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WIND POWER POLICY SUPPORTS ALTERNATIVE ENERGY
INDUSTRY |
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VICTORIA – A new participation rent policy for wind power projects located on
Crown land offers flexibility and incentives for wind power producers to proceed
with capital investment, announced Energy, Mines and Petroleum Resources
Minister Richard Neufeld.
“In partnership with the wind power industry, we have come up with an
innovative solution to ease the financial risk for wind power producers, which
will ensure we can move forward in developing alternative energy
opportunities,” said Neufeld. “New participation pricing features will allow
the industry to develop and mature over the first 10 years.”
Features of the wind power policy include no participation rents for the
first 10 years of commercial operations, and a variable rent based on annual
electricity production starting in year 11, ranging from one to three per cent
of gross annual revenues:
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One per cent of gross revenue
when the annual production factor is less than 25 per cent; and
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Three per cent of gross revenue
when the annual production factor is greater than or equal to 40 per cent;
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When the annual production factor
is greater than 25 per cent but less than 40 per cent, the rent will range on a
sliding scale from one to three per cent.
A sliding rent scale will ensure a fair return to the Province while
being sensitive to the actual production characteristics of individual
projects. A provincial review of the rent-free phase will occur in 2010, but
any changes at that time will not affect projects that are already in
operation.
“The provincial government has worked
diligently for two years with the B.C. power sector and other stakeholders to
develop the best wind tenure policy in Canada,” said Ron Percival, president of Dokie Wind Energy and chair of the wind
committee of the Independent Power Producers of BC. “It balances the opportunities of wind
development fairly with the needs of the Province to obtain an appropriate
return.”
“Our 2002 B.C. Energy Plan gave us a path forward to have industry
develop new power supplies, be it from wind, or other sources,” said Neufeld.
“This policy is another step on this path, and is one that I am confident will
ensure we continue to have some of the most reliable and environmentally
sustainable power in North America.”
There are currently 169 tenure applications for wind energy development
in B.C. and over 2,000 megawatts in wind energy projects in various stages of
the development process throughout the province. Over 90 per cent of the
electricity produced in B.C. comes from clean energy sources. Wind power will
add to B.C.’s clean electricity portfolio and further help the province reduce
its direct greenhouse gas emissions. One of government’s Five Great Goals for a
Golden Decade is to lead the world in sustainable environmental management with
the best air and water quality.
The detailed operational policy document will be made available in the
near future on the following website: www.em.gov.bc.ca/AlternativeEnergy/windpower/default.htm.
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Director of Communications Ministry of Energy, Mines and Petroleum Resources 250 952-0621 250 889-1825 (cell) |
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Visit the Province's website at www.gov.bc.ca for online information and services. |
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