A new energy plan released by the Prince Edward Island (PEI) government in Canada contains a number of initiatives, including a new power purchase agreement (PPA), increased public investment in wind and the establishment of a commission on the future of electricity. However, the province is scaling back on its original plans to develop wind power.
The PEI Energy Accord features a new five-year PPA between Maritime Electric and New Brunswick Power that will give residents lower power rates and more price stability.
Under the plan, the province will increase its investment in locally-owned and produced wind energy.
‘We have already seen the potential for wind power to stabilize energy costs when world oil prices rise,’ said Premier Ghiz in a statement. ‘We will expand our wind power capacity to generate more than 30 percent of our energy requirements by 2013 and, in doing so, establish Prince Edward Island as a world leader with this technology.’
However, the plan for wind development is significantly smaller than what was once envisioned.
The PEI government announced it will add 30 MW of publicly-owned wind power by 2012, along with an additional 10 MW at the Wind Institute in North Cape.
Last spring, PEI issued a request for proposals seeking130 MW of wind energy. However, Maritime Electric rejected the six bids, saying the costs were too high.
The Energy Accord also calls for legislative changes. The Electricity Rate Reduction Act will be introduced during this session of the legislative assembly and will legislate the 14% rate reduction and the freeze will continue until the spring of 2013.