A bright future for green and clean energy

North American electricity consumption varies with economic activity but is expected to grow strongly. The US Department of Energy forecasts that renewable energy demand will increase by roughly 50% in Canada and the US between 2006 and 2030, based on current trends and assumptions. In addition, the need to replace aging utility plants and to reduce emissions, particularly from coal-fired plants, is contributing to the need for new investment. Because two major renewable sources, wind and solar, are intermittent by nature, their growth creates the complementary need for dispatchable sources, such as clean-burning natural gas-fired generation, which has seen its competitiveness improved by availability of new, low-priced gas reserves in North America.

In Canada, each province manages its electricity sector, including pricing, assessing future requirements and setting and enforcing environmental standards. Several have opened their generation industries to private sector competition in recent years. Most allow independent producers to bid for long-term power purchase agreements on a portion of new electricity generation requirements. The United States has a much larger but more fragmented energy market than Canada, with many opportunities involving secure, long-term energy contracts.

Northland is pursuing project opportunities across North America, with particular focus on jurisdictions where the need for new power is robust and where major developments are planned or underway.

Ontario: Home to several Northland projects, Ontario opened its electricity market in 2002 and made the Ontario Power Authority (OPA) responsible for ensuring an adequate long-term supply of electricity in the province. The province has committed to phasing out its coal-fired plants by 2014 in favour of a mix of renewable and clean energy alternatives.

Ontario’s Green Energy Act (GEA) created a feed-in tariff (FIT) program and a streamlined approval process and priority right to connect for green energy projects. Prices under the FIT program are intended to encourage new green energy investment and employment in the province.

Quebec: Northland is also active in Quebec, where Hydro-Québec has broad powers to procure, generate and distribute electricity. The Régie de l’Énergie is the provincial electricity sector regulator and is responsible for approving Hydro-Québec’s supply plan. Hydro-Québec’s policy is to run competitive processes for wind power and to offer the winners long-term off-take contracts.  

Saskatchewan: This province is another Northland market. SaskPower, a vertically integrated utility, opened its transmission grid to third-party producers in 2001 and has contracted for a mix of green and renewable energy sources to replace its aging coal-fired plants. Northland is pursuing opportunities to expand its portfolio in Saskatchewan.

United States: Northland is actively pursuing both renewable and natural gas-fired power generation opportunities across the United States.