Ontario Awards 2 Billion Dollars In Renewable Power Deals

Ontario's government awarded $2 billion in contracts to build wind and hydro power projects in an effort to have 10 percent of electricity in Canada's biggest market generated by renewable sources.

Ontario Energy Minister Donna Cansfield said she had granted awards for eight wind facilities and one hydroelectric development, which will supply a total of 975 megawatts, enough to power more than 250,000 homes.

The awards come in response to a request for proposals for 1,000 MW, issued in April 2004.

"We have made an important commitment to clean, green, renewable energy and we're on track not only to meet, but to exceed our target," Cansfield said in a recent speech in Toronto.

Combined with a previous request for proposals completed last year, Ontario, home to more than 12 million people, will be adding 1,370 megawatts of renewable energy, accounting for about 5 percent of the province's capacity, Cansfield said.

The government of Premier Dalton McGuinty hopes to double that by 2010, she said.

Over the past 10 years, the province has grappled with severely tight power supplies due to a combination of surging demand, failed deregulation attempts, idle nuclear facilities and plans to shut down older and dirtier coal-fired plants.

"By replacing coal, Ontario will eliminate up to 30 megatonnes of greehouse gas emissions annually, or more than 10 percent of Canada's overall target," Cansfield said.

The winning bidders include Canadian Hydro Developers Inc., which will build two wind farms near Shelburne and Kingston, Ontario, for C$675 million, and a hydroelectric project near Timmins for C$64 million.

Enbridge Inc., Canada's No. 2 pipeline company, will build two wind farms on the eastern shore of Lake Huron - in the shadow of Bruce Power, Ontario's biggest nuclear facility - for $400 million.

Epcor Utilities Inc., owned by the city of Edmonton, Alberta, will spend $300 million building the Kingsbridge II wind farm, also near breezy Lake Huron.

Brascan Corp.'s power unit was awarded the 90 MW Prince Phase II wind farm near Sault Ste. Marie, Ontario.

Other projects include the 76 MW Ripley, Ontario, wind project, a C$165 million development to be built by Suncor Energy Inc. and Spain's Acciona Energia, and another 101 MW wind project near Port Alma, Ontario.

The projects are slated to begin operations between 2006 and 2008.

Ontario's renewable projects follow a C$1.9 billion award for eight wind farm developments in neighboring Quebec last year. There has also been brisk wind farm development in southern Alberta over the past five years.