November 28, 2005

Second RFP yields nine new renewable energy projects to generate 975 MW

The Ontario government has approved nine new renewable energy projects which together will provide 975 megawatts (MW) of new renewable energy capacity. The projects, which include eight new wind farms and a waterpower project, were selected through the government's second Request for Proposals (RFP) for renewable power. They will provide enough power for more than 250,000 homes and will bring an estimated $2 billion of new investment to Ontario.

"The success of this request for proposals means that, combined with our first renewables RFP completed last year, we will be adding over 1,300 megawatts of wind power to Ontario's electricity system. We're on track to achieve our goal of 10% of Ontario's generation coming from renewable sources by 2010," said Energy Minister Donna Cansfield. Ontario has set a target of adding 2,700 MW of new renewable energy by 2010.

The projects are:

*the Island Falls hydroelectric project at Smooth Rock Falls, 20 MW (proponent: Canadian Hydro Developers);

*the Kingsbridge II wind power project at Goderich, 158.7 MW (proponent: Epcor Power Development (Ontario) Limited Partnership);

*Kruger Energy Port Alma project at Port Alma, 101.2 MW (proponent: Kruger Energy Port Alma Ltd Partnership);

*Enbridge's Leader wind project A at Kincardine, 100.65 MW (proponent: Leader Wind (Enbridge));

*Enbridge's Leader wind project B, also at Kincardine, 99 MW (proponent: Leader Wind (Enbridge));

*the Melancthon II wind project at Shelburne, 132 MW (proponent: Canadian Hydro Developers);

*the Prince II wind power project at Sault Ste. Marie, 90 MW (proponent: Brascan Power Wind-Prince II);

*the Ripley wind power project at Ripley, 76 MW (proponents: Suncor Energy Products and EHN Windpower Canada, a subsidiary of the Spanish firm Acciona Energia); and

*the Wolfe Island wind project at Kingston, 197.8 MW (proponent: Canadian Hydro Developers).

Together with 395 megawatts of renewable energy capacity announced last year, the government has, with these projects, contracted for 1,370 MW of new renewable capacity and is on track to meet its target of adding 2,700 MW of new renewable energy by 2010.

Twenty-two proposals with a total capacity of over 2,000 MW were received in response to the government's second renewable energy RFP, issued in April 2004. The RFP was open to wind, water, solar, biomass and landfill gas projects. The proposals received were evaluated by a government team, with the overall process monitored by an independent RFP fairness commissioner.

Proposals were initially screened to ensure that they were complete and met the RFP information requirements. Those meeting this requirement were assessed to confirm that they met the minimum mandatory technical and financial requirements required by the RFP. Projects that met these requirements were then ranked on the basis of total proposal price, from lowest to highest.

Based on this evaluation, the selected proponents have signed a contract with the Ontario Power Authority to supply renewable electricity capacity for a 20-year period.

The government has issued a third RFP for small and medium-sized renewable energy projects under 20 MW; results are expected in 2006. More information on the RFP, including the RFP document itself, is available at www.ontarioelectricityrfp.ca. A map (in pdf format) and a list of contacts for the individual projects may be viewed on the Ministry of Energy Web site, www.energy.gov.on.ca.

The government's announcement of the RFP winners was welcomed by Ontario's power producers. David Butters, president of the Association of Power Producers of Ontario (APPrO), congratulated the successful proponents, stating, "We've maintained that the private sector will step up to the plate to invest capital in renewable generation projects if there is an appropriate competitive procurement and this is the second time they have done so."

At the same time, he emphasized that an immediate priority for all governments and stakeholders is to work on streamlined approval processes and better communication to the public on the importance of contracted generation projects in achieving Ontario's critical electricity supply objectives. "Our ability to deliver clean new energy when we need it and at a price we can afford will be seriously at risk if we do not address nimby-ism and other impediments to the timely development of new generation projects," Butters said.

The Canadian Wind Energy Association (CanWEA) also responded positively. "CanWEA is pleased that the Ontario government is moving quickly to ensure Ontario can experience both the environmental and economic benefits of wind energy," said association president Robert Hornung.

Clean, renewable wind energy is growing in all regions of Canada, providing jobs and investment in rural communities throughout the country. It is the fastest-growing source of electricity worldwide, with an average growth rate of more than 30% over the past ten years.

Canada's current installed wind energy capacity of 590 MW provides enough power to meet the electricity needs of approximately 230,000 Canadian households. The stated commitments of federal and provincial governments would see Canada's installed wind energy capacity increase to more than 8,000 MW by 2014.

More information is available from APPrO president David Butters, 416/322-6549, FAX 416/481-5785, E-mail david.butters@appro.org, Web site www.appro.org, or from CanWEA president Robert Hornung, 613/234-8716, ext 224, E-mail roberthornung@canwea.ca, Web site www.canwea.ca.

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