TORONTO, Ontario, Canada, May 23, 2007.
West Cape Wind Energy has become the first independent power producer to export wind power from Canada into the United States.
A portion of the green power generated from newly-installed wind turbines in Prince Edward Island was wheeled through that province and New Brunswick on 7 May, and then sold to the New England Power Pool (NEPOOL) via the international interconnection node located at Keswick, New Brunswick. The price paid for the green power was the hourly spot price at the Keswick node.
The renewable energy certificates (RECs) generated from the transmission were sold separately to independent buyers located in the NEPOOL.
“The first export of wind power from a windfarm in Canada into the United States marks a significant milestone for the Canadian wind industry,” explains John Douglas of West Cape and its parent company, Ventus Energy. “Our team is extremely proud to be the developer and now operator of this innovative export project.”
The parent company, Ventus Energy, is currently developing 5,000 MW of potential wind projects at 25 sites in Ontario, Quebec, Nova Scotia, New Brunswick, Prince Edward Island, Newfoundland and Labrador. It has secured land rights to 17 million acres of land, which it claims is one of the largest portfolios of potential wind energy projects in Canada.
Last December, Ventus completed an initial public offering that raised gross proceeds of Cdn$25 million to invest in shares of West Cape. Investors in the partnership are expected to receive tax deductions of up to 93% of the amount invested, it explains, as the expenditures by West Cape during a four-month test phase are expected to qualify as Canadian Renewable & Conservation Expenses under Canada’s Income Tax Act.
Upon completion, the West Cape facility is expected to generate the majority of its electricity for sale to the NEPOOL at prevailing market rates under a renewable three-year electricity marketing arrangement. West Cape has also received approval to market its RECs in the Massachusetts REC market.
West Cape has signed a 20-year fixed price power purchase agreement with the city of Summerside (PEI) to sell 28.4 GWh (representing 9 MW of nameplate capacity) of wind power annually from the West Cape windfarm, located near the town of O'Leary. The initial eleven test turbines are being operated for the purpose of conducting and completing the 120-day test, after which it will install an additional 44 turbines to complete the 99 MW facility.
Ventus Energy has formed partnerships with the Cree Nation of Chisasibi, along the La Grande River hydro complex in northern Quebec, the Pays Plat First Nation on the north shore of Lake Superior and the Metis Nation in Labrador, to develop windfarms.
