Renewable project gets second wind at Saint John Energy
Saint John Energy is looking for a developer to build a wind energy project in Spruce Lake Industrial Park.
"Quite frankly, this is a great project," said Ray Robinson, the utility's president and CEO.
"You can increase the amount of renewables on the system and reduce greenhouse gases … while significantly reducing the cost of energy."
Robinson said Saint John Energy has already done about 10 years of research to support the project, including five years of wind data collection, business case analyses, environmental studies and market testing.
"All of those indicators are showing there's a fantastic opportunity for wind development here in Saint John, Robinson said.
Robinson said the wind data indicates Spruce Lake Industrial Park in the western reaches of Saint John has a "very good wind regime," so the output from the project should be "quite impressive."
The development will likely be able to generate 20 to 40 megawatts of electricity, said Robinson, or eight to 16 per cent of the utility's requirements.
Last year, 95 per cent of the customers who responded to a survey said they would support renewable generation, as long as it doesn't increase rates, he said.
"We're of the belief that this will be driving significant savings to the bottom line."
The utility added that it would not sign a power purchase agreement if that's not the case.
Forbidden from generating power
Much more preliminary work will be required before the project becomes a reality, including an environmental impact assessment and community consultation, said Robinson.
Saint John Energy is not currently allowed, under the Electricity Act, to generate electricity.
"We have aspirations for that, and we're working with the Province of New Brunswick to see if that can happen sometime in the future."
For now, they utility is looking for a third party to build and own the project. Saint John Energy would simply buy the power.
"The long-term play is having legislation changed," said Robinson, "to enable Saint John Energy to effectively implement a growth strategy and through financial performance being able to flow dividends through to the owner, to the city."
According to a timeline on the utility's website it hopes to select a developer by summer and to see the project in operation by late 2021 or early 2022.
"The sooner something like this can be part of the mix the better — for our customers, for the utility, for the city and for the province," said Robinson.
Tried wind before
This isn't Saint John Energy's first attempt at a wind energy project.
It was involved in a failed bid about a year ago, with two other municipalities, for a project under NB Power's Locally Owned Renewable Energy Project, or LORESS, program.
No one at NB Power or Saint John Energy would say exactly why the project was not successful.
But Saint John Energy said it doesn't need the approval of NB Power or the Energy and Utilities Board to proceed this time around.
NB Power said a total of 35 submissions were received under the LORESS program.
2 First Nations launch projects
It said the successful ones were chosen based on technical ability, finance capacity, terms, conditions, price and utility policy.
Two LORESS projects have been announced so far. One, involving Pabineau First Nation, near Bathurst, is being built in the Richibucto area. The other, called the Wocawson Energy Project, involves Tobique First Nation and is being built about 20 kilometres east of Sussex.
Both projects are through renewable energy developer Natural Forces NB Inc. and both are expected to be up and running by the end of this year.
Another LORESS project is expected to be announced in the coming weeks, said Marc Belliveau of NB Power media relations.
And submissions are under review now for a fourth and final 20-megawatt project, he said.
NB power has a goal of 40 per cent renewable energy by 2020. It has now signed power purchase agreements taking it to 37 per cent.
"As years go on, we are always approached and will discuss more potential renewable energy projects if they are a good economical fit with our generation fleet and in keeping our rates stable," said Belliveau.
Not in NB Power's mandate
Green Party leader David Coon suggested this week that if the province wants to develop more renewable energy for economic and environmental benefits it will need some other body besides NB Power to drive that development.
"Because it's really not in their mandate," Coon said, following what he described as a lengthy meeting with the chair of NB Power.
"In that light, they just do what the law tells them to do. And the law now tells them they've got a particular target to supply customers from renewable sources of energy by 2020 and they are on track."
