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October 2, 2006
(Natural Resources)


The following is being distributed at the request of Newfoundland and Labrador Hydro:

Newfoundland and Labrador Hydro announces outcome of Wind Generation Request for Proposals

Newfoundland and Labrador Hydro (Hydro) announced today that NeWind Group Inc. will be awarded a contract to provide 25 megawatts (MW) of wind power to the island from its St. Lawrence Wind Project.

"This project is another step forward for Newfoundland and Labrador in developing renewable, long-term energy supplies," said Natural Resources Minister Kathy Dunderdale. "It�s very exciting to see this project proceed and provide local benefits to St. Lawrence and the Burin Peninsula. We recognize the tremendous social and economic opportunity that can be realized by developing our energy resources and we are doing it in a strategic manner to ensure optimal benefit over the long term."

"NeWind submitted a comprehensive, cost-effective proposal for wind power," said Ed Martin, Hydro�s CEO. "We�re pleased to move forward with the company. They�ll be developing a project that makes economic and environmental sense for Newfoundland and Labrador. The project will provide clean, renewable energy for homes and businesses in this province.

"This project will also provide the province with a stable, long-term supply of power," noted Mr. Martin.

There were seven bids submitted on the August 31 deadline which were subject to a rigourous and thorough evaluation. "The Request for Proposals process was open, competitive and comprehensive," explained Mr. Martin, "ensuring that we achieved appropriate value from potential developers and that Hydro delivers value to energy consumers on the island."

The next step will be to conclude the power purchase agreement with NeWind which Hydro expects will be complete within six weeks. The island�s first wind farm has the potential to provide annual energy for 6,800 homes and is expected to be in service by the end of 2008.

The project will be located near the community of St. Lawrence on the Burin Peninsula and will result in the installation of 14, 1.8MW turbines supplied by Vestas Wind Systems.

Wind power provides a clean, renewable and stable, long-term source of energy for Newfoundland and Labrador with zero emissions. Energy from the St. Lawrence Wind Project has the potential to offset over 165,000 barrels of fuel burned annually to generate power at the Holyrood Thermal Generating Station.

"Although, today, we cannot replace the plant with wind generation," explained Mr. Martin, "we can certainly reduce the amount of energy generated from the plant through the addition of clean, cost-effective and renewable energy sources such as wind."

Newfoundland and Labrador has a world-class wind resource. Currently, the island system is isolated from the North American grid with existing generating capacity of 1,919 MW provided by approximately 65 per cent hydroelectric and 35 per cent fossil fuel generation.

This contract award is consistent with government�s approach to the strategic long-term development of the province�s energy resources. The provincial government is now in the final stages of concluding consultations on a provincial Energy Plan, which will provide the major directions and policies that will guide the development of the energy sector over the long term for the benefit of the people of the province. The plan will ensure energy developments, including wind, are done in a way that is consistent with government�s long-term objectives for the sector and the province. The plan will be released this fall.

Media contact:

Tracy Barron, Natural Resources, (709) 729-5282, 690-1703

Dawn Dalley, NL Hydro, (709) 737-1315, 727-7715


Wind Power

Wind turbines capture the kinetic energy in surface winds and convert it into electrical energy in the form of electricity. To do this use they use three basic parts: blades, a shaft and a generator. As wind moves over turbine blades, it cause "lift" � the same effect used by airplane wings. Lift makes the blades rotate. The turning blades turn a shaft. The turning shaft moves a magnetic field in the generator, which in turn creates electricity.

According to the Canadian Wind Energy Association, ( as of June 2006, Canada�s installed wind energy capacity was1,049 MW - already powering over 315,000 homes and businesses in a clean, reliable and efficient manner.

There are many factors to consider in wind development besides wind resource. Other areas of consideration include how much wind energy can be effectively integrated into the electricity grid and at what cost. Based on the experience of other countries it is possible for Canada to achieve 20 per cent of its electricity needs from wind energy that would be 50,000 MW of wind energy capacity.

The community of Ramea, on the south coast of Newfoundland, has had a wind-diesel project in operation since September 2004 and in 2005 produced 10 per cent of the communities energy needs and offsetting approximately 110,000 litres of diesel fuel.

St. Lawrence Wind Project

The St. Lawrence Wind Project is a project of NeWind Group Inc., a subsidiary of ENEL North America Inc. ENEL is Italy�s largest power company. To execute the St. Lawrence Wind Project, ENEL has established relationships with a consortium of companies including local construction and engineering companies. fga Consulting engineers Limited and Quadratec Inc. ENEL has extensive experience in wind project assessment, development and operation.

The project is a 25.2 MW wind project located about one km northwest of the community of St. Lawrence on the Burin Peninsula.

The project will install 14 Vestas V-80, 1.8 MW wind turbines.

The hub of the turbine will be 67 metres high.

The rotor diameter will be 80 metres (40 metres per blade) with an average speed of 15.5 RPM.

The wind project will generate enough energy annually to power approximately 6,800 homes.

The project is expected to be on stream in late 2008.

The power purchase agreement will be for a 20 year term.

Wind Turbine Technology

The nacelle is the size of a small motor home and weighs 63,000 kg.

Each blade is 39 m long � the same length as a Boeing 737 and the three-blade rotor weighs 35,000 kg.

The 65 m tower is made up of rolled steel and comes in three pieces. The entire tower weighs 132,000 kg and contains enough steel to manufacture 206 average cars.

The foundation is 9 � 10 m deep and 4 m across. 102 tension type bolts run the full depth of the foundation.

Swept area of the blades is 5,024 sq. m � the size of three NHL hockey rinks combined � or about 1.25 acres.

Total weight of the entire turbine is 230,000 kg � about the same as two fully fuelled 3,200 HP diesel electric locomotives.

2006 10 02                                      2:15 p.m

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