re News Prime time in Canada

www.res-americas.com
re News
A Full Service Land Company
serving North America
www.elexco.com
CANADA SPECIAL REPORT 2014
Trouble coming at the top
League leader Ontario expects yearly growth volumes
to plummet in the second half of the decade.
Full table on planned installations to 2018
Wind farm construction in full bloom
Manufacturers face up to a shrinking market
New partner to help deliver 300MW Nigig
•
•
•
•
PAGE
3
Quebec’s American dream
Export potential keeps hopes alive as developers
wait on policy reassurance from new regime.
Pedals to metal as December deadline looms
Lowdown on region’s project pipeline
Utility delays starting pistol for 450MW call
•
•
•
PAGE
Prime time
in Canada
8
Alberta on comeback trail
Province bounces off record low but wind sector
faces increasingly challenging market conditions.
Financing solutions getting more creative
What’s shaping up out to 2018
Grid hurdles force developer rethink
•
•
•
PAGE
11
East coast engine sputtering
Pace slows in Atlantic provinces as grid saturation
and declining energy demand bite ambitions.
New Brunswick leaves wind out in cold
Tower manufacturer aiming for US expansion
•
•
PAGE
13
Nova Scotia on high ground
Utility-led charge on wind projects pushing region
closer to realising renewable energy targets.
Full run-through of projects in the mix
Big appetite for bite-size sites
•
•
PAGE
15
BC waits for wind to turn
Developers banking on anticipated energy demand
from new heavy industries to restore activity levels.
Pattern to escape build-out paralysis
Large projects shape up for future power calls
•
•
PAGE
17
Central-west shutters down
Saskatchewan and Manitoba halting wind energy
procurements for the foreseeable future.
Far north hunting expedition
•
PAGE
19
Scaling the
heights: the Little
River wind farm
in Nova Scotia
Photo: Scotian WindFields
C
anada is set for another record-breaker this year with at
least 1.7GW of new capacity due online following the
1.6GW added in 2013, writes Patti Lane. The outlook
beyond the next four years appears less rosy, however.
Construction is set to drop off sharply for league leaders
Ontario and Quebec while some regions face a full stop.
Issues frustrating developers include policy uncertainty,
grid queues, flat demand and financing.
See page 2
CANADA’S GATEWAY TO THE WEST
T
» Best choice for project cargo
» Liebherr LHM 320
mobile harbour crane
» Minimize handling, time
and cost
» Extensive staging area
and storage
» Direct rail access by CN and CP
to Western Canada
» Intermodal Yard
Thunder Bay Port Authority
100 Main Street
Thunder Bay, ON P7B 6R9
T (807) 345-6400
F (807) 345-9058
www.portofthunderbay.ca
2
canada focus
reNews 23 October 2014
The good times roll on
Activity lifts nation
to fifth in world
wind rankings but
uncertainty looms
CANADA
Across the line: Blackspring
Ridge in Alberta Photo: Enbridge
New wind installations to 2018
Due online 2014
Province
T
he Canadian wind energy
sector is on pace for
another strong year with
at least 1.7GW of new installations
following the record-breaking
1.6GW energised in 2013.
Frantic activity has lifted the
nation to fifth in global installed
capacity rankings with a total
9.5GW to be online by year-end.
“It’s an exceptionally busy
time,” said Canadian Wind
Energy Association president
Robert Hornung.
Annual installations will
average between 1GW and
1.5GW over the next four years,
driven by strong progress in
Ontario and Quebec. The
provinces accounted for 70% of
growth this year and will add
substantially more out to 2018.
Developers, manufacturers
and other stakeholders foresee
continued expansion over the
next four years but future
opportunities have yet to emerge.
Turbine manufacturers
including Enercon, GE, Senvion,
Siemens and Vestas continue
to beef up local manufacturing
capabilities and supply chains
to meet domestic content
requirements and demand.
Ontario has introduced a
competitive procurement regime
after cancelling the feed-in
tariff scheme that awarded
3GW of wind contracts. The
province expects to sign 600MW
of contracts in 2015 and 2016.
Quebec is kicking off a
450MW call for wind projects
that should come online in 2016
and 2017.
However, Hornung asked:
“Looking forward, once we get
past the contracts that are
already in place and being built,
what does the future hold?”
Electricity demand in much
of Canada has yet to recover
from the 2009 global recession.
In Ontario, the government
is mulling refurbishment of its
nuclear power plants that could
MW
ALBERTA
352
BRITISH COLUMBIA
99
NOVA SCOTIA
55.57
ONTARIO
802.85
QUEBEC
438.5
PRINCE EDWARD ISLAND
30
TOTAL: 1778MW
Slated for 2015
ALBERTA
318
NOVA SCOTIA
215.23
ONTARIO
1418.55
QUEBEC
493.6
SASKATCHEWAN
43
TOTAL: 2488MW
Coming in 2016
ALBERTA
1160
BRITISH COLUMBIA
185
NOVA SCOTIA
24.19
ONTARIO
373.45
QUEBEC
150
SASKATCHEWAN
177
TOTAL: 2070MW
Starting up in 2017
ALBERTA
518
ONTARIO
200
SASKATCHEWAN
10
TOTAL: 728MW
On horizon for 2018
ALBERTA
328
ONTARIO
300
QUEBEC
200
TOTAL: 828MW
create new opportunities for
wind and other sources.
Quebec is reshaping its
long-term energy strategy and
expects to unveil new policies
in late 2015.
Alberta’s deregulated
market poses challenges for
financing wind. Development
has dwindled and is now
driven by alternative off-take
agreements and partnerships,
such as Swedish furniture giant
IKEA’s deal to buy Mainstream
Renewable Power’s 46MW
Oldman 2 project.
Although Alberta is one of
the only provinces experiencing
strong growth in electricity
demand, current arrangements
will likely result in a build
out of natural gas rather than
renewables. Wind developers
continue to stake out positions
in British Columbia in
anticipation of supplying power
to dozens of planned liquefied
natural gas plants, oil and gas
extraction projects and mines.
However, the provincial
government has yet to outline a
role for wind in the anticipated
industrial expansion.
“Political decisions need
to be made now to ensure
we have a continuous wind
industry by the end of 2017,”
said Senvion chief executive for
North America Helmut Herold.
The federal government
under Conservative Prime
Minister Stephen Harper has
taken a hands-off approach,
allowing each province to set
www.reNews.biz
its own energy policies. Canada
is heading into an election year in
2015 and the parties have yet
to adopt positions on climate
change and clean energy.
The Liberal and NDP
opposition parties are likely to
be more proactive on climate
change and more interested in
renewables. However, it remains
to be seen if this will translate
into action at the federal level.
In the meantime, the wind
industry is waiting for electricity
markets to rebound.
“We’re optimistic,” said
Hornung. “We’re confident that
when new opportunities emerge
people will look to wind to
help address those challenges
and the sector will be well
positioned to take advantage.”
canada focus 3
23 October 2014 reNews
Trouble at the top
Installations leader
Ontario braces for
chill as demand for
clean energy flags
O
ntario remains at the top
of Canada’s leader board
with total wind energy
capacity of almost 3GW but
yearly growth volumes are set
to plummet in the second half
of the decade.
The industry expects to
complete a pipeline of more
than 2GW of
contracted
projects over
the next two
years and
reach 5GW of
total capacity by end-2016.
The province accounted
for a quarter of Canada’s new
construction in 2013 with
installations of some 440MW.
This year, it is on track to build
a record 800MW.
Beyond the next two years,
however, the market looks set
On the rise:
construction
at Suncor’s
Adelaide
wind farm
Photo: Suncor
to drop off dramatically, said
Senvion chief executive for
North America Helmut Herold.
“It’s clear it will be challenging,”
he said. “The volumes were
1GW a year, now they will come
down to 300MW a year.”
Ontario has replaced the
feed-in tariff regime that
awarded more than 3GW of
contracts with a competitive
renewable procurement process
to award 600MW by 2016.
Clean energy remains a
cornerstone of policy in the
province, which shuttered its
last coal-fired plant this year,
but demand has flatlined.
Ontario’s industrial base has
also still not fully recovered
from the 2009 recession
and the Independent
4
Players set sights
on 300MW prize
Ontario is developing a request
for proposals under the 540MW
large renewable procurement
scheme that will include 300MW
of wind energy.
Dozens of developers replied
to a request for qualifications
and Ontario Power Authority is set
to reveal winners on 4 November.
The utility is also consulting on
an RFP framework ahead of a
call expected in January 2015.
“We’re optimistic we will
see contracts awarded for
300MW by August next year,”
said CanWEA Ontario regional
director Brandy Giannetta.
Under the draft, developers
have four years to build projects
after finalising power purchase
agreements. Players advancing
schemes include Samsung, GDF
Suez, Mainstream, Innergex,
Boralex, Capstone and NextEra.
Wind covers 4% to 5% of
Ontario’s power demand and the
province is expected to update
its long-term energy plan every
three years. “Wind is well
positioned to provide up to 15%
by 2031,” said Giannetta.
Seeing is believing
Galion Lidar, pioneering a change in wind energy.
Real world measurements to protect your investment.
We understand wind energy.
galionlidar.com
Rotor diameters
-4
-2
0
2
4
6
8
10
12
14
16
18
Offshore array wake measurements
www.reNews.biz
4
canada focus
Electricity System
Operator forecasts a
decline in demand for gridsupplied energy. At the same
time, the flip side of the FiT’s
success has been community
pushback at the prospect of
hundreds of new wind turbines
in some areas. Almost every
FiT project has been appealed
and the permitting process has
dragged out timelines.
Consumers also blame
renewable energy for driving
up electricity bills. Wind power
has become highly politicised,
pitching rural residents against
urban neighbours and Liberal
supporters against Conservatives.
As a result, developers will
likely need to demonstrate some
level of community support in the
upcoming request for proposals.
Wind energy advocates
welcomed the re-election this
spring of the Liberal party
and Premier Kathleen Wynne,
said CanWEA Ontario regional
director Brandy Giannetta.
“There is more political
stability with a majority
government that supports our
industry and has a commitment
to renewables development
3
and capacity,” she said. The
government remains committed
to a 7.7GW target of wind
capacity, although the deadline
has shifted from 2018 to 2021.
It intends to hold procurements
for “leftover megawatts” not
realised in previous contracts.
Any future commitments to
wind will depend on a number of
factors. Ontario has postponed
plans to build new nuclear
plants and intends to refurbish
its nuclear fleet over the next
16 years, presenting potential
for additional renewable
development to plug the gap.
One of Ontario’s major goals
is to further integrate wind,
which is now included as a
dispatchable generation source,
into the electricity system.
The province has also placed
a new emphasis on stored energy
capacity to help promote system
reliability. Contracts for 34MW
of storage were awarded this
year and the Ontario Power
Authority intends to award
another 15MW.
The new capacity is intended
to help defer transmission
investments and enhance
renewable generation.
SAFE, RELIABLE, ECONOMICAL
STORAGE SYSTEMS
1$2iDMDQFXRSNQ@FDRXRSDLRB@MOQNUHCDFQHC
NVMDQR@MCNODQ@SNQRVHSGTMHPTDRNKTSHNMRSN
SNC@XiRBNLOKDWFQHCBG@KKDMFDR
䘟 Deferral of grid upgrade
䘟 Outage mitigation
䘟 5NKS@FD×TBST@SHNMRTOONQS
䘟 /D@JHMFB@O@BHSX
䘟 %QDPTDMBXQDFTK@SHNM
ONTARIO
reNews 23 October 2014
End-2013 total Installed capacity 2490.5MW
Due online 2014
MW
Developer
Oxley
Project
6
Verhoeven
South Branch
30
EDP Renewables
South Kent
270
Samsung/Pattern
Bluewater
60
NextEra Energy Canada
HAF Vineland
9
IPC Energy
McLean’s Mountain
60
Northland/Mnidoo Mnising Power
Skyway 8
10
Capstone Infrastructure
Adelaide
60
NextEra Energy Canada
Bornish
73.5
NextEra Energy Canada
Jericho
150
NextEra Energy Canada
Ernestown
10
Horizon Wind
Wainfleet
10
IPC Energy
Adelaide
40
Suncor Energy Products
Springwood
8.2
wpd Canada
Whittington
6.15
wpd Canada
TOTAL: 802.85MW
Coming in 2015
Dufferin
91.4
Longyuan Canada Renewables
Grand
149
Samsung/Pattern
K2
270
Samsung/Pattern/Capital
Armow
180
Samsung/Pattern
Sumac Ridge
10.25
wpd Canada
Napier
4.1
wpd Canada
Fairview
16.4
wpd Canada
White Pines
59.45
wpd Canada
Conestogo
69
Invenergy
Ostrander Point
22.5
Gilead Power
Goulais
25
Capstone/Batchewana First Nation
St. Columban
33
Veresen
Grand Valley 3
40
Veresen
Bow Lake
60
BluEarth Renewables/Batchewana FN
Quixote One
2.35
Leader Resources Services
Majestic
2
Sierra Nevada Power/Leader Resources
Meyer
4
Sierra Nevada Power/Leader Resources
Clarington
8.1
Sierra Nevada Power/Leader Resources
Trout Creek
9
Sierra Nevada Power/Leader Resources
Gunn’s Hill
18
Prowind Canada
Goshen
102
NextEra Energy Canada
East Durham
23
NextEra Energy Canada
Grand Bend
100
Northland Power
Port Ryerse
10
Boralex
Cedar Point
100
Suncor Energy Products
Cloudy Ridge/Skyway 126
10
Wind Works Power
TOTAL: 1418.55MW
Slated for 2016
Snowy Ridge
10
Capstone Infrastructure
Settlers Landing
10
Capstone Infrastructure
Ganaraska ZEP
20
Capstone Infrastructure
Grey Highlands ZEP
10
Capstone Infrastructure
Grey Highlands Clean Energy
18.45
Capstone Infrastructure
Niagara Region
230
Niagara Region Wind Corp
Amherst Island
75
Algonquin Power
TOTAL: 373.45M
Going live 2017
Belle River
100
Samsung/Pattern
www.res-americas.com/storage
TBD
100
Samsung/Pattern
A global company with a local presence
0#1MDjACQGL+MLRPÌ?J?LB-LR?PGM
Scheduled for 2018
TOTAL: 200MW
Nigig
300
Henvey Inlet First Nation
TOTAL: 300MW
www.reNews.biz
23 October 2014 reNews
Construction piles
on wind capacity
with 600MW already
going live this year
D
evelopers in Ontario have
fired up almost 600MW
of wind projects this
year and expect to add another
200MW by year-end.
Samsung Renewable Energy
is especially active and along
with joint venture partner
Pattern Energy commissioned
the 270MW South Kent project
in March, the first wind farm
completed under the Green
Energy Investment Agreement
with the provincial government.
Samsung and Pattern
recently unveiled their fifth
wind project, the 100MW Belle
River near the southern shore
of Lake St Clair. Siemens 2.3MW
and 3MW turbines are in the
frame with construction slated
to start in early to mid-2016.
The Samsung-led South
Korean consortium has also
committed to build 1369MW of
wind and solar projects, cut
from 2500MW in the original
deal, plus four manufacturing
facilities.
The 1069MW wind portfolio
employs Siemens turbines with
blades produced in Tillsonburg
and towers from a CS Wind
plant in Windsor.
Samsung is acting as general
contractor for the joint
venture’s 150MW Grand project,
where turbine installation has
wrapped up and completion is
expected this autumn.
Crews also broke ground this
year at the $850m, 270MW K2
scheme, where Samsung and
Pattern are partnering with
Capital Power and first power is
expected in summer 2015.
Elsewhere, Samsung and
Pattern are wrapping up financing
for the 180MW Armow, which
holds provincial approval and is
in line to power up in 2015. Hatch
has been retained to provide
owner’s engineer services.
Engineering, procurement
and construction joint venture
AMEC Black & McDonald is
building both K2 and Armow.
Samsung expects to reveal
its sixth and final GEIA wind
project soon, said spokesman
Tim Smitheman. A land package
is being prepared for a 100MW
canada focus 5
Ontario in
full bloom
Up and running: the
270MW South Kent was
commissioned in March
Photo: Pattern Energy
facility that will complete its
1069MW commitment when
powered up by end-2017.
NextEra Energy Canada
continues to develop its eightproject FiT wind portfolio with
a sixth scheme, the 149MW
Jericho, set to reach commercial
operation within weeks.
The Florida-based developer
completed three wind farms
this summer, the 60MW
Bluewater, 60MW Adelaide and
73MW Bornish. General
contractor Borea Construction
recently broke ground at the
company’s 102MW Goshen site,
which is slated to power up in
early 2015.
NextEra is also wrapping
up local permits for its final
FiT project, the 22.4MW East
Durham, where construction
will begin “very soon”.
Meanwhile, Suncor Energy
Products has completed road
construction and foundations
at its 40MW Adelaide scheme
and rotor assembly and turbine
lifts are underway. AMEC is the
general contractor and Graham
Infrastructure is handling civil
www.reNews.biz
works, foundations and erection
of 18 Siemens 2.3MW 113
turbines. Completion is slated
in December.
However, Suncor’s 100MW
Cedar Point proposal, which will
feature up to 46 Siemens 2.3MW
113 turbines, is going through
an Environmental Review
Tribunal appeal with a hearing
scheduled on 10 November.
Elsewhere, the first wind
farm completed by Capstone
Infrastructure from the 95MW
portfolio it gained in its
acquisition of Renewable
6
6
canada focus
Energy Developers, the
10MW Skyway 8, has
gone live.
Construction is underway
at the 25MW Goulais, where
commissioning is expected
in the second quarter of
2015, while another five FiT
projects are going through
environmental review
and permitting. Capstone
anticipates arranging some
C$250m in financing for the
projects over the next two
years with operations in 2016.
A year-end start-up is
targeted at the 91.4MW
Dufferin wind project by
Longyuan Canada Renewables.
General contractor
Mortenson Construction has
erected 49 GE turbines and
is also in charge of building
Veresen’s 33MW St Columban
project, which features 15
Siemens 2.3MW 113 machines.
Commercial operations at St
Columban are expected in the
first half of 2015.
Veresen’s 40MW Grand Valley 3
development continues to
advance through the regulatory
process.
Ontario-based developer
Horizon Wind Inc wrapped up
the C$30m, 10MW Ernestown
wind farm this month and wpd
Canada is commissioning its
8.2MW Springwood and 6.15MW
Whittington wind farms.
Wpd also plans to construct
four further facilities in Ontario
totalling more than 90MW
through 2016.
Gilead Power has hit a delay
at the 22.5MW Ostrander Point
after an Ontario judge ordered
a stay of construction until
an appeal of an earlier court
decision is heard in December.
Provincial environment
regulators continue to review
the 230MW Niagara Region
Wind Corporation project in
south-west Ontario, which will
feature 77 Enercon 2.3MW to
3MW machines.
NRWC has been unable to
reach road use agreements
with some local municipalities
and has applied to the Ontario
Energy Board for leave to
construct distribution facilities
to connect to the provincial
electricity grid.
Haldimand County officials
said the earliest construction
could start is January 2015.
reNews 23 October 2014
5
Cutting edge: blade
production at Senvion’s
Welland facility
Photo: Senvion
That shrinking feeling
Manufacturers looking to new markets following axing of FiT
T
urbine manufacturers are
facing up to a shrinking
market in Ontario, where
the feed-in tariff has been
cancelled and domestic content
requirements eliminated.
Siemens, Vestas, GE, Senvion
and Enercon set up factories
and supply chains to service
projects supported under the
FiT, which established a 50%
local content rule.
Despite the expected
slowdown, manufacturers and
supply chain companies are now
well positioned to ship products
to other parts of Canada, the
US and overseas, according to
CanWEA’s Brandy Giannetta. “I
don’t see anybody closing up
shop,” she said.
The FiT regime “was a
fundamental reason for us to
invest in the province”, added
Senvion chief executive for
North America Helmut Herold.
Senvion has secured a
200MW to 300MW pipeline
in Ontario, enough to keep
its Welland blade plant busy
for the next two years. It is
also looking to supply North
American markets.
“We are quoting projects in
the north-east US,” said Herold,
“but we need both elements.
We need a domestic market
that allows us to amortise
certain fixed costs and then
we can also be competitive for
markets abroad.”
The company’s Ontario plant
manufactures 45-metre blades
for the MM92 2MW platform.
It also plans to make 55-metre
blades for its 3MW turbine, which
will be available for projects
bidding in the upcoming 300MW
calls for wind power.
Senvion captured 30% of
the Canadian market in 2013,
second to Enercon, which
supplied 36% of the country’s
new installations, according to
MAKE Consulting.
Vestas supplied 25% and
Siemens 8%.
Ontario projects featuring
Senvion hardware include
Prowind Canada’s 25MW Gunn’s
www.reNews.biz
Hill, wpd’s 110MW portfolio and
Capstone’s 68MW pipeline.
Siemens was selected to
supply Samsung’s 1000MW wind
farm portfolio and opened a
blade plant in Tillsonburg.
In addition, the German
giant is to supply turbines for
Invenergy’s 69MW Conestogo,
Northland’s 100MW Grand
Bend, Suncor’s 40MW Adelaide
and 100MW Cedar Point, and
Veresen’s 33MW St Columban
and 40MW Grand Valley 3.
Siemens also established a
service and distribution centre
in Chatham.
General Electric is building
almost 300 turbines for six
NextEra wind farms expected to
produce more than 460MW.
It is also supplying China
Longyuan Power’s underconstruction 91.4MW Dufferin
project, Gilead Power’s 22.5MW
Ostrander Point and BluEarth’s
60MW Bow Lake schemes.
Five GE manufacturing
plants in the province
are producing turbine
7
canada focus 7
23 October 2014 reNews
New blood to drive Nigig
O
Local content: the 150MW Grand wind farm in Ontario features
steel towers from CS Wind and blades from Siemens that are
manufactured in the province
Photo: Surespan
components. German
turbine manufacturer
Enercon built a new plant in
Beamsville to produce power
converters, control electronics
and up to 60 different types of
electrical cabinetry.
It also plans to build a
$20m concrete tower batch
facility near its primary Ontario
customer, the 230MW Niagara
Region Wind project.
Vestas has supplied some
370MW of turbines to FiT
projects in Ontario while
Samsung partner CS Wind
established a tower
6
manufacturing plant in
Windsor to supply the Korean
consortium’s projects and
other Ontario wind farms. It
has also shipped towers to US
customers.
Elsewhere, China-based
Shanghai Taisheng Wind Power
Equipment outfitted a C$25m
tower factory in Thorold.
TSP Canada Towers’ first
orders were exported offshore
and the company has also
supplied Ontario projects,
including wpd Canada’s
6.9MW Whittington and 9.2MW
Springwood schemes.
ntario’s largest onshore
feed-in tariff project, the
300MW Nigig wind farm, has a
new development partner.
Henvey Inlet First Nation
has formed a 50-50 partnership
with an undisclosed large US
developer that will see the
project through development
and construction, said Nigig
Power president Ken Noble.
BluEarth Renewables started
working with Nigig but the two
have parted ways.
The project on reserve land
on the north shore of Georgian
Bay has also negotiated a fouryear extension. The Ontario
Power Authority has agreed to
a February 2018 commercial
operation date, said Noble.
The amended power purchase
agreement maintains a 15 cents/
kWh FiT price that includes a
1.5 cent/kWh aboriginal adder.
The project has been delayed
while the Henvey Inlet
irons out the permitting process.
“We’re the first First Nation
in Canada to implement our
own environmental assessment
regime,” said Noble. The
project will follow the same
framework as the province’s
renewable energy approval
regime. “The big difference is
we have the authority to issue
the permit so we can fast-track
that process,” added Noble.
Nigig expects the band to
approve the project in midsummer 2015. The proponent
has also lined up financing for
the $1bn scheme, including
funds from the aboriginal loan
guarantee scheme.
“The financing was a huge
challenge but we’ve been able
to overcome it,” said Noble.
The next step is to select
a turbine supplier. GE was
roped as part of the earlier
arrangement with BluEarth but
the agreement expired. Bids
from manufacturers including
GE are under consideration.
Nigig continues to work on
environmental assessments
for two possible transmission
routes, a 90km wire into Parry
Sound or an 18km cable to a
500kV line east of the site.
The developer aims to break
ground in autumn 2015.
TRUSTED LEADER
IN PROJECT
DEVELOPMENT
1,370+ MW DEVELOPED IN CANADA
EDF EN Canada
Ontario: 416.363.8380
Québec: 514.397.9997
www.edf-en.ca
EXPE
EX
PERT
PE
RTIS
RT
ISE
IS
E | CO
COMM
MMIT
MM
ITME
IT
MENT
ME
NT | INN
NNOV
OVAT
OV
ATIO
AT
ION
IO
N
www.reNews.biz
8
canada focus
Eyes on America
as export offers
hope for future
reNews 23 October 2014
Out of the blocks: the
first turbines went up
at the Temiscouata
project last month
Photo: Boralex
1GW wire attracting interest
while Quebec sector waits for
new Liberal regime to set out
updated energy policy in 2015
C
anada’s second largest
wind market, Quebec,
boasts 2.4GW of wind
capacity, a 1.7GW pipeline
and a firmly established
manufacturing base.
Wind players have invested
$10bn in the province, created
5000 jobs and developed the
largest supply chain in the
nation. After installing a record
1GW in 2013, additions will
hover around 500MW per annum
for a few years.
Quebec now looks set to
reach its 4GW installed capacity
goal by 2018, having initially
set a 2015 target. By year-end
the province will close in on
3GW if more than half a dozen
projects hit their December
in-service deadlines.
Wind energy enjoys strong
bipartisan political support in
Quebec and the Liberal party
took power this year from
the Parti-Québécois, which
launched the industry more
than 10 years ago.
Quebec’s current energy
policy expires in 2015 and new
Premier Philippe Couillard is
crafting an updated strategy via
a consultation exercise.
The recommendations
of a wind energy task force
composed of government
representatives and industry
stakeholders on sector
development are expected in
early 2015 and a formal energy
policy is to be unveiled by the
end of next year.
New energy minister Pierre
Arcand has said the government
is willing to support the
industry but only if it becomes
more self-sufficient.
An Electricity Commission
report earlier this year said
a supply surplus negates
www.reNews.biz
the need for new energy
procurements. However,
the new administration has
distanced itself from the study
and is working to develop new
markets.
CanWEA Quebec regional
director Jean-Frédérick
Legendre said the sector can
benefit from “strong demand in
the north-east United States for
clean energy”.
The US Department of
Energy recently approved the
$2bn, 1GW Champlain Hudson
Power Express transmission
line, which will deliver Quebec
generation to New York. Other
cross-border transmission lines
are in the works.
Internal demand is also
expected to recover as the
Quebec economy gets back on
its feet and the province is
jumping on board the
electrification of transportation.
Hydro-Quebec is expanding
its Electric Circuit public
charging network throughout
the province to support the
adoption of plug-in electric
vehicles.
“Wind energy is part of
the solution for the Quebec
economy and the government
realises that,” said Legendre.
Quebec’s economic
development strategy North
Plan could also present
opportunities.
This year, start-up Tugliq
Energy is building a C$22.6m
single-turbine wind-dieselstorage pilot project at
Nunavik, in the northernmost
tip of the province.
German manufacturer
Enercon supplied a 3MW E-82
turbine and 86-metre steel
tower at the scheme
at Glencore’s Raglan
9
23 October 2014 reNews
C
onstruction crews are
working flat out as
developers race to meet
Hydro Quebec’s 1 December
energisation target.
The utility set the deadline
in contracts awarded following
requests for proposals and
the next batch will target 1
December 2015 completion.
EDF EN Canada commissioned
the 24.6MW La Mitis community
wind farm this month and
is now wrapping up the first
150MW phase of the 350MW
Rivière du Moulin.
By the end of 2015, the
France-based company will
have placed into service
1GW featuring more than 500
Senvion turbines.
EDF sold partial stakes in
several Quebec wind farms this
year, reducing its ownership
to 20% in the Saint-RobertBellarmin, Lac Alfred and Massif
du Sud facilities.
Quebec-based Boralex
commissioned the 272MW
Seigneurie de Beaupré wind
farm last year and will add a
68MW extension this year, plus
a 25MW community scheme in
2015. When completed, the
365MW complex will be the
largest in Canada.
Hamel Construction is
handling Boralex’s Témiscouta
wind farm and erected the
first turbines last month. A
25MW community project is
canada focus 9
Pedals to the metal
as deadline looms
due online in December and a
50MW second phase by the end
of 2015. The 440MW Boralex
portfolio uses Enercon turbines.
Meanwhile, Eolectric hopes
to power up 43 Enercon 2.35MW
E92 machines at its 101MW
Vents du Kempt wind firm
in December. Enercon also
supplied Invenergy’s 21.15MW
des Moulins 2 and le Plateau 2
expansion schemes, which will
power up by year-end.
Construction is ongoing at
Algonquin Power’s 24MW St
Damase community project.
The C$65m scheme is slated
to start operations in early
2015 and could qualify for a
refundable Quebec tax credit
worth approximately C$16.4m.
Algonquin is awaiting
provincial approval for the
C$70m, 24MW Val-Éo community
wind farm near Lac Saint-Jean,
where 10 Enercon E-92 2.35MW
or eight E-101 3MW turbines are
in the frame. Construction is
Quebec on move
nickel-copper mine. The
company’s cold climate
version includes oversized
components and heated blades
as well as a unique steel-base
foundation mounted on piles
drilled 13 metres into the
ground.
The model is intended to
be rolled out to remote offgrid Inuit communities and
industrial operations.
In the meantime, the
province has committed to
adding another 650MW of wind.
A 450MW competitive call is
underway and Hydro-Quebec
Production was allocated a
200MW block to develop inhouse.
The utility is evaluating
projects but is not ready to
divulge plans, said spokesman
Louis-Olivier Batty.
8
www.reNews.biz
slated to kick off in the spring
and wrap up by end-2015.
Capstone Infrastructure will
power up Enercon hardware
at its 24MW Saint-Philémon
community wind farm in
Bellechasse County in early
2015, slightly behind the 1
December deadline.
Elsewhere, environmental
permitting is underway for
Northland Power’s 24MW
Frampton proposal,
which is 33% owned by
10
canada focus
10
QUEBEC
Due online 2014
Project
End-2013 total installed capacity 2398.3MW
MW
Developer
Raglan
3
Tugliq Energy
Seigneurie de Beaupre 2
68
Boralex/Gaz Metro
Temiscouata 1
25
Boralex
Vents du Kempt
101
Eolectric/Fiera Axium Infrastructure
Riviere du Moulin 1
150
EDF EN Canada
Le Plateau 2
21.15
Invenergy
Des Moulins 2
21.15
Invenergy
Le Granit
24.6
EDF EN Canada
La Mitis
24.6
EDF EN Canada
Expected in 2015
Riviere du Moulin 2
200
EDF EN Canada
Mont Rothery
74
EDF EN Canada
Temiscouata 2
50
Boralex
St-Damase
24
Aglonquin Power
Val-Eo
24
Aglonquin Power
Saint Philémon
24
Capstone Infrastructure
Cote de Beaupre
25
Boralex
Frampton
24
Northland
Pierre de Saurel
24.6
MRC Pierre de Saurel
St-Cyprien
24
Kahnawake Sustainable Energies
TOTAL: 493.6MW
Slated for 2016
Mesgi’g Ugju’s’n
150
Innergex/Mi’gmaq communities
TOTAL: 150MW
Crossing the line by 2018
TBD
200
False start for contenders
in 450MW power call race
P
TOTAL: 438.5MW
Hydro Quebec Production
TOTAL: 200MW
TRUSTED EXPERT
IN OPERATIONS &
MAINTENANCE
reNews 23 October 2014
rovincial utility Hydro-Quebec
has postponed the timetable
for a hotly anticipated 450MW
call for wind energy to give
regulators more time to review
project evaluation criteria.
Bids were due by 3 September
but the new submission date
will be at least 10 days after
the Energy Board issues a
decision, said Hydro-Quebec
spokesman Louis-Olivier Batty.
In-service deadlines of 1
December 2016 and 2017 are
not expected to be affected,
he added.
CanWEA Quebec regional
director Jean-Frédérick
Legendre said the RFP must go
ahead as soon as possible. “It’s
a very tight deadline,” he said.
The call is divided into
two tranches with a 300MW
block reserved for projects in
the Lower St Lawrence-Gaspé
region while 150MW is for
projects throughout Quebec.
There is also a 60% Quebec
content requirement with at
least 35% spent in the Matane
and Gaspésie-Iles-de-laMadeleine regions.
Municipalities, counties,
First Nations and community
groups must have at least 50%
ownership in the projects.
Community groups are not
required to provide equity,
unlike previous calls.
Dozens of developers are
courting local partners and
competition is expected to be
tough. The municipal governments
and First Nations in the Lower
St Lawrence and Gaspésie-Îlesde-la-Madeleine have formed
joint venture East Wind Alliance
to invest in 300MW of projects
with 26 potential schemes in
the two regions alone.
Boralex is working on a
225MW, 75 to 113-turbine wind
farm in the lower St Lawrence
region. The Quebec-based
developer is also mulling bids
of 50MW, 100MW and 150MW
for a site near its Seigneurie de
Beaupré wind farm.
EDF EN Canada is studying
150MW to 300MW in Lower St
Lawrence as well as a boost at
the Rivière-du-Moulin site.
Hydromega is developing
25MW in Matapedia in a project
slashed from 21 to eight turbines
following local opposition.
Meanwhile, Innergex has a
983MW development portfolio
in its home province and said
it is “very active in preparing
submissions”. Algonquin Power
is developing 101MW expansion
projects at its Saint-Damase and
Val-Éo community wind sites.
Other developers considering
bids include Capstone, Enerfín,
Eolectric, Invenergy, NextEra,
Northland Power, RES Canada
and Air Energy TCI. Winners will
be named in early 2015.
Race to hit December deadline
the Municipality of
Frampton. The C$75m
project will feature 12 Enercon
E-82 2MW turbines.
Provincial regulators held a
public hearing this summer into
the 24.6MW Pierre de Saurel
wind farm, Quebec’s only 100%
municipally owned project. The
C$67m scheme will employ 12
Senvion MM92 2.05MW turbines
on 100-metre towers and
Montreal-based engineering and
construction company Dessau is
project manager.
Quebec’s only aboriginalowned project, the 24MW
Saint-Cyprien, proposes eight
Enercon E101 3MW turbines.
The Mohawk First Nation’s
Kahnawake Economic
9
8,000+ MW O&M in North America
MAXIMIZE PROFITABILITY
OPTIMIZE AVAILABILITY
ANALYZE PERFORMANCE
EDF Renewable Services
858.521.3575
www.edf-renewable-services.com
www.reNews.biz
Development Commission has
submitted an environmental
impact assessment to regulators.
If approved, commissioning
could happen in December
2015. Air Energy TCI assisted
with initial development.
Canadian developer Innergex
received a government decree
in September authorising the
150MW Mesgi’g Ugju’s’n wind
farm, developed in a 50-50
partnership with three Mi’gmaq
communities.
The proponent has finalised
micro-siting and started preconstruction activity at the
Gaspé Peninsula site. Construction
is expected to start next year
ahead of commercial operations
in late 2016.
canada focus 11
23 October 2014 reNews
Alberta on comeback trail
Job done: Alberta’s operational wind farms
include Blackspring Ridge
Photo: Enbridge
W
ind farm construction
in Alberta picked up
from a record low
to add 352MW this year but
future growth will hinge on
projects navigating a maze of
challenging market conditions.
Alberta’s long grid queue
lists more than 2.3GW of wind
but many sites have suffered
repeat delays due to difficulties
in securing finance in Canada’s
sole pure merchant power market.
“Wind is continuing to grow
but at a significantly slower
pace,” said CanWEA Alberta
regional director Tim Weis.
The turnaround in Canada’s
third-largest market follows a
slowing of activity in recent
years. For the first time in more
than a decade, no new wind
generation was added last year.
Alberta has Canada’s only
deregulated electricity market,
where suppliers sell directly
into the provincial pool.
Independent producers face
low power prices and difficulty
financing projects. The industry
is looking for provincial action
to boost development.
New Alberta Premier Jim
Prentice, who won a Conservative
party leadership contest in
September to replace Alison
Redford, said one of his five
campaign priorities was
to establish Alberta as an
environmental leader.
However, he also insisted
“we will not damage the
competitiveness of our oil and
gas industry by unilaterally
imposing added costs and
But the political and financial
complexities of country’s only
deregulated power market
make for slow wind progress
regulations”. It is therefore not
clear what role wind will play
in the new premier’s vision.
The government is working
on a 20-year comprehensive
energy strategy, including a
plan to phase out coal-fired
plants. Coal facilities make
up some 43% of the province’s
total installed generating
capacity while natural gas
accounts for 41% and wind 7%.
As the province fights to
develop export markets for oil
and gas it is also trying to polish
its image abroad. In a mandate
letter to environment minister
Kyle Fawcett, the premier
directed him to maximise
reductions in greenhouse gas
emissions but failed to mention
renewable energy.
“The litmus test for social
licence is action on climate
change,” said Weis.
The province has been
developing an alternative and
renewable energy framework
for the past few years and the
new government is thought to
be continuing that work.
Wind energy can compete on
price even though electricity
rates have been low for several
years, Weis noted.
The challenge is financing
D
Money men
get creative
evelopers have sought
alternative ways of financing
wind farms in recent years.
The 300MW Blackspring Ridge
by EDF EN Canada and Enbridge,
the largest wind facility in
western Canada, started full
commercial operation in May
and features 166 Vestas V100
1.8MW turbines.
Renewable energy credits
generated at the project are
contracted to Pacific Gas
and Electric under a 20-year
purchase agreement while
electricity is sold into the
Alberta power pool.
Meanwhile, Irish developer
Mainstream Renewable Power
accepted an offer from Swedish
furniture giant IKEA for its
46MW Oldman 2 project. The
Irish developer will continue to
operate and maintain the site.
Mainstream development
manager Lee Anderson said:
“Oldman 2 is in the final stages
of reaching full commercial
operation, which should wrap
up in the coming weeks.”
Elsewhere, the Alberta
Schools Commodities Purchasing
Consortium has a power
www.reNews.biz
projects with power purchase
agreements rare and some
support schemes axed.
Continued growth in the oil
and gas sector is driving the
Alberta economy and peak
electricity demand is expected
to grow from 11GW to around
18.5GW by 2034.
New policies that improve
the economics of renewables
are needed to increase the
amount of wind capacity that
develops, said Weis.
“It’s going to be a struggling
and challenging market without
some sort of policy change,”
he said.
“At the same time, we’re
not asking for subsidies or to
impose a burden on ratepayers
because wind is as cheap as
anything to build and helps
stabilise and hedge the system
over the long term.”
purchase agreement for output
from BluEarth Renewables’ Bull
Creek wind farm near Provost.
“The industry has found
some pretty creative ways
of making projects work,”
said CanWEA Alberta regional
director Tim Weis.
“Unfortunately, a lot of
those creative solutions are
getting harder to find or don’t
exist anymore.”
Wind projects have also
benefited from Alberta’s carbon
offset programme. Under
the specified gas emitters
regulation, credits are priced
at C$15 a tonne. Oil and
gas giant Suncor, which
12
12
canada focus
is planning the 80MW
Hand Hills scheme near
Delia, has an internal appetite
for such credits as they will offset
its own emissions. A regulatory
hearing is due on 4 November
into the project featuring up to
54 GE 1.6MW 100 turbines.
Local developer WindRiver
Power has secured a 20-year
off-take deal with the City of
Medicine Hat for its 6MW Box
Springs wind farm. The deal
includes carbon credits the
city can use to offset emissions
from its natural gas-fired units.
Box Springs features three
Gamesa G90 2MW turbines and
went live in September.
The carbon tax scheme was
to expire last month but the
Alberta government renewed it
to the year-end for evaluation.
While it is unlikely to raise the
carbon levy other changes could
facilitate project financing.
“I’ll be shocked if they let it
expire,” said Weis.
11
ALBERTA
Furnishing power: IKEA
bought the Oldman 2
wind farm from
Mainstream Renewable
Power
Photo: Mainstream
End-2013 total installed capacity 1119.1MW
Due online 2014
Project
reNews 23 October 2014
MW
Developer
Blackspring Ridge
300
EDF EN/Enbridge
Box Springs
6
WindRiver Power
Oldman 2
46
Mainstream Renewable Power/IKEA
TOTAL: 352MW
Breaking the tape in 2015
Hand Hills
80
Suncor
Bull Creek
115
BluEarth Renewables
Windy Point
63
Mainstream/Alberta Wind Energy
Mclaughlin
60
Renewable Energy Service Ltd
TOTAL: 318MW
Wrapping up in 2016
Irma
150
Mainstream
Old Elm and Pothole Creek
300
Mainstream/Alberta Wind Energy
Peace Butte
120
Renovalia Energy/Pteragen
Wild Rose 1
210
Naturener
Wild Rose 2
189
Naturener
Grizzly Bear
120
Eon
Welsch
69
Eolectric
Box Springs 2
2
WindRiver Power
TOTAL: 1160MW
Arriving in 2017
Riverview
115
Enel Green Power Canada
Castle Rock Ridge 2
33
Enel Green Power Canada
Jenner
120
Joss Wind
Schuler
150
Invenergy
Heritage 1
100
Heritage Wind
TOTAL: 518MW
Expected in 2018
Heritage 2
250
Heritage Wind
Hand Hills
78
BluEarth Renewables
TOTAL: 328MW
Transmission hurdles
force project rethink
D
ifficult market conditions
and transmission delays have
prompted several developers to
apply for construction permit
extensions.
Affected projects include
Renovalia’s 120MW Peace Butte,
BluEarth’s 78MW Hand Hills, Enel’s
33MW Castle Rock Ridge 2,
Eoloectric’s 69MW Welsch,
Mainstream’s 63MW Windy Point
and the 291MW Heritage project.
Calgary-based BluEarth is
considering a rejig of its
approved 46-turbine, 115MW
Bull Creek scheme under
which just 17 turbines would
be installed and link to the
distribution system, eliminating
the need for a dedicated
substation. The company is
also considering changing the
GE 2.5MW machine initially
proposed.
In June, the Alberta Electric
System Operator put a 75km
transmission project on hold
after interest dwindled for
development in the area southeast of Lethbridge. The agency
said it does not know when the
240kV Etzikom Coulee to Whitla
line will proceed.
“Wind development in the
www.reNews.biz
area has not progressed at the
pace originally anticipated,”
said AESO.
The proposed line is part of
the multi-stage Southern Alberta
Transmission Reinforcement
project approved in 2009. SATR
was designed to alleviate
existing system constraints and
integrate about 3GW of
southern Alberta wind generation.
ECW is a stage two project
and two additional schemes are
proceeding under the phase.
AESO and transmission facility
owner AltaLink are conducting
technical and engineering
studies for the 70km Picture
Butte to Etzikom Coulee and
170km to 220km Goose Lake to
Etzikom Coulee wires.
AESO has also cancelled a
SATR stage three transmission
project because it is no longer
needed. A new double-circuit
240kV line was to connect two
substations east of Calgary,
Ware Junction and Langdon.
AESO still has 18 active wind
projects totalling some 2.4GW
in the connection queue. The
agency forecasts wind capacity
will double over the next 20
years to 2.7GW.
canada focus 13
23 October 2014 reNews
Wind development
in Atlantic provinces
battles against grid
and demand hurdles
C
anada’s Atlantic provinces
account for 11% of the
country’s wind capacity
but additional growth prospects
are unclear in the face of flat
or declining energy demand and
grid saturation in some areas.
Slowing or static development
activity is not expected to pick
up without a change of policy
direction in
Nova Scotia,
Prince Edward
Island, New
Brunswick and
Newfoundland
and Labrador.
Nova Scotia
is Canada’s
fourth-largest
wind energy
market with
338MW in operation and this
is set to almost double by
2016. However, what happens
thereafter is not clear.
The province is well on its
way to meeting a target of 25%
of generation from renewable
sources by 2015 and 40% by
2020 with some 300MW of
contracted wind projects due
online in the next two years.
Construction is nearing
completion on 120MW of
grid-connected wind farms
while 200MW of distributionlinked community feed-in tariff
projects are in various stages of
construction and development
(see page 15).
However, no new
procurements are anticipated
once these are complete.
Plans for a 100MW wind farm
by utility Nova Scotia Power
were scrapped because of loss
of load from the province’s
declining pulp and paper sector.
Blade runner: a rotor heads for the South Canoe
wind farm project site Photo: Sean Brennan/South Canoe
Stalling sector waits
on policy jump leads
PEI
End-2013 total installed capacity 173.6MW
Online 2014
Project
Hermanville-Clearspring
MW
Developer
30
PEI Energy Corp
TOTAL: 30MW
Hydropower from Labrador
transmitted through the
Maritime Link subsea cable will
help Nova Scotia meet the 2020
renewables target.
The Liberal government has
been in power for a year and
Premier Stephen McNeil has
kept mum about additional
wind development.
“We’re not sure what their
appetite is for more wind
power,” said Brad Murray,
director of tower manufacturer
DSTN, which runs its principal
operations from Trenton.
A 12-month electricity
system review wraps up in
December and the government
is expected to unveil a
new energy policy in spring
2015. The province has also
directed NS Power to develop
a renewable electricity market
to promote competition. It
would allow independent power
producers and electricity
suppliers to sell directly to the
utility’s retail customers.
NS Power said the draft
framework will be filed with the
Nova Scotia Utility and Review
Board for approval in late 2015
with the goal of opening the
market in mid-2016.
Several dormant wind
projects could be dusted off if
such a market proves viable.
BluEarth filed for
environmental approval for the
New Brunswick leaves wind out in cold
New Brunswick has committed
to increasing the provincial
renewable
portfolio
standard but
the move is
unlikely to
bring an end
to several years of paralysis for
the industry. Some 30% of the
electricity consumed is from
renewables including hydro,
wind and biomass, and the
province this year boosted the
RPS target to 40% by 2020.
The renewed ambition
promises little for New
Brunswick’s wind industry,
which has been on pause since
2011 after the province’s most
recent project came online.
The government will focus on
non-intermittent sources such
as biomass and has pledged
to work with First Nations on
small-scale renewable projects.
The idea of a procurement
programme for proposals up to
15MW was floated but has yet
to be rolled out.
www.reNews.biz
50MW East Bay Hills wind farm
in Cape Breton in the summer.
The Calgary-based outfit
proposes to build up to 30 GE
1.68MW 82.5 turbines on Crown
land and acquired the project
from a subsidiary of Cape
Breton Explorations.
Heading northwards, Prince
Edward Island is now generating
more than 30% of its electricity
from wind but growth prospects
look dim.
The 30MW HermanvilleClearspring wind farm was
plugged into the grid in January,
bringing total on-island capacity
to 204MW.
Spanish manufacturer
Acciona supplied, constructed
and commissioned 10 AW3000/
116 3MW turbines and will cover
operations and maintenance.
The C$60m scheme could be
the last to appear on the island
for some time as Canada’s
smallest province has maxed
out its ability to integrate new
capacity and has no plans for
expansion.
Canada’s easternmost
province, Newfoundland
and Labrador, is in a similar
position.
The government there does
not plan to increase wind
power beyond two operational
farms with a combined capacity
of 54MW. Instead, the
province will focus
14
14
canada focus
on hydroelectric
development and once
the 824MW Muskrat Falls dam
is complete will get more
than 98% of its power from
renewable sources.
Construction of two dams
and three transmission lines,
including a 480km, 500MW
subsea link to Nova Scotia, is
scheduled for completion in
2017.
Opportunities for wind
growth in Newfoundland and
Labrador are reserved for the
micro end of the capacity
spectrum.
Energy company Nalcor
is starting phase two of the
0.3MW Ramea wind-hydrogendiesel project.
Three turbines installed in
2010 help to displace diesel
consumption and the company
is now fine-tuning the hydrogen
storage system.
If the hybrid project is
successful Nalcor hopes to use
the model in other remote
Newfoundland communities, as
well as in Canada’s north and
in small island nations with
a high reliance on diesel
generators.
13
reNews 23 October 2014
Ahead of the curve:
DSTN hopes to
expand into the US
market
Photo: DSTN
Tower manufacturer
aiming for US market
N
ova Scotia turbine tower
manufacturer DSTN has
covered a sizeable chunk of
recent installations in Canada’s
Atlantic provinces but is now
casting its net further afield in
search of new orders.
The company, a joint venture
between the province and Korea’s
Daewoo Shipbuilding and Marine
Engineering, has provided steel
towers for turbines by DeWind,
Suzlon and Acciona.
However, it sees very little
room for additional growth in
its home territory, director
Brad Murray told reNews.
“It looks like the COMFIT
scheme in Nova Scotia is coming
to a close, PEI is pretty saturated
and in New Brunswick there’s
no demand,” he said.
The manufacturer is
therefore turning its attention
south of the border. “We’re
looking at opportunities in Maine
and New England,” he added.
The north-east US has a
www.reNews.biz
strong appetite for clean
energy and high electricity
rates but uncertainty over
federal tax policy and difficulty
siting wind farms has hampered
growth.
DSTN’s Trenton plant now
employs some 180 workers,
including employees involved in
pressure vessel fabrication.
The manufacturer started
deliveries this month at the
102MW South Canoe project,
Nova Scotia’s largest wind
farm. The 34-turbine scheme
features Acciona 3MW machines
mounted on 90.2-metre towers
that are fabricated in five
sections.
The factory completed a
10-tower order for a Prince
Edward Island project last year
and is finalising a deal with
some community feed-in tariff
projects in Nova Scotia. That
order would cover about eight
turbines slated for delivery in
2015.
23 October 2014 reNews
canada focus 15
Nova Scotia
Due online 2014
Project
Firm footing: work at
the South Canoe wind
farm project site
Photo: Bob Hutt/South Canoe
Utility helping to
cement ambitions
for Nova Scotia
Drive on wind projects will push province
closer to its renewable energy targets
N
ova Scotia Power is backing
two under-construction
wind projects that will help
propel the province towards a
renewable energy target of 25%
by 2015.
The utility holds a 49% stake
in the 102MW South Canoe and
13.8MW Sable wind farms and
will buy output from the duo
under 20year power
purchase
agreements.
The C$196m
South Canoe
is majority owned by Minas
Basin Pulp and Power and
Oxford Frozen Foods.
Acciona is to supply 34
AW3000/116 turbines and
handle construction, internal
electrical infrastructures and
assembly. It will also cover
operation and maintenance.
Subcontractor Van Zutphen
has completed 30km of roads
and foundation pours are
wrapping up. Acciona has
shipped some blades, hubs
and nacelles to the port of
Liverpool from Spain and will
deliver another eight sets of
blades from its plant in China.
Commercial operation is
expected in early 2015 although
the project is involved in a
legal appeal involving Cape
Breton Exploration with a court
hearing scheduled in December.
Meanwhile, crews are
pouring foundations at the
C$27m Sable wind farm in
eastern Nova Scotia, which
is majority-owned by the
Municipality of Guysborough.
Enercon is delivering six E82
2.3MW turbines with 78-metre
towers from Germany. The
manufacturer will install and
commission the machines and
commercial operations are
targeted in December.
Local outfit Zutphen
Contractors is handling road
construction and land clearing
while CBCL Ltd is supplying
engineering services, Shihlin
Electric & Engineering will
provide the substation
transformer and Mitsubishi
Electric Power Products has
scooped the circuit breakers
contract.
Elsewhere, Minas Energy
is developing the 16.1MW
Ellershouse project on behalf
of Alternative Resource Energy
Authority, a partnership
between the Towns of Berwick,
Mahone Bay and Antigonish.
The member municipalities
will buy output and Canadian
green energy provider Bullfrog
Power will purchase surplus
renewable certificates.
The C$23.6m project will
feature seven Enercon E92
2.3MW turbines atop 98-metre
towers. Clearing and road
construction works are to begin
this autumn.
End-2013 installed capacity 329.85MW
MW
Developer
Kaizer Meadow
2.3
Chester Municipality
St. Rose
1.99
Scotian Windfields/WEB Wind Energy
Parker Mountain
1.99
Scotian Windfields/WEB Wind Energy
Little River
1.99
Scotian Windfields/WEB Wind Energy
Sable Island
13.8
Municipality of Guysborough/NS Power
Hillside Boularderie
4
Natural Forces/Wind4All
Gaetz Brook
2.3
Natural Forces/Wind4All
Millbrook
6
Firelight Infrastructure Partners/Millbrook
FN
Truro Heights
4
Firelight Infrastructure Partners/Eskasoni
FN
Chebucto-Pockwock
10
Firelight Infrastructure Partners-Chebucto Pockwock Lake Wind Field
Whynotts
4
Firelight Infrastructure Partners/Mi’kmaq
FN
Cheticamp
0.9
Celtic Current
Mulgrave
2.3
Celtic Current
TOTAL: 55.57MW
Crossing the line in 2015
South Canoe
102
Minas Basin/Oxford Foods/NS Power
Ellershouse
16.1
AREA/Minas Basin
Bateson
2.3
Celtic Current
North Beaver Bank
8
Scotian Windfields/WEB Wind Energy
Isle Madame
1.99
Scotian Windfields/WEB Wind Energy
Black Pond
1.99
Scotian Windfields/WEB Wind Energy
Martock Ridge
6
Scotian Windfields/WEB Wind Energy
Nine Mile River
4
Scotian Windfields/WEB Wind Energy
Aulds Mountain
4.6
Natural Forces/Wind4All
Amherst Community
6
Natural Forces/Mi’kmaq FN
Barrachois
4
Natural Forces/Wind4All
New Glasgow
6.4
Watts Wind Energy, Katalyst Wind,
Elemental Energy
Barrington
3.2
Watts Wind Energy, Katalyst Wind,
Elemental Energy
Wedgeport
1.8
Watts Wind Energy, Katalyst Wind,
Elemental Energy
Limerock
5
Firelight, Affinity SPCA, RMS Energy
Kemptown
5
Firelight, Affinity SPCA, RMS Energy
Greenfield
3.2
Firelight, Affinity SPCA, RMS Energy
Dean Back Road
1.85
Firelight, Affinity SPCA, RMS Energy
Fitzpatrick’s Mountain
1.4
RMS Energy/Wind Power Charity
Cape Breton U
5.4
Cape Breton University/Cape Breton
Explorations
Avondale
1.7
Northumberland Wind Field CEDIF/RESL
Lake Major
11.5
Halifax Regional Water Commission
North Preston
4.6
Halifax Regional Water Commission
Terence Bay
7.2
RESL/Chebucto Wind Field
TOTAL: 215.23MW
Wrapping up in 2016
Point Aconi
1.9
Celtic Current
Goldboro
1.5
Celtic Current
Baddeck
1.99
Scotian Windfields/WEB Wind Energy
Porters Lake
3.8
Watts Wind Energy, Katalyst Wind,
Elemental Energy
Bayswater
2
Watts Wind Energy, Katalyst Wind,
Elemental Energy
Bear Cove-Ketch Harbour
4.6
Watts Wind Energy, Katalyst Wind,
Elemental Energy
New Minas
4
Watts Wind Energy, Katalyst Wind,
Elemental Energy
Lingan
0.8
Watts Wind Energy, Katalyst Wind,
Elemental Energy
Liverpool wind/storage
3.6
Watts/Lightsail Energy
www.reNews.biz
TOTAL: 24.19MW
16
canada focus
reNews 23 October 2014
Big appetite for bite-size sites
People power: Parker Mountain
developer Scotian WindFields is
tapping COMFIT supports
Photo: Scotian WindFields
A
handful of medium wind
projects have come
online and dozens more
are in development under Nova
Scotia’s community feed-in
tariff (COMFIT) regime.
The province has approved
200MW of renewables capacity,
double the scheme’s 100MW
target. The vast majority of
contracts were awarded to
wind proposals, although not
all are expected to reach
construction. The province
expects distribution-level
technical constraints and
financing issues will lead to
project attrition.
COMFIT projects get C$131/
MWh for wind farms larger than
50kW and C$499/MWh for small
wind. Other technologies get
between C$140/MWh (run-ofriver hydro) and C$652/MWh
(tidal stream) under 20-year
power purchase agreements
with Nova Scotia Power.
The energy department is
revising the regime and is no
longer accepting applications
larger than 500kW.
Most wind proponents are
using community economic
development investment funds
to enable local cash injection
and ownership.
Natural Forces, formerly the
Canadian arm of UK-based Wind
Prospect Group, has completed
Medium wind sector vibrant as developers
tap NS community feed-in tariff regime
construction of the 4MW
Hillside Boularderie and 2.3MW
Gaetz Brook. Another three
COMFIT wind farms are due to
enter service next year.
Enercon is responsible for
turbine supply, erection and
commissioning and has a 12 to
15-year service deal.
Elsewhere, Scotianweb is
progressing a 28MW COMFIT
portfolio. Three projects
came online in early 2014 and
another five will be completed
in the first quarter of 2015.
Foundation construction has
kicked off at 8MW North Beaver
Bank and next in line are the
1.99MW Black Pond, 1.99MW Isle
Madame, 4MW Nine Mile River
and 6MW Martock Ridge. Vestas
is scheduled to deliver V100
2MW turbines in late November.
Scotianweb, a partnership
between Scotian Wind, Scotian
WindFields and WEB Wind
Energy North America, lined up
C$61.4m in project financing
arranged by British Columbiabased Travelers Capital
Corporation. The package was
funded by Industrial Alliance
Insurance and Financial Services
Inc and Siemens Financial Ltd.
Construction is also
underway at four wind farms
totalling 24MW developed by
Juwi Wind Canada. Engineering,
procurement and construction
contractor HB White Canada is
building the C$75m portfolio.
Vestas is supplying 12 V100
2MW turbines to the 10MW
Chebucto Pockwock, 6MW
Millbrook, 4MW Truro Heights
and 4MW Whynotts schemes.
Commercial operations are
slated by year-end
Juwi, which sold its interests
in the projects to Firelight
Infrastructure Partners and
several First Nations, continues
to oversee construction and will
remain as asset manager.
Vancouver-based Elemental
Energy has teamed up with
Nova Scotia outfits Watts Wind
Energy and Katalyst Wind on a
35MW COMFIT portfolio.
A C$30m financing closed in
July for the first projects, the
6.4MW New Glasgow, 3.2MW
Barrington and 1.8MW Wedgeport.
“The three projects are
having foundations installed
with the expectation of turbine
delivery in early 2015,” said
Elemental director of project
investments Graeme Millen.
US manufacturer GE will
www.reNews.biz
supply 1.68MW 82.5 turbines.
Commercial operation is
expected in March 2015.
Watts has an additional
25MW of COMFIT-approved
projects at various stages
of development. The three
schemes most likely to proceed
to construction in the next 18
to 24 months are Porters Lake,
Ketch Harbour and Bayswater,
which total about 10MW of
capacity, said Millen.
Nova Scotia developer RMS
Energy has lined up GE 1.6MW
series turbines for a COMFIT
pipeline owned by Firelight
Infrastructure Partners and
Affinity Renewables, which
includes the Nova Scotia
Society for the Prevention of
Cruelty to Animals.
Commercial operations
are targeted in August 2015
at the 5MW Limerock, 5MW
Kemptown, 3.2MW Greenfield,
1.85MW Dean Back Road and
1.4MW Fitzpatrick Mountain.
Meanwhile, Celtic Current
has tapped Enercon to supply
hardware at five COMFIT sites.
Construction is underway at the
2.3MW Mulgrave, 2.3MW
Bateston and 0.9MW Cheticamp.
The German manufacturer is
also lined up to supply three
E92 2.35MW turbines to
Renewable Energy Services’
7.2MW Terence Bay near Halifax.
canada focus 17
23 October 2014 reNews
Pattern
to escape
build-out
paralysis
Plain sailing: Cape Scott
went live earlier this year
Photo: GDF Suez North America
C
British Columbia crews
wait for weather to turn
Fresh demand from new heavy industries could fill sector sails
W
ind farm construction
slowed in British
Columbia this year but
developers continue to mark
out territory in the hope of
surging energy demand if new
heavy industries take off.
The province racked up
490MW of installed capacity
when the 99MW Cape Scott
wind farm was commissioned at
the start of the year.
Progress on the ground has
been quiet since then but the
promise of future energy demand
growth in BC, a rare commodity
in Canada, is keeping the
industry waiting in the wings.
However, Finavera Wind Energy
chief executive Jason Bak
BC
warned that developers need
patience. “It’s a slow, difficult
environment to do any
development in this province,”
he said.
Vancouver-based Finavera,
which won contracts for 300MW
in the 2008
Clean Power
Call, has
bowed out
of the BC
wind market
to focus on residential solar
development in the US.
BC may be challenging for
smaller players but it offers
huge potential, said Bak. “For
companies that have a large
capitalisation and patience
End-2013 total installed capacity 389.7MW
Online 2014
Project
Cape Scott
MW
Developer
99
GDF Suez/Mitsui/Axiom
TOTAL: 99MW
Planned for 2016
Meikle
185
Pattern Energy
TOTAL: 185MW
to deal with the environment
assessment office and the First
Nations, there’s a reward.”
The government has yet to
voice support for additional
wind energy, though.
“We need a clear, significant
signal that there is a market
for the wind sector in BC,”
said CanWEA vice president for
policy and government affairs
Jean-François Nolet.
In its latest energy plan,
unveiled in December 2013,
utility BC Hydro said electricity
needs will grow by around 40%
over the next 20 years. For
now, however, there is an
oversupply of power and it will
not buy more from independent
producers in the next five years.
“The integrated resource
plan released last year had
nothing in it for us,” said Nolet.
“That was a big disappointment.”
Premier Christy Clark’s
government did confirm plans
to review its long-term energy
strategy and a new integrated
resource plan is to be
developed in 2015, mainly
www.reNews.biz
18
onstruction has been at a
standstill since the
commissioning of the 99MW
Cape Scott wind farm at the
northern tip of Vancouver
Island in January.
The 55-turbine project by
joint venture partners GDF
Suez Canada, Mitsui and Fiera
Axium Infrastructure features
Vestas V100 1.8MW machines.
3 Nations Construction Ltd,
a joint venture of three First
Nations and Lemare Group,
constructed a large part of the
project’s roads and earthworks.
Amec Black & McDonald
oversaw construction. GDF also
built a 40km transmission line
to connect to the provincial
electrical grid.
The C$325m project
generates some 290GWh/year
for BC Hydro under a 20-year
power purchase agreement.
Pattern Energy will build
the next wind farm in BC, the
185MW Meikle.
The company expects to
start logging this month with
full mobilisation scheduled for
May 2015.
The developer has yet to
finalise a turbine supplier and
general contractor although
hardware delivery is slated
to start in June 2016 with
commercial operation following
later that year.
Pattern acquired the C$400m
Meikle from Vancouver-based
Finavera along with a 25-year
BC Hydro PPA.
Finavera won four contracts
totalling around 300MW
following the 2008 Clean Power
Call but cancelled 116MW as
part of the transfer to Pattern.
Finavera retains licences
and permits for the Wildmare
and Bullmoose projects and
continues to collect data from
met masts at the sites.
Chief executive Jason Bak
said the plan is “to hibernate
those in the short to medium
term”.
canada focus
Fields of dreams for developers
18
reNews 23 October 2014
M
ore than a dozen
developers are pushing
on with larger projects
in anticipation of future calls
for wind energy in British
Columbia.
EDF EN is advancing three
schemes in the Peace River
region. The 250MW Sundance,
250MW to 400MW Taylor and
70.5MW Wartenbe wind farms
were initiated by Avro Wind
Energy, which retains an interest
and is helping with development.
Taylor and Sundance are
undergoing environmental
assessment and could deliver
power as early as 2017, subject
to power off-take agreements
with BC Hydro. Wartenbe has
received its BC environmental
assessment certificate, which
expires in 2016.
Meanwhile, EDP Renewables
Canada has partnered with
TimberWest Forest Corp to
develop, build and operate
300MW of wind farms on
southern Vancouver Island.
Canadian developer Innergex
Renewable Energy has proposed
the 210MW Nulki Hills scheme
in north-west BC, part of a
475MW development portfolio
in the province.
Environmental assessment
work is underway for the up
to 70-turbine project, to be
located some 30km south of
Vanderhoof.
Elsewhere, Ontario-based
Northland Power is collecting
wind data at the Mount George
site near Prince George and BC
outfit Sea Breeze Power, which
initiated Cape Scott, is
investigating more than a dozen
Gold in them thar hills: Capital
Power’s 142MW Quality wind
farm near Tumbler Ridge in BC
Photo: Jimmy Jeonge
sites throughout the province.
Capital Power has two prospects
in BC, including the 100MW Klo
project where it has collected
four years of wind data.
Alterra Power and GE Energy
Financial Services continue to
own the rights to the fully
permitted 156MW Dokie 2
expansion scheme while Alterra
holds a 1GW portfolio at several
coastal locations including
Banks Island, Porcher Island,
McCauley Island and Knob Hill.
Other outfits investigating the
market include RES Canada,
Spain’s Enerfin, Brookfield,
Elemental Energy and Natural
Forces. German turbine
manufacturer Senvion is also
jockeying for position.
“British Columbia has great
potential,” said Senvion chief
executive for North America
Helmut Herold. “Now it’s just
a question of political will
to have a new request for
proposals.”
BC crews waiting for weather to turn
to reassess the load
forecast. New liquefied
natural gas plants on the west
coast, natural gas and mining
projects in the interior and vehicle
electrification are expected to
boost energy demand.
The province has committed
to developing the greenest LNG
sector in the world and the
wind industry stands ready to
help it deliver, said Nolet.
LNG proponents are awaiting
a new tax regime to be
implemented by end-November
17
before making commitments.
“Then we’ll see concrete progress
on the LNG projects and get
clarity on timelines,” said Nolet.
The proposed C$8bn, 1100MW
Site C Dam hydro project in
north-east BC is another piece of
the energy puzzle. It received
full environmental approval this
month and a final investment
decision by the province is
expected in November.
Wind-generated electricity
is cost-competitive with Site C
and should, along with other
low-impact renewables, be
considered as an alternative,
according to advocates.
Regardless of the decision,
wind proponents will be seeking
a declaration that the sector
will be backed alongside hydro.
• BC will keep its carbon tax
and maintain the current rate
of C$30/tonne following a review.
The government said it may
consider changes if other North
American jurisdictions bring in
similar carbon taxes or pricing.
www.reNews.biz
Wind stands to
make inroads
D
evelopers are hopeful British
Columbia’s standing offer
regime for energy projects up
to 15MW will soon lead to its
first wind contract award.
The price and size cap are
challenging but several wind
developers have projects in the
works. Zero Emission Energy
Developments has proposed five
14.3MW schemes using Senvion
hardware and BC Hydro is
reviewing applications for the
Septimus Creek, Pennask and
Shinish Creek sites.
Quebec-based Boralex and
partner Aeolis Wind Power have
applied for two 15MW seventurbine wind projects, Babcock
Ridge and Moose Lake, near
Tumbler Ridge.
Meanwhile, wpd Canada has
initiated the 15MW Vanderhoof
scheme, which could be
expanded to an 80MW project.
BC Hydro expects to unveil a
revised system this autumn.
canada focus 19
23 October 2014 reNews
Shutters slam in Saskatchewan
C
anada’s central-west
provinces Saskatchewan
and Manitoba have closed
the door to additional wind
energy procurements for the
foreseeable future.
Saskatchewan’s current
capacity of 200MW will more
than double when 230MW now
in development comes online
by 2017 but opportunities
thereafter appear muted.
Although the province
offers ideal
conditions
with capacity
factors
greater than
40%, utility
SaskPower believes it is well
positioned to meet provincial
needs through 2020.
The utility has no plans
to reduce its heavy reliance
on coal, which provides
around half the province’s
Coal-addicted province to put faith in carbon capture and storage
SASKATCHEWAN
Due online 2015
MW
Developer
Morse
Project
23
Algonquin Power
Western Lily
20
Gaia Power
TOTAL: 43MW
Coming up in 2016
Chaplin
177
Algonquin Power
TOTAL: 177MW
Slated for 2017
Riverhurst
10
Capstone Infrastructure
TOTAL: 10MW
demand, and is looking into
carbon capture and storage
technologies. A large coal
station with CCS was recently
unveiled in the potash-rich
region.
For now, developers are
working to complete a handful
Far north hunting expedition
R
esearchers in Canada’s
far north continue to
study opportunities for wind
development in isolated,
sparsely populated communities
that rely on expensive imported
fossil fuels.
Resource assessments are
underway in various locations
in the Yukon, Northwest
Territories and Nunavut.
Quilliq
Energy is
collecting
data for a
potential
project in
Cape Dorset while the Wind
Energy Institute of Canada is to
carry out a one-year resource
assessment in Cambridge Bay.
Elsewhere, Yukon Energy is
studying the feasibility of 20MW
projects at Tehcho-Ferry Hill
End-2013 total capacity 198.4MW
Cool running: a blade delivery to
the Diavik wind farmPhoto: Rio Tinto
near Steward and Mt Sumanik
near Whitehorse.
In the Northwest Territories
a 9.2MW wind farm has been
in operation at the Diavik
diamond mine for more than
two years. Last year, it reduced
the mine’s annual diesel fuel
requirement by 3.8 million
litres and provided 8.5% of its
power needs.
Enercon erected four 2.3MW
turbines at the site, which is
on an island in Lac de Gras
accessible by road for only
eight or nine weeks a year.
of projects that won contracts
in earlier calls for power.
Algonquin Power is
currently wrapping up design,
engineering and a provincial
environmental assessment for
the C$355m, 177MW Chaplin
development 200km west of
capital Regina.
SaskPower has entered into
a 25-year power purchase
agreement for output and is
conducting an interconnection
system impact study. The utility
proposes to build a new 9km
138kV transmission line.
Wind farm construction
is tentatively scheduled to
begin mid to late 2015 with
commercial operations in late
2016.
Meanwhile, three projects
totalling 53MW are in
development under the Green
Options lottery scheme.
Algonquin started construction
at the 23MW Morse wind farm
some 180km west of Regina in
August. Siemens will supply and
commission 10 direct-drive SWT
2.3MW 113 turbines and the
C$81m project is expected to
start operations in the first half
of 2015.
SaskPower is building a new
25kV/138kV substation and
138kV transmission tap line
to connect the facility with
energisation slated in February
2015.
Morse will attract a
C$104.02/MWh contract rate
for the first full year of
operations with an annual
escalation provision of 2% over
the expected 20-year term.
Annual output is estimated
at 104GWh/year and additional
land under lease could lead to
a future expansion.
Capstone Infrastructure
expects to commission five
Enercon E82 turbines at its
10MW Riverhurst wind farm
130km east of Regina in 2017
and Gaia Power proposes to
build the 20MW Western Lily
project 70 miles east of the
capital.
Gaia has secured an
exemption from requirement
for an environmental impact
assessment.
The GO programme is under
review and lotteries were
not held in 2013 and 2014.
SaskPower expects to release a
revised scheme later this year.
N
eighbouring Manitoba built
its last wind farm in 2011
and has no plans for further
development.
Provincial utility Manitoba
Hydro
generates
nearly all its
electricity
from 15 hydro
stations. It
also purchases power from two
independently owned wind
farms totalling 260MW.
The province plans to meet
growing energy demand through
hydro expansion.
Publisher Renews Limited,
First Floor, St George’s House,
St George’s Street, Winchester,
Hampshire, SO23 8BG, UK.
Editor
Deputy editor
UK offshore
UK offshore
Germany offshore
France offshore
North America offshore
Ireland
Solar
Technology
Production
Todd Westbrook
+44 (0)1479 873 167
[email protected]
Seb Kennedy
+44 (0)208 981 8151
[email protected]
Peter Baber
+44 (0)1706 810 506
[email protected]
Martin Halfpenny +44 (0)1962 890 479
[email protected]
Hans-Dieter Sohn +49 177 288 9015
[email protected]
Lisa Louis
+33 627 933 453
[email protected]
Patti Lane
+1 416 481 9795
[email protected]
Stephen Dunne
+353 87 760 9207
[email protected]
Sian Crampsie
+44 (0)7711 007277
[email protected]
Eize de Vries
+31 6133 18104
[email protected]
Richard Crockett, Phil Dixon
[email protected]
© All articles appearing in reNews
are protected by copyright. Any
unauthorised reproduction is strictly
prohibited.
Publisher
Sales manager
Sales executive
Sales executive
Dan Rigden
Cassi Davison
Vicky Mant
Tom Allerston
re News
www.reNews.biz
+44
+44
+44
+44
(0)1962
(0)1962
(0)1962
(0)1962
890
890
890
849
449
440
468
302
[email protected]
[email protected]
[email protected]
[email protected]
Coming soon
in our series
of in-depth
market reports:
OFFSHORE
To advertise contact:
[email protected]
ISSN 1478-307X
reNews costs £440 + VAT for a 12-month subscription. A Multiple User Subscription (10 users) costs £1490 + VAT; a Corporate Subscription (unlimited) costs £2565 + VAT.