Canada - Halifax hedges electricity costs with wind

Halifax Regional Municipality’s (HRM) hedge against rising electricity costs in the future could be blowing in the wind. In fact, almost 40 per cent of HRM’s electricity needs may be met by wind-based power by 2008. Regional Council last night agreed to enter into long-term agreements with two wind-generation power companies to purchase 22-25 gigawatts hours annually for the next 20 years. HRM staff forecast this will result in savings of between $8.3 million and $28 million in electricity costs through the life of the contracts with Barrington Wind Energy Limited and Ventus Energy Incorporated.

The savings are based on staff’s assumption that electricity costs will continue to rise in Nova Scotia. The report assumes a 2.5 per cent annual increase to achieve the $8.3 million in savings. “The contracts, when finalized, will probably allow HRM to meet its goal of reducing greenhouse gas emissions by 20% earlier than originally targeted, “said Councillor Linda Mosher, Co-Chair of HRM’s Energy and Underground ervices Committee. “We are definitely one of the first municipalities in the country to be going wind-power in a substantial way.”

HRM issued a Request for Proposals this past summer to companies interested in providing wind-generated electricity, through Nova Scotia Power, to the municipality. The two successful companies scored 90 per cent on three deciding factors: experience, timeliness and financial/contract terms. Final approval of the contracts are contingent on necessary amendments to he provincial Energy Act and required Nova Scotia Utility and review Board hearings and approvals.