Confederation Power - The Renewable Energy Industry

Map Glace Bay Projects Observatory Hydro Projects

i) Lower Observatory Inlet Project Cluster ii) Alice Arm Project Cluster iii) Upper Kitsault Valley Project Cluster

Saskatchewan Projects SCPC Projects Springhill Projects

The Renewable Energy Industry

Renewable energy is broadly defined as energy obtained from sources that cannot be depleted, unlike energy for which there is a finite supply, such as fossil fuels. Renewable sources of energy include solar, wind, hydro, tidal, geothermal and some forms of biomass such as waste. Demand for renewable power in Canada continues to grow largely because of overall electricity demand increases and low levels of growth in power supply. As well, energy commodity prices are near all-time highs and electricity providers who depend on these commodities are increasingly incented to diversify their mix of generation sources to minimize their exposure to high and volatile hydrocarbon prices.

Against the backdrop of strong demand and strong market fundamentals, significant provincial mandates supporting the development of renewable energy, and overall cost reductions associated with renewable sources of energy, Confederation believes that Canada is a favourable market for renewable power project development. From 2000-2007, Canada's installed base of wind capacity has enjoyed compound annual growth of 44% annually, from 137 MW in 2000 to 1,770 MW by the end of 2007. In addition, the installed wind energy capacity in Canada is expected to double in 2008, with the construction of an additional 1,800 MW.

The following table provided by the Canadian Wind Energy Association summarizes the federal and provincial initiatives related to the development of wind power in Canada:

Jurisdiction	Initiative	Status
Federal	Announced the ecoEnergy Renewable Power program in January 2007 to support the deployment of 4,000 MW of renewable energy between 2007 and 2011.	Due to high demand, it is likely that all funding associated with the program will be fully allocated by the end of 2009.
British Columbia	50% of new generation to come from clean energy sources.	325 MW of wind energy contracts in place. New Call for Clean Power expected in early 2008.
Alberta	No provincial target. Eliminated initial 900 MW cap on wind energy production. Now designing transmission upgrades to connect 3,000 MW of wind in Southern Alberta.	Alberta first jurisdiction to pass 500 MW of installed wind energy capacity in Canada.
Saskatchewan	Provincial energy plan seeks to have 300 MW of wind energy in Saskatchewan by 2011.	171 MW currently in place.
Manitoba	Manitoba Government seeking 1,000 MW of wind energy by 2016.	More than 100 MW in place, expected to announce another 300 MW worth of contracts in early 2008.
Ontario	New Renewable Energy Target (5% of capacity by 2007; 10% of capacity by 2010) - potentially four-fifths of this will be wind energy - 2,100 MW by 2010. The Ontario Power Authority's Integrated Power System Plan calls for 4,600 MW of wind energy by 2020.	Almost 500 MW in place and an additional 1,000 MW contracted. Will release a new 500 MW Request for Proposals for renewable energy in Spring 2008.
Quebec	Quebec Government seeking 4,000 MW of wind energy by 2015.	More than 400 MW in place and another 1,000 MW already contracted. 2,000 MW of new contracts to be awarded in Spring 2008. 500 MW of new Requests for Proposals (for First Nations / Municipalities) to be issued in 2008.
New Brunswick	NB Power seeking 400 MW of wind energy by 2016.	96 MW of wind energy contracted - expected to announce 300 MW of additional contracts in Spring 2008.
Nova Scotia	The Renewable Energy Standards (RES) put in place by the Government of Nova Scotia require that 5% of the total Nova Scotia electricity requirement be supplied by new (post 2001) renewable energy sources by 2010, rising to 10% by 2013.	Approximately 60 MW of wind generation has been installed post - 2001. If all wind capacity, the RES will require some 210 MW of additional wind capacity by 2010 and a total of some 510 MW of additional wind capacity by 2013.
Prince Edward Island	Government target of 15% of electricity coming from wind power in 2010 (60 MW).	72 MW of wind energy already in place. Exploring opportunities to bring more wind energy onto the grid.
Newfoundland	Target of 80 MW of wind energy on the island of Newfoundland and exploring wind development potential in Labrador.	54 MW now contracted on the island of Newfoundland.