Government gives approval in principle for wind power project

Mines and Energy Minister Walter Noel today announced that government has given approval in principle for the establishment of a demonstration wind power project to supply electricity to the province. Newfoundland and Labrador Hydro (Hydro) and the proponent, NeWind, will now enter into negotiations to finalize a power purchase agreement.

In 2000, Hydro issued a request for proposals to undertake a demonstration wind power project in the province. In March 2001, a proposal from the NeWind Group was accepted and in September 2002, St. Lawrence was accepted as the site of this demonstration project.

"The establishment of a wind power demonstration project will create a new industry in Newfoundland and Labrador, an industry which seems to be a natural fit for our windswept climate," said Minister Noel. "Although the final details have yet to be concluded between Hydro and NeWind, government is confident that a power purchase agreement will be reached in the near future. Another element to be finalized is an agreement with the federal government for green power purchase, based on a memorandum of understanding and similar arrangements in other provinces.

"This project will establish the future prospects for this technology in the province, while providing clean and renewable energy. Additional wind power will help Canada meet its Kyoto targets for the reduction of greenhouse gas emissions, and will help to mitigate the negative effects of climate change. It will also help Hydro meet its future energy requirements for the Island Interconnected System. Government will ensure that all applicable federal and provincial government programs will be utilized to encourage the development of this, and future, clean energy projects."

"The wind power demonstration project in St. Lawrence will result in economic benefits for the District of Grand Bank and St. Lawrence and immediate area in particular," said MHA for the District of Grand Bank and Minister of Industry, Trade and Rural Development, Judy Foote. "In addition to creating employment opportunities in the area, the wind farm, which will consist of wind turbine generators towering approximately 150 feet in height, will be a tourist attraction as has happened in other provinces where wind is being utilized as a source of energy. The benefits associated with this new industry will be good for the entire province," added Minister Foote.

Minister Noel noted that Hydro is not making a capital investment in the project and the agreement will only cover the ongoing purchase of power.

Media contact: Darrell Mercer, Communications, (709) 729-5777.

2003 08 07                                         3:30 p.m.