IT energy use high despite pressure to cut costs

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Nearly 80 percent of senior information technology (IT) decision makers recently surveyed by Brocade Communications reported that their companies spent up to a quarter of their total IT budgets on energy-related costs, compared to 44 percent for whom that was the case in a similar survey conducted last year.

While there have been improvements in cost management, ironically more than half of the respondents said that their IT departments are under pressure from their companies to reduce energy usage as a way to control operational expenditures (OpEx). The research revealed that a lack of coordination between IT departments and facilities management at these companies may make cutting energy costs difficult.

Notably, almost 50 percent of the respondents reported not monitoring IT's energy usage at all because utility bills fell under the purview of facilities management. Within this group, 60 percent stated that their companies lacked the processes in place to measure IT power usage.

"Technology vendors, such as Brocade, are in a position to not only help these businesses understand the disconnect between their goals and their processes, but to actually do something to lower the costs," commented Ulrich Plechschmidt, VP EMEA at Brocade.

"Our research shows that facilities management owns the power budget in most cases, but that the IT department isn't evaluating its power draw and effect on the organisation's bottom line. But in these difficult economic times, with every line item being placed under scrutiny, the IT function must play its part and collaborate with facilities management to address rising utility bills."

On a more encouraging note, energy efficiency is an increasingly important criterion for IT purchasing decisions with power consumption being rated in the top five, following interoperability, performance, price and brand recognition. However, respondents also reported that they perceive a number of significant barriers to implementing more energy-efficient solutions including:

• Higher costs associated with more energy-efficient products;

• Lack of viable solutions;

• Lack of management enthusiasm or support.

"When we conducted this survey in 2008, 'Green IT' was seen as marketing hype but as this year's research indicates businesses view it as a strategic concern," added Plechschmidt. "As utility bills soar and the global recession bites, our customers and partners are looking to leverage energy efficient solutions to optimize their IT environments and reduce unnecessary operational costs. Brocade leads the field in this regard. Our networking solutions draw up to ten times less power than those of our competition, at very similar if not lower price points, and, coupled with our holistic energy efficiency assessment services, can make a huge difference to a company's OpEx."

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EDF and France reach deal on electricity prices-source

EDF Nuclear Power Price Deal sets a 70 euros/MWh reference price, adds consumer protection if wholesale electricity prices exceed 110 euros/MWh, and outlines taxation mechanisms to shield bills while funding nuclear investment.

 

Key Points

A government-EDF deal setting 70 euros/MWh with safeguards above 110 euros/MWh to protect consumers.

✅ Reference price fixed at 70 euros/MWh, near EDF costs.

✅ Consumer shield above 110 euros/MWh; up to 90% extra-revenue tax.

✅ Review clauses maintain 70 euros/MWh through market swings.

 

State-controlled power group EDF and the French government have reached a tentative deal on future nuclear power prices, echoing a new electricity pricing scheme France has floated, a source close to the government said on Monday, ending months of tense negotiations.

The two sides agreed on 70 euros per megawatt hour (MWH) as a reference level for power prices, aligning with EU plans for more fixed-price contracts for consumers, the source said, cautioning that details of the deal are still being finalised.

The negotiations aimed to find a compromise between EDF, which is eager to maximise revenues to fund investments, and the government, keen to keep electricity bills for French households and businesses as low as possible, amid ongoing EU electricity reform debates across the bloc.

EDF declined to comment.

The preliminary deal sets out mechanisms that would protect consumers if power market prices rise above 110 euros/MWH, similar to potential emergency electricity measures being weighed in Europe, the source said, adding that the deal also includes clauses that would provide a price guarantee for EDF.

The 70 euros/MWH agreed reference price level is close to EDF's nuclear production costs, as Europe moves to revamp its electricity market more broadly. The nuclear power produced by the company provides 70% of France's electricity.

The agreement would allow the government to tax EDF's extra revenues at 90% if prices surpass 110 euros/MWH, in order to offset the impact on consumers. It would also enable a review of conditions in case of market fluctuations to safeguard the 70 euro level for EDF, reflecting how rolling back electricity prices is tougher than it appears, the source said.

French wholesale electricity prices are still above 100 euros/MWH, after climbing to 1,200 euros during last year's energy crisis, even as diesel prices have returned to pre-conflict levels.

A final agreement should be officially announced on Tuesday after a meeting between Finance Minister Bruno Le Maire, Energy Transition Minister Agnes Pannier-Runacher and EDF chief Luc Remont.

That meeting will work out the final details on price thresholds and tax rates between the reference level and the upper limit, the source said.

Negotiations between the two sides were so fraught that at one stage they raised questions about the future of EDF chief Luc Remont, who was appointed by President Emmanuel Macron a year ago to turn around EDF.

The group ended 2022 with a 18 billion-euro loss and almost 65 billion euros of net debt, hurt by a record number of reactor outages that coincided with soaring energy prices in the wake of Russia's invasion of Ukraine.

With its output at a 30-year low, EDF was forced to buy electricity on the market to supply customers. The government, meanwhile, imposed a cap on electricity prices, leaving EDF selling power at a discount.

 

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The CIB and private sector partners to invest $1.7 billion in Lake Erie Connector

Lake Erie Connector Investment advances a 1,000 MW HVDC transmission link connecting Ontario to the PJM Interconnection, enhancing grid reliability, clean power trade, and GHG reductions through a public-private partnership led by CIB and ITC.

 

Key Points

A $1.7B public-private HVDC project linking Ontario and PJM to boost reliability, cut GHGs, and enable clean power trade.

✅ 1,000 MW, 117 km HVDC link between Ontario and PJM

✅ $655M CIB and $1.05B private financing, ITC to own-operate

✅ Cuts system costs, boosts reliability, reduces GHG emissions

 

The Canada Infrastructure Bank (CIB) and ITC Investment Holdings (ITC) have signed an agreement in principle to invest $1.7 billion in the Lake Erie Connector project.

Under the terms of the agreement, the CIB will invest up to $655 million or up to 40% of the project cost. ITC, a subsidiary of Fortis Inc., and private sector lenders will invest up to $1.05 billion, the balance of the project's capital cost.

The CIB and ITC Investment Holdings signed an agreement in principle to invest $1.7B in the Lake Erie Connector project.

The Lake Erie Connector is a proposed 117 kilometre underwater transmission line connecting Ontario with the PJM Interconnection, the largest electricity market in North America, and aligns with broader regional efforts such as the Maine transmission line to import Quebec hydro to strengthen cross-border interconnections.

The 1,000 megawatt, high-voltage direct current connection will help lower electricity costs for customers in Ontario and improve the reliability and security of Ontario's energy grid, complementing emerging solutions like battery storage across the province. The Lake Erie Connector will reduce greenhouse gas emissions and be a source of low-carbon electricity in the Ontario and U.S. electricity markets.

During construction, the Lake Erie Connector is expected to create 383 jobs per year and drive more than $300 million in economic activity, and complements major clean manufacturing investments like a $1.6 billion battery plant in the Niagara Region that supports the EV supply chain. Over its life, the project will provide 845 permanent jobs and economic benefits by boosting Ontario's GDP by $8.8 billion.

The project will also help Ontario to optimize its current infrastructure, avoid costs associated with existing production curtailments or shutdowns. It can leverage existing generation capacity and transmission lines to support electricity demand, alongside new resources such as the largest battery storage project planned for southwestern Ontario.

ITC continues its discussions with First Nations communities and is working towards meaningful participation in the near term and as the project moves forward to financial close.

The CIB anticipates financial close late in 2021, pending final project transmission agreements, with construction commencing soon after. ITC will own the transmission line and be responsible for all aspects of design, engineering, construction, operations and maintenance.

ITC acquired the Lake Erie Connector project in August 2014 and it has received all necessary regulatory and permitting approvals, including a U.S. Presidential Permit and approval from the Canada Energy Regulator.

This is the CIB's first investment commitment in a transmission project and another example of the CIB's momentum to quickly implement its $10B Growth Plan, amid broader investments in green energy solutions in British Columbia that support clean growth.

 

Endorsements

This project will allow Ontario to export its clean, non-emitting power to one of the largest power markets in the world and, as a result, benefit Canadians economically while also significantly contributing to greenhouse gas emissions reductions in the PJM market. The project allows Ontario to better manage peak capacity and meet future reliability needs in a more sustainable way. This is a true win-win for both Canada and the U.S., both economically and environmentally.
Ehren Cory, CEO, Canada Infrastructure Bank

The Lake Erie Connector has tremendous potential to generate customer savings, help achieve shared carbon reduction goals, and increase electricity system reliability and flexibility. We look forward to working with the CIB, provincial and federal governments to support a more affordable, customer-focused system for Ontarians. 
Jon Jipping, EVP & COO, ITC Investment Holdings Inc., a subsidiary of Canadian-based Fortis Inc. 

We are encouraged by this recent announcement by the Canada Infrastructure Bank. Mississaugas of the Credit First Nation has an interest in projects within our historic treaty lands that have environmental benefits and that offer economic participation for our community.
Chief Stacey Laforme, Mississaugas of the Credit First Nation

While our evaluation of the project continues, we recognize this project can contribute to the economic resilience of our Shareholder, the Mississaugas of the Credit First Nation. Subject to the successful conclusion of our collaborative efforts with ITC, we look forward to our involvement in building the necessary infrastructure that enable Ontario's economic engine.
Leonard Rickard, CEO, Mississaugas of the Credit Business Corporation

The Lake Erie Connector demonstrates the advantages of public-private partnerships to develop critical infrastructure that delivers greater value to Ontarians. Connecting Ontario's electricity grid to the PJM electricity market will bring significant, tangible benefits to our province. This new connection will create high-quality jobs, improve system flexibility, and allow Ontario to export more excess electricity to promote cost-savings for Ontario's electricity consumers.
Greg Rickford, Minister of Energy, Northern Development and Mines, Minister of Indigenous Affairs

With the US pledging to achieve a carbon-free electrical grid by 2035, Canada has an opportunity to export clean power, helping to reduce emissions, maximizing clean power use and making electricity more affordable for Canadians. The Lake Erie Connector is a perfect example of that. The Canada Infrastructure Bank's investment will give Ontario direct access to North America's largest electricity market - 13 states and D.C. This is part of our infrastructure plan to create jobs across the country, tackle climate change, and increase Canada's competitiveness in the clean economy, alongside innovation programs like the Hydrogen Innovation Fund that foster clean technology.


Quick Facts

  • The Lake Erie Connector is a 1,000 megawatt, 117 kilometre long underwater transmission line connecting Ontario and Pennsylvania.
  • The PJM Interconnection is a regional transmission organization coordinating the movement of wholesale electricity in all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia.
  • The project will help to reduce electricity system costs for customers in Ontario, and aligns with ongoing consultations on industrial electricity pricing and programs, while helping to support future capacity needs.
  • The CIB is mandated to invest CAD $35 billion and attract private sector investment into new revenue-generating infrastructure projects that are in the public interest and support Canadian economic growth.
  • The investment commitment is subject to final due diligence and approval by the CIB's Board.

 

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Electric cars will challenge state power grids

Electric Vehicle Grid Integration aligns EV charging with grid capacity using smart charging, time-of-use rates, V2G, and demand response to reduce peak load, enable renewable energy, and optimize infrastructure planning.

 

Key Points

Aligning EV charging with grid needs via smart charging, TOU pricing, and V2G to balance load and support renewables.

✅ Time-of-use rates shift charging to off-peak hours

✅ Smart charging responds to real-time grid signals

✅ V2G turns fleets into distributed energy storage

 

When Seattle City Light unveiled five new electric vehicle charging stations last month in an industrial neighborhood south of downtown, the electric utility wasn't just offering a new spot for drivers to fuel up. It also was creating a way for the service to figure out how much more power it might need as electric vehicles catch on.

Seattle aims to have nearly a third of its residents driving electric vehicles by 2030. Washington state is No. 3 in the nation in per capita adoption of plug-in cars, behind California and Hawaii. But as Washington and other states urge their residents to buy electric vehicles — a crucial component of efforts to reduce carbon emissions — they also need to make sure the electric grid can handle it amid an accelerating EV boom nationwide.

The average electric vehicle requires 30 kilowatt hours to travel 100 miles — the same amount of electricity an average American home uses each day to run appliances, computers, lights and heating and air conditioning.

An Energy Department study found that increased electrification across all sectors of the economy could boost national consumption by as much as 38 percent by 2050, in large part because of electric vehicles. The environmental benefit of electric cars depends on the electricity being generated by renewables.

So far, states predict they will be able to sufficiently boost power production. But whether electric vehicles will become an asset or a liability to the grid largely depends on when drivers charge their cars.

Electricity demand fluctuates throughout the day; demand is higher during daytime hours, peaking in the early evening. If many people buy electric vehicles and mostly try to charge right when they get home from work — as many now do — the system could get overloaded or force utilities to deliver more electricity than they are capable of producing.

In California, for example, the worry is not so much with the state’s overall power capacity, but rather with the ability to quickly ramp up production and maintain grid stability when demand is high, said Sandy Louey, media relations manager for the California Energy Commission, in an email. About 150,000 electric vehicles were sold in California in 2018 — 8 percent of all state car sales.

The state projects that electric vehicles will consume 5.4 percent of the state’s electricity, or 17,000 gigawatt hours, by 2030.

Responding to the growth in electric vehicles will present unique challenges for each state. A team of researchers from the University of Texas at Austin estimated the amount of electricity that would be required if every car on the road transitioned to electric. Wyoming, for instance, would need to nudge up its electricity production only 17 percent, while Maine would have to produce 55 percent more.

Efficiency Maine, a state trust that oversees energy efficiency and greenhouse gas reduction programs, offers rebates for the purchase of electric vehicles, part of state efforts to incentivize growth.

“We’re certainly mindful that if those projections are right, then there will need to be more supply,” said Michael Stoddard, the program’s executive director. “But it’s going to unfold over a period of the next 20 years. If we put our minds to it and plan for it, then we should be able to do it.”

A November report sponsored by the Energy Department found that there has been almost no increase in electricity demand nationwide over the past 10 years, while capacity has grown an average of 12 gigawatts per year (1 GW can power more than a half-million homes). That means energy production could climb at a similar rate and still meet even the most aggressive increase in electric vehicles, with proper planning.

Charging during off-peak hours would allow not only many electric vehicles to be added to the roads but also utilities to get more use out of power plants that run only during the limited peak times through improved grid coordination and flexible demand.

Seattle City Light and others are looking at various ways to promote charging during ideal times. One method is time-of-day rates. For the Seattle chargers unveiled last month, users will pay 31 cents per kilowatt hour during peak daytime hours and 17 cents during off-peak hours. The utility will monitor use at its charging stations to see how effective the rates are at shifting charging to more favorable times.

The utility also is working on a pilot program to study charging behavior at home. And it is partnering with customers such as King County Metro that are electrifying large vehicle fleets, including growing electric truck fleets that will demand significant power, to make sure they have both the infrastructure and charging patterns to integrate smoothly.

“Traditionally, our utility approach is to meet the load demand,” said Emeka Anyanwu, energy innovation and resources officer for Seattle City Light.

Instead, he said, the utility is working with customers to see whether they can use existing assets without the need for additional investment.

Numerous analysts say that approach is crucial.

“Even if there’s an overall increase in consumption, it really matters when that occurs,” said Sally Talberg, head of the Michigan Public Service Commission, which oversees the state’s utilities. “The encouragement of off-peak charging and other technology solutions that could come to bear could offset any negative impact.”

One of those solutions is smart charging, a system in which vehicles are plugged in but don’t charge until they receive a signal from the grid that demand has tapered off a sufficient amount. This is often paired with a lower rate for drivers who use it. Several smart-charging pilot programs are being conducted by utilities, although they have not yet been phased in widely, amid ongoing debates over charging control among manufacturers and utilities.

In many places, the increased electricity demand from electric vehicles is seen as a benefit to utilities and rate payers. In the Northwest, electricity consumption has remained relatively stagnant since 2000, despite robust population growth and development. That’s because increasing urbanization and building efficiency have driven down electricity needs.

Electric vehicles could help push electricity consumption closer to utilities’ capacity for production. That would bring in revenue for the providers, which would help defray the costs for maintaining that capacity, lowering rates for all customers.

“Having EV loads is welcome, because it’s environmentally cleaner and helps sustain revenues for utilities,” said Massoud Jourabchi, manager of economic analysis for the Northwest Power and Conservation Council, which develops power plans for the region.

Colorado also is working to promote electric cars, with the aim of putting 940,000 on the road by 2030. The state has adopted California’s zero-emission vehicles mandate, which requires automakers to reach certain market goals for their sales of cars that don’t burn fossil fuels, while extending tax credits for the purchase of such cars, investing in charging stations and electrifying state fleets.

Auto dealers have opposed the mandate, saying it infringes on consumer freedom.

“We think it should be a customer choice, a consumer choice and not a government mandate,” said Tim Jackson, president and chief executive of the Colorado Automobile Dealers Association.

Jackson also said that there’s not yet a strong consumer appetite for electric vehicles, meaning that manufacturers that fail to sell the mandated number of emission-free vehicles would be required to purchase credits, which he thinks would drive up the price of their other models.

Republicans in the state have registered similar concerns, saying electric vehicle adoption should take place based on market forces, not state intervention.

Many in the utility community are excited about the potential for electric cars to serve as mobile energy storage for the grid. Vehicle-to-grid technology, known as V2G, would allow cars charging during the day to take on surplus power from renewable energy sources.

Then, during peak demand times, electric vehicles would return some of that stored energy to the grid. As demand tapers off in the evening, the cars would be able to recharge.

In practice, V2G technology could be especially beneficial if used by heavy-duty fleets, such as school buses or utility vehicles. Those fleets would have substantial battery storage and long periods where they are idle, such as evenings and weekends — and even longer periods such as summer and the holiday season when school is out. The batteries on a bus, Jourabchi said, could store as much as 10 times the electricity needed to power a home for a day.

 

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Trump's Canada Tariff May Spike NY Energy Prices

25% Tariff on Canadian Imports threatens New York energy markets, disrupting hydroelectric power and natural gas supply chains, raising electricity prices, increasing gas costs, and intensifying trade tensions, policy uncertainty, and cross-border logistics risks.

 

Key Points

A U.S. policy imposing 25% duties on Canadian goods, risking higher New York electricity and natural gas costs.

✅ Hydroelectric and gas imports face costlier cross-border flows

✅ Higher utility bills for NY households and businesses

✅ Supply chain volatility and policy uncertainty increase

 

President Donald Trump announced the imposition of a 25% tariff on all imports from Canada, citing concerns over drug trafficking and illegal immigration. This decision has raised significant concerns among experts and residents in New York, who warn that the tariff could lead to increased electricity and gas prices in the state.

Impact on New York's Energy Sector

New York relies heavily on energy imports from Canada, particularly electricity and natural gas. Canada is a major supplier of hydroelectric power to the northeastern United States, including New York, with its electricity exports at risk amid trade tensions. The imposition of a 25% tariff on Canadian goods could disrupt this supply chain, leading to higher energy costs for consumers and businesses in New York. Justin Wilcox, an energy analyst, stated, "If the tariff is implemented, it could lead to increased costs for electricity and gas, affecting both consumers and businesses."

Potential Economic Consequences

The increased energy costs could have broader economic implications for New York, and some experts advise against cutting Quebec's exports to avoid exacerbating market volatility. Higher electricity and gas prices may lead to increased operational costs for businesses, potentially resulting in higher prices for goods and services, while tariff threats have boosted support for Canadian energy projects that could reshape regional supply. This could exacerbate the cost-of-living challenges faced by residents and strain the state's economy.

Political and Diplomatic Reactions

The tariff has also sparked political and diplomatic reactions, including threats to cut U.S. electricity exports from Ontario that raised tensions. New York Governor Kathy Hochul expressed concern over the potential economic impact, stating, "We are closely monitoring the situation and are prepared to take necessary actions to protect New York's economy." Additionally, Canadian officials have expressed their disapproval of the tariff, and Ontario Premier Doug Ford's Washington meeting underscored ongoing discussions, emphasizing the importance of the trade relationship between the two countries.

Historical Context

This development is part of a broader pattern of trade tensions between the United States and its neighbors. In 2018, the U.S. imposed tariffs on Canadian steel and aluminum, leading to retaliatory measures from Canada. The current situation underscores the ongoing challenges in international trade relations, where a recent tariff threat delayed Quebec's green energy bill and highlighted the potential domestic impacts of such policies.

The imposition of a 25% tariff on Canadian imports by President Trump has raised significant concerns in New York regarding potential increases in electricity and gas prices. Experts warn that this could lead to higher costs for consumers and businesses, with broader economic implications for the state. As the situation develops, it will be crucial to monitor the responses from both state and federal officials, as well as how Canadians support tariffs on energy and minerals may influence policy, and the potential for diplomatic negotiations to address these trade tensions.

 

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New England takes key step to 1.2 GW of Quebec hydro as Maine approves transmission line

NECEC Clean Energy Connect advances with Maine DEP permits, Hydro-Québec contracts, and rigorous transmission line mitigation, including tapered vegetation, culvert upgrades, and forest conservation, delivering low-carbon power, broadband fiber, and projected ratepayer savings.

 

Key Points

A Maine transmission project delivering Hydro-Québec power with strict DEP mitigation, lower bills, and added broadband.

✅ DEP permits mandate tapered vegetation, culvert upgrades, land conservation

✅ Hydro-Québec to supply 9.55 TWh/yr via MA contracts; bill savings 2-4%

✅ Added broadband fiber in Somerset and Franklin; local tax benefits

 

The Maine DEP reviewed the Clean Energy Connect project for more than two years, while regional interest in cross-border transmission continued to grow, before issuing permits that included additional environmental mitigation elements.

"Collectively, the requirements of the permit require an unprecedented level of environmental protection and compensatory land conservation for the construction of a transmission line in the state of Maine," DEP said in a May 11 statement.

Requirements include limits on transmission corridor width, forest preservation, culvert replacement and vegetation management projects, while broader grid programs like vehicle-to-grid integration enhance clean energy utilization across the region.

"In our original proposal we worked hard to develop a project that provided robust mitigation measures to protect the environment," NECEC Transmission CEO Thorn Dickinson said in a statement. "And through this permitting process, we now have made an exceedingly good project even better for Maine."

NECEC will be built on land owned or controlled by Central Maine Power. The 53 miles of new corridor on working forest land will use a new clearing technique for tapered vegetation, while the remainder of the project follows existing power lines.

Environmentalists said they agreed with the decision, and the mitigation measures state regulators took, noting similar momentum behind new wind investments in other parts of Canada.

"Building new ways to deliver low-carbon energy to our region is a critical piece of tackling the climate crisis," CLF Senior Attorney Phelps Turner said in a statement. "DEP was absolutely right to impose significant environmental conditions on this project and ensure that it does not harm critical wildlife areas."

Once complete, Turner said the transmission line will allow the region "to retire dirty fossil fuel plants in the coming years, which is a win for our health and our climate."

The Massachusetts Department of Public Utilities in June 2019 advanced the project by approving contracts for the state's utilities to purchase 9,554,940 MWh annually from Hydro-Quebec. Officials said the project is expected to provide approximately 2% to 4% savings on monthly energy bills.

Total net benefits to Massachusetts ratepayers over the 20-year contract, including both direct and indirect benefits, are expected to be approximately $4 billion, according to the state's estimates.

NECEC "will also deliver significant economic benefits to Maine and the region, including lower electricity prices, increased local real estate taxes and reduced energy costs with examples like battery-backed community microgrids demonstrating local resilience, expanded fiber optic cable for broadband service in Somerset and Franklin counties and funding of economic development for Western Maine," project developers said in a statement.​

 

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Wind generates more than half of Summerside's electricity in May

Summerside Wind Power reached 61% in May, blending renewable energy, municipal utility operations, and P.E.I. wind farms, driving city revenue, advancing green city goals, and laying groundwork for smart grid integration.

 

Key Points

Summerside Wind Power is the city utility's wind supply, 61% in May, generating revenue that supports local services.

✅ 61% of electricity in May from wind; annual target 45%.

✅ Mix of city-owned farm and West Cape Wind Farm contract.

✅ Revenues projected at $2.9M; funds municipal budget and services.

 

During the month of May, 61 per cent of the electricity Summerside's homes, businesses and industries used came from wind power sources.

25 per cent was purchased from the West Cape Wind Farm in West Point, P.E.I. — the city has had a contract with it since 2007. The other 36 per cent came from the city's own wind farm, which was built in 2009. 

"One of the strategic goals that was planned for by the city back in 2005 was to try to become a 100 per cent green city," said Greg Gaudet, Summerside's director of municipal services.

"The city started looking at ways it could adopt green practices into its operations on everything it owns and operates and provides services to the community."

Summerside Electric powers about 6,200 residential, 970 commercial and 30 industrial customers and also sells to NB Power, while Nova Scotia Power now generates 30 per cent of its electricity from renewables.

The Summerside Wind Farm is owned by the City of Summerside, which then sells the electricity to Summerside Electric, which it also owns, for profit. 

For the months of April and May, the wind farm generated $630,000 for the city. Last year, it was $507,000 over the same time frame, which does not include a 2 per cent rate increase imposed this year.

"We had a lot of good, strong days of wind for the month of May over other years. So normally we'd be on average somewhere in the range of the 45 per cent range for those months," said Gaudet. 

The city's annual target for wind generation is also 45 per cent, which aligns with the view that more energy sources make better projects. Gaudet said it balances out over the year, with winter being the best and production dropping as low as 25 per cent in the summer months.

At Summerside council's monthly meeting on Monday, May's 61 per cent figure was touted as one of the highest months on record.

"To have one at 61 per cent means we had great production from our wind facilities and contracts, though communities such as Portsmouth have raised turbine noise and flicker concerns in other contexts," Gaudet said.

The utility also owns and provides power through a diesel generation plant.

Municipal money maker
The municipality projects its wind energy production will generate $2.9 million for the city in its current fiscal year, which began April 1, paralleling job gains seen in Alberta's renewables surge this year.

"Any revenues that are received from the wind farm facility goes into the City of Summerside budget," Gaudet said. "Then the council decides on how that money is accrued and where it goes and what it supports in the community."

Wind power generated $2.89 million for the city in the 2019-2020 fiscal year. The budget originally projected $3.2 million in revenue, but blade damage sustained during post-tropical storm Dorian put two turbines out of commission for a few weeks.

Gaudet called this their "only bad year" and officials said they see this year's target to be a bit more conservative and achievable regardless of hiccups and uncontrollable forces, such as the wind they're harnessing.

"It's performed outstandingly well," said Gaudet of the operation.

"There's been no huge, major cost factors with the wind farm to date ... its production has been fairly consistent from year to year." 

Gaudet said the technology has already been piloted at a smaller operation at Credit Union Place, aligning with municipal solar power projects elsewhere.

The goal of the project is to bring Summerside's renewable portfolio up to a yearly average of 62 per cent. Gaudet said it's expected to be commissioned by May 2022 at the latest and after that, the city hopes to focus on smart grid technology.

"It's a long-term goal and I think it's the right [investment] to make," he said. "You have to be environmentally conscious and a steward of your community.

"I think Summerside is that and does that ... a model for North America to look at how a city can work a relationship with an electric utility for the betterment."

 

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