Uncertainty hangs over wind farm

Acciona Energy Canada is reviewing the feasibility of its proposed 30-megawatt wind project near Amherst that would provide enough electricity for 10,000 homes.

The project, to include 20 turbines, has been on hold since last March and missed the November 30 deadline in its contract to begin providing electricity to Nova Scotia Power.

"WeÂ’re continuing to look for a good solution for it," Acciona spokesman Eric Schneider said in a telephone interview from the Spanish conglomerateÂ’s North America headquarters in Chicago.

"I wouldnÂ’t say itÂ’s never going to be feasible, but in the current climate itÂ’s definitely made it so that we have to look at options to improve the financial viability of the project."

The $55-million wind project was halted because of the downturn in the economy and an increase in costs, he said.

Many variables, including financing costs, have increased considerably since Acciona, one of the worldÂ’s largest renewable energy companies, signed its agreement with Nova Scotia Power in 2008.

"Just like many other projects throughout Canada that ran into that scenario," Acciona spokeswoman Micaela Whalen said.

"Because right now, weÂ’re sitting down and looking at our assets and determining what will work and what will make the project financeable and a project that makes sense for both our company and Nova Scotia. ThatÂ’s what is being determined right now."

Mr. Schneider was uncertain whether Acciona has forfeited its deposit to Nova Scotia Power because of missing the November 30 deadline to begin generating electricity.

According to other wind power developers who signed contracts with Nova Scotia Power, the deposit was $25,000 per megawatt. That would make the deposit for AccionaÂ’s 30-megawatt project $750,000.

"IÂ’m not sure," Mr. Schneider said. "IÂ’ll check into that."

The Chronicle Herald reported recently that Shear Wind Inc. of Bedford had to forfeit a $500,000 deposit to Nova Scotia Power for missing the November 30 deadline. Renewable Energy Services of Lower Sackville also missed the deadline, and its deposit was $550,000.

Renewable Energy spokesman Jim Meredith told The Chronicle Herald that itÂ’s not fair for Nova Scotia Power to take the money, considering the provincial government gave the utility a time extension on its agreement to buy electricity generated from renewable sources. Nova Scotia Power did not pass on that extension to its suppliers, Mr. Meredith said.

Last fall, the province added a year to Nova Scotia PowerÂ’s deadline for obtaining five per cent of its electricity from renewable sources. The new deadline is December 31, 2011.

Nova Scotia Power signed six contracts with independent power producers in 2008 for 247 megawatts of electricity, enough power for 87,000 homes, to be generated by late 2009. Only RMS Energy, which has installed 34 wind turbines west of New Glasgow, is producing electricity.

Nova Scotia Power spokesman David Rodenhiser said the utility will need 200 megawatts of green electricity by 2011 to meet the governmentÂ’s target.