only 2 provinces hat do not have installed wind capacity. And it’s not for lack of a breeze, as witnesses to Stanley Parks wind-swept devastation can attest.
It’s BC’s abundance of low-cost energy that has pushed off the need to look to alternative power, according to Robert Hornung, president of Can WEA. But BC has just as much potential as the rest of the country.
“In Canada, we have more wind resources than we will ever be able to use; and that’s true in B.C. as well,” said Hornung.
According to Natural Resources Canada, the wind power industry in worth more that US$9 billion annually and is one of the fastest growing renewable energy technologies in the world. And with the B.C. government’s new energy plan promising financial support for clean energy, wind power is starting to get the spotlight. Although incurring large initial capital costs, relative to small hydro or biomass projects, its limited footprint in terms of environment impact makes wind power a viable large-scale solution.
In Hydro’s 2006 open call for power, three wind energy projects were accepted:
§ Dokie Wind Energy Inc.’s wind project near Chetwynd, providing 180 megawatts
§ AltaGas Income Trust’s (TSX:ALA:UN) and Aeolis Wind Power Corp.’s Bear Mountain Wind Park near Dawson Creek – 120 megawatts; and
§ Katabatic’s Mount Hays Wind Farm near Prince Rupert – 25 megawatts.
The three projects would have an annual total output of 980 gigawatt-hours, powering almost 100,00 homes. But the acceptance of a bid is still only the beginning, said Independent Power Producer of B.C. president Steve Davis. There are a good 50 permits, licenses and approvals needed and the current projects’ construction has been limited to weather research towers.
“As with similar projects impacting the environment, something can always turn up. So there’s still risk there,” said Davis. The project could turn out to be in a migratory fly zone, for example, or in natural habitat of an endangered species.
“The name of our conference three years ago was called Snakes and Ladders,” he said. “That’s the nature of the game; you need an approval from 14 different government agencies.”
But Davis added that, once complete, wind projects could eclipse other energy sources. “The World Wide Atlas ranks B.C. as having some of the best raw wind industries in the world,” he said.
Another industry challenge is policy stability. “Wind is still a policy-driven industry,” said Can-WEA’s Hornung. “For provincial governments who set targets of wind energy, they have to plan their strategies very well.”
One company hoping to be included in the government’s strategy is Vancouver-based Naikun Wind Development Inc. (TSX-V:NKW), which is planning a five-phase, 1,750-megawatt wind farm in the Hecate Strait, off-shore from Prince Rupert. Construction of Phase 1, of between 67 and 110 wind turbines, is expected to begin in 2009.
Naikun has indicated it intends to participate in BC Hydro’s next call for power later this year.
“We’re putting finishing touches on carious analyses and studies, to ensure right capital cost and operating cost and right electricity price to make the project go forward,” said CEO Ray Castelli, who added that he is expecting Hydro’s purchase price to be up around $88 per mega-watt-hour. In May 2007, NaiKun signed a memorandum of understanding (MOU) with the Haida Nation regarding Phase 1 of the project, whereby the Haida Power Authority will participate in providing operating and maintenance services to the project.
Castelli spoke to BIV right after a board meeting in which he welcomed new members Gary Holden, CEO of City of Calgary-owned ENMAX, and Graham Wilson, former CFO of Westcoast Energy.
Naikun has gained a reputation of connecting with high-powered names in the industry. Castelli himself was director of corporate development for Alcan Aluminum, and board chair Michael Burns was the executive vice-president and CFO at BC Gas.
“The biggest challenge is that it’s one of the hottest business sectors on earth,” said Castelli. “There are more than a million megawatts in the world in development and planning, and there’s a limited supply of wind turbines, electrical cable and towers.
“We expect that we’re going to have to buy everything from Europe,” said Castelli. “But we hope, by the time the second or third or fourth project gets built…B.C. [would have] the opportunity to become a renewable energy power-house and can attract significant investment to put production right here on our doorstep.”
