VANCOUVER — NDP critic Shane Simpson called yesterday for the government to consider direct investment in renewable-resource projects, one day after an Alberta company constructing one of the province’s first wind farms received court protection from its creditors.
Financial troubles tripping up EarthFirst Canada Inc. “creates nothing but uncertainty for British Columbians about how we actually get at renewable energy,” Mr. Simpson said yesterday in an interview.
“If the public interest ... is to create more energy self-sufficiency with renewable [resources] — and [the NDP] agree that renewable and alternate energy is essential — then ... maybe the government should have equity positions in these projects,” he said.
Mr. Simpson cautioned that the NDP had not seen reports on the necessity of power from wind farms in B.C. “The energy plan of the government is vague,” he said.
However, EarthFirst’s financial problems raise “a very big question” about whether private power projects will be viable, he said. “Is this the first of what we are going to see, a litany of these companies not being able to fulfill their commitments to deliver energy and power?” Mr. Simpson asked.
“The public interest is best served by BC Hydro having a significant role in public power,” he said. “If that was the case, we would not be facing this kind of situation.”
EarthFirst Canada Inc., which is in the process of building a 144-megawatt wind farm about 150 kilometres southwest of Fort St. John, received court protection from its creditors after failing to arrange refinancing or find a buyer for its assets.
EarthFirst had announced in July that the capital cost of the wind farm was expected to be $35-million higher than projected, mostly due to inflated construction costs, and the company required $50-million in new financing to complete construction. The company also announced it had overestimated potential energy production at the wind farm, which was to be completed next year.
BC Hydro has not yet met with EarthFirst to assess the impact of its financial troubles, Susan Danard, a BC Hydro spokeswoman, said in an interview. “It’s premature to speculate on the future of it," she said. “At this point, we just want to work with the company and see what we can do. We have not yet had a chance to sit down with them."
B.C. Energy Minister Richard Neufeld was unavailable for an interview yesterday.
However, Paul Taylor, president of NaiKun Wind Development Inc., which is developing a proposal for an offshore wind project in B.C., said EarthFirst’s situation has reinforced the government’s approach to work with the private sector on development of power projects. “The risk is appropriately held by the private sector and taxpayers are appropriately sheltered from that," he said.
BC Hydro can focus its capital on sustaining its existing hydroelectric dams and investing in projects such as the proposed new Site C dam, while the private sector can be left to finance the newer power-generation projects, he said.
The EarthFirst project is one of three wind farms under development in B.C.
Bear Mountain Wind Ltd. is constructing a 105-megawatt wind farm at Dawson Creek. Mount Hays Wind Farm Ltd. is building a 25-megawatt farm at Prince Rupert. The three wind farms were to be completed in late 2009.