Costs stall PEI energy projects

PEI Wind Energy Bids were rejected after Maritime Electric evaluated six proposals, citing high electricity costs, transmission fees, and infrastructure upgrades; Energy Minister Richard Brown offers 30 days for revised submissions and potential export sales.

Prince Edward Island has officially put on hold renewable-energy projects promising 130 megawatts because all the proposals are too costly.

Six companies made submissions in February to build the projects, mostly for wind development amid a provincial wind cutback debate at the time. They were assessed by Maritime Electric, the province's main electricity supplier.

Energy Minister Richard Brown announced in the legislature they've all been rejected because the electricity costs were too costly for PEI to justify.

"We have a wind farm on Prince Edward Island. We know what [cost] we can produce wind for," said Brown.

"Maritime Electric analyzed the bids and, with the current prices that were in them and with the transmission costs, including the PEI power cable needs, and the additional costs that we would have to put in place in terms of infrastructure, the pricing wasn't good enough for Islanders."

Energy critic Mike Currie doesn't understand why a private company should have the power to evaluate energy projects for the province.

"I think that Maritime Electric just doesn't want to do any more wind projects on Prince Edward Island," said Currie. "Why the minister has made them part of the evaluation process is beyond me."

The plan was to sell 30 megawatts on PEI under a potential wind energy royalty framework and export the rest.

It's possible that could still happen, especially as communities may generate their own electricity under evolving policies. The companies have been given 30 days to fine-tune their proposals and resubmit them.

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