sources at above-market rates.
Japan has decided to move from nuclear to the renewable option following the Fukushima nuclear plant meltdowns. Some 85 per cent of the population supports the immediate or gradual phase out of nuclear power, according to a recent poll.
Rather than back more nuclear research or clean coal, Saskatchewan would do well to look at a feed-in tariff and other policies to promote renewable options.
Read more: http://www.thestarphoenix.com/news/Local+green+energy+park+part+global+trend/5325695/story.html#ixzz1WWIMx100
BY PAUL HANLEY, SPECIAL TO THE STARPHOENIX AUGUST 30, 2011
Saskatoon should get behind the city's plan to create a green energy park at the landfill site. The proposed renewable energy project has the potential to power more than 5,000 homes and achieve an annual reduction in greenhouse gas emissions of more than 115,000 tonnes. Not only is local green energy production good for the ecosphere, it can be a money maker too.
Europe has had some major successes with municipal energy production of this kind. The German village of Wildpoldsried, for example, produces 320 per cent more energy than it needs, generating $5.7 million in annual revenue from renewable energy sales to the national power grid.
According to an article in Bio-Cycle, the green initiative started in 1997 when the village council decided it should build new industries, keep initiatives local and bring in new revenue, all without creating debt. Fourteen years later, the community of 2,600 can boast a massive list of accomplishments that include nine new community buildings (including the school, gym and community hall) complete with solar panels, four biogas digesters with a fifth underway, seven windmills with two more on the way, 190 private households equipped with solar, a district heating network with 42 connections, three small hydro power plants, ecological flood control and a natural waste water system.
This is quite an accomplishment for a modest farming community with no local industries. Small businesses have now sprung up to sell and install technologies and provide services to the renewable energy installations, from solar panels and district heating to the anaerobic digesters and energy efficiency retrofits.
It's particularly successful, but Wildpoldsried is not unique. After investing $80 million over 10 years, the Danish island of Samsoe now produces enough energy to satisfy local needs and export 40 per cent of its energy to the mainland. Going 100 per cent renewable wasn't easy, but the results have paid off handsomely. Farmers on the island who are powering their facilities with wind turbines are seeing a six-to seven-year payback on those investments.
With 4,000 people, Samsoe has the highest per-capita concentration of nearly every kind of renewable energy on the planet. It has 11 onshore and 10 offshore turbines. Offshore wind alone produces 28,000 MWh of electricity per year, the equivalent of 690,000 gallons of oil. The island also uses its renewable biomass resource for heating, using three straw-fired plants and a 900kw wood chip boiler.
Wildpoldsried's mayor points out that the renewable approach requires strong support from the citizens and the village council. The model cannot be forced from only one side, he says. He spends a lot of time talking to visitors about how to motivate local politicians to start thinking differently. He shows them a best practice model in motion and many see the benefits immediately. Guests understand how well things can operate when you have the enthusiasm and conviction of the people behind it. Saskatoon take note.
It also helps to have national or provincial policies like a feed-in tariff in place to make it economic to promote novel power sources like wind and solar. Germany, which has recently decided to phase out nuclear power and go all out on renewable sources, has such a feed-in tariff. It is now moving to create a smart energy grid to better manage multiple renewable power sources. Saskatchewan take note.
Meanwhile, Japan has positioned itself as the next large growth market for renewable energy. Its upper chamber of parliament recently approved legislation that will create a national feed-in tariff. The new law is expected to bolster solar, wind and geothermal projects by mandating that utilities buy power from renewable sources at above-market rates.
Japan has decided to move from nuclear to the renewable option following the Fukushima nuclear plant meltdowns. Some 85 per cent of the population supports the immediate or gradual phase out of nuclear power, according to a recent poll.
Rather than back more nuclear research or clean coal, Saskatchewan would do well to look at a feed-in tariff and other policies to promote renewable options.
Read more: http://www.thestarphoenix.com/news/Local+green+energy+park+part+global+trend/5325695/story.html#ixzz1WWIMx100
Monday, August 29, 2011
WMCZ awarded the 2011 Global Award for the Electricity Regulation Law Firm of the Year in Canada by Corporate INTL Magazine
WMCZ is proud to be recognized as Canada's Electricity Regulation law firm of the year by Corporate INTL magazine. WMCZ's Energy Law group advises energy companies, utilities, developers, landowners, municipalities and First Nations on power procurement, power generation and commercial transactions in Canada.
Corporate INTL is one of the leading titles for business leaders, professional advisers and providers of finance throughout the world.
Corporate INTL is one of the leading titles for business leaders, professional advisers and providers of finance throughout the world.
Friday, August 26, 2011
M&A heats up in Saskatchewan as Cameco announces intention to buy Hathor for $520 million CAD
Saskatoon-based Cameco Corporation, the largest uranium miner in the world, just announced this morning plans to buy its junior peer Hathor Exploration Ltd. for cash consideration of $3.75 per share in a transaction which values the fully diluted share capital of Hathor at approximately $520 million CAD, after talks for a potential board-supported deal failed.
Hathor is a junior uranium company focused on exploration projects in the Athabasca Basin of northern Saskatchewan, Canada. The company's most significant asset is the Roughrider uranium deposit. The Roughrider deposit is estimated to contain indicated and inferred resources of approximately 17.2 and 40.7 million pounds of uranium. The deposit is located approximately 25 kilometres northwest of Cameco's Rabbit Lake mill.
Hathor is a junior uranium company focused on exploration projects in the Athabasca Basin of northern Saskatchewan, Canada. The company's most significant asset is the Roughrider uranium deposit. The Roughrider deposit is estimated to contain indicated and inferred resources of approximately 17.2 and 40.7 million pounds of uranium. The deposit is located approximately 25 kilometres northwest of Cameco's Rabbit Lake mill.
Hitachi and Saskatchewan deepen relationship with $10 million CAD R&D Agreement for nuclear medicine technology
Tokyo-based Hitachi Ltd. and the Government of Saskatchewan announced yesterday that they have signed an MOU regarding joint research and development (R&D) of nuclear medicine technology. Saskatchewan has also signed an MOU with Hitachi-GE Nuclear Energy, Ltd., GE Hitachi Nuclear Energy Americas LLC (GEH), and Global Nuclear Fuel -- Americas, LLC (GNF-A) to discuss the potential of working together on future nuclear R&D projects of mutual interest including nuclear safety, uranium recovery and design of small modular reactor technologies.
Hitachi and Saskatchewan have an impressive 40-year history of successful collaboration in the power generation field, including work on coal, natural gas and wind generation technologies. In 1988, Hitachi established Hitachi Canadian Industries Ltd. in Saskatoon, Saskatchewan as a manufacturing base for power generation equipment, deepening its relationship with SaskPower and the province. In February 2010, SaskPower and Hitachi agreed to collaborate on the advancement and implementation of technology in the fields of low-carbon energy technologies, including Carbon Capture & Storage (CCS). Hitachi is also providing an innovative, first-of-its-kind turbine and generator for SaskPower's world leading Boundary Dam Integrated CCS project. In May 2010, Saskatchewan and Hitachi reached a landmark agreement with the signing of a joint declaration to work together and share information for developing energy and environmental technologies, including CCS for thermal power plants, renewable energy and smart grid technologies.
With today's announcement, Saskatchewan and Hitachi have deepened the cooperation further by R&D into nuclear medicine technology.
Eighteen CANDU (Canada Deuterium Uranium) reactors are currently in operation in Canada, delivering about 15% of the country's overall generating capacity. Canada is the world's largest producer of uranium. All of Canada's uranium is produced in Saskatchewan largely by Saskatoon-based uranium giant Cameco Corporation.
Saskatchewan, Hitachi-GE, GEH, and GNF-A plan to collaborate on potential nuclear R&D projects of mutual interest including design and feasibility of small modular reactors technologies and reclamation of unused uranium fuel from new fuel rods that have been rejected for use in reactors as a result of quality control programs.
Source (in part): Hitachi Press Release dated August 25, 2011
Hitachi and Saskatchewan have an impressive 40-year history of successful collaboration in the power generation field, including work on coal, natural gas and wind generation technologies. In 1988, Hitachi established Hitachi Canadian Industries Ltd. in Saskatoon, Saskatchewan as a manufacturing base for power generation equipment, deepening its relationship with SaskPower and the province. In February 2010, SaskPower and Hitachi agreed to collaborate on the advancement and implementation of technology in the fields of low-carbon energy technologies, including Carbon Capture & Storage (CCS). Hitachi is also providing an innovative, first-of-its-kind turbine and generator for SaskPower's world leading Boundary Dam Integrated CCS project. In May 2010, Saskatchewan and Hitachi reached a landmark agreement with the signing of a joint declaration to work together and share information for developing energy and environmental technologies, including CCS for thermal power plants, renewable energy and smart grid technologies.
With today's announcement, Saskatchewan and Hitachi have deepened the cooperation further by R&D into nuclear medicine technology.
Eighteen CANDU (Canada Deuterium Uranium) reactors are currently in operation in Canada, delivering about 15% of the country's overall generating capacity. Canada is the world's largest producer of uranium. All of Canada's uranium is produced in Saskatchewan largely by Saskatoon-based uranium giant Cameco Corporation.
Saskatchewan, Hitachi-GE, GEH, and GNF-A plan to collaborate on potential nuclear R&D projects of mutual interest including design and feasibility of small modular reactors technologies and reclamation of unused uranium fuel from new fuel rods that have been rejected for use in reactors as a result of quality control programs.
Source (in part): Hitachi Press Release dated August 25, 2011
Tuesday, August 23, 2011
Not In My Baltic Sea! Finns up in arms as E.ON plans 1000 MW wind farm
Helsingin Sanomat, the Finnish daily national newspaper reported this week that a Swedish subsidiary of the European energy giant, E.ON is planning on developing a 1000 MW offshore windfarm in the Baltic Sea near the Åland Islands (Ahvenanmaa in Finnish).
300 turbines are proposed to be built approximately 100 kilometres South of the tip of the Åland Islands. The generation would be fed into the marine transmission cable which is planned between Sweden and Lithuania.
The Swedish Environmental Protection Authority has recently informed the Finnish environmental authorities that the project's environmental impact assessment has commenced.
Unfortunately, Finland has generally taken "Not In My Back Yard" approach to windfarm development. Helsingin Sanomat reports that the Finnish Ministry of the Environment is expressing concerns that the project poses a significant environmental impact to Finland and will likely request to participate in the environmental impact assessment.
In addition, the Finnish Ministry of Environment is already expressing concerns the project would pose significant risk to the flyways of migratory birds.
Furthermore, in what would seem to me to be an incredible stretch of the current state of scientific knowledge, the Finnish Ministry of Environment is indicating that the proposed project "would affect water quality" in the Baltic Sea.
I can already anticipate challenges with this project as the Åland Islands have an autonomous status and the powers exercised at the provincial level by representatives of the central state administration in the rest of Finland are largely exercised by the Government of Åland in Åland. By act of law, Åland is exclusively Swedish-speaking, with over 90% of the population speaking Swedish as their native language and only 5% speaking Finnish.
The Åland Islands were part of the Kingdom of Sweden from the early 13th century until 1809, when Sweden relinquished Åland and Finland to Russia. The Russians quickly incorporated Åland with Finland. When the Russian empire disintegrated, the League of Nations decided in 1921 that Finland should receive sovereignty over the Åland Islands.
The full article is available in Finnish in the Helsingin Sanomat below:
http://www.hs.fi/talous/artikkeli/Energiayhti%C3%B6+EON+havittelee+j%C3%A4ttim%C3%A4ist%C3%A4+tuulivoimaryv%C3%A4st%C3%A4+It%C3%A4merelle/1135268741929
300 turbines are proposed to be built approximately 100 kilometres South of the tip of the Åland Islands. The generation would be fed into the marine transmission cable which is planned between Sweden and Lithuania.
The Swedish Environmental Protection Authority has recently informed the Finnish environmental authorities that the project's environmental impact assessment has commenced.
Unfortunately, Finland has generally taken "Not In My Back Yard" approach to windfarm development. Helsingin Sanomat reports that the Finnish Ministry of the Environment is expressing concerns that the project poses a significant environmental impact to Finland and will likely request to participate in the environmental impact assessment.
In addition, the Finnish Ministry of Environment is already expressing concerns the project would pose significant risk to the flyways of migratory birds.
Furthermore, in what would seem to me to be an incredible stretch of the current state of scientific knowledge, the Finnish Ministry of Environment is indicating that the proposed project "would affect water quality" in the Baltic Sea.
I can already anticipate challenges with this project as the Åland Islands have an autonomous status and the powers exercised at the provincial level by representatives of the central state administration in the rest of Finland are largely exercised by the Government of Åland in Åland. By act of law, Åland is exclusively Swedish-speaking, with over 90% of the population speaking Swedish as their native language and only 5% speaking Finnish.
The Åland Islands were part of the Kingdom of Sweden from the early 13th century until 1809, when Sweden relinquished Åland and Finland to Russia. The Russians quickly incorporated Åland with Finland. When the Russian empire disintegrated, the League of Nations decided in 1921 that Finland should receive sovereignty over the Åland Islands.
The full article is available in Finnish in the Helsingin Sanomat below:
http://www.hs.fi/talous/artikkeli/Energiayhti%C3%B6+EON+havittelee+j%C3%A4ttim%C3%A4ist%C3%A4+tuulivoimaryv%C3%A4st%C3%A4+It%C3%A4merelle/1135268741929
Chicago Climate Futures Exchange to shut down
Citing ongoing financial losses and the hopelessness of any prospects for a U.S. climate action plan in the foreseeable future, Intercontinental Exchange Inc. announced that it will close the eight-year-old Chicago Climate Futures Exchange (CCFE) by the end of the first quarter of 2012.
The closing of the CCFE puts more pressure on the EU, Western Climate Initiative and the State of California to take the lead on emissions trading. The Canadian province of Saskatchewan is set to introduce their own emissions trading scheme but will likely wait until a larger jurisdiction or group takes the lead.
The closing of the CCFE puts more pressure on the EU, Western Climate Initiative and the State of California to take the lead on emissions trading. The Canadian province of Saskatchewan is set to introduce their own emissions trading scheme but will likely wait until a larger jurisdiction or group takes the lead.
Monday, August 22, 2011
Saskatchewan Research Council seeks expressions of interest for a 4.7 kW micro combined heat and power system in Saskatoon or Regina
The Saskatchewan Research Council (SRC) is looking for a small, commercial host demonstration site in Saskatoon (preferred) or Regina, to trial a Marathon ecopower™ 4.7 kW microCHP unit. The project is funded by SaskEnergy and SaskPower. The proposed, existing facility must already be heated by a boiler system and needs to have a heating load large enough to obtain optimum runtime for the microCHP system. Suggested facilities include buildings heated with inslab floor heating, a warehouse or shop, hotels, laundromats, carwashes, greenhouses or any facility with a heating demand that will maximize the microCHP system’s runtime.
SRC is conducting a demonstration project, which involves site-specific design, purchasing a Marathon ecopower™ 4.7 kW microCHP unit, installing it into the successful applicant’s building’s heating system and ongoing monitoring. The purpose of the project is to demonstrate the use of microCHP technology to determine and identify its overall efficiency, costs, benefits, issues, regulatory concerns and other related matters.
The closing time and date for Expressions of Interest is Thursday, September 15, 2011 at 2:00 p.m.
Additional information is available at http://www.src.sk.ca/html/research_technology/energy/alt_energy/microCHP/index.cfm.
SRC is conducting a demonstration project, which involves site-specific design, purchasing a Marathon ecopower™ 4.7 kW microCHP unit, installing it into the successful applicant’s building’s heating system and ongoing monitoring. The purpose of the project is to demonstrate the use of microCHP technology to determine and identify its overall efficiency, costs, benefits, issues, regulatory concerns and other related matters.
The closing time and date for Expressions of Interest is Thursday, September 15, 2011 at 2:00 p.m.
Additional information is available at http://www.src.sk.ca/html/research_technology/energy/alt_energy/microCHP/index.cfm.
Friday, August 12, 2011
Saskatchewan's Rise as a Renewable Energy Leader
An interesting article written by Sean Burns from www.RenewableEnergyWorld.com is reproduced below which was recently brought to my attention.
*****
It is about time the world sat up and took notice of Saskatchewan. Rarely does a historical polluter quietly turn into an unlikely candidate suddenly embracing the opportunity to lead the world in realizing a renewable energy future.
Countries like China, the US, and Brazil with the same type of resources as Saskatchewan could learn a few things from this quiet yet forward thinking Canadian province.
These lessons while wide-reaching, come down to having a future oriented utility enabled to change the status quo, effective government investment and planning, and policy that supports the establishment of the foundation for renewable generation.
SaskPower
The forward thinking utility leading the charge for Saskatchewan is the provincial supplier of electricity, public utility SaskPower. Serving almost 500,000 customers, SaskPower is one of the province's top employers with almost 2,500 permanent staff. The company manages $4.9 billion in generation, transmission, and distribution assets while operating three coal-fired power stations, seven hydroelectric stations, five natural gas stations, and two wind facilities.
For the first time in history, transitioning to a sustainable electricity system and a new operating model for SaskPower is no longer prohibited by lack of available technology. SaskPower has taken advantage of the opportunity and is standing out while bravely moving away from traditional carbon options by balancing its portfolio with financially viable alternative energy sources.
To push the boundaries of renewables, SaskPower, in partnership with Air Liquide Canada, Hitachi, Marubeni Canada, Babcock & Wilcox Canada, and Stantec, is currently undertaking a massive feasibility study on the design and engineering planning of a near-zero emission clean coal unit. This would be a first of its kind in the world and would be designed to use technology resulting in the capture of around 95% of the carbon dioxide that would typically be emitted. This equates to further possible reuse of existing fuel supplies and a way to reduce greenhouse gas emissions by an estimated 1 million tones per year.
Where SaskPower has not had the resources available, it has had the foresight to develop further revenue-building partnerships around a long-term plan to create and maintain a sustainable energy supply that balances economic, environmental and social requirements. This forms part of an ingenious short-, medium-, and long-term action plan involving the people and economy it serves.
Government
Supporting SaskPower's bold initiative is the Government of Saskatchewan. With an investment in over $500 million in sustainable and renewable energy projects, the government is quickly advancing the province's Green Strategy and Energy Climate Change Plan.
The government further backs using renewables to bridge the gap of loss over transmission lines in this expansive province. Government programs promote efficient use of electricity, closer to consumer renewable generation sources, and development of a mixed power portfolio with complimentary energy sources all equating to lower cost transitional measures contributing to a sustainable grid.
The government is also getting serious about further harnessing the power of the wind, a resource rich across Saskatchewan. Earlier this year, endorsed by the government, Algonquin Power & Utilities Corporation started the construction of the 26.4MW Red Lily Wind Project in the southeast of the province. With a capital investment of $67.5M, the project will consist of 16 wind turbine generators. Land rights have been secured for the second phase of the project, which will see an additional 106MW of generation come online. This is a huge step forward into wind power generation.
Existing wind farms in the province include Sunbridge and Cypress Wind Power Facility; both are located at Gull Lake and have a total capacity of roughly 11 MW. There is also the large SaskPower Centennial Wind Power Facility that has a capacity of 150 MW at Swift Current. This all supports the Canadian Wind Energy Association's strategy for nationwide wind power capacity by 2025 meeting 20% of the country's energy needs. Wind alone however will not build the steady base of level power Saskatchewan needs, a solid foundation for other types of renewable is required.
A Solid Foundation
Saskatchewan's Green Power Portfolio is now building a solid renewable foundation for this province. This includes an expansion of wind generation capability with an additional 100 MW by 2012, 50 MW of generation with the delivery of heat recovery projects, 20 MW of generation with the delivery of biomass forestry projects, and a reduction in overall electricity demand by 300 MW by 2017.
While the majority of energy across Canada is largely generated from water and hydrocarbons such as coal, natural gas, and oil, vast amounts of renewable energy resources exist at Saskatchewan's disposal beyond wind and includes solar, biomass, and geothermal options, which are planned to expand in use over the coming years. The province is also reported as having the best solar and wind resources available in the nation for which development plans are currently underway.
As SaskPower builds momentum with renewable energy projects, the government of Saskatchewan is simultaneously creating a growing industry for other players in the renewable market to improve the province's economy.
With companies like SaskPower modernizing and supporting the growth of the renewable industry while working with the government and local economy to realize a new future in energy, the momentum underway in Saskatchewan is beginning to position the province well to leave its heavy pollution history behind and achieving world first breakthroughs in sustainable energy supply that the rest of the world can learn from.
*****
I will be camping in a fairly remote part of the Canadian Shield in Northern Manitoba with no access to technology other than a canoe and fishing rod - so no blog updates next week.
*****
It is about time the world sat up and took notice of Saskatchewan. Rarely does a historical polluter quietly turn into an unlikely candidate suddenly embracing the opportunity to lead the world in realizing a renewable energy future.
Countries like China, the US, and Brazil with the same type of resources as Saskatchewan could learn a few things from this quiet yet forward thinking Canadian province.
These lessons while wide-reaching, come down to having a future oriented utility enabled to change the status quo, effective government investment and planning, and policy that supports the establishment of the foundation for renewable generation.
SaskPower
The forward thinking utility leading the charge for Saskatchewan is the provincial supplier of electricity, public utility SaskPower. Serving almost 500,000 customers, SaskPower is one of the province's top employers with almost 2,500 permanent staff. The company manages $4.9 billion in generation, transmission, and distribution assets while operating three coal-fired power stations, seven hydroelectric stations, five natural gas stations, and two wind facilities.
For the first time in history, transitioning to a sustainable electricity system and a new operating model for SaskPower is no longer prohibited by lack of available technology. SaskPower has taken advantage of the opportunity and is standing out while bravely moving away from traditional carbon options by balancing its portfolio with financially viable alternative energy sources.
To push the boundaries of renewables, SaskPower, in partnership with Air Liquide Canada, Hitachi, Marubeni Canada, Babcock & Wilcox Canada, and Stantec, is currently undertaking a massive feasibility study on the design and engineering planning of a near-zero emission clean coal unit. This would be a first of its kind in the world and would be designed to use technology resulting in the capture of around 95% of the carbon dioxide that would typically be emitted. This equates to further possible reuse of existing fuel supplies and a way to reduce greenhouse gas emissions by an estimated 1 million tones per year.
Where SaskPower has not had the resources available, it has had the foresight to develop further revenue-building partnerships around a long-term plan to create and maintain a sustainable energy supply that balances economic, environmental and social requirements. This forms part of an ingenious short-, medium-, and long-term action plan involving the people and economy it serves.
Government
Supporting SaskPower's bold initiative is the Government of Saskatchewan. With an investment in over $500 million in sustainable and renewable energy projects, the government is quickly advancing the province's Green Strategy and Energy Climate Change Plan.
The government further backs using renewables to bridge the gap of loss over transmission lines in this expansive province. Government programs promote efficient use of electricity, closer to consumer renewable generation sources, and development of a mixed power portfolio with complimentary energy sources all equating to lower cost transitional measures contributing to a sustainable grid.
The government is also getting serious about further harnessing the power of the wind, a resource rich across Saskatchewan. Earlier this year, endorsed by the government, Algonquin Power & Utilities Corporation started the construction of the 26.4MW Red Lily Wind Project in the southeast of the province. With a capital investment of $67.5M, the project will consist of 16 wind turbine generators. Land rights have been secured for the second phase of the project, which will see an additional 106MW of generation come online. This is a huge step forward into wind power generation.
Existing wind farms in the province include Sunbridge and Cypress Wind Power Facility; both are located at Gull Lake and have a total capacity of roughly 11 MW. There is also the large SaskPower Centennial Wind Power Facility that has a capacity of 150 MW at Swift Current. This all supports the Canadian Wind Energy Association's strategy for nationwide wind power capacity by 2025 meeting 20% of the country's energy needs. Wind alone however will not build the steady base of level power Saskatchewan needs, a solid foundation for other types of renewable is required.
A Solid Foundation
Saskatchewan's Green Power Portfolio is now building a solid renewable foundation for this province. This includes an expansion of wind generation capability with an additional 100 MW by 2012, 50 MW of generation with the delivery of heat recovery projects, 20 MW of generation with the delivery of biomass forestry projects, and a reduction in overall electricity demand by 300 MW by 2017.
While the majority of energy across Canada is largely generated from water and hydrocarbons such as coal, natural gas, and oil, vast amounts of renewable energy resources exist at Saskatchewan's disposal beyond wind and includes solar, biomass, and geothermal options, which are planned to expand in use over the coming years. The province is also reported as having the best solar and wind resources available in the nation for which development plans are currently underway.
As SaskPower builds momentum with renewable energy projects, the government of Saskatchewan is simultaneously creating a growing industry for other players in the renewable market to improve the province's economy.
With companies like SaskPower modernizing and supporting the growth of the renewable industry while working with the government and local economy to realize a new future in energy, the momentum underway in Saskatchewan is beginning to position the province well to leave its heavy pollution history behind and achieving world first breakthroughs in sustainable energy supply that the rest of the world can learn from.
*****
I will be camping in a fairly remote part of the Canadian Shield in Northern Manitoba with no access to technology other than a canoe and fishing rod - so no blog updates next week.
Friday, August 5, 2011
Blackstone private equity to invest 2.5 billion EUR to develop German offshore wind farms
In a surprising move, Blackstone Group LP, one of the largest private equity firms in the world, announced that the firm plans to invest 2.5 billion EUR into the construction of one of Germany’s biggest offshore wind farms. This move is unusual as private equity investors tend to invest in wind farms that have been commissioned or are close to completion rather than wind farms yet to be built. The investment by Blackstone is one of the largest moves into renewable energy by a global buy-out group. This move by Blackstone could open up other private equity financing opportunities for developers with early-stage projects. The 80 turbine 288 MW offshore “Meerwind” project in the North Sea is set to produce enough power to service 400,000 households. Blackstone will also invest in a second offshore project consisting of 64 wind turbines for which it has already acquired a permit. Siemens AG is providing the 80 wind turbines for the Meerwind project. WindMW, the project developer, was established in 2008 as a Blackstone portfolio company to develop German offshore wind farms. The Meerwind concession area is 50 km off the coast of Germany, Northwest of Helgoland. WindMW was advised by Green Giraffe Energy Bankers, KfW-IPEX and Dexia (financing), Gleiss Lutz (legal), NWA (insurance) and Ernst & Young (tax).
Thursday, August 4, 2011
Cameco sees slight decrease in uranium demand and reactors after Japan disaster
Saskatoon-based uranium giant Cameco Corporation trimmed its global uranium demand forecast today due to the Fukushima disaster. Over the next 10 years, Cameco sees a global uranium demand of 2.2 billion pounds which is down slightly from its prior forecast of 2.1 billion. Further, Cameco sees 85 net new nuclear reactors online by 2020, compared with its previous estimate of 90. The Financial Post reported today that “the relatively small decline reflects the fact that most countries are maintaining nuclear power as a key part of their energy mix despite Fukushima (though Germany is one exception).”
“We continue to expect annual global consumption to exceed annual global mine production by a significant margin over the next 10 years, a situation that has existed since about 1986,” Cameco said in a statement, adding that it expects about 270 million pounds of new uranium supply will be required to meet demand over the next decade. Its previous estimate was 320 million pounds.
Tim Gitzel, the new Cameco CEO noted that Cameco remains confident about uranium market fundamentals, and that the need for nuclear power as part of the world’s energy mix “remains as compelling as ever.”
Cameco also said the company is on track to reach production at the Cigar Lake mine in Saskatchewan by mid-2013. The Cigar Lake project has faced multiple setbacks due to flooding but is a crucial part of the company’s plan to double uranium production to 40 million pounds a year by 2018.
“We continue to expect annual global consumption to exceed annual global mine production by a significant margin over the next 10 years, a situation that has existed since about 1986,” Cameco said in a statement, adding that it expects about 270 million pounds of new uranium supply will be required to meet demand over the next decade. Its previous estimate was 320 million pounds.
Tim Gitzel, the new Cameco CEO noted that Cameco remains confident about uranium market fundamentals, and that the need for nuclear power as part of the world’s energy mix “remains as compelling as ever.”
Cameco also said the company is on track to reach production at the Cigar Lake mine in Saskatchewan by mid-2013. The Cigar Lake project has faced multiple setbacks due to flooding but is a crucial part of the company’s plan to double uranium production to 40 million pounds a year by 2018.
Wednesday, August 3, 2011
Pteragen/Renovalia wind project moves forward in Alberta
Wind farm generator, Pteragen Canada Inc., a subsidiary of Spanish renewable energy developer, Renovalia Energy Inc. has just applied to the Alberta Electric System Operator (AESO), to interconnect a 116 MW wind power facility to the transmission system in the Peace Butte area in the Medicine Hat planning Area of Southern Alberta. Pteragen plans to build a collector substation to be called “Tothill 219S” as part of their project. In order to connect Pteragen’s collector substation to the Alberta Interconnected Electric System AltaLink will need to construct approximately 300 m of 138 kV transmission line and connect that newly constructed line to the existing transmission line in the area called “600L”. The AESO intends to apply to the Alberta Utilities Commission (AUC) for approval of the need identified for transmission development in the Peace Butte area of the Medicine Hat planning area in late August, 2011. Renovalia is targeting Q3 of 2012 for the operation date of the Peace Butte wind farm.
Tuesday, August 2, 2011
Wind opponents suffer another defeat in Ontario
Ontario Review Tribunal Case No. 10-121/10-122, Erickson v. Director, Ministry of the Environment is an appeal of Suncor’s Kent Breeze Wind Farm Project (the “Project”). The case has largely been a test of whether wind turbines in Ontario will cause serious harm to human health and not related to the particular Project. The parties called experts from all over the world to speak to the issue of whether the Project, which was approved according to Ontario’s Ministry of the Environment Noise Guidelines for Wind Farms and Ontario Regulation 359/09 made under the Environmental Protection Act (Ontario), will seriously harm humans living nearby.
In a blow to wind farm opponents, the Environmental Review Tribunal found that the Appellants failed to show that Suncor’s Kent Breeze Project, as approved, will cause serious harm to human health. According to the evidence at the hearing, where an impressive array of leading experts from around the world testified on cutting edge areas of scientific inquiry, the Tribunal could not find that the Kent Breeze Project operated according to the current Ontario standards “will cause serious
harm to human health”. That is the test in the statute, but the evidence presented in the Hearing was insufficient to meet it.
The full 223 page decision is available here: http://www.ert.gov.on.ca/english/decisions/index.htm
In a blow to wind farm opponents, the Environmental Review Tribunal found that the Appellants failed to show that Suncor’s Kent Breeze Project, as approved, will cause serious harm to human health. According to the evidence at the hearing, where an impressive array of leading experts from around the world testified on cutting edge areas of scientific inquiry, the Tribunal could not find that the Kent Breeze Project operated according to the current Ontario standards “will cause serious
harm to human health”. That is the test in the statute, but the evidence presented in the Hearing was insufficient to meet it.
The full 223 page decision is available here: http://www.ert.gov.on.ca/english/decisions/index.htm
Friday, July 29, 2011
CCPA report sets renewable targets for Saskatchewan
The Canadian Centre for Policy Alternatives (CCPA) released a report yesterday entitled “Transforming Saskatchewan’s Electrical Future: The Public Policies Needed to Build a Renewable Energy Society in Saskatchewan.” The report calls on Saskatchewan to phase out its fleet of coal-fired electrical generating stations and use wind, solar, small-scale hydro and biomass to transform Saskatchewan into a renewable energy leader.
The CCPA report recommends that the province set several targets, including:
- Saskatchewan should supply at least 40 per cent of its electricity needs from renewable energy sources by 2020, which would more than double the contribution of renewable electricity to the province's grid by the end of the decade;
- By 2018, SaskPower should install 600 megawatts (MW) of wind power, 125 MW of small-scale hydro and 125 MW of biomass generation;
- Coal-fired power plants should be gradually phased out in Saskatchewan. Over the next eight years. 400 MW of coal-fired power production could be shut down.
Saskatchewan is currently doubling the wind power capacity in the province right now and is going from 4.7 percent to 8.5 percent of total capacity by 2015 which will be one of the highest percentages of wind power of any North American jurisdiction.
The full report is available for download here: http://www.policyalternatives.ca/sites/default/files/uploads/publications/Saskatchewan%20Office/2011/07/SK%20Electrical%20Future%20-%20Part%205-2.pdf
The CCPA report recommends that the province set several targets, including:
- Saskatchewan should supply at least 40 per cent of its electricity needs from renewable energy sources by 2020, which would more than double the contribution of renewable electricity to the province's grid by the end of the decade;
- By 2018, SaskPower should install 600 megawatts (MW) of wind power, 125 MW of small-scale hydro and 125 MW of biomass generation;
- Coal-fired power plants should be gradually phased out in Saskatchewan. Over the next eight years. 400 MW of coal-fired power production could be shut down.
Saskatchewan is currently doubling the wind power capacity in the province right now and is going from 4.7 percent to 8.5 percent of total capacity by 2015 which will be one of the highest percentages of wind power of any North American jurisdiction.
The full report is available for download here: http://www.policyalternatives.ca/sites/default/files/uploads/publications/Saskatchewan%20Office/2011/07/SK%20Electrical%20Future%20-%20Part%205-2.pdf
Thursday, July 28, 2011
Metso to supply combined heat and power biomass boiler plants to Finland and Latvia
Metso will supply boiler plants for the combined heat and power (CHP) cogeneration production to Fortum Power and Heat Oy in Järvenpää, Finland and to Fortum Jelgava SIA in Jelgava, Latvia. The plants will provide district heat to the towns of Järvenpää and Tuusula in Finland and Jelgava in Latvia, as well as electricity to the grid.
For both Järvenpää and Jelgava, Metso’s EPC delivery is a full-scope solution from fuel feeding to flue gas cleaning. The plants are designed to use biomass fuels including peat and some clean recycled wood, replacing natural gas and oil in the existing plants. The investments help to reduce CO2 emissions and increase the use of local biofuels in both the regions of Järvenpää and Jelgava.
The two boiler plants with approximately 70MWth steam capacity will use bubbling fluidised bed (BFB) technology. The boilers will produce high pressure steam of 117 bar(g) and 527 °C. The annual production of the Järvenpää plant is about 280GWh of heat and about 130GWh of electricity, whereas the Jelgava plant produces 230GWh of heat and 110GWh of electricity.
Fortum is currently expanding its CHP business in the Baltic Rim area. Their first CHP plant in Estonia, supplied by Metso, was started up in 2009, and they continued on to complete several other projects in the area. In these CHP plants Fortum invests in renewable energy production with high power-to-heat ratio. The Jelgava plant is the first biofuel plant of this scale in Latvia.
Biomass combined heat and power and cogeneration is particularly well-suited to Northern First Nations communities in Canada which have abundant biomass resources but limited or non-existent access to natural gas for heating or electricity from the grid. In Saskatchewan, I would expect that the First Nations Power Authority would be looking carefully at biomass combined heat and power projects for northern First Nations communities. There are numerous other opportunities across Canada for combined heat and power and cogeneration projects in the far North of Canada where heat and electricity is generated from diesel in many remote locations.
For both Järvenpää and Jelgava, Metso’s EPC delivery is a full-scope solution from fuel feeding to flue gas cleaning. The plants are designed to use biomass fuels including peat and some clean recycled wood, replacing natural gas and oil in the existing plants. The investments help to reduce CO2 emissions and increase the use of local biofuels in both the regions of Järvenpää and Jelgava.
The two boiler plants with approximately 70MWth steam capacity will use bubbling fluidised bed (BFB) technology. The boilers will produce high pressure steam of 117 bar(g) and 527 °C. The annual production of the Järvenpää plant is about 280GWh of heat and about 130GWh of electricity, whereas the Jelgava plant produces 230GWh of heat and 110GWh of electricity.
Fortum is currently expanding its CHP business in the Baltic Rim area. Their first CHP plant in Estonia, supplied by Metso, was started up in 2009, and they continued on to complete several other projects in the area. In these CHP plants Fortum invests in renewable energy production with high power-to-heat ratio. The Jelgava plant is the first biofuel plant of this scale in Latvia.
Biomass combined heat and power and cogeneration is particularly well-suited to Northern First Nations communities in Canada which have abundant biomass resources but limited or non-existent access to natural gas for heating or electricity from the grid. In Saskatchewan, I would expect that the First Nations Power Authority would be looking carefully at biomass combined heat and power projects for northern First Nations communities. There are numerous other opportunities across Canada for combined heat and power and cogeneration projects in the far North of Canada where heat and electricity is generated from diesel in many remote locations.
Wednesday, July 27, 2011
AEP suspends carbon capture and storage plant in the US – Stantec awarded $30 million CAD carbon capture and storage contract in Saskatchewan
In a blow to proponents of clean coal technology and the prospects for carbon capture and storage (CCS) in the United States, American Electric Power (AEP) has decided to suspend plans to build a commercial-scale carbon-capture plant at its Mountaineer coal-fired generating facility in West Virginia. AEP, which for nearly two years had been successfully testing a chilled ammonia system provided by Alstom Power at the Mountaineer plant, said that the decision to terminate its agreement with the U.S. Department of Energy was based on the uncertain status of U.S. climate policy and the weak US economy.
The commercialization of CCS technology is vital if owners of coal-fueled generation in the US are to comply with potential future climate regulations without prematurely retiring efficient, cost-effective generating capacity. The problem AEP is facing is that as a regulated utility in the US, it is impossible for AEP to get regulatory approval to recover their share of the costs for validating and deploying the CCS technology without US federal requirements to reduce greenhouse gas emissions already in place. The uncertainty in the US regarding greenhouse gas emissions also makes it difficult for utilities like AEP to attract partners for financing.
Meanwhile, in Canada, SaskPower continues to move forward with the $1.24 billion CAD Boundary Dam Integrated Carbon Capture and Storage Demonstration Project in southern Saskatchewan. The Boundary Dam Project which will be among the first commercial-scale carbon capture and storage facilities in the world when it begins operating in 2014.
On July 15, 2011 SaskPower announced the award of a $30 million CAD contract to Stantec to provide engineering consulting services during the design and construction phase of the Boundary Dam Integrated Carbon Capture and Storage Demonstration Project.
Stantec is one of several major firms involved in the Boundary Dam project in Saskatchewan, which will see Unit 3 at Boundary Dam Power Station rebuilt and equipped with a fully-integrated carbon capture system that will reduce greenhouse gas emissions by one million tonnes per year. SaskPower approved the Boundary Dam project earlier this year and construction started in April, 2011. The new generating unit at Boundary Dam will have 110 MW of capacity. Carbon dioxide (CO2) captured at Boundary Dam will be sold for enhanced oil recovery operations. Sulfur dioxide (SO2) will also be captured and sold to manufacturers of sulfuric acid.
The commercialization of CCS technology is vital if owners of coal-fueled generation in the US are to comply with potential future climate regulations without prematurely retiring efficient, cost-effective generating capacity. The problem AEP is facing is that as a regulated utility in the US, it is impossible for AEP to get regulatory approval to recover their share of the costs for validating and deploying the CCS technology without US federal requirements to reduce greenhouse gas emissions already in place. The uncertainty in the US regarding greenhouse gas emissions also makes it difficult for utilities like AEP to attract partners for financing.
Meanwhile, in Canada, SaskPower continues to move forward with the $1.24 billion CAD Boundary Dam Integrated Carbon Capture and Storage Demonstration Project in southern Saskatchewan. The Boundary Dam Project which will be among the first commercial-scale carbon capture and storage facilities in the world when it begins operating in 2014.
On July 15, 2011 SaskPower announced the award of a $30 million CAD contract to Stantec to provide engineering consulting services during the design and construction phase of the Boundary Dam Integrated Carbon Capture and Storage Demonstration Project.
Stantec is one of several major firms involved in the Boundary Dam project in Saskatchewan, which will see Unit 3 at Boundary Dam Power Station rebuilt and equipped with a fully-integrated carbon capture system that will reduce greenhouse gas emissions by one million tonnes per year. SaskPower approved the Boundary Dam project earlier this year and construction started in April, 2011. The new generating unit at Boundary Dam will have 110 MW of capacity. Carbon dioxide (CO2) captured at Boundary Dam will be sold for enhanced oil recovery operations. Sulfur dioxide (SO2) will also be captured and sold to manufacturers of sulfuric acid.
Tuesday, July 26, 2011
Sea Breeze Power Corp. closes $12 million CAD sale of 99 MW Cape Scott Wind Farm in British Columbia to IPR - GDF SUEZ North America
Sea Breeze Power Corp. (“Sea Breeze”) is pleased to announce that it has closed an “Asset Purchase” transaction (the “Transaction”) with IPR - GDF SUEZ North America (“IPR - GDF SUEZ”) for the 99 MW “Phase 1” of the Knob Hill Wind Farm
project (the “Project”).
Total transaction payments expected to be received by Sea Breeze (as of the date of commercial operations) will amount to approximately $12 million CAD, which include “milestone” payments amounting to $1,865,000 CAD, triggered at the Transaction’s close. Additional milestone payments will be paid as the Project moves through construction and into commercial production. IPR - GDF SUEZ will provide 100% of the equity funding for the Project.
“We are delighted to announce the completion of the transaction for Phase One, which represents the first of several high-quality wind energy projects that Sea Breeze has been developing,” said Paul Manson, CEO of Sea Breeze. “IPR - GDF SUEZ is a world market leader in energy generation.”
The Project has been renamed the “Cape Scott Wind Farm” as an element of the Transaction. Construction for the Project is expected to begin during the summer of 2011, following the completion of amendments to the existing environmental approvals for the wind farm. The amendments relate to the Project’s transmission line to Port Hardy.
The Project, based on a 20-year Electricity Purchase Agreement (“EPA”) executed with British Columbia Hydro and Power Authority (“BC Hydro”), represents the first of two phases for development of the Cape Scott Wind Farm site. IPR - GDF SUEZ holds a “Right of First Offer” to acquire the balance of the permit land available for Phase 2.
In addition to payments for the Transaction, Sea Breeze will receive an ongoing royalty based on a percentage of gross revenue generated by the project through the 20 year BC Hydro EPA, and holds an option to acquire a 10% equity interest in the Project
The Project enjoys strong support from residents of the region, and the Quatsino, Tlatlasikwala and Kwakiutl First Nations, on whose traditional territories the Project is situated.
Source: Sea Breeze Corp. Press Release
project (the “Project”).
Total transaction payments expected to be received by Sea Breeze (as of the date of commercial operations) will amount to approximately $12 million CAD, which include “milestone” payments amounting to $1,865,000 CAD, triggered at the Transaction’s close. Additional milestone payments will be paid as the Project moves through construction and into commercial production. IPR - GDF SUEZ will provide 100% of the equity funding for the Project.
“We are delighted to announce the completion of the transaction for Phase One, which represents the first of several high-quality wind energy projects that Sea Breeze has been developing,” said Paul Manson, CEO of Sea Breeze. “IPR - GDF SUEZ is a world market leader in energy generation.”
The Project has been renamed the “Cape Scott Wind Farm” as an element of the Transaction. Construction for the Project is expected to begin during the summer of 2011, following the completion of amendments to the existing environmental approvals for the wind farm. The amendments relate to the Project’s transmission line to Port Hardy.
The Project, based on a 20-year Electricity Purchase Agreement (“EPA”) executed with British Columbia Hydro and Power Authority (“BC Hydro”), represents the first of two phases for development of the Cape Scott Wind Farm site. IPR - GDF SUEZ holds a “Right of First Offer” to acquire the balance of the permit land available for Phase 2.
In addition to payments for the Transaction, Sea Breeze will receive an ongoing royalty based on a percentage of gross revenue generated by the project through the 20 year BC Hydro EPA, and holds an option to acquire a 10% equity interest in the Project
The Project enjoys strong support from residents of the region, and the Quatsino, Tlatlasikwala and Kwakiutl First Nations, on whose traditional territories the Project is situated.
Source: Sea Breeze Corp. Press Release
Friday, July 22, 2011
1046 MW of renewable energy contracts awarded under Ontario FIT
The Ontario Power Authority has awarded feed-in-tariff (FIT) contracts to 19 wind projects totalling 1018.4 MW and six solar PV projects totalling 27.5 MW. The projects are located in the southwestern part of the Canadian province of Ontario and will be brought online through the Bruce-to-Milton transmission reinforcement project.
The complete project list is available here: http://fit.powerauthority.on.ca/sites/default/files/Bruce-Milton%20Contract%20List%20-%20July%204%202011%20(7)%20SECURED.PDF
The complete project list is available here: http://fit.powerauthority.on.ca/sites/default/files/Bruce-Milton%20Contract%20List%20-%20July%204%202011%20(7)%20SECURED.PDF
Wednesday, July 20, 2011
Sunny Saskatchewan a potential solar power leader
I have reposted an interesting article in the Vancouver Sun yesterday. It is only a matter of time before a solar PV developer recognizes the potential in Saskatchewan and starts development of a utility-scale solar PV project. I was quite surprised when SaskPower announced the winners of the 50 MW Green Options Partners Program earlier this month and not a single solar PV project was awarded.
*****
Given few places in the world are better suited to deploying the solar solution, the potential exists to build a major solar industry in Saskatchewan. And while the end of Saskatchewan's renewable energy incentive last March may be a threat to existing solar companies, it is also an opportunity to create better policy and programs to strengthen the industry.
Generally sunny conditions in Canada mean the potential for solar power generation here is significantly superior to many other countries, including Germany, the nation with more than 50 per cent of the world's operating solar technology. In Canada, the best conditions for solar are in the prairies, and especially Saskatchewan, which has the most bright sunshine of any province.
That's why the Canadian Solar Industries Association (CanSIA) - a trade association that represents 650 solar companies - anticipates big growth for their industry here and across the country. By 2025, CanSIA hopes to see solar energy widely deployed throughout Canada, its market competitiveness such that the government incentives are unnecessary, and recognized as an established component of Canada's energy mix. They envision a solar industry that supports more than 35,000 jobs and displaces 15 million to 31 million tonnes of greenhouse gas emissions per year - providing a safer, cleaner environment.
CanSIA believes that Saskatchewan has the potential to be a solar energy leader given its excellent solar resource, rising electrical demand, distributed power-consumer base, the need to replace aging generation infrastructure, an existing power supply that is more greenhouse gas intensive than most other provinces, as well as aggressive targets for energy conservation (150 MW reduction by 2017).
They point out that solar energy technology is quickly deplorable, scalable and a complementary option to the available solutions for securing a clean, affordable and reliable energy mix.
Of course a solar industry can't take off without some public incentives. It is standard practice to support a new industry until it can stand on its own and CanSIA has proposed its wish list of policy measures to the Saskatchewan government. First, the province should explore innovative financing mechanisms that would provide private business with better access to capital through measures such as government-backed loans, utility bill financing and the use of municipal tax incentives and loans assigned to property.
Second, there should be a transition from programs (such as Saskatchewan's Net Metering Rebate that ended in March) that provide an incentive for installing solar panels to programs that reward energy production performance. The old program provided 35 per cent rebates of the total system installed up to $35,000. CanSIA points out that while the rebate was popular with consumers, it sometimes led to solar installations that operated sub-optimally, given all systems received the same rebate regardless of actual performance.
A better approach would be a program that pays an incentive only on electricity produced. This would create an incentive to ensure any system installed performs optimally. It would also prevent funds being spent on under-performing equipment and maximize the return on investment for public funds.
This approach, used in a number of jurisdictions around the world, pays solar producers a premium price for excess electricity they produce for sale to the energy utility. The premium price helps to build the industry and recognizes he social and environmental benefits of renewable power over fossil fuels.
CanSIA also recommends that whatever policy is adopted in Saskatchewan should be stable. Rebates and incentives that last for a year or two and then end abruptly lead to a boom and bust cycle for the industry. Programs that are put in place should be designed to ensure the industry grows sustainably until it can stand on its own without public funding.
CanSIA points out that solar has many spin off benefits. If 20 MW of solar were installed in Saskatchewan in 2012, for example, 700 direct jobs and many more indirect jobs would be created. As industry capacity and momentum increased in subsequent years, Government investment in the industry could decrease, as would the cost of producing solar power due to economies of scale, industry experience and expertise and consumer awareness.
*****
Given few places in the world are better suited to deploying the solar solution, the potential exists to build a major solar industry in Saskatchewan. And while the end of Saskatchewan's renewable energy incentive last March may be a threat to existing solar companies, it is also an opportunity to create better policy and programs to strengthen the industry.
Generally sunny conditions in Canada mean the potential for solar power generation here is significantly superior to many other countries, including Germany, the nation with more than 50 per cent of the world's operating solar technology. In Canada, the best conditions for solar are in the prairies, and especially Saskatchewan, which has the most bright sunshine of any province.
That's why the Canadian Solar Industries Association (CanSIA) - a trade association that represents 650 solar companies - anticipates big growth for their industry here and across the country. By 2025, CanSIA hopes to see solar energy widely deployed throughout Canada, its market competitiveness such that the government incentives are unnecessary, and recognized as an established component of Canada's energy mix. They envision a solar industry that supports more than 35,000 jobs and displaces 15 million to 31 million tonnes of greenhouse gas emissions per year - providing a safer, cleaner environment.
CanSIA believes that Saskatchewan has the potential to be a solar energy leader given its excellent solar resource, rising electrical demand, distributed power-consumer base, the need to replace aging generation infrastructure, an existing power supply that is more greenhouse gas intensive than most other provinces, as well as aggressive targets for energy conservation (150 MW reduction by 2017).
They point out that solar energy technology is quickly deplorable, scalable and a complementary option to the available solutions for securing a clean, affordable and reliable energy mix.
Of course a solar industry can't take off without some public incentives. It is standard practice to support a new industry until it can stand on its own and CanSIA has proposed its wish list of policy measures to the Saskatchewan government. First, the province should explore innovative financing mechanisms that would provide private business with better access to capital through measures such as government-backed loans, utility bill financing and the use of municipal tax incentives and loans assigned to property.
Second, there should be a transition from programs (such as Saskatchewan's Net Metering Rebate that ended in March) that provide an incentive for installing solar panels to programs that reward energy production performance. The old program provided 35 per cent rebates of the total system installed up to $35,000. CanSIA points out that while the rebate was popular with consumers, it sometimes led to solar installations that operated sub-optimally, given all systems received the same rebate regardless of actual performance.
A better approach would be a program that pays an incentive only on electricity produced. This would create an incentive to ensure any system installed performs optimally. It would also prevent funds being spent on under-performing equipment and maximize the return on investment for public funds.
This approach, used in a number of jurisdictions around the world, pays solar producers a premium price for excess electricity they produce for sale to the energy utility. The premium price helps to build the industry and recognizes he social and environmental benefits of renewable power over fossil fuels.
CanSIA also recommends that whatever policy is adopted in Saskatchewan should be stable. Rebates and incentives that last for a year or two and then end abruptly lead to a boom and bust cycle for the industry. Programs that are put in place should be designed to ensure the industry grows sustainably until it can stand on its own without public funding.
CanSIA points out that solar has many spin off benefits. If 20 MW of solar were installed in Saskatchewan in 2012, for example, 700 direct jobs and many more indirect jobs would be created. As industry capacity and momentum increased in subsequent years, Government investment in the industry could decrease, as would the cost of producing solar power due to economies of scale, industry experience and expertise and consumer awareness.
China Longyuan Power enters Canadian wind market
China's largest developer of wind power projects is making its first leap into the global wind energy market through an investment in Canada. China Longyuan Power Group Co., Ltd. has signed an agreement with Ontario-based Farm Owned Power (Melancthon) Ltd. under which Longyuan will take an equity share in a 100 MW wind farm that Farm Owned Power is building in Shelburne, Ontario. Xie Changjun, general manager of Longyuan, said that Canada presented an attractive market because of its rich wind power resources and excellent supporting policies. As of the end of 2010, Longyuan had built a total of 6.56 GW of wind power capacity in China, the single largest amount in Asia and the third largest in the world, according to a report by Denmark-based consultancy BTM Consult.
Source: Climate Change Business Journal
Source: Climate Change Business Journal
Tuesday, July 19, 2011
7.9 MW rooftop solar PV project in Ontario moves forward
Solar & Alternative Technology Corp. (Mississauga, Ontario), solar panel manufacturer Soventix Canada Inc. (Toronto, Ontario), and Hiram Walker & Sons Ltd. (Windsor, Ontario) have formed a partnership to build a 7.9 MW solar PV rooftop installation at Hiram Walker's Pike Creek warehouse in Windsor. This will be the largest rooftop project in Ontario and one of the larger rooftop projects in the world today. Solar & Alternative Technology Corp. ("SAT") and Soventix have signed a 20-year lease to rent the facility's roof surface for the installation, which will be the size of about 24 Canadian football fields, the partners stated in a press release. Hiram Walker stated that the revenue generated through the lease will be re-invested in higher efficiency boilers that will help the facility reduce its energy consumption by 20%. SAT has a separate agreement with Soventix to purchase 41.5 MW of solar panels over the next three years.
Friday, July 15, 2011
Quebec sets targets for greenhouse gas emissions reductions
Amidst growing concerns about the effectiveness and public acceptability of cap-and-trade systems for reducing emissions of greenhouse gases (GHG), the government of the Canadian province of Quebec has moved forward with a climate change action plan that includes such a GHG emissions credit trading system. The new plan sets a goal of reducing GHG emissions in the province by 20% below 1990 levels by the year 2020. Under the plan, the Quebec government will establish an overall GHG emissions limit, issue free emissions credits to about 100 large industrial emitters, and auction off additional credits until the limit is reached. These credits and their derivatives would be traded on the Montreal Carbon Exchange. Quebec's decision to use a cap-and-trade system comes as prices on the European Union Emissions Trading Scheme (ETS) have fallen to their lowest level since the recession-the equivalent of less than $18 U.S. per credit-and as allowance prices in the U.S. Northeast's Regional Greenhouse Gas Initiative (RGGI) fell to $1.89 in RGGI's most recent auction in June.
Source: Climate Change Business Journal
Source: Climate Change Business Journal
Thursday, July 14, 2011
Recent Developments in the Canadian Renewable Energy Sector
I recently authored an article titled Recent Developments in the Canadian Renewable Energy Sector which was published in the June, 2011 Guide to Energy & Natural Resources by CorporateLiveWire. The article is available on our firm website at http://www.wmcz.com/home/2011/7/13/canadian-renewable-energy-developments.html.
Friday, July 8, 2011
Vestas receives wind turbine orders in Mexico, Sweden and Brazil
Wind turbine orders amounting to nearly 269 MW of generating capacity across several model categories have been added to the backlog of Vestas Wind Systems A/S (Randers, Denmark), the company reported on July 5, 2011. In recently signed contracts, Vestas will deliver 180 MW of its V90, V100, and V112 turbines to Eolus Vind for installation at wind farms in Sweden, 30 units of the V100-2MW turbine to Atlantic Energias Renovaveis S.A. for installation at the Renascena V and Eurus II wind power plants in the Rio Grande do Norte region of Brazil (previously reported on this blog) and 16 units of the V90-1.8MW turbine to REM Generacion Electrica Mexicana for a 28.8 MW project in Chiapas, Mexico. The contract with Eolus Vind includes an option for delivery of another 40 MW of turbines. The contracts with Atlantic Energias and REM include service and maintenance agreements including deployment of Vestas’ Active Output Management (AOM 4000 and 5000) packages.
Vestas is the predominant supplier in Saskatchewan and recently won a contract to supply 16 V82-1.65 MW wind turbines for the Red Lily Wind Project and previously supplied 83 V80-1.80 MW turbines to the Centennial wind farm in Saskatchewan. Vestas also supplied 63 V82-1.65 MW turbines to the nearby St. Leon wind farm in Manitoba. It is anticipated that Vestas would like to continue their dominance of the Saskatchewan market by supplying turbines for the 175 MW RFP and to the recently announced 25 MW Green Options Partners Program lottery winners.
Vestas is the predominant supplier in Saskatchewan and recently won a contract to supply 16 V82-1.65 MW wind turbines for the Red Lily Wind Project and previously supplied 83 V80-1.80 MW turbines to the Centennial wind farm in Saskatchewan. Vestas also supplied 63 V82-1.65 MW turbines to the nearby St. Leon wind farm in Manitoba. It is anticipated that Vestas would like to continue their dominance of the Saskatchewan market by supplying turbines for the 175 MW RFP and to the recently announced 25 MW Green Options Partners Program lottery winners.
Wednesday, July 6, 2011
SaskPower releases winners of Green Options Partners Program lottery
SaskPower received 302 applications for the Green Options Partners Program lottery, from which the following 13 projects totalling 46 megawatts (MW) were randomly selected:
Gaia Power Inc. - Wind - 9.90 MW
Gaia Power Inc. - Wind - 9.90 MW
Windlectric Inc. - Wind - 5.00 MW
Torquay Oil Corporation & Three Point Energy Services Inc. - Flare gas - 0.13 MW
Torquay Oil Corporation & Three Point Energy Services Inc. - Flare gas - 0.26 MW
ARC Resources Ltd. & Three Point Energy Services Inc. - Flare gas - 0.52 MW
Natural Energy Partners Ltd. - Flare gas - 3.50 MW
Natural Energy Partners Ltd. - Flare gas - 3.50 MW
Natural Energy Partners Ltd. - Flare gas - 3.50 MW
Saskatoon Light & Power - Turbo expander - 1.00 MW
Saskatoon Light & Power - Landfill gas - 1.60 MW
Deep Earth Energy Production Corporation - Geothermal - 5.00 MW
Rocky Mountain Power (2006) Inc. - Hydro - 2.00 MW
Gaia Power Inc. - Wind - 9.90 MW
Gaia Power Inc. - Wind - 9.90 MW
Windlectric Inc. - Wind - 5.00 MW
Torquay Oil Corporation & Three Point Energy Services Inc. - Flare gas - 0.13 MW
Torquay Oil Corporation & Three Point Energy Services Inc. - Flare gas - 0.26 MW
ARC Resources Ltd. & Three Point Energy Services Inc. - Flare gas - 0.52 MW
Natural Energy Partners Ltd. - Flare gas - 3.50 MW
Natural Energy Partners Ltd. - Flare gas - 3.50 MW
Natural Energy Partners Ltd. - Flare gas - 3.50 MW
Saskatoon Light & Power - Turbo expander - 1.00 MW
Saskatoon Light & Power - Landfill gas - 1.60 MW
Deep Earth Energy Production Corporation - Geothermal - 5.00 MW
Rocky Mountain Power (2006) Inc. - Hydro - 2.00 MW
Tuesday, July 5, 2011
China terminates wind subsidies and Canada prepares for litigation
The Chinese Special Fund for Wind Power Manufacturing (the Fund) has recently been challenged by the United States at the World Trade Organization (WTO) as being discriminatory and in violation of the WTO Subsidies Agreement. In response, China terminated the program. The Ontario feed-in-tariff (FIT) has also been challenged at the WTO by Japan. However, Canada appears to be preparing for litigation in defence of the FIT program.
China's installed wind power capacity ranks second in the world, ahead of Germany and behind the United States as a result of dramatic growth over the past four years. According to estimates in the claim of the United States, Chinese grants under the Fund have amounted to hundreds of millions of US dollars since 2008. Acting on a request by the United Steelworkers, the United States challenged the Fund as a WTO-prohibited import substitution subsidy because it makes grants to Chinese wind power equipment manufacturers contingent on using domestic parts and components instead of foreign-made parts and components. The termination of the Fund does not mean that China will need to stop supporting wind energy production or the manufacturers of wind power equipment. China may well create a similar program in a different form, no longer requiring the use of domestic over imported goods as a condition for obtaining governmental subsidies.
The Ontario FIT has similar local content requirements contingent on receiving the incentive. As previously reported, the WTO will establish a WTO panel to adjudicate the dispute between Canada and Japan. If the FIT is found to be inconsistent with WTO rules, Canada will be required to withdraw the subsidy without delay. If it fails to do so, Japan will be authorized to impose trade retaliatory measures on Canadian products.
It is unclear how this will develop as there is a provincial election soon in Ontario and the conservative opposition party, currently surging in the polls, has vowed to axe the FIT. Assuming the conservative party take control in Ontario, a ruling in favour of Japan would provide a politically expedient opportunity to terminate the FIT. However, it is clear that the FIT has generated considerable jobs and investment in Ontario and it may be that the domestic content requirements of the FIT are simply amended to comply with WTO rules.
China's installed wind power capacity ranks second in the world, ahead of Germany and behind the United States as a result of dramatic growth over the past four years. According to estimates in the claim of the United States, Chinese grants under the Fund have amounted to hundreds of millions of US dollars since 2008. Acting on a request by the United Steelworkers, the United States challenged the Fund as a WTO-prohibited import substitution subsidy because it makes grants to Chinese wind power equipment manufacturers contingent on using domestic parts and components instead of foreign-made parts and components. The termination of the Fund does not mean that China will need to stop supporting wind energy production or the manufacturers of wind power equipment. China may well create a similar program in a different form, no longer requiring the use of domestic over imported goods as a condition for obtaining governmental subsidies.
The Ontario FIT has similar local content requirements contingent on receiving the incentive. As previously reported, the WTO will establish a WTO panel to adjudicate the dispute between Canada and Japan. If the FIT is found to be inconsistent with WTO rules, Canada will be required to withdraw the subsidy without delay. If it fails to do so, Japan will be authorized to impose trade retaliatory measures on Canadian products.
It is unclear how this will develop as there is a provincial election soon in Ontario and the conservative opposition party, currently surging in the polls, has vowed to axe the FIT. Assuming the conservative party take control in Ontario, a ruling in favour of Japan would provide a politically expedient opportunity to terminate the FIT. However, it is clear that the FIT has generated considerable jobs and investment in Ontario and it may be that the domestic content requirements of the FIT are simply amended to comply with WTO rules.
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