Canadian wind developer, Ventus Energy Inc. announced that West Cape Wind Energy Inc. is the first independent power producer to export wind power from Canada to the U.S.
A portion of the wind energy generated from the newly installed wind turbines located on Prince Edward Island (PEI) was wheeled through PEI and New Brunswick May 7, 2007 and sold to the New England Power Pool (NEPOOL) via the international interconnection node located at Keswick, New Brunswick. The price paid for the energy was the hourly spot price at the Keswick node.
The renewable energy certificates (RECs) that were generated from this renewable power transmission, were sold separately to independent buyers located in the NEPOOL.
Ventus is the controlling shareholder of West Cape and operator of the West Cape facility.
“The first export of wind power from a wind farm in Canada into the United States marks a significant milestone for the Canadian wind industry,” said John Douglas, President and CEO of West Cape and its parent company, Ventus Energy Inc.
In December 2006, Ventus completed the Ventus Energy West Cape Windpower LP initial public offering raising gross proceeds of $25 million. Net proceeds from the offering were used to invest in flow-through shares and non flow-through shares of West Cape.
Investors in the Partnership are expected to receive tax deductions of up to 93% of the amount invested for the combined 2006 and 2007 tax years, as the expenditures by West Cape during the 120 day CRCE Test Phase are expected to qualify as Canadian Renewable and Conservation Expenses under the Income Tax Act (Canada). CRCE eligible expenses are 100% deductible for income tax purposes.
Upon completion, the West Cape Facility is expected to generate the majority of its electricity for sale to the NEPOOL and then at prevailing market rates under a renewable three year electricity marketing arrangement.
West Cape has also received approval to market its RECs in the Massachusetts REC market and intends to sell the amount of RECs commensurate with its NEPOOL energy sales.
West Cape has also entered into a 20-year fixed price power purchase agreement with the City of Summerside, PEI to sell 28.4 GWh (representing approximately 9 MW of nameplate capacity) of wind power annually from the West Cape Facility.
About West Cape Wind Energy Inc.
West Cape Wind Energy Inc. is a Canadian corporation that has constructed and has commenced operating a wind farm (the West Cape Facility) located near O’Leary, Prince Edward Island. The initial 11 test wind turbines are being operated for the purpose of conducting and completing a 120-day test. Upon satisfactory completion of the 120 day test period, and subject to financing, West Cape will construct and operate the balance of the West Cape Facility, which is comprised of an additional 44 wind turbines (the Infill Construction Phase), creating a 99 MW wind facility. West Cape intends to fund the Infill Construction Phase through additional debt and equity financing.
About Ventus Energy Inc.
Ventus Energy Inc. is one of Canada’s leading independent wind energy companies. Ventus is currently involved in the development of more than 5,000 MW of potential wind power projects on 25 sites. Ventus has secured land rights to over 17 million acres of land to conduct this development, representing one of the largest portfolios of potential wind energy projects in Canada.
Ventus has formed partnerships with the Cree Nation of Chisasibi, along the La Grande River Hydro Complex in Northern Quebec, the Pays Plat First Nation on the north shore of Lake Superior and the Metis Nation in Labrador.
Loading...