PEI aims to get 30% of energy from renewable sources by 2016

PEI aims to get 30% of energy from renewable sources by 2016

Washington (Platts)--22Sep2006

Canada's Prince Edward Island would produce 30% of its energy needs from
local renewable resources by 2016, under a plan released Thursday by Premier
Pat Binns.

"Each year, some $440 million leaves Prince Edward Island, as fossil
fuels are imported to heat and power our homes and fuel our vehicles. This
target is about keeping more of those dollars in PEI to strengthen our
economy. And it is about creating new opportunities for Island farmers and a
healthier environment today and for future generations," Binns said in
announcing the initiative.

Binns said the province will reach the 30% target stages, with the first
step to produce 10% of total energy needs from local renewable resources by
2010. To do that, the he said Prince Edward Island will build on the success
of its 2004 Renewable Energy Strategy, which requires electrical utilities to
acquire 15% of their electricity from renewable sources by 2010. The strategy
also includes regulations that allow for net metering for small-scale
generators, set a minimum price utilities must pay for power produced by
large-scale generators and establish designated development areas for large
scale wind projects.

"We have demonstrated with the 15% renewable portfolio standard for
electricity, that if we set a target, we will reach a target. In fact, both
Maritime Electric and the Summerside Electric Utility will reach or exceed
that target three years ahead of schedule. Now, we have to look beyond
electricity, to our total energy needs," Binns said in a statement.

Because transportation fuels account for almost 40% of PEI's total energy
needs, renewable fuels such as ethanol and biodiesel will be key to reaching
the target, Minister of Environment, Energy and Forestry Jamie Ballem added.

Ballem said biofuels also could replace a portion of fossil fuels used
for heating homes and other buildings--the other key component of the
province's total energy needs. The minister added there is also room to expand
the use of biomass for space heating.

Ballem said wind will play an important role in the energy mix, with the
first step being the completion of the Eastern Kings Wind Farm later this
year, adding that the province also will look to increased energy efficiency.

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