Paper Excellence likely to get biomass power purchase agreement (PPA) in Saskatchewan

This week forestry giant Paper Excellence, a subsidiary of Indonesia’s Sinar Mas, closed the deal with Domtar and the Saskatchewan provincial government to purchase the shuttered Prince Albert, Saskatchewan pulp mill.

A term of the agreement is that the SaskPower provides Paper Excellence with a power purchase agreement (PPA) for purchase of the surplus electricity to be produced from a biomass generator located at the mill.

$1.24 billion CAD carbon capture project approved in Saskatchewan

SaskPower will refurbish the coal-burning Boundary Dam Power Station with new equipment to extract one million tons of CO2 annually. Some of the captured gas will be pumped into aging oil wells to help increase production.

When complete the aging unit of the Boundary Dam Power Station near the city of Estevan will be one of the first commercial-scale carbon capture and storage facilities in the world.

Saskatchewan needs carbon capture to work on a large scale as the province is one of the highest emitters of greenhouse gases per capita of any jurisdiction in the world.

Construction is to begin immediately and the unit should be working by 2014, with the capacity to produce 110 megawatts of power.

SNC-Lavalin Group Inc., Hitachi and Royal Dutch Shell Plc (RDSA)’s Cansolv division will contribute engineering and equipment for the project in Saskatchewan.

Canadian patent for renewable energy storage in heavy oil formations issued

Chicago-based PyroPhase Inc. was recently issued a Canadian patent for a method to store variable wind and solar PV power as heat in heavy oil formations, including oil sands and oil shale. This method can use variable and off-peak power because it stores radio-frequency energy as heat in heavy oil formations. It converts this resource to fuel for refineries in amounts 5 times the electric energy input.

Because this method uses power whenever it is available, and is instantly interruptible, it stabilizes the electric grid. It compensates for fluctuations in wind and solar power input and also in users demand. This reduces the need for spinning reserves, i.e. power plants that run all the time to meet sudden load changes, and thus waste fuel.

PyroPhase has noted on their website that they have plans to scale up and commercialize this technology and note that a 10,000 barrel/day plant could be built in 4 years at a cost in the order of $100 million USD, including $5 million USD for pilot development and $20 million USD to scale up to commercial module size.

Given that Saskatchewan has some of the most consistently high wind speeds in North America, the best solar PV potential in Canada, is already a global leader in carbon capture technology and has well-developed heavy oil extraction and refining industry, it would seem the obvious choice to pilot such technology.

First waste-to-energy plant in the Baltics secures funding

Nordic Investment Bank (NIB), the common international financial institution of the eight Nordic and Baltic countries and Finland’s Fortum have concluded a new loan agreement totalling 70 million EUR for building a waste-to-energy heat and power plant in the Lithuanian city of Klaipeda. Fortum’s new combined heat and power (CHP) plant in Klaipeda will be the first waste-to-energy plant in the Baltic countries. The plant will be fuelled by municipal solid waste, non-hazardous industrial waste and biomass. Its future output capacity is planned at approximately 60 MW of district heat and 20 MW of electricity.

The district heat produced at the plant will replace natural gas-based heat production capacity. Switching to combined heat and power production will increase the efficiency of the energy production and decrease the greenhouse gas emissions in the region. The plant will also help reduce the disposal of waste in the local landfill.

The CHP plant is being built by UAB Fortum Klaipeda, owned by Fortum and the local energy company Klaipedos Energija. The plant is expected to commence operations during the first quarter of 2013.

Innergex acquires Canadian solar PV project from Enfinity for $11.1 million CAD

Innergex Renewable Energy Inc. (TSX:INE) announced that they have entered into a share purchase agreement with Enfinity NV (“Enfinity”), to acquire all of the issued and outstanding shares of the entity owning the rights to develop Enfinity’s 27 MW Stardale Solar PV project, located in Ontario, Canada. The consideration to be paid to Enfinity under the share purchase agreement is approximately $11.1 million CAD.

Construction of the Stardale project began in November 2010, and is expected to be completed by February 2012. The Stardale project is being developed on two parcels of land totalling 300 acres, located in East-Hawkesbury, in the Russell County of Ontario. The Stardale Project consists of a ground-mounted PV array system, which is to include a total of approximately 144,060 SolarWorld SW 230 polycrystalline PV
modules and 54 inverters, for a total installed capacity of 27 MWAC (33.2 MWDC).

The consideration payable pursuant to the share purchase agreement will be paid upon the project achieving certain milestones. The first payment in an amount of $1.5 million CAD will be paid at closing. The second payment for an amount equal to 50% of the remaining consideration will be payable upon the receipt by the Stardale Project of an executed long-term financing offer from financial institutions having terms and conditions not less favourable than certain thresholds established by the parties. The third payment (25% of the remaining consideration) will be payable at financial closing of that same financing and the last payment (25% of the remaining consideration) will be payable upon final completion of the Stardale Project.

Total development costs are expected to be approximately $140 million CAD. Innergex is a leading North American renewable energy developer based out of Longueuil, Québec and Enfinity is a global solar PV developer based out of Waregem, Belgium.

Pattern Energy and Samsung Renewable Energy acquire wind projects from Suncor Energy and Northland Power

Pattern Energy Group LP (Pattern) and Samsung Renewable Energy (Samsung), a subsidiary of Samsung C&T Corporation today announced that they have jointly acquired land from the Fargo Wind Project from Suncor Energy and a nearby wind development project from Northland Power in Ontario. The two development projects will be included in the larger South Kent Wind Farm, a 270 megawatt (MW) wind project located in the Regional Municipality of Chatham-Kent, which Pattern and Samsung are developing this year.

Pattern Energy’s major stakeholder is Riverstone Holdings, a New York-based private-equity firm. Pattern currently has 520 MW of wind energy in operation in the U.S. and in southern Manitoba, Canada.

"Pattern and Samsung will be able to accelerate the development of these projects by combining them with our nearby South Kent Wind Farm and its transmission connection," said Mike Garland, CEO of Pattern.

"Together with Pattern, we are making major progress on our goal to bring new sources of wind energy to Ontario," said Cheol-Woo Lee, Senior Executive Vice President of Samsung. "In addition to closing on these projects we are closing on thousands of acres in southwestern Ontario and the Bruce region for the development of more than 500 MW of wind power, which will use Ontario-made wind turbine components and towers from new Ontario factories in Tillsonburg (blades) and in Windsor (towers)."

South Korean, Samsung is an emerging global leader in renewable energy with projects in Canada, the United States, Costa Rica, Korea, France, Italy, Greece, and Turkey.

More renewable energy projects sought in Philippines

Following on my recent post regarding development opportunities in Mexico, Turkey, Indonesia and the Philippines, proponents of renewable energy in the Philippines today reiterated calls to aggressively increase power capacity from renewable energy sources.

Peregrino Fernandez of the Renewable Energy Developers' Caucus expressed serious concern over skyrocketing electricity rates due to continually rising oil prices and stated that "the rising cost of fossil fuel must be addressed by new paradigms and framework. Unless a carbon-free solution is introduced to our energy situation, we are merely applying a band-aid solution to our dependency on fossil fuels," said Fernandez, who is also president of the Montalban Methane Power Corporation.

Meanwhile, Cagayan Electric Power and Light Co. chairman Ramon Abaya underscored the need for renewable energy projects in the Philippines due to a lack of adequate local fuel reserves and stated that "government must look at an aggressive renewable energy option to address the Mindanao brownouts fast," he said.

Tetchie Capellan, president of the Philippine Solar Power Alliance, pointed out that the Department of Energy recently received several applications for solar PV power service contracts.

As of this week, according to Capellan, there are some 43 solar PV applications totalling 230 MW. Some of these projects are located in Mindanao and may be deployed within the year. "They [solar projects] are viable solutions to the expected energy crunch in Mindanao this year," Capellan said.

Joe Natividad, Sunwest Water and Electric Co. president and co-convenor of the RE Caucus, likewise urged the government to spur the development of the emerging renewable energy industry by reviewing the installation targets of major projects.

The department's indicative installation target for renewable energy is 830 MW (biomass, 250 MW, solar PV, 100 MW, wind, 220 MW, ocean, 10 MW and hydro at 250 MW) —which is 40 percent lower than the industry demand in the Philippines.

Developers, on the other hand, propose an installation target of 1.5 GW (442 MW for biomass, 420 MW for solar, 340 MW for wind, 30 MW for ocean and hydro at 250 MW).

Source: GMA News

EU catching up with Finland 21 years later and proposing carbon tax

The European Commission has issued a proposal to augment the EU Emissions Trading Scheme (ETS) with a system of carbon taxes on fuels and heating oil tied to greenhouse gas emissions. Under the EC proposal, the new tax regime would consist primarily of two components: a flat-rate carbon tax beginning at €20 per ton of carbon dioxide (CO2), rising in concert with EU carbon prices; and a component based on a fuel’s energy density rather than its volume, thereby rewarding efficiency. Under the new regime, ethanol and other energy sources regarded as renewable would be exempt from the carbon tax. It is anticipated the UK may oppose or veto the new carbon tax.

Finland was far ahead of the rest of the world and implemented a carbon tax already back in 1990 and was the first country to do so. Having worked in Finland for a number of years I can't say I heard much, if any, industry opposition to the carbon tax. After more than 20 years of the carbon tax, industry has clearly adapted. Has the carbon tax been a success in Finland? It is hard to say given Finland's decision to invest heavily in nuclear energy. Maybe part of the investment in nuclear was a response to the carbon tax? The carbon tax does seem to clearly have benefited the Finnish biomass and bioenergy industry, which is now a global leader in manufacturing, development and in utilizing biomass for energy. Almost 30% of the total primary energy consumption in Finland is met by bioenergy. That compares with 3% in Canada.

Wind power in Japan post-tsunami

Shortly after the catastrophic earthquake and resulting tsunami in Japan, I spoke with a friend in Tokyo, who thankfully was relatively unscathed, very much like the wind turbines in Japan which survived the earthquake and tsunami and are currently being utilized to boost power output to make up for energy shortages throughout the country. According to Yoshinori Ueda, leader of the International Committee of the Japan Wind Power Association, not a single member of the organization reported damage to its wind turbines during the earthquake and tsunami. Incredibly, my friend in Tokyo, who also works at one of the largest wind farm developers in Japan, had already heard that all of their wind turbines in Japan had survived the earthquake and tsunami.

Some wind turbines stopped temporarily due to an overall grid failure. However, most turbines remained fully operational, including Kamisu, a semi-offshore wind farm located approximately 300 kilometres from the epicenter of the earthquake.

That incredible stability led to publicly-traded, Japan Wind Development Co.'s share price gaining nearly 20% after the earthquake and tsunami. The market was clearly impressed by the technology in the face of such a destructive force of nature.

I anticipate that as a result of the proven stability of the Japanese wind farms and the continuing problems at Fukushima, in addition to Japan, wind farm development will likely increase in relatively wealthy but earthquake-prone countries such as Mexico, Turkey, Indonesia and the Philippines.

There is already talk about a feed-in-tariff in Japan and a number of developers have built and are working on projects in Mexico. Progressive developers seeking new opportunities will want to start acquiring sites for development in Turkey, Indonesia and the Philippines to get ahead of their competitors and capitalize on procurement processes in the future.

Carbon management and emissions trading

Having just arrived back from the Canadian Institute Carbon Management seminar in Vancouver, it seems clear that there is great uncertainty in Canada and around the world in regard to emissions trading. As many people know The Management and Reduction of Greenhouse Gases Act (the "Act") has passed all three readings in the provincial legislature and is set to receive Royal Assent and enter into force into Saskatchewan shortly. The Act in Saskatchewan will provide for an emissions trading system that roughly follows that in place in Alberta with a similar technology fund, auditing requirements and will import established Alberta protocols. Mining, oil, gas and independent power projects in Saskatchewan are moving forward with their development plans quickly and we are anticipating an increase in the number of large emitters in the future. Given Saskatchewan has nearly 40% of all the cultivated farmland in Canada, there are also opportunities for generation of zero-till offsets in Saskatchewan and potential trade with Alberta.

To my amazement, the emissions trading system in Saskatchewan was not even mentioned by speakers at the Carbon Management seminar and when the matter was raised there seemed to be little familiarity of the proposed Saskatchewan program. One has to wonder if we cannot even share information within Western Canada regarding emissions trading systems what chance the UN Climate Change talks have of accomplishing much in Durban, South Africa this fall? Given the obvious lack of leadership in Canada and at the federal level in the US, many are hopeful California will lead the way but that remains to be seen.

What does this mean for our emissions trading system in Saskatchewan? Like Alberta, we are going to have to go it alone with little or no support from the federal government, Ontario, Quebec or British Columbia. Alberta has been a good neighbour and has agreed to share information and best practices with Saskatchewan, which is certainly appreciated. Saskatchewan is also is taking steps to ensure that we remain basically harmonized with Alberta but can still join the Western Climate Initiative if an opportunity to materializes.

One thing that is certain however, is that drafting and executing the necessary agreements and managing the contracting process will be a challenge for Saskatchewan lawyers both in-house and in private practice who work with the provincial government, aggregators, landowners, mining, oil and gas companies and large emitters such as SaskPower, but it is a challenge I am looking forward to.

Landfill wind turbines receive approval in UK

Waste Recycling Group (WRG), one of the UK’s largest waste and resource management services companies, received approval to site two wind turbines at its closed Carnaby Landfill site.

The Carnaby Wind Energy Project will see the development of two turbines, each capable of generating up to 3MW of renewable electricity, which together are enough to power more than 2,500 homes. WRG anticipates that construction will commence early in 2012, and that the site will become operational by Summer 2012. The planning application followed a rigorous environmental assessment of the site and months of consultation with the local community.

WRG has six other landfill wind farms planned for development.

Vestas wins 150 MW supply contract in Brazil

Vestas Wind Systems A/S just received an order from Energisa S.A., a unit of Brazilian power provider Energisa Group, to provide 75 units of its 2 MW turbines for installation at five wind farms under development in the Rio Grande Norte area of Brazil. The five projects consist of the following: Ventos de Sao Miguelm, Renascenca I, Renascenca II, Renascenca III, and Renascenca IV. The contract includes the delivery, transportation, installation, and commissioning of the turbines, along with the provision of the VestasOnline supervisory control and data acquisition (SCADA) system and a five-year service and maintenance agreement. Deliveries of the turbines are scheduled to begin during the first quarter of 2012, and the projects are expected to be operational by December 2012.

Canada's power grid needs $294 billion CAD investment in coming years

In a report entitled Canada’s Electricity Infrastructure: Building a Case for Investment just released by the Conference Board of Canada, Canada’s power grid will need an annual investment of approximately $15 billion CAD for the next 20 years ($300 000 000 000 Canadian dollars) in order to service old infrastructure and boost power generation from renewable sources like wind, solar and biomass energy.

According to the report, the largest portion of the recommended investment — $195.7 billion CAD — is required for power generation, with another $62.3 billion CAD required to improve the distribution system and $35.8 billion CAD for transmission.

The necessary investments in generation identified in the report include building new plants with renewable energy sources as well as refurbishing, repowering or retiring existing stations.

The report forecasts a continued reliance on both public and private investment in Canada's electrical grid, without recommending specific arrangements.

The full report can be downloaded here: http://www.conferenceboard.ca/.

Shear Wind completes 62.1 MW Glen Dhu wind project in Nova Scotia

Shear Wind Inc. ("Shear Wind") (TSX VENTURE:SWX) announced this morning that the Glen Dhu 62.1 MW wind facility in Nova Scotia (the "Glen Dhu Wind Farm"), has been completed and all turbines have been erected and commissioned. The Glen Dhu Wind Farm is the largest wind energy project in the province of Nova Scotia.

Shear Wind has an aggressive development strategy to advance projects in other provinces and has developed a pipeline of projects which it is awaiting the opportunity to construct. In addition to the Glen Dhu Wind Farm in Nova Scotia, Shear Wind is targeting three other near-term opportunities in New Brunswick, Saskatchewan and Alberta.

Founded in 2005, Shear Wind is headquartered in Halifax, Nova Scotia and is engaged in the exploration and development of renewable wind energy properties in Canada. Shear Wind is focused on building a strong company based on a secure and sustainable supply of clean wind energy. Shear Wind is committed to building shareholder value governed by environmental stewardship. Inveravante Inversiones Universales, S.L., an international corporation based in Spain, indirectly owns 62% of Shear Wind on a fully-diluted basis and 49% of Glen Dhu Wind Energy Limited Partnership through Genera Avante Holdings Canada Inc., following its investment in Shear Wind in November 2009.

Source: Shear Wind Press Release

California utilities must purchase 1/3 of electricity from renewable sources within 10 years

California lawmakers have approved a bill that would create the most ambitious renewable energy standards in the United States, giving utilities less than 10 years to receive one-third (1/3) of their power from wind, solar and other renewable sources. California is a leader in enacting progressive renewable energy legislation in North America and it is anticipated that other leading Canadian jurisdictions, such as Ontario and British Columbia, will consider similar standards in the future.

It is highly unlikely California can construct sufficient generation to come close to meeting demand and it is widely expected this new standard and those states and provinces that follow suit will drive renewable energy development throughout the Western half of North America in the coming years.

The State of California already purchases considerable renewable energy from hydro sources in British Columbia and demand is expected to continue to increase quickly. Progressive developers and utilities in California are now turning their attention to the vast and largely untapped wind resources of the prairies of Western Canada and the mid-western United States to help fill this demand in the future.

First Nations Power Authority & SaskPower sign MOU on power generation in Saskatchewan

The Government of Saskatchewan, SaskPower (the Crown utility) and the newly established First Nations Power Authority (FNPA) announced yesterday that they have signed a Memorandum of Understanding (MOU) that will help the province’s First Nations advance their power generation projects.

The MOU sets out a partnership framework for a more streamlined process to help First Nations move their projects forward for consideration.

The provincial government was looking for opportunities to engage First Nations in developing power generation projects, which led to the formation of the First Nations Power Authority. Supported by various First Nations with existing or imminent power projects, the FNPA will be a non-profit, membership-based corporation. It is expected the FNPA will provide the framework for the first utility-scale community projects in the province.

Each of the 74 Saskatchewan First Nations will have the opportunity to hold membership in the First Nations Power Authority and participate in the governance of the organization through its board of directors.

“This MOU opens the door to significant opportunities for Saskatchewan First Nations to partner in the development of power generation projects,” FNPA Board Chair Ben Voss said. “This will result in a higher probability of viable, long-term sustainable First Nation economic development opportunities while helping SaskPower meet the province’s electricity supply needs.”

SaskPower is making a multi-year, multi-billion dollar investment to renew the province’s electricity system. The demand for electricity in the province is expected to increase by about 2.4 per cent annually over the next decade.

This is another clear indication that SaskPower does not intend on owning and operating all generation in the province in the future and continues to provide opportunities for independent power producers.

I expect that the signing of this MOU will further escalate activities of developers in the province in forming partnerships with First Nations for specific projects.

Additional information about the FNPA: www.fnpa.ca

Macquarie Capital and Femsa buy 396 MW wind farm in Mexico

Fomento Economico Mexicano SAB (Femsa), a beverage company in Latin America and Macquarie Capital agreed to buy a 396 MW wind farm in the Mexican state of Oaxaca from units of Preneal SA for 1.06 billion pesos ($89 million CAD).

Femsa will own a 45 percent stake in the project, while Macquarie will own 22.5 percent and the remainder will be held by two Mexican infrastructure funds managed by Macquarie. Power from the project will be sold to Femsa and project partner Heineken NV through a 20-year power purchase agreement.

The wind farm will use 132 Vestas wind turbines.

Anti-wind activists to appeal Ontario court decision on setbacks

Wind Concerns Ontario, an anti-wind activist organization, says it will appeal an Ontario Superior Court decision released earlier this month that ruled against the challenge to the province’s Green Energy Act regulations.

The anti-wind activists say Ontario’s environment ministry failed to properly assess the human health risks of turbines, which they believe emit low-frequency noise that causes sleeplessness and an array of other effects, ranging from psychiatric conditions to cardiovascular disease.

Ian Hanna, a Picton, Ontario resident, launched the court challenge after a number of wind farms were proposed near his home in Prince Edward County. His case was backed by the testimony of Dr. Bob McMurtry, a former medical school dean and special health advisor to the federal government. Dr. McMurtry also owns property in Prince Edward County.

The court ultimately decided that the ministry held “a full public consultation and a consideration of the views of interested parties.”

In a statement, the Ontario environment minister John Wilkinson said the rules for wind turbine siting “are based on peer-reviewed science.”

“While I can’t comment on the appeal, I can tell you that science-based evidence was and will be used to develop our regulations,” the statement read. “(The court) confirmed that developing the regulation included full public consultation, consideration of the views of interested parties, health reports, science-based evidence and expert opinions.”

It is unclear when the appeal on the case will be heard.

SaskPower announces 2011 Green Options Partners Program

In 2011 SaskPower will purchase up to 50 MW from medium-sized independent power producers. Up to 25 megawatts will be purchased from medium-scale wind generation projects and the remaining megawatts will be purchased from other environmentally preferred power production facilities.

http://www.saskpower.com/sustainable_growth/generate_move_power/green_options_partners/

$26 million CAD biodiesel incentive program introduced in Saskatchewan

A 5 year $26 million CAD provincial incentive program for renewable diesel production in Saskatchewan will commence in April 1, 2011. Biodiesel developers should take note that a mandatory minimum renewable fuel requirement for diesel fuel in Saskatchewan will follow 15 months later.

The program will provide a grant of 13 cents CAD per litre to eligible producers of renewable diesel. The renewable diesel must be manufactured from renewable materials such as off-grade canola and farm and forest biomass.

The program is to begin April 1, 2011 and will wind up in 2016. Saskatchewan's 2 percent renewable diesel mandate is scheduled to commence on July 1, 2012.

SaskCanola, the province's farmer-led canola development commission, hailed the grant program and mandate as recognizing "the significant importance of a growing Saskatchewan biofuel industry in which canola can be the leader," chairman Brett Halstead said in a separate release.

The federal Canadian government's 2 percent renewable content mandate for diesel and heating oil is expected to take effect July 1, 2011 as well.

Given the considerable incentives for biodiesel production and the mandatory minimum renewable fuel requirements to come into effect in the future, biodiesel project developers will be keen to move existing projects forward and develop greenfield projects in the province.

SaskPower to build $130 million CAD switiching and transmission projects in Saskatchewan

SaskPower, the provincial utility in the province of Saskatchewan is proposing $130 million CAD worth of electricity construction projects in the Saskatoon area to fill part of the growing demand for electricity from the booming potash industry.

The proposed projects include a switching station north of Saskatoon, another switching station near the bedroom community of the town of Aberdeen and a transmission line connecting the two new stations to each other, to Saskatoon and to the existing Wolverine switching station.

Algonquin Power to buy Kineticor wind farms in Saskatchewan

Algonquin Power & Utilities Corp. ("APUC") just announced this morning that it has executed an asset purchase agreement (the "Agreement") with Kineticor Renewables Inc. ("Kineticor"), to acquire all of the assets related to two proposed adjacent 10 MW wind energy development projects (the "Projects") in Saskatchewan.

Upon SaskPower's approval and execution of the PPAs, Kineticor will assign the PPAs to Algonquin Power Co. ("APCo"), APUC's electric generation subsidiary. The Projects will be developed with support from Kineticor during the development phase, which is expected to be completed in late 2013.

While equipment selection and construction details remain to be finalized, it is expected that the capital cost to construct the Projects will be approximately $55-$60 million, inclusive of acquisition costs. The first year PPA rate is set at $101.98 per MW-hr for the first full year of operations, which APCo expects to occur in 2014, with an annual escalation provision of 2% over the expected 20 year term.

The Projects are to be constructed near Morse, Saskatchewan, approximately 180 km west of Regina and 400 km west of the Phase I Red Lily Wind Project already owned by APUC. It is contemplated that the Projects will be situated on 1,120 acres of private lands, with additional land under lease or option in order to facilitate future expansion of the Projects.

"We are very pleased that we are able to continue to grow our wind energy footprint in the province of Saskatchewan with this latest acquisition", commented Ian Robertson, Chief Executive Officer of APUC. "Saskatchewan has one of the best wind regimes in Canada which will once again contribute to our growing portfolio of successful wind energy projects and reinforce our strategic focus on renewable energy investment."

Source: Algonquin Power & Utilities Corp. Press Release dated March 21, 2011

South Africa plans large expansion of renewable energy

South Africa's government has approved a sweeping plan to increase renewable energy generation. The plan lowers South Africa's overwhelming reliance on coal, calling for renewable energy for an astounding 42 percent of new power projects. The government also approved draft legislation to buy energy from private power producers, which the state wants to supply nearly a third of new electricity generation.

"It is intended to make sure that we allow for participation by the independent power producers," said Energy Minister Dipuo Peters.

"We have a policy that says 30 percent of new power generation in the country must be generated by independent power producers. We need a structure or an institution that can facilitate that."

Having worked on development of wind sites in Namibia, I expect that NamPower (the state utility in Namibia) will follow suit with a similar plan. Eskom (the state utility in South Africa) has said in the past that they would purchase energy, if available, from bordering Namibia so I expect that there will be worldwide interest from renewable energy developers in both South Africa and Namibia.

The future of nuclear

Stocks for wind and solar energy producers jump as investors speculate that demand for renewable power will surge in response to the unfolding Japanese nuclear situation. The German solar-panel maker, Solarworld, leads the way advancing 32 percent.

The “nuclear renaissance” may taper off as a result of events in Japan but it is clear that nuclear energy will continue to be an extremely important energy source for baseload generation. Wind and solar are intermittent technologies and require continuous generation to fill gaps in supply when wind or sun is not available. The current options for baseload generation are coal, natural gas or nuclear and nuclear is the only source which does not generate greenhouse gas emissions and has a relatively abundant fuel source, uranium.

The Olkiluoto nuclear project in Finland had numerous problems most of which were related to alleged unreasonable and overly onerous safety requirements. The Finnish regulators insisted that Areva and its construction subcontractors meet (and in some cases exceed) Finnish safety standards. This caused problems because Olkiluoto was a turnkey contract with rigid payment provisions and project milestones. In hindsight, the hard-nosed and uncompromising approach of the Finnish regulator was the right approach even if the project ended up in arbitration over payments.

I anticipate that the situation in Japan will stabilize and countries like China, India and South Korea will quietly continue with their planned nuclear expansions albeit with an increased emphasis on safety. Developers of nuclear projects will have to adjust to an environment where the regulator exercises complete and unchallenged authority in all matters, including safety, throughout the project and developers will have no other option than to comply with whatever the demands of the regulator may be. This will be a change from the past few years where demand for nuclear energy was so great, developers had some scope to negotiate prices, timelines and other project details. In any case, I cannot envision a situation in the near future, particularly in countries like China and India, where nuclear was not a critical pillar of development of the country even in light of the safety risks and the unfolding situation in Japan.

144 MW Dokie wind project comes online in British Columbia

Plutonic Power Corporation and GE Energy Financial Services have achieved commercial operations at the 144 MW Dokie Wind project in the northeast Peace River region of the Canadian province. "By combining GE's experience as an energy investor and Plutonic's development skills, and by consistently reaching out to impacted stakeholders, we were able to turn a once-challenged project into what is now British Columbia's largest operating wind farm," says GE's Mark Tonner.

Renewable developers in British Columbia continue to escalate site acquisition and development activities in reaction to BC Hydro's increase in rates in their standing offer program and anticipated feed-in-tariff.

Saskatchewan signs MoU on energy with Gujarat

The Indian state of Gujarat signed four memorandums of understanding (MoUs) with the province of Saskatchewan on March 14, 2011 in Mumbai. One of the MoUs was signed between Saskatchewan and Gujarat Mineral Development Corporation (GMDC) for the exchange of scientific, technical and regulatory information in the field of energy. Possible areas of cooperation include wind farm development, solar/PV development as well as ethanol and canola biodiesel production.

Utility-scale biomass project in Saskatchewan announced

Multinational paper giant, Paper Excellence, will purchase the Prince Albert, Saskatchewan pulp mill from Domtar and invest $200 million CAD to re-open the facility. As part of the agreement SaskPower (the electrical utility in the Canadian province of Saskatchewan) will purchase surplus electricity from a biomass power facility to be incorporated into the mill. That agreement calls for the purchase of biomass power at a price consistent with rates charged for this kind of project. Additional details are not available about the biomass project but it is certain to be an exciting project as it will be one of the first large utility-scale biomass projects in Western Canada. The deal was just announced this morning and is expected to close in the second quarter of 2011.

Single energy market in EU

It has been almost 15 years in the making but it looks as if the European Union (EU)EU will establish a single energy market. The EU is the world's largest and most developed regional energy market with 500 million people and 20 million companies. The goal of the third EU energy package is to set up a single energy market and separate the operation of gas pipelines and electricity networks from the business of providing gas or generating power.

On Thursday the EU inaugurated its new energy regulators' office, the Agency for the Cooperation of Energy Regulators (ACER) in Slovenia as new legislation for liberalising the EU's internal energy market came into force. ACER's main tasks will be to develop guidelines for harmonising national grid codes, solving conflicts between regulators, supervising the work of the European Networks of Transmission System Operators and advising the EU's executive Commission on energy market issues.

Last month European leaders launched a trillion-euro bid to slash dependency on Middle East oil and Russian gas, clearing the way to place renewable energy and nuclear power at the centre of the EU's energy requirements.

Court upholds wind turbine setbacks - anti-wind activists lose court challenge

The Ontario Superior Court of Justice ruled that the province of Ontario acted properly in setting regulations for the placement of wind turbines and rejected the application from anti-wind activists which sought to strike down regulations governing how close turbines can be erected to dwellings.

Turbines must be located at least 550 meters from dwellings in Ontario but the anti-wind activists had argued that the province had no "scientific basis" for setting that standard.

The court ruled that the province’s environment department had followed due process in creating the setback, that there was public consultation, and that the government considered “science-based evidence” in making its decision.

This court ruling is good news for all developers in Canada who now have binding judicial precedent that a 550 meter setback is adequate.

Algonquin announces commercial operation of Red Lily Wind Project in Saskatchewan

Renewable energy development continues to power forward in wind-resource rich Saskatchewan with Canadian developer, Algonquin Power & Utilities Corp. ("Algonquin") announcing the achievement of commercial operation ("Commercial Operation") of the 26.4 MW Phase I Red Lily Wind Project ("Red Lily I") in south-eastern Saskatchewan pursuant to the Power Purchase Agreement ("PPA") with SaskPower. The project was completed ahead of schedule and is now successfully generating renewable power.

Red Lily I consists of 16 Vestas V82 wind turbine generators. The total capital cost of the facility was approximately $69 million CAD. Red Lily I enjoys an excellent wind resource, which under the power purchase agreement with SaskPower is expected to generate 2011 revenues of $7.5 million CAD and full year 2012 revenues of $8 million CAD. The power purchase agreement with SaskPower is for a 25 year term, with an annual inflation adjustment applied throughout the term.

Algonquin's commitment in Red Lily I has been structured initially as a debt investment with total returns to Algonquin being a combination of interest payments and fees. Algonquin retains an option to formally exchange its debt investment for a 75% equity interest in the entity which owns the facility in 2016.

In addition to Red Lily I, additional land rights have been secured for a second phase of the project, which, should it proceed, would provide an additional 106 MW of generating capacity in Saskatchewan.

The full Press Release is available on Algonquin's website: http://www.algonquinpower.com/newsroom/2011.asp#FEB28-2011

In addition to potash, uranium, oil, gas, coal, diamonds and gold I think it's time to add wind to the growing list of world-class natural resources in Saskatchewan.


I wonder which major PV developer will be the first to realize that Saskatchewan also has the richest PV resource in Canada? The PV potential in Saskatchewan far exceeds that in Ontario where 400 MW of PV has been already awarded contracts under the Ontario FIT.

Wind power battery storage project in Saskatchewan gets federal funding

A wind turbine and battery storage system project located on the Cowessess First Nation in Saskatchewan is set to receive $2.79 million CAD as part of a $64 million CAD Canadian government investment from the Clean Energy Fund announced on Sunday February 27, 2011.

The wind turbine and a battery storage system will be installed on the Cowessess First Nation's land to demonstrate how intermittent wind power can be harnessed and stored to provide constant continuous energy.

Chief Lerat of Cowessess said they have a strong interest in preserving the environment and wind is a major natural resource on First Nations land. The hope is that other First Nations reserves in Saskatchewan will follow with wind farm developments if this program is successful.

Yesterday, the Canadian Federal government also announced a commitment of $9.2 million CAD for the Digby wind farm in Nova Scotia and $11.2 million CAD to the University of British Columbia to undertake a clean heat and power project as well as funding for an ethanol plant in Varennes, Quebec.

Gamesa 2010 financial information positive

Gamesa, the Spanish wind turbine manufacturer and developer released financial information noting the following:

- Gamesa generated 472 million euro in net free cash flow in 2010;
- The backlog for delivery in 2011 amounts to 1,414 MW (+25%) and covers 48% of the wind turbine sales guidance for the year;
- International markets (such as Canada) accounted for 93% of the MW sold in 2010;
- The wind farm development and sale business revived and contributed 10 million euro in EBIT in the second half of the year.

Gamesa has recently been moving aggressively into the Canadian market with an establishment of an office in Ontario.

Ontario FIT awards 2nd round of contracts for 872 MW

The Ontario feed-in-tariff (FIT) program yesterday announced new contracts which include 257 MW of solar/PV projects and 615 MW of wind projects, bringing the total amount awarded under the FIT program to 1,570 MW. There were 4 wind farm projects, 1 hydro project and 35 solar/PV projects. The complete list is available here: http://fit.powerauthority.on.ca/Storage/103/11216_FIT_Contract_Awards_-_Final_List_-_February_24%2C_2011.pdf

TransAlta seeking to purchase renewable power assets

CEO Steve Snyder told Bloomberg that TransAlta has a strong interest in buying power assets in Canada and the U.S. and that TransAlta wants to add renewable power, including wind turbines, in Canada as well as power plants on the west coast of the U.S. and Canada. “We have a strong interest in expanding our fleet profitably,” Snyder was quoted as saying.

TransAlta Corp. is one of Canada’s largest wind power operators and added 189 MW of new wind power generation as well as a hydro plant in British Columbia in 2010.

British Columbia feed-in-tariff (FIT) could be launched in autumn 2011

At the BC Hydro Standing Offer Program changes and process review webcast and telephone conference held on February 23, 2011, BC Hydro noted that the British Columbia (BC) provincial government is currently working on their feed-in-tariff (FIT) regulation which they anticipate to issue in spring 2011. The launch of the FIT program is expected within 6 months after the regulation is issued. According to this timeline the FIT could be introduced in fall 2011. BC Hydro notes that wind will be part of the FIT but it will be in "non-interconnected areas".

Yukon Energy seeking renewable energy for gold mine

Yukon Energy will need more renewable energy if it wants to supply electrcity to a proposed gold mine in the Yukon Territory of Northern Canada without relying on diesel generation.

Yukon Energy's President, David Morrison stated that the publicly owned utility is in the process of identifying more sources of renewable energy in time to support Victoria Gold Corp.’s Eagle Gold project north of Mayo at Dublin Gulch in the Yukon Territory.

Yukon Energy and Victoria Gold Corp. signed a letter of intent earlier this month committing themselves to negotiating a PPA to supply the Eagle project by early 2014 or sooner.

Yukon Energy is currently determining how much more renewable energy can be added into the grid, including a large wind project on Ferry Hill overlooking Stewart Crossing. There is also ongoing research into geothermal projects involving the use of underground water resources that may be hot enough to drive steam turbines.

SaskPower disappoints stakeholders with renewable energy generation

"Stakeholders expressed a high level of dissatisfaction with SaskPower and what was described as a 'wait and see' approach to climate change. Stakeholders highlighted multiple examples of how SaskPower has fallen behind its peer group in renewable power generation. There is a strong desire from participants for SaskPower to pursue a new business model that accommodates new generation options."

- excerpts from the Summary of Stakeholder Consultations

The Saskatchewan government released their Summary of Stakeholder Consultations on the Saskatchewan Climate Change Regulations today. The Regulations will implement the new Management and Reduction of Greenhouse Gases and Adaptation to Climate Change Act in Saskatchewan.

Stakeholders provided examples of where SaskPower policies were a barrier to cogeneration opportunities that would lower emissions and support economic development.

Some of the noteworthy recommendations by stakeholders were:

- establishment of a renewable energy standard and strategy that would result in SaskPower adopting alternative energy options such as solar, biomass, wind, geothermal and others as a component of its base load generation capacity;
- pursuit of open and effective renewable energy sources and independent power generations would allow individuals and businesses to generate their own electricity and to sell the surplus power to SaskPower;
- engagement in cogeneration opportunities in rural and urban areas as a means to generate greener electricity and to support economic development. The consultation team was made aware of several cogeneration opportunities that had either been declined by SaskPower or "are outside of the existing SaskPower policies to be considered";
- restructuring of SaskPower policy frameworks to accommodate a wider range of large and small scale generation and co-generation options.

The full Summary is available at: http://www.environment.gov.sk.ca/stakeholderconsultations

BC Hydro Standing Offer Program revised in British Columbia

BC Hydro, the third largest utility in Canada, owned and operated by the provincial government in the Western Canadian province of British Columbia has revised its Standing Offer Program (BC SOP) for smaller-scale renewable energy projects, implementing all of the recommendations coming out of a review of the original rules.

Important changes in the BC SOP include increasing the maximum project size to 15 MW and increasing the program's fixed prices by 14-29%. The price increase varies from $12/MWh to $22/MWh depending on the region, with the price increases being greater for those regions further away from the Lower Mainland (greater Vancouver area). These regions benefit from a reduced cost estimate for transmitting energy to the Lower Mainland load centre.

Peak pricing is $103.69/MWh in the Lower Mainland area with a low of $94.86/MWh in the Peace Region.

There will be no differential pricing based on technology.

BC Hydro estimates that the new pricing will attract a cumulative total of approximately 1,000 gigawatt hours (GWh) per year of energy over two years under the BC SOP.

The BC SOP will continue with no quota or cap on development - start acquiring your sites for development in BC now before it's too late...

Ontario FIT suspends off-shore wind applications

In an anticipated move, the government in the Canadian province of Ontario suspended current off-shore wind applications under its FIT program to buy power generated by renewable sources.

The Ontario FIT offers North America's most comprehensive and lucrative rates for electricity generated from solar/PV, wind, water and biomass,

Only one off-shore wind project by developer Windstream Energy Inc. has been approved since the Ontario FIT came into effect in 2009. The FIT will accept no new applications for off-shore projects.

However, the moratorium will have no effect on applications for on-shore wind power projects.

Given the huge potential for utility-scale on-shore wind energy in provinces like Saskatchewan with a far superior wind regime to Ontario and much lower population densities, off-shore wind projects in the Great Lakes in Ontario made little financial sense. The Ontario provincial government has now recognized this and revised their FIT accordingly.

For off-shore wind developers, there are excellent opportunities for development in the Western Canadian province of British Columbia in the Pacific ocean and in the Eastern provinces of Newfoundland & Labrador, Nova Scotia, New Brunswick and Prince Edward Island in the Atlantic ocean.

Finland-based Talvivaara and Saskatoon-based Cameco sign uranium off-take agreeement

The agreement between Cameco and Talvivaara will certainly broaden the already significant relationship Cameco has with Finnish utilities, the Finnish government and regulators and private Finnish mining companies and electricty generators.

According to a February 8, 2011 Press Release Cameco is to provide an upfront investment of up to $60 million USD to cover the construction costs of a uranium extraction circuit in Finland. Talvivaara will repay the investment through deliveries of uranium concentrate during the initial years of the agreement. Once the capital sum has been repaid all uranium concentrate produced thereafter until December 31, 2027 will be bought by Cameco at a price based on market prices at the time of delivery. The annual uranium production is estimated at 350tU (ca. 770,000 pounds), corresponding to approximately 410t (900,000 pounds) of yellow cake (UO4).

Cameco is already very active in Finland and has been for a number of years. Cameco currently supplies uranium fuel to generate clean electricity for Finnish utilities and their customers. Finland produces approximately one-third of its domestic electricity through nuclear power. Finland has four existing reactors operated by two Finnish companies. A fifth reactor is currently under construction in Finland and two more are planned for the future.

Cameco will provide technical assistance to Talvivaara in the design, construction, commissioning and operation of the uranium extraction circuit to be constructed at the Sotkamo mine. Talvivaara plans to start construction of the uranium extraction circuit in the coming months and complete it in 2012.

Talvivaara is a Finland-based miner producing base metals with its primary focus on nickel and zinc deposits in Finland using a technology known as bioheapleaching to extract metals out of ore. Talvivaara is listed on the London Stock Exchange Main Market and NASDAQ OMX Helsinki and is included in the FTSE 250 Index.

Cameco Corporation is one of the world's largest suppliers of uranium and trades on the TSX and New York Stock Exchange.

SaskEnergy announces waste heat recovery project in Saskatchewan

SaskEnergy, the provincially owned, natural gas distribution company in the province of Saskatchewan have partnered with Found Energy and Innovative Steam Technologies to capture the waste heat of compressor station engines and convert it to useable electricity. SaskEnergy's aim is to produce more renewable energy than it consumes by 2015.

The $5.7 million CAD waste heat recovery project at the Rosetown and Coleville compressor
stations will capture heat normally vented to the atmosphere through the compressor engines‟ exhaust and convert that energy into electricity which will then be sold back to the SaskPower grid.

Waste heat recovery technology is rapidly developing in Western Canada and it is expected this project will break new ground for gas distribution companies.

138 MW Manitoba wind farm comes online

The first group of WTGs in the Canadian province of Manitoba's $345 million, 138 MW St. Joseph wind farm have commenced feeding power to the grid.

"Together we are creating a local energy source that will benefit the St. Joseph area and its residents including the generation of millions of dollars of municipal revenues over the life of the project," states Mike Garland, CEO of Pattern Energy, owner of the project.

The total investment required for the St. Joseph wind farm is projected to $345 million CAD. Pattern Energy will also pay $38 million CAD in total to the landowners in the rural municipalities of Rhineland and Montcalm. The wind farm occupies agricultural land of 125 square kilometers owned by private parties in the two municipalities.

SaskPower, are you listening? 143 MW of PV installed in Ontario in 2010

During the first full year under the FIT rates, the province of Ontario installed 143MW solar PV in 2010. This makes Ontario the second-largest PV market in North America after California.

A quick glance at the PV Potential Map (https://glfc.cfsnet.nfis.org/mapserver/pv/index_e.php) published by the Canadian Federal government clearly shows the province of Ontario has what can only be considered an extremely low potential when compared with the province of Saskatchewan, which has a significantly higher potential for solar PV.

This begs the question - why is SaskPower paying such low rates under their Green Options Partners Program? SaskPower should be following Ontario's lead and paying reasonable prices for solar PV generation, which could revolutionize the energy sector in Saskatchewan, as happened in Ontario. Ontario is now a Canadian renewable energy powerhouse even though the wind and solar resources in Ontario are far below that in Saskatchewan.

Japan & Saskatchewan team up on clean coal and carbon capture

The province of Saskatchewan and Japan have executed an agreement to cooperate on clean coal and carbon capture and storage.

The province and the Japan Coal Energy Center — which represents more than 100 companies — have signed an MOU outlining cooperation on the technologies.

The MOU sets the stage for information exchanges and research projects involving scientists and companies in both jurisdictions which could lead to Japanese investment in Saskatchewan carbon capture and storage projects.

Ontario Green Energy Act under attack

Wind power opponents in the Canadian province of Ontario will soon learn if they have overcome procedural hurdles to arguing a divisional court should strike down a key provision of Ontario's very successful Green Energy Act.

The hearing on Monday Janury 24, 2011 was initally spent considering issues of jurisdiction with judges questioning counsel if the court was the right place to challenge whether human health might be harmed by wind turbines.

Counsel for Ontario's Attorney General argued any challenge must go to a tribunal set up by the provincial Environment Ministry.

However, a lawyer representing wind power opponent Ian Hanna said the tribunal can only hear appeals over specific wind projects - only the court could strike down the specific regulation itself, a move that might freeze all wind development in Ontario.

A reply from the court is expected later today with most opinion-makers under the impression that Mr. Hanna is wasting the court's time and will not be successful in what are seen to be absurb claims.

Wind power is the star in Ontario's renewable energy plan. The government wants to double its output this year and ramp it up to provide 10% of energy output over 20 years.

Japan's Marubeni buys stake in Canada wind farm

Marubeni Corp has bought a 49 percent stake in a wind farm being built in the Canadian province of Ontario, the Japanese trading house said on Tuesday.

Marubeni bought the stake in the Raleigh Wind Energy Center, a 78-megawatt wind energy project located in southwestern Ontario, from Invenergy, a privately owned, Chicago-based company.

No price was given for the transaction.

Invenergy, which owns and develops renewable energy projects in North America and Europe, will retain the remaining 51 percent in the wind farm and manage it.

The project, which has a 20-year power purchase contract from the Ontario Power Authority, is expected to start commercial production next month.

"As part of its growth strategy, Marubeni is seeking to increase its investment in the North American power sector and will continue to pursue high quality investment opportunities in the United States and Canada," Marubeni said in a statement.

SaskPower plans ice rink pilot wind project

SaskPower has launched a demonstration project to explore the economic and environmental benefits of self-generated power projects at municipal ice rinks. The utility plans to install wind turbines at two rinks to determine if they could help offset power bills. "There's a lot of interest in customer-generated power right now and this demonstration project will help us explore the many variables involved," says CEO Robert Watson.

See http://www.saskpower.com/news_publications/news_releases/?p=1117#more-1117 for additional information.

Supreme Court of Canada clarifies duty to consult First Nations on hydro project

The Supreme Court of Canada has ruled that First Nations communities must show a causal relationship between a government action and a potentially adverse effect on their interests, for a duty to consult to arise.

The ruling, Rio Tinto Alcan v. Carrier Sekani Tribal Council, relates to a 2007 energy purchase agreement between BC Hydro and Rio Tinto Alcan - the long-time operator of the 60 year-old Kenney Dam project in the Nechako River, in north-west British Columbia.

Alcan (as it was then known) obtained approval to build the dam from the provincial government in the 1950s, so it could produce power for the smelting of aluminium.

Around 60 years after the dam was built, the Carrier Sekani Tribal Council, a group representing eight aboriginal communities in the province, claimed that it had never been consulted on the dam’s construction and asserted a right of consultation in regards to the 2007 agreement.

In its arguments, the tribal council said the dam had affected the amount and timing of water flows into the Nechako River, impacting on fisheries and lands now claimed by the communities it represents.

The British Columbia Utilities Commission considered the matter first. After establishing that it had the power to consider the adequacy of the Crown’s consultation process, the regulator ruled that the 2007 agreement would have no impact on existing water levels in the Nechako River and no new adverse impact on the aboriginal communities’ rights.

Upholding the regulator’s decision, the Supreme Court ruled that to trigger the duty of consultation, aboriginal groups must show “a causal relationship between the proposed government conduct or decision and a potential for adverse impacts on pending claims or rights.”

“Past wrongs, including breaches of the duty to consult, do not suffice,” the court clarified.

The court added that a past or continuing breach of a claim or right would only trigger a duty to consult if the decision at issue caused a “new adverse effect”.

The court agreed that the British Columbia Utilities Commission had jurisdiction to consider the adequacy of Crown consultation in the matters brought before it – but it did not have power under the Utilities Commission Act, to engage in consultations itself to carry out the duty.

Instead, BC Hydro, as a Crown corporation, was responsible for the duty to consult, according to the court.

Southwest Alberta transmission line in service

A new 90-kilometre transmission line between Pincher Creek and Lethbridge Alberta is now in service, providing transfer capacity for another 1000 MW of wind energy. "Albertans tells us that increasing access to more renewable energy is important, and we are proud to provide that connection," says Scott Thon, CEO of Altalink, which built and will operate the line.

Green energy park in Saskatoon continues to move forward

Saskatoon Light & Power, an electric utility in the City of Saskatoon, Saskatchewan stated at a public meeting last night that they hope to begin construction on a green energy park at the city Landfill in summer 2011.

Kevin Hudson, an engineer with Saskatoon Light & Power noted that the response was supportive overall.

The next step is to take a final report to City Council for approval which will happen in December 2010.

The plans include a methane gas recovery project, a turboexpander project, which takes energy from excess heat, and a tall wind turbine project which was launched last April.

Saskatoon Light & Power is in a unique position to become a renewable energy leader in a province otherwise controlled by SaskPower, the monopoly provincial utility and the green energy park is certainly an important project in this regard.

Solar PV projects moving forward in Saskatchewan

Today marked another step in Regina, Saskatchewan based Namerind Housing Corporation's quest to becoming a self-sustaining organization - this time in the area of environmental sustainability. By installing solar Photovoltaic (Pv) and solar thermal technology on all multi-dwelling units, Namerind will vastly reduce their reliance on fossil fuels over the 25 to 30 year life cycle of the systems.

"Though there is of course an initial cost to installing this new technology in our properties, the long term benefits - both environmental and financial - will far outweigh that investment," said Robert Byers, President and CEO of Namerind. "We are very excited to be announcing our use of this innovative technology as part of our continued commitment to bettering the community we serve."

The solar thermal technology will be installed from October through December 2010 and will immediately start providing solar power and heat energy. This project is the second largest of its kind ever to be undertaken in Saskatchewan.

"With the use of this technology, we are not only adding cost-efficient, clean power to the grid, we are also making a long-term investment in our multi-dwelling units, including our office and our mall," said Byers. "This project is one of many ways that Namerind has diversified in order to provide affordable housing in Regina within a self-sustained model."

The solar thermal technology makes use of otherwise unused space on the roof of each property and will provide an immediate, clean source of power and heat energy. For example, at the six properties with installation in 2010, the solar technology will replace an equivalent of 28,392 litres of gasoline annually, also providing 66.4 tons of Green House Gas (GHG) reduction.

Developers are now starting to realize the potential of solar in Southern Saskatchewan which receives more hours of sunshine annually than any part of Canada.

Newfoundland and Nova Scotia strike $6.2 billion CAD hydro deal

The premiers of Newfoundland and Labrador and Nova Scotia today announced a $6.2 billion CAD deal to develop the Lower Churchill hydroelectric megaproject.

The details of the deal for the Lower Churchill project follow below:

Development cost: $6.2 billion
Size: 834 megawatts
Jobs: 2,700 at peak; 120 permanently
Share of assets: Nalcor 51% and Emera 49%
Contract term: 35 years
Requiring: Ratification of Innu Nation land claim
Sought: Federal loan guarantee; $375 million toward subsea link
What Nalcor will pay for subsea link in 2045: $1

Emera (Nova Scotia) will receive about 20% of that energy for itself, and in return is paying for the construction of the underwater link. Nalcor (Newfoundland and Labrador), which is reserving 40% of the power for its own use, will raise $4.4 billion to pay for its share.

The deal still leaves undeveloped the 2,200 megawatt potential of the Gull Island site on the Churchill River, which has been on blueprints since the 1970s.

GE to supply 55 turbines for Suncor wind project in Alberta

GE Energy has received an order from Suncor Energy, Inc. for 55 units of GE’s advanced 1.6 MW wind turbines for installation at the Wintering Hills project in Alberta. The 88 MW Wintering Hills project is located near Drumheller, approximately 78 miles northeast of Calgary. GE will begin deliveries of the turbines to the site beginning in the second quarter of 2011. The project is owned jointly by Suncor (70%) and Teck Resources (30%).

Canadian business leaders call for clean energy leadership from the government

The Canadian Council of Chief Executives, otherwise known as the CCCE, this week released Clean Growth 2.0: How Canada can be a Leader in Energy and Environmental Innovation, that propose turning Canada into an "environmental superpower" and "an energy and resource powerhouse."

The CCCE want a "road map that provides clarity and predictability," with key sectors of the economy -- government, industry, stakeholders -- all pulling in the same direction set by "smart" policy. Such policy would include a national energy strategy, a nationwide carbon tax, subsidized investment in technology, and mass government indoctrination to force lifestyle changes, including programs to "get more people out of their cars and using public transit, car-pooling, cycling and walking."

For Canada to get to "superpower status", the CCCE paper calls for a new Canada-US agreement on energy and climate. The paper says it is now time to build on what already exists by forging a new energy agreement that aims to ward off U.S. protectionism and bring Canada into some form of policy harmonization with the United States.

Copies of the paper are available on the CCCE’s website, at www.ceocouncil.ca.

Nova Scotia announces community wind feed-in tariff

The provincial government of Nova Scotia, Canada has announced new regulations that will provide a fixed feed-in tariff for community-based wind and other renewable energy projects. Rates, to be set by the Nova Scotia Utility and Review Board by next spring, will vary according to technology with different tariffs for wind projects larger than 50 kW and for micro-scale installations less than 50 kW. "These greener, local projects will help to create good jobs, provide a better future for Nova Scotians and reduce our overall dependence on imported carbon-based sources," says Premier Darrell Dexter.

Southern Africa renewables poised for "exponential growth"

Off-grid solar projects are likely to accelerate renewable energy's expansion in southern Africa to compound annual growth rate (CAGR) of more than 10% between 2009 and 2015, finds Frost & Sullivan. But the research company's Annual Renewable Energy Project Tracker highlights feed-in tariffs – already announced in South Africa and Kenya – as key to this surge in renewables.

The Sub-Saharan renewable energy market is set to triple from 2010 to 2015, said the global research firm Frost and Sullivan in a new report this week. Small-scale generation is likely to take the lead, while sluggish regulatory reform and enduring state monopolies hold back larger projects.

"Many developmental agencies consider small-scale RE [renewable energy] projects as the most feasible solution for accelerated rural electrification and therefore are increasingly investing in medium-sized projects, especially wind and solar projects," said Cornelis van der Waal, Frost & Sullivan Energy and Power Systems programme manager.

But he called for a “revamp” to accelerate the search for energy diversification and security of supply, with incentives for the private sector to invest.

South Africa is expected to approve a feed-in tariff for solar this year, a move also under consideration in Kenya, Nigeria and Uganda, he said.

I am currently involved with a wind and PV development project in Namibia and would be happy to have a discussion with potential investors or senior developers.

Onshore wind farms profitable in 5 years time in Finland

Research indicates that onshore wind farms in Finland could be profitable sooner than thought, writes the newspaper Turun Sanomat. According to a survey carried out by Aalto University, wind farms in Finland could be profitable in approximately 5 years.

If the research proves to be correct, Finnish government subsidies for onshore greenfield wind farms could be reduced from next year onwards and be unnecessary by 2015.

Offshore wind farms would be not affected, according to researcher Jani Laine at the faculty of Energy Technology at Aalto University in Finland. The research indicates that Finnish government subsidies for wind farms could not be phased out before 2020 at the earliest.

Legislation on renewable energy is currently being discussed by parliamentary committees in Finland. The Finnish government has agreed to finance energy subsidies for wind farms up to a maximum of 12 years.

SK judge rules wind farms pose no credible danger to people

Supporters of a controversial wind farm project near Moosomin, Saskatchewan are breathing easier these days.

A Saskatoon judge has ruled that the courts will not stop the work that's being done on the $60 million Red Lily Wind Farm near Moosomin.

Area farmer David MacKinnon claimed the turbines at the 25 megawatt facility would be too close to homes.

He stopped work for six days this summer when he won a temporary injunction.

But a judge has since said there is no credible evidence to support the claims that the turbines would endanger people.

Work has since resumed on the site.

Finavera signs MOU with Halfway River First Nation

Vancouver-based Finavera Renewables has signed a memorandum of understanding with the Halfway River First Nation for the development of four wind projects the company has under contract to BC Hydro. "This is a good day for us. Our community is looking forward to the opportunities in working with Finavera and we sincerely support Green Energy. I believe this is a win-win situation for our community, Finavera, and the Peace River Country," says Chief Ed Whitford.

Eco-friendly data centre to be built in Northern Finland

CSC – IT Center for Science Ltd. is to establish one of the world’s most eco-efficient data centers in the Renforsin Ranta business park in Kajaani, Finland on the site of the former paper mill of UPM in northern Finland.

”Our aim is to create one of the world’s most eco-efficient data centers, to be operated using locally produced energy and with a minimal carbon footprint. All the alternatives we have considered contain a binding offer on energy from the business park’s own network. This will bring significant cost benefits in electricity transfer costs”, says Kimmo Koski, Managing Director of CSC.

The computer data center requires a lot of electricity, which is generated by hydroelectric power plants in Kajaani. The cooling water required comes from the nearby river.

Finland’s location is excellent for large and cost-effective IT data centers. Well-functioning data traffic, cool climate, industrial facilities, solid bedrock, and waterways create a competitive edge for building sustainable and ecologically-friendly computer facilities.

Canada shares many similarities with Finland including a developed forestry and pulp and paper industry and many unused or underutilized paper mills and of course a northerly climate. Those in the forestry industry in Canada looking for innovative projects to utilize their existing facilities would be wise to follow Finland's example.

Eagle nest puts Finnish wind power project on hold

Finnish broadcaster, YLE reported today that the discovery of a white-tailed sea eagle nest in Pyhäranta in the southwest of Finland has caused the Rihtniemi wind power project of Propel Voima to be put on hold

Propel Voima has been developing the wind power project for more than a year and a half, and wind measurements have been conducted for more than a year. The company is now assessing the situation and is collecting experiences of similar situations elsewhere in Finland.

There are a number areas in the southwest of Finland where the endangered white-tailed sea eagles thrive. This has been the primary reason to significantly limit the possibilities of wind power in this area of Finland.

Although many wind turbines in Europe are sited less than 400 meters from human homes, the WWF is recommending that wind turbines be situated at least 2000 meters from such nests. It is unclear on what basis the WWF recommendation has been made.

Turbine at Saskatoon landfill moves forward with study

A city of Saskatoon committee this week hired the University of Saskatchewan to conduct a study to determine the ability of the landfill's ground to support a wind turbine.

The site "presents unique challenges," said Saskatoon Light and Power's Kevin Hudson.

A 60-metre tall meteorological tower was installed at the landfill last week. It will monitor the wind at the site for one year and collect data to see if a turbine can be successful there.

Hudson said a turbine, which could be constructed as soon as 2012, would be 700 metres away, which exceeds any standard in place in Canada.

Red Lily Wind Farm could seek $450,000.00 from landowner for bringing unnecessary injunction

On August 25, 2010 the Court of Queen's Bench in Saskatoon granted an interim injunction restricting further construction on the Red Lily Wind Farm near Moosomin, Saskatchewan. David McKinnon, a landowner within proximity of the Red Lily Wind Farm, applied for the ex parte injunction and one week later, on September 1, 2010 the Court of Queen's Bench overturned the injunction after hearing from all parties.

In order to obtain the injunction, Mr. McKinnon had to undertake to pay damages if the injunction was found to be unnecessary and damages were caused. Red Lily Wind Farm ascertains that the cost of the construction delay was $74,000.00 per day for 6 days, totalling nearly $450,000.00.

Paul Gipe in Edmonton promoting feed-in-tariff in Alberta

Renowned wind power expert, Paul Gipe was in Edmonton today advocating hard for a feed-in-tariff (FIT) in Alberta.

As readers of this blog now, I am also a strong advocate for FITs and have been actively promoting and encouraging a FIT in my home province of Saskatchewan.

While Alberta adopted a free market for energy several years ago, with generators bidding their production into the provincial grid several times each hour, Ontario is doing the opposite by offering long-term contracts to renewable producers, Paul Gipe stated. Saskatchewan continues to have the crown utility, SaskPower mandate all programs but SaskPower currently has a competitive standing offer program and is procuring an additional 175 MW of generation to be built and operated by the private sector.

Using the example of a northern German state, Gipe said farmers and community groups there have installed 560 megawatts of wind power, about the same amount as produced by one of the coal-fired power plants near Wabamun Lake owned by TransAlta Utilities or Capital Power.

"They view the wind as their resource, and these are farmers in one country who have decided to make money from it."

Globally, about 75 per cent of all solar for electricity, 50 per cent of all wind and most biogas developments depend on feed-in-tariffs, which guarantee producers set rates upwards of 13.5 cents per kilowatt hour, much higher than current Alberta power rates but also not subject to the whims of rising fossil fuel prices.

"You could view this as an insurance policy, because the price consumers pay won't change for 20 years, but oil and natural gas will likely be higher than today," said Gipe, who has written extensively about wind power.

As I have mentioned in this blog, Nova Scotia is introducing their feed-in-tariff but only community-owned projects will qualify for the special rates.

Ontario's program has attracted utilities from around the world to build renewable projects. From Alberta, TransAlta and Capital Power are both big players, benefiting from a tariff system not available to them in their home province.

Alberta has 656 kW of installed wind energy out of Canada's 3,499 total, with some of the projects supported by earlier incentive programs. But even without the feed-in-tariffs offered in Ontario and green energy contracts being put out by B.C. Hydro, new projects are proceeding in the province.

Finland approves alternative energy subsidy

The Finnish government has endorsed a bill that guarantees a minimum price for producers of electricity using alternative sources. Under the system, producers of electricity using wind, biogas and wood fuel get a state subsidy that makes up the difference between the guaranteed price and the lower market price.

The law which is to take effect next year, will be in force for 12 years. The plan is expected to cost 55.35 million euros next year. The bill is set to go before Parliament and the state subsidies also require approval of the European Commission. Both parliamentary and EU approval is expected shortly.

Japan files WTO complaint regarding Ontario FIT

Japan has filed a complaint to the World Trade Organisation that the Ontario feed-in-tariff (FIT) violates WTO rules and is protectionist.

As many foreign renewable energy developers are aware, the Ontario FIT requires the use of Ontario-made products in manufacturing power-generating facilities.

"Japan considers that this requirement for the use of locally made products violates" the WTO's rules that ban discrimination against products made overseas, Japan's foreign ministry said.

The FIT requires that in order to receive payments under the FIT, companies must have a minimum percentage of their project costs come from Ontario goods and labour. The requirement currently starts at 25%, and increases to 50% by 2012 for wind projects. For larger solar PV projects, the minimum is 50%, which increases to 60% next year.

Japan has asked Canada to reconsider its decision. It will now undergo formal consultations under the WTO with the Canadian government.

Ottawa will defend Ontario and its green energy policy against a complaint from Japan that it violates Canada's trade obligations, International Trade Minister Peter Van Loan said Tuesday.

If the next round of negotiations fail, Japan will likely ask the WTO to set up a panel for dispute settlement, the Japanese foreign ministry said.

Japan has many companies in the solar energy space, including Sharp, Kyocera, Sanyo and Mitsubishi Electric, as well as major suppliers of components and wind systems.

Under the FIT, Ontario announced a $7-billion deal with Korean giant Samsung to build wind and solar farms, along with four plants to manufacture components for green energy projects.

Vancouver-based Magma Energy acquires 98.53% of Iceland’s HS Orka

Magma Energy Corp. (Vancouver, B.C.) announced that its wholly owned subsidiary Magma Energy Sweden A.B. has completed its acquisition of a 98.53% interest in Iceland geothermal energy developer HS Orka hf. The completion of the deal was executed through the acquisition of 14.32% of HS Orka’s outstanding shares from Geysir Green Energy ehf, a global geothermal company based in Iceland.

Enerkem breaks ground in Edmonton on waste-to-biofuels plant

Montreal-based Enerkem has broken ground on a $75 million USD waste-to-biofuels plant in Edmonton, Alberta, a facility that’s being described by industry analysts as the first industrial-scale biofuels project to use municipal solid waste (MSW) as a feedstock. Enerkem has signed a contract with the city of Edmonton to convert 100,000 tons of MSW into biofuels annually. According to Enerkem CEO Vincent Chornet, there are in excess of 500 municipalities that have sufficient MSW to make an Enerkem plant feasible, and the company has received “dozens of calls” from municipalities looking to investigate construction of an Enerkem facility, Biofuels Digest reported.

Ontario surpasses Florida in solar PV development with more projects in the pipeline

The state of California still ranks at the top of the North American solar PV market, with total installed capacity of 768 megawatts (MW), but Ontario is jockeying for the leading position as the top PV growth market, according to recent data compiled by the Interstate Renewable Energy Council (IREC) and the Canadian Solar Industry Association (CanSIA). In 2009, Ontario surpassed Florida in terms of installed PV base—48 MW versus 46 MW—and trails only California, New Jersey (128 MW), and Colorado (59 MW) in North America. CanSIA estimates that as much as 200 MW of PV capacity could be installed in Ontario this year; nearly 100 MW of projects have already been completed, and several large projects are underway.

Sask. wind farm faces class action

This was just posted this morning on the Financial Post FPLegalPost website.
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Sask. residents push courts for changes to $60 M wind farm.

Landowners in southeastern Saskatchewan have turned to the courts to press for significant changes to a $60-million wind farm project.

“We think we’re going to be successful in preventing them from building this close to people’s houses,” said Brad Jamieson, the Saskatoon lawyer representing some area residents who recently filed a class-action lawsuit.

His clients are concerned by the proximity of the turbines to be erected under the Red Lily Wind Farm Project, a 25-megawatt wind farm that will be located about five kilometres west of Moosomin, Sask.

Jamieson said his clients want the turbines located 2,000 metres from any home, up from the currently planned 550-metre distance.

An interim court order was made last week bringing “all construction-related activity” to a halt pending the outcome of an injunction application.

The wind farm was expected to be operational by late this year or early next year.

Privacy by Design: Achieving the Gold Standard in Data Protection for the Smart Grid

Ontario Information and Privacy Commissioner, Ann Cavoukian, has completed a useful report which considers how to manage privacy protection in the context of electrical utilities and the new challenges posed by smart grid systems. The new publication, Privacy by Design: Achieving the Gold Standard in Data Protection for the Smart Grid, is available at http://www.ipc.on.ca/english/Resources/Discussion-Papers/Discussion-Papers-Summary/?id=967.

In Saskatchewan, SaskPower announced on August 20, 2010 a $190 million CAD plan to replace existing SaskPower meters with new electronic meters in 500,000 homes and businesses across Saskatchewan.

The "Advanced Metering Infrastructure" system will electronically send information about electrical utilization to SaskPower. Several other provinces, including Ontario, are at varying stages in their smart metering development projects.

Proposed Manitoba legislation encourages biomass power

New regulations proposed by the Manitoba government aim to improve air quality in the province while encouraging the use of natural biomass materials as fuel.

Manitoba Conservation Minister Bill Blaikie made the announcement August 23, 2010 emphasizing that the new rules would help make the air cleaner and also streamline the approval process for new clean energy systems such as biomass, as a heat and power source to replace fossil fuels.

Thermal treatment technologies included in the proposal are combustion, gasification and pyrolysis. Blaikie added that the proposed legislation would make biomass-based systems more attractive to industry by putting in place a simpler and faster permit system.

The regulations would also level the playing field for biomass thermal systems currently competing with fossil-fuel based incineration systems, by requiring additional air quality protection.

Manitoba Hydro Senior Bio Systems Engineer Dennis St. George agreed with Blaikie that the new incinerator rules will help promote the use of biomass and other wastes as fuels for heat and power generation in Manitoba.” I'm also sure that customers who are currently relying on incineration to dispose of their waste materials will appreciate having Manitoba Hydro's Power Smart Bioenergy Optimization Program available to add value to their business,” he said.

World's first "green highway" planned in Finland

Finland hopes to build a carbon-neutral “green highway” that would include charging stations and biofuel stations.

The project will focus on an 81-mile stretch of road that would link the cities of Turku and Vaalimaa near the Russian border. Authorities in the town of Loviisa, east of Helsinki and along the proposed highway, suggested the “green” approach and are leading the project.

“The aim is to create the model for an ecological highway that could be used even on an international level,” city official Aki Marjasvaara stated. “No other such project exists. This would set an example to the world.”

It is an incredibly ambitious idea. In addition to providing charging stations, the plan would use garbage and other renewable resources to produce biofuels and generate electricity. There also is some discussion of installing “smart” lighting that would turn itself off when there are no vehicles on the roadway. The road would of course include traditional gasoline and diesel fueling stations.

Officials are drafting a study examining the project’s feasibility and cost. They hope to finish the study in March and believe the project could be completed by 2016 at a cost of 700 million EUR. Marjasvaara stated that he expects the road to be at least partially financed through investments from large companies like Fortum, Neste Oil and Ensto.

Nexterra to install biomass system for UBC

Nexterra Systems Corp. (Vancouver, B.C.) has signed a multi-million dollar agreement with the University of British Columbia to supply and install a biomass-fired combined heat and power (CHP) system at the university’s Vancouver campus. Describing the installation as the first of its kind in North America, Nexterra said that the system will use urban wood waste to produce a synthetic gas, or “syngas,” that will be directly fired into a General Electric internal combustion engine to produce 2 MW of electricity. Waste heat will be recovered to produce 9,000 pounds per hour of low-pressure steam for campus heating. The installation is the result of three years of collaboration between Nexterra and GE’s Jenbacher gas engine division.

Energy Contracts conference in Calgary on September 20-21, 2010

The 8th annual Energy Contracts conference in Calgary is quickly approaching on September 20th and 21st, 2010 and is always a very worthwhile event for anyone involved in the contracting process in the energy industry (conventional or renewable).

I am particularly looking forward to the in-depth session on Carbon Credit Offset Project Origination and Monetization, which is very timely given that our new carbon credit trading legislation in Saskatchewan is just coming into effect.

If you are planning on attending the conference, drop me a line and we can meet for a coffee or drink.

Environmental Industries Mexico Pre-mission Outreach Webinar

DFAIT hosted an Environmental Industry Opportunities in Mexico webinar on Wedensday, July 28th, 2010 at 10:30AM (Saskatchewan time) in partnership with SEIMA, STEP, WED, and ES. The webinar was presented by Rosalba Cruz, the Environmental Industries Trade Commissioner from Mexico City and two in-market consultants (Mexico City and Monterrey) who highlighted trade opportunities within their respective region as well as provided information on how to do business in Mexico.

Of particular interest was that the maximum wholesale price of electricity in Mexico is 18 cents per kilowatt hour (for street lighting). It was clear that wind energy is the most important form of energy at the moment in Mexico but that there are opportunities for solar as well.

This was an interesting webinar and I am sure the trade mission to Mexico in fall will be very useful in helping companies establish contacts.

Feed-in-tariff for Finland

The "Law for Feed-in-Tariff for Wind Energy" is under preparation at the Finnish ministry of trade and industry. The law will be reviewed and voted on in September 2010 and is expected to come into force in January 2011. The proposed level of the tariff will be 83.5 €/MWh for 12 years. There is a bonus for those projects that will start producing energy during the first two years after the law comes into force. The level of the bonus tariff is 105.30 €/MWh for three years. After three years the project will receive the regular tariff level for nine years.

The target of the Finnish government is to have 6 TWh worth of wind energy installed by 2020. This means 2000 MW worth of installed capacity in near shore, offshore or onshore or 3000 MW worth of capacity inland.

Sky Harvest Reports SaskPower RFQ Decision

VANCOUVER, July 15, 2010 - SOURCE: PRNewswire-FirstCall/ - In October 2009 SaskPower announced the Green Options Plan, stating its intention to procure up to 175MW of wind power from independent power producers. A formal Request for Qualifications (RFQ) was issued in December 2009. Sky Harvest Windpower Corp. announces that the Company was not granted qualification by SaskPower in the RFQ. The reason given to the Company was that the balance sheets of the Company and the proposed Joint Venture Developer and Project Finance Guarantor submitted in the Company's response to the RFQ did not meet the financial requirement to qualify at this time. "We have a project with all the right components to deliver a responsible and clean source of energy to Saskatchewan and are very disappointed to not be participating in this year's Request For Proposals" says Chris Craddock, Sky Harvest's President and C.E.O. "Wind power is expected to contribute significantly to the future power generation capacity of Saskatchewan, and the Company intends to participate in any future procurement process which may be announced by SaskPower." The Company is continuing discussions with the proposed developer and is examining other strategic options.

Canada and India reach nuclear deal

On June 27, 2010, Canada and India signed The Agreement for Cooperation in Peaceful Uses of Nuclear Energy which provides for, among other things, cooperation in the mining and supply of uranium.

Cameco, the world's largest supplier of uranium, is located in the city of Saskatoon in the province of Saskatchewan which has some of the richest deposits of uranium in the world.

Macquarie to acquire 20 MW solar PV project in Ontario from SunPower

On June 23, 2010, Macquarie announced an agreement to acquire a 20 MW solar PV power project in Amherstburg, Ontario to be designed, built and operated on behalf of Macquarie by SunPower.

The approximate $130 million project will be primarily funded by a syndicate of international lenders with approximately $33 million of equity to be contributed by Macquarie upon the start of commercial operations, which is anticipated to be in June 2011. When completed, the Amherstburg Solar Park will be one of the largest solar power facilities in Canada and is expected to produce approximately 37,600 megawatt hours of electricity annually. Construction of the Amherstburg Solar Park is expected to start immediately using local resources and is expected to create up to 100 jobs in the County of Essex.

SunPower will complete the Amherstburg Solar Park under a fixed-price engineering, procurement and construction contract. SunPower will also provide operations and maintenance services for the facility under a 20-year contract. Electricity generated by the facility will be sold under the Province of Ontario's Renewable Energy Standard Offer Program to the Ontario Power Authority at a guaranteed price of $420 per MWh for the next 20 years. For the first two years of commercial operations, SunPower will financially support the performance of the facility at the expected production.

Finland quietly taking lead in implementing smart grid systems

It was announced yesterday that energy management form Landis+Gyr has just been awarded a contract to provide electricity, gas and district heat smart metering for the city of Lappeenranta in South-Eastern Finland.

The agreement with local energy company Lappeenrannan Energiaverkot will see the deployment of Landis+Gyr’s Gridstream solution for multi-energy smart meters, smart metering software and meter reading services.

Landis+Gyr will manage the entire project and work on the rollout with its partners beginning in April next year, which will see 54,000 smart meters installed in households by 2013.

On June 2, 2010 it was announced ABB will work on a joint development project with Helsingin Energia, the public utility Helsinki, and Nokia Siemens Networks to design and install a large-scale smart grid in the Kalasatama district of Helsinki.

The R&D project will test the concept of a flexible, low-emission power network in the district as part of a larger initiative to lift Helsinki's environmental profile with a focus on the sustainable and efficient distribution of power. ABB, Helsingin Energia and Nokia Siemens Networks will develop a variety of solutions based on modern communication, information and energy technologies.

These include solutions to ensure that excess power generated from renewable energy sources in the district itself, for instance from solar panels and wind turbines, can be fed into the power grid; to enable electric vehicles to draw electricity from the grid or feed it back; to store energy; to create easy-to-use services and to provide more flexibility and transparency in the distribution grid, helping to lower consumption and emissions.

The Kalasatama district in the heart of Helsinki will provide living space for 18,000 people and 10,000 work places, and incorporate an innovation center to showcase the latest technologies being tested and deployed.

Masdar making headway

Masdar, the organization in Abu Dhabi building what is touted as the world’s first carbon-free city, announced that it has formed a joint venture with France’s Total and Spain’s Abengoa Solar to build and operate the Shams 1 concentrating solar power (CSP) plant. The Shams 1 facility will be located on 2.5 square kilometers of land in Madinat Zayed, 120 miles southwest of Abu Dhabi, and will generate 100 MW of electric power from a field of 768 parabolic trough collectors supplied by Abengoa Solar. Masdar will have a 60% interest in the joint venture, while Total and Abengoa will each have a 20% interest. Construction is scheduled to begin during the third quarter of this year and take approximately two years.

Green Options Partners Program, winners announced in Saskatchewan

SaskPower announced this week that several IPPs have been selected to participate in the SaskPower Green Options Partners Program.

Six projects from five IPPs were chosen through a draw on May 19, 2010 adding another 33 megawatts (MW) of environmentally friendly power in Saskatchewan.

There was a total of 43 proposals from 11 different proponents. "The private sector is clearly interested in developing green power in the province," SaskPower said in a media release.

A lottery process was used to ensure fairness in the selection process. The first two selections were 10 MW wind power projects.

Despite room for only an additional five MW to meet the 25 MW threshold, the lottery rules dictated that the next application would be accepted in its entirety, so a third 10 MW wind power project was selected.

The other initiatives selected were a 0.5 MW small hydro project, a 0.112 MW heat recovery project and a three MW flare gas project -- the only non-wind power projects that met program requirements.

The next step is for SaskPower to design and price the power lines that will connect the projects to the Saskatchewan grid and sign PPAs with each supplier.

Applicants will have up to three years to start providing power to the grid. Developers of hydro projects have up to eight years due to the more extensive permitting and construction processes.

Nova Scotia Renewable Electricty Plan includes COMFIT

In April, 2010 Nova Scotia released its Renewable Electricity Plan. The Plan sets out the Province’s goal that 25% of electricity generated will come from renewable sources by 2015, and that 40% of electricity will come from renewable sources by 2020.

Among other significant provisions, the Plan establishes a community-based feed-in tariff ("COMFIT") for 100 MW of renewable energy projects connected to the grid at the distribution level. The Plan also includes programs to assist community groups in the development of these COMFIT projects.

The Plan will also continue to strengthen Nova Scotia's position in developing tidal energy and smart grid technologies.

Western Canadian cleantech companies ink deals in China and Iceland

Alter NRG Corp. based out of Calgary has signed a definitive agreement with Wuhan Kaidi Holding Investment Co., Ltd. to construct a demonstration biomass-to-energy facility in China, and it has signed a letter of intent with Wuhan Kaidi for the licensing and development of future biomass power plants serving the Chinese market. The initial facility will process 50 to 100 tons of various biomass materials per day; Alter NRG will receive approximately $1 billion Canadian (about $947,000 U.S.) in orders for plasma torches and engineering services in connection with the facility’s development. The plasma gasification technology was developed by Alter NRG’s subsidiary Westinghouse Plasma Corp. “Kaidi is a respected and leading company that is planning to do multiple projects using our technology in the future, and the initial capital investment into the small-scale facility is a critical step as the Chinese market adopts technology quickly upon successful demonstration within the country,” said Mark Montemurro, Alter NRG’s president and CEO.

Geothermal energy developer Magma Energy Corp. based out of Vancouver has signed an agreement with Iceland’s Geysir Green Energy ehf (GGE) under which Magma will acquire all of GGE’s stake in HS Orka hf, thereby increasing Magma’s stake in HS Orka to 98.53%. HS Orka currently produces 175 MW of geothermal power and 150 MW of thermal energy for district heating in Iceland, and has near-term expansion plans that would increase its power production to 405 MW by 2015. The transaction will increase Magma’s geothermal power production to 186 MW, its geothermal reserves to 193 MW, and its indicated and inferred geothermal resources to 1,161 MW. The remaining 1.5% stake in HS Orka is held by four Icelandic municipalities.

Carbon prices to average $26/ton in U.S. initially

The carbon emissions trading system to be set up under the proposed American Power Act (APA) in the United States would exchange allowances at an average price of $26 USD per metric ton of carbon dioxide equivalent (CO2e) over the period from 2013 to 2020, according to a preliminary analysis of APA by Point Carbon (Copenhagen, Denmark). APA, a discussion draft of which was introduced in the U.S. Senate on May 12, 2010 would create a hybrid system to curtail greenhouse gases in the United States, with the electric power, industrial, and commercial sectors participating in a cap-and-trade program while the transportation sector—chiefly the petroleum industry—would pay a quarterly fee pegged to market prices for allowances, Point Carbon said. The volume of allowances capped would be 2.5 billion tons of CO2e in 2013 when only the power sector is covered, increasing to approximately 4 billion tons in 2016.

Mexico capitalizing on proximity to US

A Spanish wind turbine manufacturer and US wind farm developer are planning a 500 MW wind farm in Mexico to be operational by 2015.

Construction may begin in the next 12 months for the first 100 MW.

The site is c.a. 100 kilometres east of the US city of San Diego in the Baja region of Mexico.

The intent is to sell the power into the US. I anticipate that similar cross-border deals in both Mexico and Canada will come together in order to supply the huge US demand.

SaskPower pursuing 250 MW hydro project in Saskatchewan with First Nations & Brookfield

Below is an excerpt from a Government of Saskatchewan press release dated May 13, 2010:

SaskPower is working with three Saskatchewan First Nations to study the feasibility of developing a renewable energy project on the Saskatchewan River system.

The James Smith Cree Nation, Chakastaypasin Band of the Cree and the Peter Chapman Band - along with their development partners, Brookfield Renewable Power and Peter Kiewit Sons Co. - have reached an agreement with SaskPower to study the feasibility of developing a hydroelectric project that would provide approximately 250 megawatts (MW) of power to the provincial electrical grid. Known as the Pehonan Hydroelectric Project - a Cree word meaning ‘we're waiting by the creek' - the proposed location would be downstream from the forks where the South Saskatchewan River meets the North Saskatchewan River.

"Public-private partnerships provide many benefits to the people of Saskatchewan and our government is pleased with the potential of the Pehonan project," Minister responsible for SaskPower Bill Boyd said. "It allows First Nations like James Smith, Chakastaypasin and Peter Chapman to become active participants in Saskatchewan's growing economy, while leveraging the capital and expertise of development partners like Brookfield and Kiewit."

Under the terms of the agreement, new studies will take place to validate the results of previous site selection assessments. The studies will also determine the feasibility of the project from an environmental and economic perspective. This phase of the project could take up to four years.

Should the project prove to be an economical supply option, the First Nations-private developer partnership would develop the site, build the power plant and enter into a long-term power purchase agreement with SaskPower.