PEI and Wind

Why PEI’s wind plan is dying
from topix.net
10/12/2010

In October, 2008, Prince Edward Island Premier Robert Ghiz made a bold promise. The province was going to dramatically increase the amount of wind power it produced, boosting production to 30 per cent of its total electricity consumption from the 18 per cent it then generated.

The move would make the province a green powerhouse, and the North American jurisdiction with by far the highest proportion of wind-generated electricity. At the same time, PEI would become an energy exporter – despite having no other homegrown sources of power – by building additional wind projects to sell power into the New England market.

All this was to be accomplished by 2013, when the province would have 500 megawatts of wind turbines churning out power – a substantial amount for a tiny island province. Only Ontario, Quebec and Alberta would have had more.

Mr. Ghiz vowed that the $1-billion worth of wind farm and transmission construction would be the largest project on the island since the building of the Confederation Bridge.

Two years later, the plan is in disarray. While PEI tried to attract private developers to the province, several of their proposals demanded higher power prices than the province was willing to pay. The government and its utility rejected the offers because they would have driven up electricity prices, which are already the highest in Canada.

Currently, the government is in negotiations with two developers to build projects that will add just 30 MW to the 164 MW of wind power already in production in the province.

PEI’s tarnished vision underlines the delicate economics of renewable energy around the world, where subsidies and high energy prices are often the keys to getting projects off the ground.

While there is tremendous pressure on governments to wean their power grids off fossil fuel, renewables are still an expensive alternative that can push up electricity prices. There is also an increasing public pushback against huge turbine developments – or other “clean” generation projects – near populated areas, forcing politicians to think twice. Just last week, the Ontario government backed down on a proposed natural-gas-powered electricity plan in the populous – and wealthy – Toronto suburb of Oakville, after a well-organized and intense public protest.

In PEI’s case, a key problem was that expected North American “cap-and-trade” carbon-pricing policies did not come to pass, Energy Minister Richard Brown said in an interview at his office in Charlottetown. If they had, carbon credits associated with wind power would have made development on PEI much more viable, he said.

At the same time, the plunge of the global economy into recession didn’t help. “Economic conditions went down the tubes, and that opened up a lot of excess [power generation] capacity,” Mr. Brown said. Consequently, energy prices dropped, making wind less viable.

Still, “the plan is not dead ... we are still committed to 500 MW of wind,” Mr. Brown insists. The time frame has merely been extended until the economy turns around and energy prices make wind projects more viable. “Any developer that wants to come forward with a project on Prince Edward Island, I am more than pleased to entertain [their plans],” he said.

PEI’s plan was formulated at time when oil prices were above $100 (U.S.) a barrel, noted Dinara Millington, a senior economist with the Canadian Energy Research Institute in Calgary. But that didn’t last. “They did not foresee these kinds of issues, with the economy being so depressed and prices for fossil fuel energy being so low,” she said. That removed any incentives for private developers to jump in with big projects.

Essentially, unless energy prices show substantial and sustainable increases, in most jurisdictions wind power is not economical without subsidies of some sort, Ms. Millington said.

The dilemma for PEI is that if it pays too much to wind developers, electricity prices for consumers and businesses will have to go up, and some of those businesses may leave the island as a result, damaging the overall economy.

By contrast, Ontario can pay high “feed-in tariffs” for the wind and solar power it buys from developers because those renewables still make up just a tiny proportion of that province’s power generation and thus put less upward pressure on overall electricity prices. Even in Ontario, however, the shift to renewables has raised the spectre of higher power prices over the longer term.

“I’ve had developers come in here and say ‘well I can go to Ontario.’ ” Mr. Brown said. “My comment to them is, ‘If Ontario is offering a better deal, see you later.’ ”

Indeed, Ontario currently pays 13.5 cents per kilowatt-hour for on-shore wind power, while PEI pays just 7.75 cents. That makes PEI far less attractive, unless a developer can export some of its power at a much higher price.

With 22 per cent of PEI’s electricity currently generated by wind, “we’re already a world leader in renewable energy,” Mr. Brown said, but he’s not willing to push those numbers higher if it means subjecting islanders to higher rates.

Transmission is also an issue, if PEI is to become a bigger wind energy exporter. Currently, undersea cables carry power to the province from New Brunswick, and some wind power (from a privately owned wind farm) off the island. But that capacity is limited.

The federal government needs to help finance new transmission lines, Mr. Brown said, but Ottawa should also be taking the lead in creating a better east-west power grid that connects the provinces together. The current situation, where most provinces connect north-south to U.S. states, is inefficient and counterproductive to Canada’s energy and environmental interests, he said.

ADEDA News

Grape Expectations
One of my many guilty pleasures is a venerable BBC sitcom called “The Last of the Summer Wine”, which due to my age and appreciation of British humour, has become a weekly favourite. Alas, BBC has pulled the plug this year on the irascible West Yorkshire seniors. So no more “summer wine”.

However, here in Annapolis Digby we’re celebrating the “first of the autumn wines” (now you know where I was going with that lead). Annapolis Highlands Vineyards in Bear River East introduced its new, and much awaited, “Highland Sass” last week. It’s been a great year for wineries in Nova Scotia, and especially for Annapolis Highlands. Just last week they added three more prestigious medals to their already growing list of national awards, with a gold and two silvers bestowed at the recent 2010 Atlantic Canadian Wine Competition. We ‘re proud to add that this is yet another successful business with which ADEDA has had the privilege to work over the past year – congratulations Brendan and Karen!

And Maybe with a Good Book or Old Movie...
If, on these fall evenings, you’ve a mind to relax with a glass of wine you could combine it with a read of Granville Centre author Joyce Grant Smith’s second book “Animal Talk”. It’s a charming collection of true animal stories that some early readers have compared to the James Herriot series (here we are back on BBC and in Yorkshire again). Copies are for sale at a number of locations. If old films are your thing, check out the 51,000 feet of archival film recently posted by the Nova Scotia Archives. This fascinating footage includes some spellbinding movie coverage set here in Annapolis Digby and trust me – it’s a must visit site. And if these suggestions aren’t enough, then remember that October is Library Card Month, and the Western Counties Regional Library is offering a wide range of programs, book sales and special displays.

Power Up Your Business. Invest. Innovate. Grow.
And to end as we began – with a focus on small business learning initiatives I wanted to let you know ASAP that small business owners and entrepreneurs in Digby and Annapolis Counties are invited to a “no charge Business Breakfast” designed to celebrate Small Business Week. The first will be on Thursday, October 21st, from 7:45 – 9:00 am at the Capitol Pub, 333 Main Street in Middleton ; and the second on Friday, October 22nd from 7:45 – 9:00 am at the Coastal Inn, 111 Warwick Street in Digby.

You can hear the success stories of those who have invested in growth; learn how your Regional Development Authority and CBDC’s can help you start or grow a business; and discover the potential Geographic Information Systems (GIS) holds for our economy and your business!

For more information or to make plans to attend contact ADEDA’s Dan Harvey at (902)526-4479 or dharvey@annapolisdigby.com.

P.S. You are subscribed to the mailing list using the following name: << Test First Name >> << Test Last Name >>. If this is incorrect or incomplete, please visit the "Update your profile" link at the bottom of this e-mail and make the necessary adjustments. Thanks



Till next week;

Peter

Peter MacLellan
Annapolis Digby EDA
86 Atlantic Avenue
PO Box 271
Cornwallis, Nova Scotia
Canada B0S 1H0

Tel: (902) 638-3490
Fax: (902) 638-8106
E: communications@annapolisdigby.com

Destination SW Nova News

DSWNA Strategic Plan: Industry Online Survey
Important Dates:
DSWNA Strategic Plan: Industry Workshop Sessions:
October 19, 1:00pm, Best Western Hotel, Liverpool
October 20, 1:00pm, Rodd Grand Hotel, Yarmouth
October 21, 1:00pm, Pine View Inn (formerly Wandlyn Inn), Coldbrook
Roger Brooks Follow up Session
October 27, 1:30pm, Old Orchard Inn, Greenwich
DSWNA Fall Review
November 18, 2010, Kejimkujik National Park & National Historic Site of Canada
2010 Tourism Summit - The Power of Tourism, November 28-30, Halifax, Register with DSWNA by October 31st and save!
Award Nominations:
2010 Crystal Tourism Awards of Excellence- deadline October 15, 2010
Minister Paris Visits Region
Reports, Statistics & Studies
Visitor Information Centre Statistics, May, June, July, August
DSWNA website statistics - September 2010
Take the 2010 Canadian Tourism Sector Compensation Study
Provincial Facts & Figures
Seasonal Tourist Business Program - Taxation Survey
Funding Programs:
Small Business Internship Program
Inter-action: Canada's New Multiculturalism Grants and Contributions Program
Seasonal Tourism Business potential property tax savings
Translation Assistance Program
Resources & Opportunities
InTouch newsletter
Experience Nova Scotia: A Toolkit
Festivals & Events Submissions
Partner News:
Are you an Artist in Kings County? Feature your work in the Kentville Visitor Centre
Meetings & Events Calendar
Oak Island Resort & Spa assumes new identity
Congratulations to Winner of Choice Hotel Award!
Yarmouth & Acadian Shores Marketing Officer position
Festival Acadian de Clare named ABA top 100 events for 2011!
Vote Bay of Fundy - New 7 Wonders of Nature!
Vote for Black Loyalist Heritage Society: Aviva Community Fund

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Roger Brooks Follow up Session

Roger Brooks was back in Nova Scotia this past summer, this visit he assessed the Fundy Shore region (from Amherst through Economy) and the Wolfville/Grand Pré region (from Windsor to Kentville). He will be back in Nova Scotia on October 27th at 1:30pm at the Old Orchard Inn to present his findings. We are inviting all businesses, community groups, and community leaders to come out and hear Roger's findings and recommendations. Remember Roger looked at these regions from the visitor's perspective, this is how many of your visitors see you.

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2010 Tourism Summit - The Power of Tourism, November 28-30, Halifax


The 2010 Tourism Summit - The Power of Tourism is being held November 28th - 30th at the World Trade and Convention Centre in Halifax, Nova Scotia!

Register with DSWNA by October 31st and pay only $305 + hst. Contact jbalser@dswna.com or call (902) 645-2307.

As the largest tourism industry conference in Canada, this annual event is attended by more than 500 delegates and includes a combination of high calibre keynote speakers, educational sessions and networking events.

The three day event culminates with the annual Crystal Tourism Awards of Excellence Gala Dinner, always an evening to remember.

Educational sessions will be interactive, provide timely information and best practices for operators.

This event would not be possible without our many industry partnerships. We would ask you to recognize our Summit Partners and support those companies that are investing in the tourism industry.

The annual Tourism Expo will take place on Monday, November 29th and showcase the latest products and services available. To view exhibitors please click here.



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Minister Paris visits region
On September 24th the Minister of Tourism, Percy Paris visited the Fundy Shore & Annapolis Valley. He made a special stop at the visitor information centre in Kentville as the new Welcome Centre "demonstrates the type of partnership we need in this industry."





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Are you an artist in Kings County? Feature your work in the Kentville Visitor Centre
As a way to promote and showcase local talent, the Kentville Visitor Centre displays art by local artists. If you are interested in showing your work please contact Jeanette Joudrey at (902) 634-8844 or email jjoudrey@dswna.com.

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Festivals & Events Submissions
Destination Southwest Nova Association showcases the unique and exciting Festivals & Events the area offers to visitors. Promote your festival or event by filling out this online form! Please call: (902) 645-2307 or jbalser@dswna.com if you have any questions.

Also put your Festival or Event on novascotia.com, click here for their tutorial.