The Energy Act and regulations which will follow will require utilities to acquire at least 15 per cent of their electrical energy from renewables by 2010; allow for net metering for small renewable energy systems and a guaranteed feed-in tariff for community, wind cooperative and large systems; and restrict large-scale wind developments to designated development areas.
PEI implemented its program in 2005 and now pays a simple tariff of $0.0775/kWh for renewable sources of generation. Contracts are for a period of 20 years and the tariff increases with 26% of inflation.
Minister of Energy Jamie Ballem adds that the PEI Energy Corporation expects to issue a request for proposals for 30 megawatts of wind in the spring of 2006, with the development to be in place the following year. Islanders will have an opportunity to invest in the development and share in its ownership.
Minister Ballem has also proposed a novel (for North America) royalty payment scheme to PEI landowners. Landowners with turbines receive 70% of royalties per turbine, those within 100 meters receive 20% of royalties per turbine, and those within 300 meters receive 10%.
At the time it was introduced, PEI’s Energy Act was called the most progressive renewable energy policy in North America. This title has now been taken by Ontario.
- $0.0775 CAD/kWh
- 20 year Contracts
- No Restrictions
- Program Review 5 yrs
- $0.02/kWh of Tariff Adjusted with Inflation
- Applies Only in Approved Wind Zones
