Province exploring wind as a new energy source

Mines and Energy Minister Paul Dicks announced today that Newfoundland and Labrador Hydro will be requesting proposals for a wind power demonstration project for this province.

The Request for Proposals (RFP) is being issued this month.

Mr. Dicks said it is much too early to speculate on either the price, size, or location of the proposed wind power generation project.

"The feasibility study phase will provide information on the costs and operational viability of a wind generation project of between five and 25 megawatts," said Mr. Dicks. "The actual demonstration phase of the proposal will only proceed if the feasibility study's result is favourable and if an appropriate power purchase agreement can be negotiated."

The minister explained that the RFP is for two separate activities including a feasibility study and a demonstration project.

"If hydro is satisfied with the feasibility study results, and if a power purchase agreement can be negotiated between hydro and the wind project's proponent, then a demonstration phase will be started," said Mr. Dicks. "If an agreement is reached on proceeding with the demonstration phase, the proponent's feasibility study costs will be recovered through energy sales as the demonstration proceeds. If hydro decides not to proceed with the demonstration phase, the proponent will be fully compensated for feasibility study expenditures in accordance with the RFP's terms and conditions."

Mr. Dicks said that the goals of the RFP are to determine whether wind generation is a practical option for our future needs and if so to determine the level to which we could rely on wind power.

"A condition of the RFP is that only systems with proven reliability will be accepted," said Mr. Dicks. "It is important to note that hydro will not at any time be putting capital into this project. The successful proponent will be totally responsible for funding, building and operating the project, having agreed to an acceptable price for the power produced."

Mr. Dicks said that new technologies have led to lower prices for this type of power and wind generation is now considered to be a proven source of renewable energy.

In December 1997, Canada committed to reduce greenhouse gas (GHG) emissions by six per cent from 1990 levels by 2010. Newfoundland and Labrador, together with all other provincial, territorial and federal governments, are examining ways to meet their commitment. Wind power produces zero GHGs. Such projects, which replace or reduce the need for fossil fuel fired generation, make a positive contribution to Canadian climate change objectives.

This project will also provide information and experience which will assist hydro in evaluating the potential of wind power for our remote communities. Government will continue to evaluate future energy alternatives based on technology, economics, environmental concerns and demand forecasts.

Media contact: Gary Callahan (709) 729-4890.

Backgrounder-Wind Power

The term wind power is used to describe the generation of mechanical power or electricity using wind turbines. Wind turbines convert the kinetic energy in the wind into mechanical power. This mechanical power can be used to turn a generator and make electricity to power homes, businesses, schools and the like. Wind turbines, most of which look like aircraft propeller blades, are rotated by the moving air and turn an electric generator. These turbines are often grouped together into a single wind power plant, known as a wind farm, which generates bulk electrical power. Electricity from these turbines is fed into the local utility grid and distributed to customers just as it is with conventional power plants.

2000 12 04 12:20 p.m.