Thursday, January 04, 2007

Development on the gusts of a subsidized wind


The folks behind the Katabatic Power project, a wind farm development on Mount Hays are hoping that sometime between now and before the eventual upcoming election, that a subsidy for wind power is re-instated by the Conservative government.

The Wind Power Production Incentive was a federal subsidy for wind power, which is similar to one in place for Hydro development, has been in a kind of parliamentary holding pattern ever since the Conservatives took office. All eyes are on Ottawa and its budget preparation maneuvering (a Federal budget is expected in February) to see if the wind subsidies will once again be put back into play, a prospect that many of the developers of wind power in Canada would very much like to see.

That includes the proponents for that fourteen turbine Mount Hays development currently in the developmental phase. A Katabatic spokesman said in the Daily News on Tuesday that while Katabatic could go ahead with the development without the incentive, it would be very difficult.

Part of the delay could be the Conservative government’s suspicions over the greener energy sources, positions and articles like this one from the International Herald Tribune, tend more often than not to shade the Conservatives agenda when it comes to energy.

The good news for Katabatic and by extension Prince Rupert, could be the more environmentally friendly turn that it’s expected the Conservatives will take with the Liberals Stephane Dion now the opposition leader. In the end, good old fashioned politics may end up being the trump card for those looking for wind power to take hold on the north coast.

Thursday’s cabinet shuffle may be the incentive needed to get the Incentive program back into the active file, a process that may finally lead to some forward progress on the much ballyhooed wind farm project. The Daily news had full details in their Tuesday edition.


WIND POWER FIRM HOPING FOR WINDFALL FROM OTTAWA
Katabatic Power wants subsidies to be reinstated
By Leanne Ritchie
The Daily News
Tuesday, January 2, 2007
Page one


The proponents of the Mount Hays wind farm are hoping the New Year includes a regeneration of the federal government’s wind power subsidy program.

The Wind Power Production Incentive, better known as WPPI, has been on hold since the Conservatives took over the federal government last year.

“The program is currently in limbo. It’s a federal subsidy for wind power, similar to the federal subsidy for hydro power,” said Jonathon Raymond, chief operating officer of Katabatic.

“We’ve been waiting for a couple of months on the status of that program.

“We don’t know what they are going to provide or if they are going to provide anything in the new budget. The old system was one penny per kilowatt hour for the first 10 years of the project’s operation.”
Raymond, whose company wants to build a 14 turbine wind farm on the back side of Mount Hays, says they are optimistic the program will be brought back.

“There are no projects in North America that get built, no matter what resource, without some sort of help from the federal government, whether the Canadian or U. S. federal government,’ said Raymond.

“The U. S. government has had what is called a production tax credit for the last several years and every year they have extended it. Basically, that is what we have seen with WPPI but for some reason we’ve gotten into a little bit of a holding pattern with the situation in Ottawa. We expect that we will get a good result, we are just waiting to hear.”

While Katabatic could go ahead without the incentive, it would be very difficult, said Raymond.

“It will make it much more challenging for us (without the program) to get the project going. We can still do it but it certainly adds some complexity… we would have to move some things around to solidify the project without any assistance from the government. “

Katabatic is hoping to file its environmental impact statement with Natural Resources Canada at the end of January, which is the agency that administers WPPI. They are just waiting for confirmation WPPI will exist. But all signs are the program will be brought back.

With Stephane Dion’s Liberal leadership victory, it is likely that the government will take a greener turn and current Conservative Environment Minister Rona Ambrose, who put the program on hold, is believed to be set for a move to a new portfolio.

The Conservatives have taken a lot of criticism about their handling of the country’s environmental issues and Dion has been keen on hammering home that point.

In reaction, the Conservative government is expected to announce in the new year it will revive in some form several Liberal programs it cancelled: EnerGuide, the $920 million, 15 Wind Power Production Incentive and the Renewable Power Production Incentive.

Katabatic was one of three companies that won contracts with B. C. Hydro as independent power producers earlier this year. They hope to have the operation up and running by 2007 and have already ordered their turbines from Montreal based AAER Inc.

Once completed, the Mount hays facility will generate enough electricity for approximately 12,000 homes.

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