News Release

FREDERICTON (CNB) – The provincial government has a new resource document to help interested proponents develop community energy projects.

Getting to the Tipping Point, released today by the Department of Energy, provides useful financial information about developing a wind energy project, including advice about financing a smaller-scale wind farm.

“This document will be a terrific resource for proponents who are actively planning a community energy project as well as those who are simply exploring the concept,” said Energy Minister Jack Keir.
 
Keir also announced a change to the proposed feed-in-tariff (FIT) for community energy projects developed in New Brunswick. The community energy FIT will consist of an initial price of 10 cents per kWh, with 70 per cent of the FIT increasing annually with the New Brunswick Consumer Price Index beginning in 2011 as opposed to 2015.

“The change to the FIT is good news for those interested in developing community energy projects because this move will provide additional revenue to projects in the initial years,” Keir said. “Getting to the Tipping Point clearly indicates that well-planned wind energy projects with strong wind energy resources are viable and can produce a positive rate of return over a 20- to 25-year period under the proposed community energy FIT.”

The provincial government issued a request for expressions of interest to community groups and First Nations interested in developing community energy projects on June 21. To date, 12 groups or organizations have expressed interest, eight of which are in northern New Brunswick. The submissions represent a total capital investment of more than $300 million, including $200 million in northern New Brunswick. Community energy proponents have identified a cross-section of potential renewable energy projects including wind, biomass and small-scale hydro applications.

“There has been a very positive interest in community energy since we released the request for expressions of interest in June, particularly from the north,” said Keir. “Some projects we have seen are in the early stages, and proponents are looking for additional guidance and support in moving their projects forward. Others have been collecting data and research for more than a year and are ready for planning and development.”

Interested proponents may obtain further information about the REI by contacting the Department of Energy at 506-658-3180 or by visiting the department's website, where the official REI document may be downloaded. The department is reviewing the expressions of interest and will be releasing a more detailed community energy update this fall.

Community energy is an element of the provincial government’s renewable energy strategy, and it supports regional economic development and the goal of creating sustainable communities through locally owned and operated energy projects.

LINK:

●    Department of Energy (resource document: Getting to the Tipping Point): www.gnb.ca/energy

Backgrounder: Community Energy Policy

Renewable energy is a cornerstone of the provincial government’s energy policy, providing economic development opportunities and creating sustainable communities.

To support renewable energy, the provincial government released its Community Energy Policy on Feb. 9. The goal is to foster the development of locally owned and operated energy projects. It encourages participation from communities and First Nations, providing them with the opportunity to contribute significantly to renewable and clean forms of electricity generation.

Community Energy Policy projects are defined as projects with fewer than 15 MW of generation that are 51 per cent or more owned by one of the following New Brunswick-based entities: First Nations, municipalities, co-operatives, associations and not-for-profit organizations. The first phase will allow up to 75 MW of community energy projects, of which 25 MW will be allocated to First Nations.

Community Energy Policy projects may be based on biomass resources, wind, solar, small hydro or tidal power. Proponents must demonstrate availability and access to the energy resources being considered and present a viable business case.

Successful proponents will sign a long-term power purchase agreement with the local utility, which will set the initial price of electricity through a FIT of 10 cents per kWh. Seventy per cent of the FIT will escalate annually with the New Brunswick Consumer Price Index (CPI) beginning in 2011. Proponents will be responsible for all costs associated with construction and maintenance.

The Department of Energy, with support from Business New Brunswick, the Regional Development Corporation and the New Brunswick Enterprise Network, will provide guidance and support to potential proponents that come forward.

The Department of Energy has two economic development officers dedicated to helping those interested in the policy. One is in northern New Brunswick, the other, in the south. A strategic development officer has been assigned from the Aboriginal Affairs Secretariat to work with First Nations.

Eleven Community Energy Policy workshops were held throughout the province to educate interested communities and partners about the policy. The workshops, which took place in the spring, were open to the public and all interested New Brunswick communities, municipalities and First Nations. Feedback received during the workshops has been used to improve the policy.  A community energy advisory committee comprising public and private-sector community energy stakeholders has been established to provide additional input and implementation support.