PEI to charge wind energy royalty

The royalty will apply to electricity that is exported. Maritime Electric, the province's main utility, is looking to see a further 130 megawatts capacity built, with 100 megawatts for export. Under the proposal that would mean $1.5 million annually for the provincial government.

Richard Hornung, president of the Canadian Wind Energy Association, told CBC News this is a first in Canada.

"I would imagine that this is an attempt within Prince Edward Island to ensure that there's a sharing of benefits associated with export of wind," said Hornung.

He said it's another example of PEI breaking new ground in terms of wind export.

Jamie Ballem, a former provincial energy minister and consultant for the German company NewEn, said that company is interested in building a 100-megawatt wind project in Anglo Tignish, in the far west of the Island. Ballem said the details of the request for proposals are not available, and he can't say if the price being offered for this new wind energy will be enough to cover the costs of development and the new royalty payment.