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by Michael Erskine NORTHEASTERN
MANITOULIN AND THE ISLANDS (NEMI)---The stately sweep of
windmill propellers are to grace the heights of McLean's
Mountain before the end of 2004, as the wind farm consortium has
completed the first stage of its studies.
"This is among the best sites in Ontario,"
said J.P. (Paul) Graham, plants engineer for the City of Greater
Sudbury, who along with Northland Power and REpower are the
three partners in the consortium involved in the project. "The
'Project' has assembled over a year of on-site wind data, which
is a key requirement of both the equity investors and the
lending institutions.
The project has also received its final
impact assessment report from the Independent Market Operator
(IMO), the Ontario Crown Corporation that oversees the
province's energy supply, and initiated the customer impact
assessment with Hydro One.
"Any issues identified by Hydro One will
form the basis of an amendment to the final report provided by
IMO," said Jonathan Sandler, director of Business Development at
Northland Power. "These two interconnection assessments are
necessary to ensure that the energy generated by the project can
be distributed to Manitoulin Island energy consumers and
transmitted to other energy consumers across Ontario. We do not
anticipate any problems in completing the Hydro One customer
impact assessment."
Rick Gagnon, co-owner of REpower Wind Corp.
and the key local player in the consortium, will be the local
contact person for the life of the project.
"We understand how important it is to the
local community to have access to quality information," said Mr.
Sandler. "We will be calling another public meeting to answer
questions and concerns."
Part of the assessment process will include
a $100,000 full simulation model that will give landowners and
local residents a clear picture of the visual impact of the
project.
"Those detailed simulations should be
available within three to four months," said Mr. Sandler.
The Wind Farm Project will consist of 30 to
36 wind turbines, with a gross production capacity of 54
Megawatts (MW). Manitoulin Island uses approximately 20
megawatts of power. Since the wind rating is approximately 40
percent, that means the Island will essentially be 'green
powered.'
"The wind doesn't blow all the time," said
Mr. Graham. "So the Island will still need power from outside."
But with the Island producing as much or
more power through wind than it uses, on balance the Island will
be as environmentally benign as anywhere in the world.
"The Project is engaging environmental
consultants to assess the impact the Project will have on the
surrounding environment and community," said Mr. Sandler. "In
the coming months we will be arranging another town hall meeting
to discuss the results of the environmental assessment and to
provide a further update on the status of the Project."
The partners are confident of the positive
outcome of those assessments. While the assessments are going
forward they will be completing the detailed siting of the wind
turbines, and finalizing a power purchase agreement for energy
produced by the project.
"The new Liberal government's recent
announcement that within the next two to three years, five
percent of Ontario's total energy consumed must be supplied by
renewable energy projects," said Mr. Graham. "This will
undoubtedly provide the impetus needed for us to secure a viable
power purchase agreement."
The cost of production for wind power
energy is higher than other, less environmentally-benign
sources, so a purchase agreement will have to ensure a market
price for the Project's product that can return a profit to the
investors. Currently less than one percent of Ontario's energy
needs come from wind power.
The McLean's Mountain Project is the larger
of two operations that the consortium are currently working on,
and the more advanced.
"The two projects are mutually exclusive,"
Mr. Graham. "They are two totally independent projects."
At approximately $1.7 million per megawatt,
the McLean's Mountain Project will require around $92 million in
capital investment.
"The Project has secured the first rights
to connect to the Hydro One distribution and transmission lines
at Little Current and will use the majority of the capacity of
those lines," said Mr. Sandler, but he was quick to assure that
this would have no negative impact on current consumers.
The power lines running to and from the
Island are capable of supporting 80 megawatts of power
transmission. With the inclusion of the power generated by the
McLean's Mountain Project, the unused capacity of those lines
will now be more efficiently used.
In an interesting bonus for the future, the
project could give Manitoulin a competitive advantage in the
North, should the province ever move to locational marginal
pricing. Locational marginal pricing is a concept being pushed
by industry in the south, where utilities would charge consumers
based in part on their distance from the generating station.
In a more direct benefit, construction jobs
in the initial building of the wind farm and infrastructure
upgrades that will be required to maintain the wind farm should
give the local economy a boost, even if the actual long-term job
impact will be nominal.
The cache of living and playing in a
green-powered environment will likely enhance Manitoulin
Island's image as a pristine natural tourist and retirement
retreat.
All of the representatives of the partners
in the consortium said they were committed to keeping the lines
of communication with local residents open.
"When you know the Island and the way
people think here," said Mr. Gagnon, "I feel quite confident
people will be very comfortable with this project when they know
all the details."
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