Wind Power Call for Tenders from Hydro

Wind Power Call for Tenders from Hydro-Quebec Distribution: average total cost of bids is 10 cents/k...

Jun 18, 2004 - Canada Newswire

MONTREAL, June 18 /CNW Telbec/ - Hydro-Quebec Distribution has done a preliminary analysis of the pricing formulas in the bids received in response to the call for tenders for the purchase of 1000 MW of wind power. The average price of bids, including the cost of transmission and power balancing, is 10 cents/kWh in 2007, increasing with inflation thereafter.

The capacity factor guaranteed by the project proponents averages 30%, which corresponds to an annual quantity of 2.6 TWh as at December 1, 2011. It should be noted that there are penalties for deliveries lower than the amount guaranteed in the bid.

Details relative to preliminary analysis

In addition to the quoted energy price of 8.1 cents/kWh, Hydro- Quebec Distribution's total cost of purchase must include the cost of modifying the transmission system and of power balancing.

- Taking into account Hydro-Quebec TransEnergie's expected cost, which could be as much as $400 million to integrate and connect the new wind power facilities, the transmission cost would be 1 cents/kWh.

- As filed with the Regie de l'energie by Hydro-Quebec Production, the cost of balancing the wind power feed-in is about 0.9 cents/kWh.

The bidders propose to use 0.85-MW to 3-MW wind turbines. This could represent nearly 1,200 wind turbines for the 1000 MW purchased.

Hydro-Quebec Distribution is now starting an in-depth analysis of the bids received in order to select the best combination. It plans to announce the winning bids in September.

Here is the breakdown of Hydro-Quebec Distribution's supply sources as they stand today.

d'urgence, Marc-Brian Chamberland, chamberland.marc.brian(at)hydro.qc.ca, (514) 289-2209, http:// www.hydroquebec.com/media/ ST: QuebecSU:

___________________________ PRICE IN 2007

----------

Supply______Energy___Price___ Transmission___Balancing___Total___Indexed

contract___ in TWh___ per______costs in______costs in

or_____________________kWh______cents/kWh___ cents/kWh

agreement

----------

Heritage

pool_________165___ 2.79_________________________________2.79______No

----------

Call for

Tenders

in 2002___________________________________________________ 6.3

(20 years)___8.2_______________6.3_______________NA______ (a)

-----------

Biomass____________________________________________________________ Yes,

(20 years)___0.3_______________6.6_______________NA______ 6.6______to

----------- infla-

Wind_______________________________________________________________ tion

(20 years)___2.6___ 8.1 (b)_________1_________ 0.9______ 10

-----------

Short-term

call for

tenders

(1 year)___ 2.2___ 7.8 (c)______________________________ 7.8______No

----------

Short-term

dual energy

(BT)

(1 year)______ 2___ 7.9 (d)______________________________ 7.9______No

----------

(a) Adjusted to new forecasts (price of natural gas, exchange rate and

___ other).

(b) Average for 4,000 MW. The final price will be known in September

___ 2004.

(d) Price in 2004.

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