Canada’s ecoEnergy for Renewable Power Program is to make incentive payments to the 2.8-MW Cypress Creek hydroelectric project, under construction in British Columbia.
The government said incentive payments would be made to Synex Energy Resources Ltd., the owner of the project on Vancouver Island. Construction is more than 75 complete, near the community of Gold River. The plant is scheduled for commissioning by late September, subject to water availability and a power purchase agreement.
The ecoEnergy for Renewable Power Program offers a financial incentive of 1 cent per kilowatt-hour produced from low-impact, renewable electricity projects for ten years after commissioning. Although the announcement did not identify the value of the incentive, Cypress Creek could generate about 11 million kWh annually. At 1 cent per kWh, the incentive could total as much as C$1.1 million (US$1.09 million).
Payments are subject to conditions being met at the time of commissioning and during generation. Synex submitted an application for an electricity purchase agreement under BC Hydro’s Standing Offer Program in April. (HNN 4/15/08) BC Hydro approved the Cypress Creek purchase, subject to an updated electrical interconnection study and other provisions.
The government previously announced the ecoEnergy program would provide up to C$47 million (US$46.46 million) in incentive payments to another B.C. project, Columbia Power Corp. and Columbia Basin Trust’s 120-MW Brilliant Expansion. (HNN 6/24/08)
EcoEnergy for Renewable Power is part of the ecoEnergy Renewable Initiative announced by Canada Prime Minister Stephen Harper in January 2007. The renewable power program is to provide C$1.48 billion (US$1.46 billion) to increase Canada’s supply of clean electricity from renewable sources such as hydro, ocean energy, wind, biomass, geothermal, and solar photovoltaic projects.