NB Power / Energy
NB Power and TransAlta Corporation sign agreement for 75 MW of wind energy (07/01/19)
NB 78
Jan. 19, 2007
FREDERICTON (CNB) - NB Power and TransAlta Corporation signed a 25-year power purchase agreement for 75 MW of wind power in 2008. TransAlta Corporation will construct, own and operate the Kent Hills wind farm, located in Albert County. The agreement is the first to be signed since NB Power announced it would increase its wind power generating capacity by 200 MW by 2009.
"At NB Power, we are committed to providing New Brunswickers with renewable energy," said David Hay, NB Power President and CEO. "We are pleased to be partnering with TransAlta Corporation to deliver wind energy to the people of New Brunswick."
The development of wind energy also supports the government's Charter for Change.
"This project aligns well with our policy to become the best in energy generation and conservation," Energy Minister Jack Keir said. "With today's announcement, we are on the road to acquiring 10 per cent of the electricity used by New Brunswickers from renewable sources by 2016."
The agreement comes following TransAlta Corporation's submission to the Request for Proposal issued by NB Power. Under the agreement, TransAlta Corporation will construct, own and operate a wind power facility in Kent Hills, Albert County. The wind farm will consist of 25 wind turbines that will provide approximately 220,000 MWh of wind electricity per year, enough to supply approximately 13,600 homes per year.
The development of wind energy projects will increase renewable energy in the province, resulting in local economic development, increased diversity of power supply and a greater reliance on domestic resources for electricity generated and sold in New Brunswick.
In addition to its wind initiatives and its participation in the Electric Power Research Institute tidal power study, NB Power is exploring other options to obtain incremental renewable energy to meet provincial targets. Other potential sources include biomass, small hydro and electricity generated from landfill gas.
07/01/19
EDITOR'S NOTE: Background information follows. MEDIA CONTACTS: Michel Losier, NB Power, 506-458-3273; Marc Belliveau, Department of Energy, 506-444-5912.
Backgrounder
The renewable energy target requires an additional 10 per cent of New Brunswickers' electricity comes from renewable sources by 2016. Generation from wind, solar, biomass, small hydro, landfill gas and ocean can be used to meet this requirement.
On June 29, 2005, NB Power announced it was increasing its commitment to acquire energy from renewable sources by seeking up to 400 MW of additional wind energy by 2016.
On Oct. 18, 2005, NB Power issued a Request for an Expression of Interest for a minimum of 5 MW of wind generation that could be sited in the five highest wind areas in New Brunswick: the Bay of Fundy, Tantramar, Miramichi Bay, Acadie/Chaleur and in-land New Brunswick.
- Ensuring geographical dispersion of the wind sites will allow NB Power to take advantage of the high wind areas across the province
- NB Power will be able to purchase energy from wind generators in areas experiencing high winds at times when wind in other areas of the province may be too low to generate any electricity
- This will increase the overall efficiency of wind generators
In December 2005, NB Power began its extensive evaluation of the proposals submitted. The Expressions of Interest were evaluated based on the following criteria:
- project information - project location, installed capacity, net annual energy, commercial operation date, wind site maximum capacity, wind site net annual energy output and site plan
- financial information - financial plan, price for wind project output
- general information - selection and land acquisition, engineering and design, permitting and regulatory approvals, procurement of major components, interconnection agreement with the New Brunswick System Operator (NBSO), commissioning plan, operations and maintenance plan, community outreach plan
Based on the evaluation of the Expressions for Interest, NB Power issued a Request for Proposal to a short list of 10 proponents. Projects located in four wind areas were submitted and evaluated based on a combination of lowest price, capacity and location to take advantage of diversity in wind regimes, as well as the ability to be in commercial operation by 2009.
In August 2006, NB Power announced it will enter into power purchase agreements with multiple developers in different wind areas for an approximate total of 200 MW of wind projects to be in operation by 2009. This accelerates NB Power's original wind project implementation of 40 MW per year for 10 years and results in 200 MW being obtained in the first three years.
On Jan. 19, 2007, NB Power announced it had signed a 25-year power purchase agreement to acquire 75 MW of wind energy from TransAlta Corporation. TransAlta Corporation will develop a wind farm of 25 wind turbines in Kent Hills, Albert County. It will generate approximately 220,000 MWh of electricity per year, enough to supply about 13,600 homes per year.
NB Power's power purchase agreement with TransAlta Corporation is the first to be signed since NB Power announced it would increase its wind power generating capacity by 200 MW by 2009.
Because wind energy production is variable and contingent on wind blowing, it cannot be available for dispatch on demand. Wind power requires other generation facilities to be available to increase or decrease production quickly to meet the demand for electricity, depending on the fluctuations in wind and the resulting wind energy being produced. There are certain costs associated with backing up these fluctuations which are being evaluated in conjunction with the New Brunswick System Operator.
The development of wind energy projects will increase renewable energy in the province, resulting in local economic development, increased diversity of power supply and a greater reliance on domestic resources for electricity generated and sold in New Brunswick. It also supports the provincial government's target to have 10 per cent of electricity used by New Brunswickers come from renewable sources by 2016.
07/01/19